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AuSguãsot P20a1u4lo, 07 de março de 2012 
Corporate 
Presentation
Agenda 
1 Corporate Overview 
2 Distribution 
3 Generation 
4 Competitive Power Supply and Services 
5 Consolidated financial figures 
2 
6 The Electric Sector
Agenda 
1 Corporate Overview 
2 Distribution 
3 Generation 
4 Competitive Power Supply and Services 
5 Consolidated financial figures 
3 
6 The Electric Sector
4 
Corporate overview – Highlights 
in the Brazilian electricity sector 
• Market cap of , listed 
and on 
• LTM 2Q14 Adj. EBITDA2 of and Adj. Net 
Income2 of 
• Differentiated : >50% of net income, semi-annually. 
since IPO in 2004 
• Presence concentrated in the of Brazil 
through 8 subsidiaries 
private Generator with an equivalent stake of 
, more than 
in in Brazil 
and a 
of 
1) On August 15, 2014; 2) Take into account proportionate consolidation of minorities’ stakes at gencos (+) regulatory assets & liabilities (-) non-recurring 
items.
55 
Corporate structure 
Free Float 
100% 
1 
1) Controlling shareholders; 2) Includes the 0.1% stake of Camargo Corrêa S.A.; 3) Includes the 0,2% stake of Petros e Sistel pension funds; 4) 51.54% stake of 
the availability of power and energy of Serra da Mesa HPP, regarding the Power Purchase Agreement between CPFL Geração and Furnas. 
DISTRIBUTION 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
100% 
65% 
25.01% 
48.72% 
57.13% 
51% 
GENERATION 
100% 
99,95% 
100% 
COMMERCIALIZATION 
100% 
100% 
RENEWABLES 
59.93% 
5.94% Investco 
SERVICES 
100% 
100% 
100% 
58.8% 
100% 
15.1%3 30.5% 
100% Nect Serviços 
24.4%2 30.0% 
Paulista Lajeado 
100% CPFL Centrais Geradoras 
Serra da Mesa HPP 
51.54% 4
World-Class Corporate Governance Practices 
• Shares listed in differentiated segments: 
• BM&FBovespa Novo Mercado 
• NYSE (ADR Level III) 
• Compliant with the Sarbanes-Oxley Act 
• Board of Directors composed by 7 members: 
• 1 Independent Member 
• Advised by 3 Committees 
• Self-Assessment for Board of Directors and Fiscal Council 
• Enforcement of policies for disclosure of information and for 
prevention of insider trading by employees 
• Dividend Policy: 
• Minimum of 50% of net income, semi-annually 
66 
Corporate governance
2015 … 2027 2028 2032 2035 2036 
HPP Foz do 
Chapecó 
HPP Barra 
Grande 
HPP Castro 
Alves 
HPP Monte 
Claro 
HPP 14 de 
Julho 
HPP 
Campos 
Novos 
HPP Luis 
Eduardo 
Magalhães 
CPFL 
Piratininga 
HPP 
Serra da 
Mesa1 
CPFL 
Paulista 
RGE 
19 SHPPs 
(CPFL 
Renováveis) 
1 TPP 
(Carioba) 
CPFL Santa 
Cruz 
CPFL Jaguari 
CPFL Sul 
Paulista 
CPFL Leste 
Paulista 
CPFL Mococa 
SHPP Rio do 
Peixe (I/II) 
SHPP Macaco 
Branco 
CPFL Energia requested 
Aneel to renew the expiring 
concessions 
~3% 
CPFL 
Energia's 
EBITDA 
<1% 
CPFL 
Energia's 
installed 
capacity 
7 
CPFL Energia enjoys long term concessions 
Distribution 
Generation 
1) Furnas has the concession for HPP Serra da Mesa. CPFL has the contractual right of 51.54% of the plant’s assured energy, according to the 30- 
year leasing contract, maturing in 2028.
50% 
22% 
8% 
20% 
3rd Tariff Review Cycle 
CPFL Piratininga Oct-122 
CPFL Santa Cruz 
CPFL Leste Paulista 
CPFL Jaguari 
CPFL Sul Paulista 
CPFL Mococa 
CPFL Paulista Apr-13 
RGE Jun-13 
Feb-132 
8 
CPFL Energia – LTM 2Q14 Adj. EBITDA Breakdown¹ | R$ million 
CPFL Santa Cruz 
CPFL Leste 
Paulista 
CPFL Jaguari 
CPFL Sul Paulista 
CPFL Mococa 
CPFL Energia - Consolidated1 | 3,942 
5% 
1) Adjusted by regulatory assets & liabilities and non-recurring items; does not consider the holding company; 2) 12 months retroactive effect; 3) 
Commercialization in the free market and Services 
8 
Alternative 
Energy 
450 
Conventional 
1,260 
CPFL 
Paulista 
RGE 
CPFL 
Piratininga 
Competitive Supply 
and Services3 
204 
Generation 
1,710 
Distribution 
2,027 
74% 
26% 
51% 
43% 
Generation Segment 
Distribution Segment 
CPFL Energia | EBITDA breakdown
9 
Leadership among private companies in the electric sector, 
with a diversified portfolio in different businesses related to Energy 
99 
GENERATION 
• Operational Excellence, 
presenting the highest 
margins of the sector 
• Expansion of installed 
capacity in hydro and thermal 
• Leadership in renewable 
sources (> 4 GW by 2020) 
COMPETITIVE SUPPLY 
• Leadership in 
commercialization of renewable 
energy in the free market 
• Maximization of profitability, 
considering new market 
conditions 
DISTRIBUTION 
• Market leader, doubling the 
market share in Brazil 
• Operational excellence 
through innovation and new 
technologies (smart grid) 
SERVICES 
• Largest services company in 
the power sector 
• Strong growth of sales 
• Synergies with other 
segments in the Group 
CPFL Energia’s ambitions
Agenda 
1 Corporate Overview 
2 Distribution 
3 Generation 
4 Competitive Power Supply and Services 
5 Consolidated financial figures 
10 
6 The Electric Sector
2009 2010 2011 2012 2013 2Q14 
Distribution Segment 
1º Market share: 13% 
• 7.5 million customers 
• 569 municipalities 
• Footprint: most developed regions 
• High potential in per capita 
consumption 
Industrial 
Commercial 
Residential 
Others 
1) Excluding sales 11 at CCEE; 2) Source: EPE. 
2009 2010 2011 2012 2013 LTM 
2Q13 
LTM 
2Q14 
CAGR 2009-13 Captive TUSD 
4.6% 
27% 42% 
16% 
15% 
+3.5%
Brazilian economy and market performance 
Real wage bill1 and CPFL’s residential 
consumption | %YoY growth 
5.9 
5.9 
6.1 
3.9 
7.3 
4.5 
6.6 
2.9 
4.5 
6.9 
6.8 
6.0 
5.2 
4.9 
6.9 
5.9 
2006 2007 2008 2009 2010 2011 2012 2013 
Real wage bill Residential consumption 
Retail sales2 and CPFL’s commercial 
consumption3 | %YoY growth 
6.2 
9.7 
9.1 
5.9 
10.9 
6.7 
8.5 
5.4 
5.5 
7.7 
5.6 
5.2 
6.0 
6.6 
6.8 
3.6 
2006 2007 2008 2009 2010 2011 2012 2013 
Retail sales Commercial consumption 
Industrial production2 and CPFL’s 
industrial consumption3 | %YoY growth 
2.8 
6.0 
3.1 
-7.4 
10.5 
0.4 
-2.7 
-3.0 
3.3 
6.1 
2.9 
-6.7 
9.3 
3.9 
0.7 
2.0 
2006 2007 2008 2009 2010 2011 2012 2013 
Industrial production Industrial consumption 
Other variables influencing energy 
consumption 
• Population growth 
• Migration 
• Credit 
• Household appliances 
• Temperature 
• Rainfalls 
• Public investments 
1) Source: IBGE/LCA. 2) Source: IBGE. 3) Take into account changes in billing calendar for free consumers. 
12
Footprint in the most developed regions of Brazil 
Southeast: 
CPFL Paulista, CPFL Piratininga, CPFL Santa Cruz, 
CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, 
CPFL Mococa 
South: RGE 
13 
1133 
Distribution business 
Leadership in the distribution segment 
• 8 distribution companies; 
• 13% of market share; 
• 7.5 million customers; 
• 569 municipalities; 
• LTM 2Q14 sales of 59,615 GWh | 04-13 CAGR of 5.4% 
Discos’ Acquisitions | Key dates 
1912 1997-2001 
2006 2007 
Start Up 
1 
1 
1) Acquired by VBC (one of CPFL Paulista’s controlling shareholder at the time) and PSEG in 1997, during the privatization process, and incorporated by CPFL Energia 
in 2001 (67,03%). In 2006, CPFL Energia acquired the additional stake (32.67%).
Distribution: best-in-class operational efficiency 
Avg. Frequency of Power Outages per Consumer per Year – FEC 
2013 (# occurrences) 
4.4 4.6 4.7 4.9 5.0 5.1 5.4 5.5 5.8 6.3 6.3 6.7 6.8 
8.3 8.3 8.7 8.9 9.0 9.8 10.6 10.9 
15.8 
14 
Avg. Length of Power Outages per Consumer per Year - DEC 
2013 (hours) 
4.9 5.9 7.0 7.1 7.4 7.6 8.0 8.1 8.5 9.1 9.1 9.7 
12.5 13.7 15.5 17.4 18.4 18.9 20.1 22.0 22.5 23.2
Zero-Base Budget 
Inefficiencies from past 
budgets are not carried over 
to the next periods 
Tauron Program 
Introduction of the smart 
grid technology in the 
distribution network 
Corporate Services 
Center 
Implementation of a back-office 
services provider to 
increase operating 
productivity and efficiency 
Corporate Level 
Operational Level 
Value Initiatives 
• Optimization of inspections (loss prevention), 
process review, and improvement in 
assertiveness: reduction of ≈17% 
• Metering and delivery of bills - online billing 
(email), changes in layout/type of paper, 
alignment of bank fees for all Discos: 
reduction of ≈11% 
• Reduction of consulting services and “insourcing” 
of activities: reduction of ≈47% 
• Standardization of outsourced labor: reduction 
of ≈52% 
• Improved management of travel expenses: 
reduction of ≈18% 
• Consumption of paper and office supplies: 
reduction of ≈66% 
15 
Cost-cutting Initiatives 
Cost-cutting Initiatives Total (2015 x 2011): 
Cost-cutting already performed (2013 x 2011)1: ≈R$ 236 million 
1) Constant value of Dec/13.
• Real-time consumption readings 
• Analysis of consumer load curve 
• Real-time fraud detection 
• Real-time power outage detection 
Achievements 
Projeto Tauron – smart grid 
Optimized logistics for field teams 
(georeferenced maps) 
• Faster power restoration 
• Savings with optimized routes 
Tablets for real-time communication 
• Dynamic dispatch of teams 
• Automated routing of teams 
• On-line update of field services’ progress 
• Automated dispatch + tablets deployed in ~35% of all teams (RGE and CPFL Piratininga) 
• 21,000 smart meters already installed as of August-14 (84%) – (Target: 25,000 large consumers) 
• Implementation of RF Mesh Telecom Network already concluded 
EBITDA acumulado EBITDA 2013: até setembro: R$ 52.4 million 
R$ 24 milhões 16
Distribution | Key financial figures 
Net revenues1 – Adjusted2 
CAGR 2010-13 
+4.3% 
9,432 9,794 
10,830 10,716 
2010 2011 2012 2013 LTM 2Q14 
CAGR 2010-13 
+1.6% 
39.3 
39.9 
40.7 
+2.9% 
41.1 
42.3 
EBITDA – Adjusted2 Net income – Adjusted2 
11,203 
2,267 2,351 
2,655 
2,211 
2,003 
2010 2011 2012 2013 LTM 2Q14 
1,309 
1,235 
1,356 
1,047 
910 
2010 2011 2012 2013 LTM 2Q14 
1) Excludes construction revenue; 2) Adjusted by non-recurring items and regulatory assets & liabilities. 
+4.5% 
CAGR 2010-13 
-0.8% 
-9.4% 
CAGR 2010-13 
-7.2% 
-13.1% 
Sales in the Captive Market (TWh) 
2010 2011 2012 2013 LTM 2Q14 
17
Agenda 
1 Corporate Overview 
2 Distribution 
3 Generation 
4 Competitive Power Supply and Services 
5 Consolidated financial figures 
18 
6 The Electric Sector
2º Market share: 2.4% 
• Long Term Concessions 
• Brazil’s largest Portfolio in Alternative 
Energy 
• Renewable Sources: 93% 
33% 
Generation Segment 
Installed Capacity1 (MW) | Estimated growth 
CAGR 2000-18e = 19% a.a. 
Semesa Baesa 
Enercan Ceran 
Foz Chapecó 
Epasa 
Baldin 
1) Considering 58.8% stake at CPFL Renováveis, since its creation. 
Creation of 
CPFL Renováveis 
19 
- 
657 657 657 657 660 747 751 
931 1,047 1,055 1,055 
Privatization assets Brownfield Greenfield
Conventional generation | 2,248 MW1 of installed capacity 
CPFL Energia’s power plants – state-of-the-art environmental efficiency 
1998 2004 2005 2007 2007 2008 2008 2010 2010-11 
1,275.0 130.0 690.0 880.0 902.5 130.0 100.0 855.0 341.6 
671.0 59.0 380.6 377.9 526.6 64.0 50.0 432.0 247.6 
51.54% 65.00% 25.01% 48.72% 6.93% 65.00% 65.00% 51.00% 57.13% 
657.1 84.5 172.5 428.7 62.5 84.5 65.0 436.1 195.2 
345.8 38.4 95.2 184.1 36.5 41.6 32.5 220.3 141.5 
1.784 1.4 95.0 32.9 630 5.0 5.0 80.0 - 
0.7 92.9 7.3 26.7 1.4 26.0 20.0 10.7 - 
2028 2036 2036 2035 2032 2036 2036 2036 2042 
20 1) Equivalent stake, including 37.3 MW of small plants at CPFL Geração and 24.3 MW of SHPPs at CPFL Centrais Geradoras.
CPFL Renováveis | Corporate structure 
21 
58.8% 37.0% 
Free float 
16.6% 
100% 
63.0% 24.6% 0.0% 
Pre-IPO 
Post-IPO 
Small Hydro Biomass Wind 
Solar
CPFL Renováveis | Partnership with Dobrevê Energia 
DESA is one of the main independent renewable energy companies in Brazil, 
with total contracted capacity of 331 MW 
Biomass 
22 
3 
2 
5 
1 
4 
R$/MWh 
São Domingos (SC) 
Jul-07 30.0 MW 70.7% 202 
Indiavaí (MT) 
Nov-10 19.4 MW 64.9% 201 
Campina Grande (PR) 
Jun-11 23.0 MW 45.2% 136 
João Câmara (RN) 
Jul-12 145.2 MW 45.5% 186 
João Câmara (RN) 
Sep-13 60.0 MW 49.2% 150 
João Câmara (RN) 
1Q16 29.2 MW 51.8% 124 
Unaí (MG) 
2Q16 24.0 MW 52.1% 131 
SHPP 
Wind 
Portfolio of Projects in the Partnership (MW) Operation Construction Total 
CPFL Renováveis 1,416.8 383.5 1,800.3 
DESA 277.6 53.2 330.8 
CPFL Renováveis After-Partnership 1,694.4 436.7 2,131.1 
1) DESA holds 60% of SHPP Ludesa. 2) The PPAs are based on January 2014 (average values when there is more than one PPA). 3) On December 31, 2013, DESA presented a 
consolidated net debt of R$ 656 million (preliminary value, subject to audit and, therefore, eventual changes) to be added after December 31, 2013 in approximately R$ 200 million. 
Hydro 
Wind 
Solar
CPFL Renováveis | Corporate structure after the joint venture 
Market 
(ARROW) 
Pre-operation 
(2) 
58.84% 5.61% 5.49% 7.12% 2.97% 1.93% 1.47% 7.24% 0.00% 
9.32% 
Market 
(ARROW) 
6.33% 12.63%(1) 
Post-operation 
(2) 
51.41% 4.90% 4.80% 6.22% 2.59% 1.68% 1.29% 8.14% 
1) Shareholders’ stake may suffer adjustments arising from the due diligence. 2) Through CPFL Geração. 
23
24 
CPFL Renováveis | Installed capacity (MW) 
Wind 
SHPP – Small Hydro 
Biomass 
1,495 
Operating 
(Jun-14) 
Under 
construction 
End of 
2018 
Under 
development 
Total 
Portfolio 
100% with PPA 
1,777 
5,544 
Possible 
Probable 
Highly Confident 
3,767 
Small Hydro 
• 35 operating: 327MW 
• Under construction: - 
• Under development: 626MW 
Total: 953MW 
Biomass 
• 8 operating: 370MW 
• Under construction: - 
• Under development: - 
Total: 370MW 
Wind 
• 26 operating: 797MW 
• 11 under construction: 282MW 
• Under development: 3,141MW 
Total: 4,220MW 
Total 
• 66 operating: 1,495MW1 
• 11 under construction: 282MW 
• Under development: 3,767MW 
Total: 5,544MW1 
1) Including Tanquinho solar power plant – 1MWp of installed capacity
CPFL Renováveis | Track record 
(MW) (MWavg) 
CPFL Renováveis (Aug-11) 652 314 
2Q12 25 8 Free market - 
2Q12 70 24 Reserve auction (R$170.91/MWh) Revenue(e): R$ 20 million/year 
2Q12 158 63 PROINFA (R$ 331.11/MWh) Acquisition price: R$ 1,062 million 
3Q12 188 76 Reserve auction (R$ 184.71/MWh) Revenue(e): R$ 115 million/year 
4Q12 40 11 
Alt. sources auction (64%) and 
free market (36%) 
Acquisition price: R$ 111.5 million 
4Q12 1 1 Free market - 
4Q12 20 11 
Alternative sources auction 
(R$176.71/MWh) 
Revenue(e): R$ 112 million/year 
3Q13 50 18 Free market Revenue(e): R$ 22.6 million/year 
4Q13 30 15 Reserve auction (R$ 151,21/MWh) Revenue(e): R$ 18.5 million/year 
4Q13 50 18 Free market Revenue(e): R$ 22.6 million/year 
1Q14 14 5 PROINFA (R$ 338.41/MWh) Acquisition price: R$ 103.4 million 
1Q14 120 53 
Alternative sources auction 
(R$154.81/MWh) 
Revenue(e): R$ 76.7 million/year 
2Q14 78 38 
Alternative sources auction 
(R$161.51/MWh) 
Revenue(e): R$ 52.6 million/year 
Current portfolio (Jun-14) 1,495 655 
25 1) Constant currency (Dec-13)
CPFL Renováveis | Power plants under construction 
Commercial Start-up 
2016-2018(e) 
282 
MW 
147 
MWaverage 
Campo dos Ventos Wind Farms1,4 and São 
Benedito Wind Farms2,4 Pedra Cheirosa Wind Farms3 
Commercial Start-up 20164 20185 
Installed Capacity 231.0 MW 51.3 MW 
Assured Energy7 120.9 MWaverage 26.1 MWaverage 
PPA Free market 20 years 
A-5 Auction 
R$ 125.04 MWh6 until 2037 
Status 
Contract to supply wind turbines signed; executive 
projects in progress 
Negotiation of wind turbines supply in 
progress 
1) Campo dos Ventos I, III, V; 2) Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica, Santa Úrsula São Domingos and Ventos de São Martinho; 3) Pedra Cheirosa I and II; 4) 
Gradual commercial start-up from 2Q16; 5) Gradual commercial start-up from 1H18; 6) Constant Currency (Dec-14); 7) Assured Energy calculated in the P90. 
26
Conventional and Alternative Energy | Key financial figures 
Net Revenues (R$ million) - Adjusted1 EBITDA (R$ million) - Adjusted1 
CAGR 2010-13 = +33.5% 
1,047 
1,351 
1,964 
+15.8% 
2,303 
2,668 
2010 2011 2012 2013 LTM2Q14 
Net Income (R$ million) - Adjusted1 
CAGR 2010-13 = +21.1% 
244 
721 
+4.4% 
373 390 407 
1) Adjusted by proportional consolidation and non-recurring items. 
CAGR 2010-13 = +30.7% 
750 
1,060 
1,427 
+6.9% 
1,583 
1,693 
2010 2011 2012 2013 LTM2Q14 
2010 2011 2012 2013 LTM2Q14 
27 
2013 EBITDA/installed MW
Agenda 
1 Corporate Overview 
2 Distribution 
3 Generation 
4 Competitive Power Supply and Services 
5 Consolidated financial figures 
28 
6 The Electric Sector
Competitive power supply| Regulated vs. free market 
No choice - distribution company Free choice 
Distribution company Distribution company 
Regulated by ANEEL Free negotiation 
Free > 3,000 kW 
after July, 1995 any any 
before July, 1995 
> 69 kV any 
< 69 kV incentivized 
Special 
500-3,000 kW - Group A incentivized 
units totaling 500 kW - Group A incentivized 
29 1) Source: EPE (full year 2013) 
Main differences 
Advantages 
Who can join 
 Lower prices 
 Free choice from energy supplier 
 Better predictability of energy expenses 
 Customization according to consumer seasonality 
27% 
73% 
Free Market1 
Regulated Market
Competitive power supply 
• 284 free consumers 
• Nationwide outreach 
• Value-added product portfolio 
• Synergy with CPFL Renováveis 
Number of Consumers (#) | CPFL Brasil 
3º Market share: 8% 
Portfolio (Free Consumers) 
179 
52 
Inside the 
concession area 
Outside the 
concession area 
Current: 10.9 GW avg 
Potential: +7.9 GW avg 
Free Market 
in Brazil¹ 
211 
73 
30 
• CPFL Brasil was the winner of 
Exame Magazine’s 2013 Best and 
Largest Companies (category 
Energy) 
• The Company was selected among 
gencos, discos, transcos and other 
players in the electric sector 
throughout Brazil 
2010 | 2011 | 2013 
80 74 
CAGR = 30% 
129 141 
231 
284 284 
2008 2009 2010 2011 2012 2013 1Q14 
1) Jun-14 
2008 2009 2010 2011 2012 2013 2Q14
31 
Competitive power supply | Opportunities 
Number of free clients in Brazil 
# of competitive customers – larger than 3 MW # of special customers – from 0.5 to 3 MW 
CAGR=6.9% CAGR=43.6% 
441 465 491 
558 
613 617 
Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 
Current: 9.1 GWavg 
Potential: +1.3 GWavg 
221 
495 
796 
1,048 1,164 
Current: 1.8 GWavg 
Potential: +6.6 GWavg 
192 
Competitive advantages of CPFL: 
market leadership, expertise and synergies with CPFL Renováveis 
Source: ANEEL and CCEE 
Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14
Transmission 
networks 
Self-generation 
networks 
Distribution 
networks 
Recovery of 
equipment 
Services Segment | CPFL Serviços 
32 
• Foundation: 2006 
• Core Business: offers a wide range of value-added services, 
ranging from engineering projects to maintenance and recovery 
of equipment. These services are designed to help consumers 
improve the efficiency, cost and reliability of their electric 
equipment 
• Type of services: construction of transmission and distribution 
networks; maintenance and recovery of equipment; self-generation 
networks (cogeneration, energy-efficiency projects 
and distributed generation arrays – solar energy)
Services Segment | CPFL Total and CPFL Atende 
33 
• CPFL Total offers collection services with an 
established authorized network; capacity to 
collect utility bills, such as water, energy, 
telephone, and cable TV. 
• Capability of cross-sale with other service 
providers, enabling the collection via energy 
bills. 
• Foundation: 2008 
• Core Business: provider of contact center and 
customer relationship services to other utility 
companies 
• Services: face-to-face attendance, back-office, 
credit recovery, toll-free customer support, 
ombudsman, service desk and sales
Competitive power supply and Services | Financials1 
Net revenues EBITDA Net income 
2010 2011 2012 2013 LTM 
34 1) Pro forma 
2Q14 
1,909 
1,699 
2,031 2,031 2,009 
2010 2011 2012 2013 LTM 
2Q14 
201 
164 
127 
52 
136 
2010 2011 2012 2013 LTM 
2Q14 
303 
278 287 
74 
204
Agenda 
1 Corporate Overview 
2 Distribution 
3 Generation 
4 Competitive Power Supply and Services 
5 Consolidated financial figures 
35 
6 The Electric Sector
CPFL Energia | Key financial figures1 
2009 2010 2011 2012 2013 LTM 
2Q14 
10,537 
10,921 
11,413 
13,235 
13,671 
14,245 
3366 
Net revenues | R$ million 
CAGR 2009-13 
6.7% 
4.2% 
-2.7% 
CAGR 2009-13 
2009 2010 2011 2012 2013 LTM 
2Q14 
2,702 
3,260 
3,649 
4,343 
3,848 
3,743 
EBITDA | R$ million 
25.6% 
29.8% 
32.0% 
32.8% 
28.1% 
26.3% 
EBITDA 
EBITDA Margin 
9.2% 
Net Income | R$ million 
CAGR 2009-13 
0.4% 
-9.1% 
2009 2010 2011 2012 2013 LTM 
Net Income 
Net Margin 
2Q14 
1,266 
1,526 
1,503 
1,617 
1,284 
1,167 
12.0% 
14.0% 
13.2% 
12.2% 
9.4% 
8.2% 
1) Take into account proportionate consolidation of minorities’ stakes at gencos (+) regulatory assets & liabilities (-) construction revenues (-) non-recurring 
items.
37 
CPFL Energia | Key financial figures – Dividends 
Dividend Yield 1 (LTM) Declared dividends2 (R$ Mi) CPFL average price (R$/ORD)3 
3.7% 
140 
6.5% 
401 
9.1% 8.7% 
498 
612 
9.6% 
722 
10.9% 
842 
9.7% 
719 
7.6% 7.3% 7.6% 7.9% 8.6% 
602 606 572 
655 
774 
6.9% 
486 
6.0% 
7.1% 
748 758 
6.1% 
640 
4.6% 
456 
3.9% 
363 
4.8% 
568 
2S04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 
8.29 9.43 11.67 
15.02 14.13 15.87 17.99 18.05 16.69 15.77 16.51 18.44 20.18 22.05 21.95 
26.30 
22.95 21.11 19.80 
CPFL has presented payout ration close to 100% since its IPO, reaching the mark 
of R$ 11.2 billion distributed. Declaration of dividend for 2H13: R$ 568 million | 0.59/share 
1) Considering last two half years’ dividend yield. 2) Refers to declared dividend. Payment in the next half year. 3) Considers share price adjusted 
for reversal stock split and simultaneous split of shares on June 29, 2011 (not adjusted per dividends).
Total: 
R$ 7,739 million1 (IFRS) 
R$ 7,213 million2 (Pro-forma) 
38 
Capex(e) 2014-2018 
Generation3: 
R$ 1,425 million (IFRS) 
R$ 899 million (Pro-forma) 
1,553 
Commercialization and Services: 
R$ 488 million 
1,239 1,235 
Distribution: 
R$ 5,826 million 
2,089 
136 
637 
83 
129 
58 68 
28 27 
1,316 1,342 1,153 1,140 
1,842 
1,505 
1,230 1,226 
1,735 1,622 
53 144 
837 603 
845 875 
53 144 
513 392 
845 875 
2013 actual 
(cash flow) 
136 
390 
83 
80 
58 68 
19 18 
1,316 1,342 1,153 1,140 
2014 2015 2016 2017 2018 
1) Constant currency Dec/13. Take into account 100% interest on CPFL Renováveis and Ceran (IFRS) 
2) Constant currency Dec/13. Considers the proportional stake in the generation projects 3) Conventional + Renewable 
Pro-forma IFRS 
1,410 1,410
39 
CPFL Energia | Indebtedness and leverage 
10.0 
12.6 12.2 12.8 13.2 
2.73 2.89 
3.59 3.58 3.45 
2011 2012 2013 1Q14 2Q14 
3,665 4,377 3,399 3,570 3,828 
21% CDI 
70% 
6% 
3% 
Prefixed 
(PSI) 
IGP 
Nominal 
Real 
Adjusted net debt/ 
Adjusted EBITDA3 
Adjusted EBITDA3 
R$ million 
9.4% TJLP 
7.9% 
9.9% 
7.3% 7.1% 
4.9% 4.4% 4.3% 
3.0% 2.4% 3.0% 2.9% 
17.7% 
13.9%13.4% 
12.1% 
13.4% 
9.4% 
10.5%11.1% 
9.0% 8.4% 9.1% 9.7% 
2004 
2005 
2006 
2007 
2008 
2009 
2010 
2011 
2012 
2013 
1Q14 
2Q14 
 Leverage1,2 | R$ billion 
 Gross debt cost4,5 | LTM 
 Gross debt breakdown1,5 
1) Financial covenants criteria; 2) Pending validation of external auditors; 3) LTM recurring EBITDA; 4) IFRS criteria; 5) Financial debt (+) private 
pension fund (-) hedge.
 Debt amortization schedule1,2 | Jun-14 | R$ million 
40 
CPFL Energia | Strong and robust liquidity 
4,549 
Cash coverage: 
1.51x short-term 
amortization (12M) 
3,014 
489 
1,860 
Average tenor: 3.87 years 
Short-term (12M): 17.4% of total 
2,724 
3,325 
3,139 
2,796 
Cash Short-term 2015³ 2016 2017 2018 2019 2020+ 
1) Considers Debt Principal; 2) Covenants Criteria; 3) Amortization from July/2015.
Agenda 
1 Corporate Overview 
2 Distribution 
3 Generation 
4 Competitive Power Supply and Services 
5 Consolidated financial figures 
41 
6 The Electric Sector
Energy sector in Brazil: business segments 
Consumers 
76.1 million consumers 
Captive Market 
76.1 million Consumers 
347 TWh of billed energy2 
Free Market 
1,781 Consumers4 
125 TWh of billed energy2 
Transmission 
• 104 Companies³ 
• 118,105 km of 
transmission lines³ 
• Eletrobrás: ~55% 
of total assets 
Distribution 
• 63 Companies 
• 472 TWh of billed 
energy2 
• Top 5: ~46% of 
the market 
Generation 
• 130 GW of 
installed capacity1 
• 79.9% Renewable 
energy1 
• Eletrobrás: ~31% 
of total assets 
Competitive Power Supply 
1) Source: ANEEL – August 18, 2014; 2) Source: EPE and CCEE; 3) Source: ONS and Ministry of Mines and Energy (MME) – January 31, 2014; 4) 
June, 2014 
42
Brazilian electricity matrix 
Brazilian Electricity Matrix 
Brazil’s electricity matrix is predominantly renewable, with hydro installed capacity totaling 69% of 
the total supply, while biomass, wind and SHPPs account for 14%. In the next years, it is expected 
that other sources will grow, mainly wind, reaching 10% of total installed capacity in 2022. 
Evolution of Installed Capacity (GW) 2013-20221 
2013 2017 2022 
129 GW 153 GW 183 GW 
1) Source: EPE - National Energy Balance 2013 and 10-year Energy Plan 2013-2022; 2) Others: considers coal, oil, diesel and process gas. 
43
Gencos 
Mechanics of regulated auctions 
• “New” Energy: Initial supply 3 years after the auction 
• Term of contract: 15-30 years 
• Objective: Adjust discos’ contracted energy levels 
• Energy contract limit: 2% of the load 
2013 2014 2015 2016 2017 2018 
Reserve Energy Auction - LER: 
Discos are not required to declare contracting needs and generation costs are covered through sector charges 
Discos 
Discos must purchase electric energy to supply their captive market, five years in advance, 
in public auctions (Regulated Market – ACR) 
A-5 Auction 
A-3 Auction 
A-1 Auction 
• New Energy: Initial supply 5 years after the auction 
• Term of contract: 15-30 years 
• Objective: Cover discos market growth and finance new 
generation 
• Energy contract limit: no limit 
• “Old” or Existing Energy: Initial supply in the following year 
• Term of contract: 1-15 years 
• Objective: Replace old contracts, maintaining the discos’ contracting level 
• Energy contract limit: 96% to 100% of the Replacement Amount (MR) 
44
45 
World’s most attractive alternative energy market 
Renewables in Brazil are expected to grow at a CAGR of 8.2%, from 19 GW in 2013 to 38 
GW in 2022 and still a highly fragmented market 
Unrealized Potential to be Explored in Brazil 
Wind 
 Potential: 143GW 
 Installed capacity: 2.9GW 
Potential Realized 
2% 
SHPP 
 Potential: 17.5GW 
 Installed capacity: 5.0GW 
29% 
Biomass 
 Potential: 17.2GW¹ 
 Installed capacity: 9.3GW 
54% 
Evolution of Brazilian Installed Capacity by 
Source | GWh 
Highly Fragmented Market | Renewables 
Market Share in Brazil based on contracted 
energy (26GW) 
3.9% p.a. 
183 
129 
Renova 
Energimp 
QGER 
Brookfield 
CAGR 3 
Cosan 
Eletrosul 
Gestamp 
Elecnor 
Other 
8.2% 
1.3% 6.9% 
7.5% 
3.6% 
2.9% 
2.5% 
2.4% 
2.0% 
1,8% 
1,6% 
67,6% 
38 
19 12 
9 
14 
83 
14 
119 
Renewables 
Other 
Natural Gas 
Hydro 
2013 2022A 
8.2% 
1.0% 
2.5% 
3.9% 
² 
1) 10-year Energy Plan 2013-2022; Installed Capacity : BIG - ANEEL April, 2014 + A-5 Auction; 2) Includes estimates of energy imported from Itaipu 
HPP, which is not consumed by Paraguay Electric System ; 3) Considers the export of 2/3 of energy produced by the Company.
CPFL Renováveis | High quality and diversified portfolio 
Diversified and high quality portfolio, delivering superior performance, mitigating risks, 
ensuring reliable load factors and providing capacity to grow with different sources 
• Selective high quality project development 
• Wind projects certified by industry leaders 
• Backed by high quality equipment suppliers 
• Long term O&M contracts 
• Energy generation monitoring and optimization 
CPFL Renováveis benefits from the 
complementarity of sources 
• Reservoir storage at high levels in the first semester 
46 
4466 
High Quality Development, Construction and 
Operation 
while wind energy generation is concentrated in the 
second semester of the year 
Complementarity of Sources Mitigating Risks 
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 
Wind (Generation - MWavg) Reservoir Storage 
Wind Portfolio 
Attractive location due 
to high wind speeds 
Biomass Portfolio 
Proximity to sugarcane 
production centers 
SHPP Portfolio 
Exposure to 
abundant hydro 
resources 
Installed Capacity1 
Biomass Solar 
21% 0% 
Total: 1,800 MW 
Region MW 
NE 1,023 
CW/SE 506 
SO 271 
Solar 
18% 
61% 
SHPP 
Wind 
Operating: 
Hydro 
Wind 
Biomass 
Under Construction: 
Hydro 
Wind SHPP Potential (Southeast and Midwest Regions) 
Wind Potential (Northeast and South Regions) 
Biomass 
Reservoir Storage (%) 
Wind Generation MW 
1) To be fully operational by 2018
47 
CPFL Renováveis | Unparalleled wind conditions 
combined with top technology 
Europe United States Brazil (NE) 
Area 
89% 
Area 
95% 
Technology Has Shown Great Improvements in Recent Years | Recently developed technology for 
wind power plants allows greater load factors 
Frequency 
Wind Speed (m/s) 
Frequency 
Wind Speed (m/s) 
Frequency 
Wind Speed (m/s) 
Ideal Wind Speed Ideal Wind Speed 
Area 
99% 
Ideal Wind Speed 
1.500kW 
80m 
1.800kW 
100m 
3.000kW 
70m 
50m 
750kW 
30m 
300kW 
17m 
75kW 
1980 - 
1990 
1990 - 
1995 
1995 - 
2000 
2000 - 
2005 
2000 - 
2005 
2010 
180 
160 
140 
120 
100 
80 
60 
40 
20 
0 
Rotor Diameter (m) 
Rating (kW) 
Altura (m) 
Europe and EUA Brazil 
Improved 
availability 
Greater 
efficiency 
Reduced 
generation 
losses 
Wind Features in Brazil are the Most Adequate for Power Generation | The average 
wind in Brazil (Northeast) has a similar intensity with less variability
Stable and solid regulatory framework 
Description Sustainability 
48 
 Natural consequence of projects with lower 
environmental impact 
Environmental 
& Streamlined 
Implementation 
Process 
 Faster and simpler environmental process 
 Faster construction cycle 
 Annual auctions to match growth in energy 
consumption 
 Price of energy at the captive market structurally 
higher than at the free market given regulatory 
charges 
Access to Multiple 
Sales Channels 
 Regulated energy auctions and the free 
market 
 Long term inflation protected/linked PPA 
(average 20-30 years) 
 Special niche in the free market for “special 
client” (demand between 0.5-3.0MW) 
 Current special free market of 2.7% (1.6GW) 
to potential of 9.6% (5.8GW) 
 Not a sector specific benefit 
 BNDES has been providing support for the sector for 
many years 
Dedicated 
Sovereign 
Funding Conditions 
 BNDES Financing 
 Low Cost – average interest rate of 7.0% 
 Long-term funding of 16 years 
 Attractive capital structure 
 Policies in place since 1996 
 Not a direct government expenditure/tax break 
 Not applicable for regulated auctions 
Discounts on 
Transmission 
Charges 
 Discount of at least 50% (TUST and TUSD) 
 Tax regime for small enterprises (annual revenues 
below R$78 mm), which is not sector specific 
 REIDI is applicable for all infrastructure projects 
 ICMS/IPI1: discussions on expanding tax incentives to 
SHPPs 
Favorable Tax 
Regime and 
Fiscal Incentives 
 “Lucro Presumido” with reduction in the 
effective tax rate to 5% - 15% from 34% 
 REIDI (special program of incentives for 
infrastructure development) - exemption of 
PIS/COFINS, 
 Exemption of ICMS (movement tax) and IPI 
(production tax) 
Source: Company ; 1) Tax on revenues
Corporate Presentation - Agosto/14 - CPFL Energia

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Corporate Presentation - Agosto/14 - CPFL Energia

  • 1. AuSguãsot P20a1u4lo, 07 de março de 2012 Corporate Presentation
  • 2. Agenda 1 Corporate Overview 2 Distribution 3 Generation 4 Competitive Power Supply and Services 5 Consolidated financial figures 2 6 The Electric Sector
  • 3. Agenda 1 Corporate Overview 2 Distribution 3 Generation 4 Competitive Power Supply and Services 5 Consolidated financial figures 3 6 The Electric Sector
  • 4. 4 Corporate overview – Highlights in the Brazilian electricity sector • Market cap of , listed and on • LTM 2Q14 Adj. EBITDA2 of and Adj. Net Income2 of • Differentiated : >50% of net income, semi-annually. since IPO in 2004 • Presence concentrated in the of Brazil through 8 subsidiaries private Generator with an equivalent stake of , more than in in Brazil and a of 1) On August 15, 2014; 2) Take into account proportionate consolidation of minorities’ stakes at gencos (+) regulatory assets & liabilities (-) non-recurring items.
  • 5. 55 Corporate structure Free Float 100% 1 1) Controlling shareholders; 2) Includes the 0.1% stake of Camargo Corrêa S.A.; 3) Includes the 0,2% stake of Petros e Sistel pension funds; 4) 51.54% stake of the availability of power and energy of Serra da Mesa HPP, regarding the Power Purchase Agreement between CPFL Geração and Furnas. DISTRIBUTION 100% 100% 100% 100% 100% 100% 100% 100% 65% 25.01% 48.72% 57.13% 51% GENERATION 100% 99,95% 100% COMMERCIALIZATION 100% 100% RENEWABLES 59.93% 5.94% Investco SERVICES 100% 100% 100% 58.8% 100% 15.1%3 30.5% 100% Nect Serviços 24.4%2 30.0% Paulista Lajeado 100% CPFL Centrais Geradoras Serra da Mesa HPP 51.54% 4
  • 6. World-Class Corporate Governance Practices • Shares listed in differentiated segments: • BM&FBovespa Novo Mercado • NYSE (ADR Level III) • Compliant with the Sarbanes-Oxley Act • Board of Directors composed by 7 members: • 1 Independent Member • Advised by 3 Committees • Self-Assessment for Board of Directors and Fiscal Council • Enforcement of policies for disclosure of information and for prevention of insider trading by employees • Dividend Policy: • Minimum of 50% of net income, semi-annually 66 Corporate governance
  • 7. 2015 … 2027 2028 2032 2035 2036 HPP Foz do Chapecó HPP Barra Grande HPP Castro Alves HPP Monte Claro HPP 14 de Julho HPP Campos Novos HPP Luis Eduardo Magalhães CPFL Piratininga HPP Serra da Mesa1 CPFL Paulista RGE 19 SHPPs (CPFL Renováveis) 1 TPP (Carioba) CPFL Santa Cruz CPFL Jaguari CPFL Sul Paulista CPFL Leste Paulista CPFL Mococa SHPP Rio do Peixe (I/II) SHPP Macaco Branco CPFL Energia requested Aneel to renew the expiring concessions ~3% CPFL Energia's EBITDA <1% CPFL Energia's installed capacity 7 CPFL Energia enjoys long term concessions Distribution Generation 1) Furnas has the concession for HPP Serra da Mesa. CPFL has the contractual right of 51.54% of the plant’s assured energy, according to the 30- year leasing contract, maturing in 2028.
  • 8. 50% 22% 8% 20% 3rd Tariff Review Cycle CPFL Piratininga Oct-122 CPFL Santa Cruz CPFL Leste Paulista CPFL Jaguari CPFL Sul Paulista CPFL Mococa CPFL Paulista Apr-13 RGE Jun-13 Feb-132 8 CPFL Energia – LTM 2Q14 Adj. EBITDA Breakdown¹ | R$ million CPFL Santa Cruz CPFL Leste Paulista CPFL Jaguari CPFL Sul Paulista CPFL Mococa CPFL Energia - Consolidated1 | 3,942 5% 1) Adjusted by regulatory assets & liabilities and non-recurring items; does not consider the holding company; 2) 12 months retroactive effect; 3) Commercialization in the free market and Services 8 Alternative Energy 450 Conventional 1,260 CPFL Paulista RGE CPFL Piratininga Competitive Supply and Services3 204 Generation 1,710 Distribution 2,027 74% 26% 51% 43% Generation Segment Distribution Segment CPFL Energia | EBITDA breakdown
  • 9. 9 Leadership among private companies in the electric sector, with a diversified portfolio in different businesses related to Energy 99 GENERATION • Operational Excellence, presenting the highest margins of the sector • Expansion of installed capacity in hydro and thermal • Leadership in renewable sources (> 4 GW by 2020) COMPETITIVE SUPPLY • Leadership in commercialization of renewable energy in the free market • Maximization of profitability, considering new market conditions DISTRIBUTION • Market leader, doubling the market share in Brazil • Operational excellence through innovation and new technologies (smart grid) SERVICES • Largest services company in the power sector • Strong growth of sales • Synergies with other segments in the Group CPFL Energia’s ambitions
  • 10. Agenda 1 Corporate Overview 2 Distribution 3 Generation 4 Competitive Power Supply and Services 5 Consolidated financial figures 10 6 The Electric Sector
  • 11. 2009 2010 2011 2012 2013 2Q14 Distribution Segment 1º Market share: 13% • 7.5 million customers • 569 municipalities • Footprint: most developed regions • High potential in per capita consumption Industrial Commercial Residential Others 1) Excluding sales 11 at CCEE; 2) Source: EPE. 2009 2010 2011 2012 2013 LTM 2Q13 LTM 2Q14 CAGR 2009-13 Captive TUSD 4.6% 27% 42% 16% 15% +3.5%
  • 12. Brazilian economy and market performance Real wage bill1 and CPFL’s residential consumption | %YoY growth 5.9 5.9 6.1 3.9 7.3 4.5 6.6 2.9 4.5 6.9 6.8 6.0 5.2 4.9 6.9 5.9 2006 2007 2008 2009 2010 2011 2012 2013 Real wage bill Residential consumption Retail sales2 and CPFL’s commercial consumption3 | %YoY growth 6.2 9.7 9.1 5.9 10.9 6.7 8.5 5.4 5.5 7.7 5.6 5.2 6.0 6.6 6.8 3.6 2006 2007 2008 2009 2010 2011 2012 2013 Retail sales Commercial consumption Industrial production2 and CPFL’s industrial consumption3 | %YoY growth 2.8 6.0 3.1 -7.4 10.5 0.4 -2.7 -3.0 3.3 6.1 2.9 -6.7 9.3 3.9 0.7 2.0 2006 2007 2008 2009 2010 2011 2012 2013 Industrial production Industrial consumption Other variables influencing energy consumption • Population growth • Migration • Credit • Household appliances • Temperature • Rainfalls • Public investments 1) Source: IBGE/LCA. 2) Source: IBGE. 3) Take into account changes in billing calendar for free consumers. 12
  • 13. Footprint in the most developed regions of Brazil Southeast: CPFL Paulista, CPFL Piratininga, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa South: RGE 13 1133 Distribution business Leadership in the distribution segment • 8 distribution companies; • 13% of market share; • 7.5 million customers; • 569 municipalities; • LTM 2Q14 sales of 59,615 GWh | 04-13 CAGR of 5.4% Discos’ Acquisitions | Key dates 1912 1997-2001 2006 2007 Start Up 1 1 1) Acquired by VBC (one of CPFL Paulista’s controlling shareholder at the time) and PSEG in 1997, during the privatization process, and incorporated by CPFL Energia in 2001 (67,03%). In 2006, CPFL Energia acquired the additional stake (32.67%).
  • 14. Distribution: best-in-class operational efficiency Avg. Frequency of Power Outages per Consumer per Year – FEC 2013 (# occurrences) 4.4 4.6 4.7 4.9 5.0 5.1 5.4 5.5 5.8 6.3 6.3 6.7 6.8 8.3 8.3 8.7 8.9 9.0 9.8 10.6 10.9 15.8 14 Avg. Length of Power Outages per Consumer per Year - DEC 2013 (hours) 4.9 5.9 7.0 7.1 7.4 7.6 8.0 8.1 8.5 9.1 9.1 9.7 12.5 13.7 15.5 17.4 18.4 18.9 20.1 22.0 22.5 23.2
  • 15. Zero-Base Budget Inefficiencies from past budgets are not carried over to the next periods Tauron Program Introduction of the smart grid technology in the distribution network Corporate Services Center Implementation of a back-office services provider to increase operating productivity and efficiency Corporate Level Operational Level Value Initiatives • Optimization of inspections (loss prevention), process review, and improvement in assertiveness: reduction of ≈17% • Metering and delivery of bills - online billing (email), changes in layout/type of paper, alignment of bank fees for all Discos: reduction of ≈11% • Reduction of consulting services and “insourcing” of activities: reduction of ≈47% • Standardization of outsourced labor: reduction of ≈52% • Improved management of travel expenses: reduction of ≈18% • Consumption of paper and office supplies: reduction of ≈66% 15 Cost-cutting Initiatives Cost-cutting Initiatives Total (2015 x 2011): Cost-cutting already performed (2013 x 2011)1: ≈R$ 236 million 1) Constant value of Dec/13.
  • 16. • Real-time consumption readings • Analysis of consumer load curve • Real-time fraud detection • Real-time power outage detection Achievements Projeto Tauron – smart grid Optimized logistics for field teams (georeferenced maps) • Faster power restoration • Savings with optimized routes Tablets for real-time communication • Dynamic dispatch of teams • Automated routing of teams • On-line update of field services’ progress • Automated dispatch + tablets deployed in ~35% of all teams (RGE and CPFL Piratininga) • 21,000 smart meters already installed as of August-14 (84%) – (Target: 25,000 large consumers) • Implementation of RF Mesh Telecom Network already concluded EBITDA acumulado EBITDA 2013: até setembro: R$ 52.4 million R$ 24 milhões 16
  • 17. Distribution | Key financial figures Net revenues1 – Adjusted2 CAGR 2010-13 +4.3% 9,432 9,794 10,830 10,716 2010 2011 2012 2013 LTM 2Q14 CAGR 2010-13 +1.6% 39.3 39.9 40.7 +2.9% 41.1 42.3 EBITDA – Adjusted2 Net income – Adjusted2 11,203 2,267 2,351 2,655 2,211 2,003 2010 2011 2012 2013 LTM 2Q14 1,309 1,235 1,356 1,047 910 2010 2011 2012 2013 LTM 2Q14 1) Excludes construction revenue; 2) Adjusted by non-recurring items and regulatory assets & liabilities. +4.5% CAGR 2010-13 -0.8% -9.4% CAGR 2010-13 -7.2% -13.1% Sales in the Captive Market (TWh) 2010 2011 2012 2013 LTM 2Q14 17
  • 18. Agenda 1 Corporate Overview 2 Distribution 3 Generation 4 Competitive Power Supply and Services 5 Consolidated financial figures 18 6 The Electric Sector
  • 19. 2º Market share: 2.4% • Long Term Concessions • Brazil’s largest Portfolio in Alternative Energy • Renewable Sources: 93% 33% Generation Segment Installed Capacity1 (MW) | Estimated growth CAGR 2000-18e = 19% a.a. Semesa Baesa Enercan Ceran Foz Chapecó Epasa Baldin 1) Considering 58.8% stake at CPFL Renováveis, since its creation. Creation of CPFL Renováveis 19 - 657 657 657 657 660 747 751 931 1,047 1,055 1,055 Privatization assets Brownfield Greenfield
  • 20. Conventional generation | 2,248 MW1 of installed capacity CPFL Energia’s power plants – state-of-the-art environmental efficiency 1998 2004 2005 2007 2007 2008 2008 2010 2010-11 1,275.0 130.0 690.0 880.0 902.5 130.0 100.0 855.0 341.6 671.0 59.0 380.6 377.9 526.6 64.0 50.0 432.0 247.6 51.54% 65.00% 25.01% 48.72% 6.93% 65.00% 65.00% 51.00% 57.13% 657.1 84.5 172.5 428.7 62.5 84.5 65.0 436.1 195.2 345.8 38.4 95.2 184.1 36.5 41.6 32.5 220.3 141.5 1.784 1.4 95.0 32.9 630 5.0 5.0 80.0 - 0.7 92.9 7.3 26.7 1.4 26.0 20.0 10.7 - 2028 2036 2036 2035 2032 2036 2036 2036 2042 20 1) Equivalent stake, including 37.3 MW of small plants at CPFL Geração and 24.3 MW of SHPPs at CPFL Centrais Geradoras.
  • 21. CPFL Renováveis | Corporate structure 21 58.8% 37.0% Free float 16.6% 100% 63.0% 24.6% 0.0% Pre-IPO Post-IPO Small Hydro Biomass Wind Solar
  • 22. CPFL Renováveis | Partnership with Dobrevê Energia DESA is one of the main independent renewable energy companies in Brazil, with total contracted capacity of 331 MW Biomass 22 3 2 5 1 4 R$/MWh São Domingos (SC) Jul-07 30.0 MW 70.7% 202 Indiavaí (MT) Nov-10 19.4 MW 64.9% 201 Campina Grande (PR) Jun-11 23.0 MW 45.2% 136 João Câmara (RN) Jul-12 145.2 MW 45.5% 186 João Câmara (RN) Sep-13 60.0 MW 49.2% 150 João Câmara (RN) 1Q16 29.2 MW 51.8% 124 Unaí (MG) 2Q16 24.0 MW 52.1% 131 SHPP Wind Portfolio of Projects in the Partnership (MW) Operation Construction Total CPFL Renováveis 1,416.8 383.5 1,800.3 DESA 277.6 53.2 330.8 CPFL Renováveis After-Partnership 1,694.4 436.7 2,131.1 1) DESA holds 60% of SHPP Ludesa. 2) The PPAs are based on January 2014 (average values when there is more than one PPA). 3) On December 31, 2013, DESA presented a consolidated net debt of R$ 656 million (preliminary value, subject to audit and, therefore, eventual changes) to be added after December 31, 2013 in approximately R$ 200 million. Hydro Wind Solar
  • 23. CPFL Renováveis | Corporate structure after the joint venture Market (ARROW) Pre-operation (2) 58.84% 5.61% 5.49% 7.12% 2.97% 1.93% 1.47% 7.24% 0.00% 9.32% Market (ARROW) 6.33% 12.63%(1) Post-operation (2) 51.41% 4.90% 4.80% 6.22% 2.59% 1.68% 1.29% 8.14% 1) Shareholders’ stake may suffer adjustments arising from the due diligence. 2) Through CPFL Geração. 23
  • 24. 24 CPFL Renováveis | Installed capacity (MW) Wind SHPP – Small Hydro Biomass 1,495 Operating (Jun-14) Under construction End of 2018 Under development Total Portfolio 100% with PPA 1,777 5,544 Possible Probable Highly Confident 3,767 Small Hydro • 35 operating: 327MW • Under construction: - • Under development: 626MW Total: 953MW Biomass • 8 operating: 370MW • Under construction: - • Under development: - Total: 370MW Wind • 26 operating: 797MW • 11 under construction: 282MW • Under development: 3,141MW Total: 4,220MW Total • 66 operating: 1,495MW1 • 11 under construction: 282MW • Under development: 3,767MW Total: 5,544MW1 1) Including Tanquinho solar power plant – 1MWp of installed capacity
  • 25. CPFL Renováveis | Track record (MW) (MWavg) CPFL Renováveis (Aug-11) 652 314 2Q12 25 8 Free market - 2Q12 70 24 Reserve auction (R$170.91/MWh) Revenue(e): R$ 20 million/year 2Q12 158 63 PROINFA (R$ 331.11/MWh) Acquisition price: R$ 1,062 million 3Q12 188 76 Reserve auction (R$ 184.71/MWh) Revenue(e): R$ 115 million/year 4Q12 40 11 Alt. sources auction (64%) and free market (36%) Acquisition price: R$ 111.5 million 4Q12 1 1 Free market - 4Q12 20 11 Alternative sources auction (R$176.71/MWh) Revenue(e): R$ 112 million/year 3Q13 50 18 Free market Revenue(e): R$ 22.6 million/year 4Q13 30 15 Reserve auction (R$ 151,21/MWh) Revenue(e): R$ 18.5 million/year 4Q13 50 18 Free market Revenue(e): R$ 22.6 million/year 1Q14 14 5 PROINFA (R$ 338.41/MWh) Acquisition price: R$ 103.4 million 1Q14 120 53 Alternative sources auction (R$154.81/MWh) Revenue(e): R$ 76.7 million/year 2Q14 78 38 Alternative sources auction (R$161.51/MWh) Revenue(e): R$ 52.6 million/year Current portfolio (Jun-14) 1,495 655 25 1) Constant currency (Dec-13)
  • 26. CPFL Renováveis | Power plants under construction Commercial Start-up 2016-2018(e) 282 MW 147 MWaverage Campo dos Ventos Wind Farms1,4 and São Benedito Wind Farms2,4 Pedra Cheirosa Wind Farms3 Commercial Start-up 20164 20185 Installed Capacity 231.0 MW 51.3 MW Assured Energy7 120.9 MWaverage 26.1 MWaverage PPA Free market 20 years A-5 Auction R$ 125.04 MWh6 until 2037 Status Contract to supply wind turbines signed; executive projects in progress Negotiation of wind turbines supply in progress 1) Campo dos Ventos I, III, V; 2) Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica, Santa Úrsula São Domingos and Ventos de São Martinho; 3) Pedra Cheirosa I and II; 4) Gradual commercial start-up from 2Q16; 5) Gradual commercial start-up from 1H18; 6) Constant Currency (Dec-14); 7) Assured Energy calculated in the P90. 26
  • 27. Conventional and Alternative Energy | Key financial figures Net Revenues (R$ million) - Adjusted1 EBITDA (R$ million) - Adjusted1 CAGR 2010-13 = +33.5% 1,047 1,351 1,964 +15.8% 2,303 2,668 2010 2011 2012 2013 LTM2Q14 Net Income (R$ million) - Adjusted1 CAGR 2010-13 = +21.1% 244 721 +4.4% 373 390 407 1) Adjusted by proportional consolidation and non-recurring items. CAGR 2010-13 = +30.7% 750 1,060 1,427 +6.9% 1,583 1,693 2010 2011 2012 2013 LTM2Q14 2010 2011 2012 2013 LTM2Q14 27 2013 EBITDA/installed MW
  • 28. Agenda 1 Corporate Overview 2 Distribution 3 Generation 4 Competitive Power Supply and Services 5 Consolidated financial figures 28 6 The Electric Sector
  • 29. Competitive power supply| Regulated vs. free market No choice - distribution company Free choice Distribution company Distribution company Regulated by ANEEL Free negotiation Free > 3,000 kW after July, 1995 any any before July, 1995 > 69 kV any < 69 kV incentivized Special 500-3,000 kW - Group A incentivized units totaling 500 kW - Group A incentivized 29 1) Source: EPE (full year 2013) Main differences Advantages Who can join  Lower prices  Free choice from energy supplier  Better predictability of energy expenses  Customization according to consumer seasonality 27% 73% Free Market1 Regulated Market
  • 30. Competitive power supply • 284 free consumers • Nationwide outreach • Value-added product portfolio • Synergy with CPFL Renováveis Number of Consumers (#) | CPFL Brasil 3º Market share: 8% Portfolio (Free Consumers) 179 52 Inside the concession area Outside the concession area Current: 10.9 GW avg Potential: +7.9 GW avg Free Market in Brazil¹ 211 73 30 • CPFL Brasil was the winner of Exame Magazine’s 2013 Best and Largest Companies (category Energy) • The Company was selected among gencos, discos, transcos and other players in the electric sector throughout Brazil 2010 | 2011 | 2013 80 74 CAGR = 30% 129 141 231 284 284 2008 2009 2010 2011 2012 2013 1Q14 1) Jun-14 2008 2009 2010 2011 2012 2013 2Q14
  • 31. 31 Competitive power supply | Opportunities Number of free clients in Brazil # of competitive customers – larger than 3 MW # of special customers – from 0.5 to 3 MW CAGR=6.9% CAGR=43.6% 441 465 491 558 613 617 Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Current: 9.1 GWavg Potential: +1.3 GWavg 221 495 796 1,048 1,164 Current: 1.8 GWavg Potential: +6.6 GWavg 192 Competitive advantages of CPFL: market leadership, expertise and synergies with CPFL Renováveis Source: ANEEL and CCEE Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14
  • 32. Transmission networks Self-generation networks Distribution networks Recovery of equipment Services Segment | CPFL Serviços 32 • Foundation: 2006 • Core Business: offers a wide range of value-added services, ranging from engineering projects to maintenance and recovery of equipment. These services are designed to help consumers improve the efficiency, cost and reliability of their electric equipment • Type of services: construction of transmission and distribution networks; maintenance and recovery of equipment; self-generation networks (cogeneration, energy-efficiency projects and distributed generation arrays – solar energy)
  • 33. Services Segment | CPFL Total and CPFL Atende 33 • CPFL Total offers collection services with an established authorized network; capacity to collect utility bills, such as water, energy, telephone, and cable TV. • Capability of cross-sale with other service providers, enabling the collection via energy bills. • Foundation: 2008 • Core Business: provider of contact center and customer relationship services to other utility companies • Services: face-to-face attendance, back-office, credit recovery, toll-free customer support, ombudsman, service desk and sales
  • 34. Competitive power supply and Services | Financials1 Net revenues EBITDA Net income 2010 2011 2012 2013 LTM 34 1) Pro forma 2Q14 1,909 1,699 2,031 2,031 2,009 2010 2011 2012 2013 LTM 2Q14 201 164 127 52 136 2010 2011 2012 2013 LTM 2Q14 303 278 287 74 204
  • 35. Agenda 1 Corporate Overview 2 Distribution 3 Generation 4 Competitive Power Supply and Services 5 Consolidated financial figures 35 6 The Electric Sector
  • 36. CPFL Energia | Key financial figures1 2009 2010 2011 2012 2013 LTM 2Q14 10,537 10,921 11,413 13,235 13,671 14,245 3366 Net revenues | R$ million CAGR 2009-13 6.7% 4.2% -2.7% CAGR 2009-13 2009 2010 2011 2012 2013 LTM 2Q14 2,702 3,260 3,649 4,343 3,848 3,743 EBITDA | R$ million 25.6% 29.8% 32.0% 32.8% 28.1% 26.3% EBITDA EBITDA Margin 9.2% Net Income | R$ million CAGR 2009-13 0.4% -9.1% 2009 2010 2011 2012 2013 LTM Net Income Net Margin 2Q14 1,266 1,526 1,503 1,617 1,284 1,167 12.0% 14.0% 13.2% 12.2% 9.4% 8.2% 1) Take into account proportionate consolidation of minorities’ stakes at gencos (+) regulatory assets & liabilities (-) construction revenues (-) non-recurring items.
  • 37. 37 CPFL Energia | Key financial figures – Dividends Dividend Yield 1 (LTM) Declared dividends2 (R$ Mi) CPFL average price (R$/ORD)3 3.7% 140 6.5% 401 9.1% 8.7% 498 612 9.6% 722 10.9% 842 9.7% 719 7.6% 7.3% 7.6% 7.9% 8.6% 602 606 572 655 774 6.9% 486 6.0% 7.1% 748 758 6.1% 640 4.6% 456 3.9% 363 4.8% 568 2S04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 8.29 9.43 11.67 15.02 14.13 15.87 17.99 18.05 16.69 15.77 16.51 18.44 20.18 22.05 21.95 26.30 22.95 21.11 19.80 CPFL has presented payout ration close to 100% since its IPO, reaching the mark of R$ 11.2 billion distributed. Declaration of dividend for 2H13: R$ 568 million | 0.59/share 1) Considering last two half years’ dividend yield. 2) Refers to declared dividend. Payment in the next half year. 3) Considers share price adjusted for reversal stock split and simultaneous split of shares on June 29, 2011 (not adjusted per dividends).
  • 38. Total: R$ 7,739 million1 (IFRS) R$ 7,213 million2 (Pro-forma) 38 Capex(e) 2014-2018 Generation3: R$ 1,425 million (IFRS) R$ 899 million (Pro-forma) 1,553 Commercialization and Services: R$ 488 million 1,239 1,235 Distribution: R$ 5,826 million 2,089 136 637 83 129 58 68 28 27 1,316 1,342 1,153 1,140 1,842 1,505 1,230 1,226 1,735 1,622 53 144 837 603 845 875 53 144 513 392 845 875 2013 actual (cash flow) 136 390 83 80 58 68 19 18 1,316 1,342 1,153 1,140 2014 2015 2016 2017 2018 1) Constant currency Dec/13. Take into account 100% interest on CPFL Renováveis and Ceran (IFRS) 2) Constant currency Dec/13. Considers the proportional stake in the generation projects 3) Conventional + Renewable Pro-forma IFRS 1,410 1,410
  • 39. 39 CPFL Energia | Indebtedness and leverage 10.0 12.6 12.2 12.8 13.2 2.73 2.89 3.59 3.58 3.45 2011 2012 2013 1Q14 2Q14 3,665 4,377 3,399 3,570 3,828 21% CDI 70% 6% 3% Prefixed (PSI) IGP Nominal Real Adjusted net debt/ Adjusted EBITDA3 Adjusted EBITDA3 R$ million 9.4% TJLP 7.9% 9.9% 7.3% 7.1% 4.9% 4.4% 4.3% 3.0% 2.4% 3.0% 2.9% 17.7% 13.9%13.4% 12.1% 13.4% 9.4% 10.5%11.1% 9.0% 8.4% 9.1% 9.7% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q14 2Q14  Leverage1,2 | R$ billion  Gross debt cost4,5 | LTM  Gross debt breakdown1,5 1) Financial covenants criteria; 2) Pending validation of external auditors; 3) LTM recurring EBITDA; 4) IFRS criteria; 5) Financial debt (+) private pension fund (-) hedge.
  • 40.  Debt amortization schedule1,2 | Jun-14 | R$ million 40 CPFL Energia | Strong and robust liquidity 4,549 Cash coverage: 1.51x short-term amortization (12M) 3,014 489 1,860 Average tenor: 3.87 years Short-term (12M): 17.4% of total 2,724 3,325 3,139 2,796 Cash Short-term 2015³ 2016 2017 2018 2019 2020+ 1) Considers Debt Principal; 2) Covenants Criteria; 3) Amortization from July/2015.
  • 41. Agenda 1 Corporate Overview 2 Distribution 3 Generation 4 Competitive Power Supply and Services 5 Consolidated financial figures 41 6 The Electric Sector
  • 42. Energy sector in Brazil: business segments Consumers 76.1 million consumers Captive Market 76.1 million Consumers 347 TWh of billed energy2 Free Market 1,781 Consumers4 125 TWh of billed energy2 Transmission • 104 Companies³ • 118,105 km of transmission lines³ • Eletrobrás: ~55% of total assets Distribution • 63 Companies • 472 TWh of billed energy2 • Top 5: ~46% of the market Generation • 130 GW of installed capacity1 • 79.9% Renewable energy1 • Eletrobrás: ~31% of total assets Competitive Power Supply 1) Source: ANEEL – August 18, 2014; 2) Source: EPE and CCEE; 3) Source: ONS and Ministry of Mines and Energy (MME) – January 31, 2014; 4) June, 2014 42
  • 43. Brazilian electricity matrix Brazilian Electricity Matrix Brazil’s electricity matrix is predominantly renewable, with hydro installed capacity totaling 69% of the total supply, while biomass, wind and SHPPs account for 14%. In the next years, it is expected that other sources will grow, mainly wind, reaching 10% of total installed capacity in 2022. Evolution of Installed Capacity (GW) 2013-20221 2013 2017 2022 129 GW 153 GW 183 GW 1) Source: EPE - National Energy Balance 2013 and 10-year Energy Plan 2013-2022; 2) Others: considers coal, oil, diesel and process gas. 43
  • 44. Gencos Mechanics of regulated auctions • “New” Energy: Initial supply 3 years after the auction • Term of contract: 15-30 years • Objective: Adjust discos’ contracted energy levels • Energy contract limit: 2% of the load 2013 2014 2015 2016 2017 2018 Reserve Energy Auction - LER: Discos are not required to declare contracting needs and generation costs are covered through sector charges Discos Discos must purchase electric energy to supply their captive market, five years in advance, in public auctions (Regulated Market – ACR) A-5 Auction A-3 Auction A-1 Auction • New Energy: Initial supply 5 years after the auction • Term of contract: 15-30 years • Objective: Cover discos market growth and finance new generation • Energy contract limit: no limit • “Old” or Existing Energy: Initial supply in the following year • Term of contract: 1-15 years • Objective: Replace old contracts, maintaining the discos’ contracting level • Energy contract limit: 96% to 100% of the Replacement Amount (MR) 44
  • 45. 45 World’s most attractive alternative energy market Renewables in Brazil are expected to grow at a CAGR of 8.2%, from 19 GW in 2013 to 38 GW in 2022 and still a highly fragmented market Unrealized Potential to be Explored in Brazil Wind  Potential: 143GW  Installed capacity: 2.9GW Potential Realized 2% SHPP  Potential: 17.5GW  Installed capacity: 5.0GW 29% Biomass  Potential: 17.2GW¹  Installed capacity: 9.3GW 54% Evolution of Brazilian Installed Capacity by Source | GWh Highly Fragmented Market | Renewables Market Share in Brazil based on contracted energy (26GW) 3.9% p.a. 183 129 Renova Energimp QGER Brookfield CAGR 3 Cosan Eletrosul Gestamp Elecnor Other 8.2% 1.3% 6.9% 7.5% 3.6% 2.9% 2.5% 2.4% 2.0% 1,8% 1,6% 67,6% 38 19 12 9 14 83 14 119 Renewables Other Natural Gas Hydro 2013 2022A 8.2% 1.0% 2.5% 3.9% ² 1) 10-year Energy Plan 2013-2022; Installed Capacity : BIG - ANEEL April, 2014 + A-5 Auction; 2) Includes estimates of energy imported from Itaipu HPP, which is not consumed by Paraguay Electric System ; 3) Considers the export of 2/3 of energy produced by the Company.
  • 46. CPFL Renováveis | High quality and diversified portfolio Diversified and high quality portfolio, delivering superior performance, mitigating risks, ensuring reliable load factors and providing capacity to grow with different sources • Selective high quality project development • Wind projects certified by industry leaders • Backed by high quality equipment suppliers • Long term O&M contracts • Energy generation monitoring and optimization CPFL Renováveis benefits from the complementarity of sources • Reservoir storage at high levels in the first semester 46 4466 High Quality Development, Construction and Operation while wind energy generation is concentrated in the second semester of the year Complementarity of Sources Mitigating Risks Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wind (Generation - MWavg) Reservoir Storage Wind Portfolio Attractive location due to high wind speeds Biomass Portfolio Proximity to sugarcane production centers SHPP Portfolio Exposure to abundant hydro resources Installed Capacity1 Biomass Solar 21% 0% Total: 1,800 MW Region MW NE 1,023 CW/SE 506 SO 271 Solar 18% 61% SHPP Wind Operating: Hydro Wind Biomass Under Construction: Hydro Wind SHPP Potential (Southeast and Midwest Regions) Wind Potential (Northeast and South Regions) Biomass Reservoir Storage (%) Wind Generation MW 1) To be fully operational by 2018
  • 47. 47 CPFL Renováveis | Unparalleled wind conditions combined with top technology Europe United States Brazil (NE) Area 89% Area 95% Technology Has Shown Great Improvements in Recent Years | Recently developed technology for wind power plants allows greater load factors Frequency Wind Speed (m/s) Frequency Wind Speed (m/s) Frequency Wind Speed (m/s) Ideal Wind Speed Ideal Wind Speed Area 99% Ideal Wind Speed 1.500kW 80m 1.800kW 100m 3.000kW 70m 50m 750kW 30m 300kW 17m 75kW 1980 - 1990 1990 - 1995 1995 - 2000 2000 - 2005 2000 - 2005 2010 180 160 140 120 100 80 60 40 20 0 Rotor Diameter (m) Rating (kW) Altura (m) Europe and EUA Brazil Improved availability Greater efficiency Reduced generation losses Wind Features in Brazil are the Most Adequate for Power Generation | The average wind in Brazil (Northeast) has a similar intensity with less variability
  • 48. Stable and solid regulatory framework Description Sustainability 48  Natural consequence of projects with lower environmental impact Environmental & Streamlined Implementation Process  Faster and simpler environmental process  Faster construction cycle  Annual auctions to match growth in energy consumption  Price of energy at the captive market structurally higher than at the free market given regulatory charges Access to Multiple Sales Channels  Regulated energy auctions and the free market  Long term inflation protected/linked PPA (average 20-30 years)  Special niche in the free market for “special client” (demand between 0.5-3.0MW)  Current special free market of 2.7% (1.6GW) to potential of 9.6% (5.8GW)  Not a sector specific benefit  BNDES has been providing support for the sector for many years Dedicated Sovereign Funding Conditions  BNDES Financing  Low Cost – average interest rate of 7.0%  Long-term funding of 16 years  Attractive capital structure  Policies in place since 1996  Not a direct government expenditure/tax break  Not applicable for regulated auctions Discounts on Transmission Charges  Discount of at least 50% (TUST and TUSD)  Tax regime for small enterprises (annual revenues below R$78 mm), which is not sector specific  REIDI is applicable for all infrastructure projects  ICMS/IPI1: discussions on expanding tax incentives to SHPPs Favorable Tax Regime and Fiscal Incentives  “Lucro Presumido” with reduction in the effective tax rate to 5% - 15% from 34%  REIDI (special program of incentives for infrastructure development) - exemption of PIS/COFINS,  Exemption of ICMS (movement tax) and IPI (production tax) Source: Company ; 1) Tax on revenues