2. Disclaimer
This presentation may contain statements that represent expectations about future events or results according to Brazilian
and international securities regulators. These statements are based on certain assumptions and analyses made by the
Company pursuant t it experience and th economic environment, market conditions and expected f t
C t to its i d the i i t k t diti d t d future events, many
t
of which are beyond the Company's control. Important factors that could lead to significant differences between actual
results and expectations about future events or results include the Company's business strategy, Brazilian and international
economic conditions, technology, financial strategy, developments in the utilities industry, hydrological conditions, financial
market conditions uncertainty regarding the results of future operations plans objectives expectations and intentions
conditions, operations, plans, objectives, intentions,
among others. Considering these factors, the Company's actual results may differ materially from those indicated or implied
in forward-looking statements about future events or results.
The information and opinions contained herein should not be construed as a recommendation to potential investors and no
investment decision should be based on the truthfulness, timeliness or completeness of such information or opinions. None
of the advisors to the company or parties related to them or their representatives shall be liable for any losses that may
result from the use or contents of this presentation.
This material includes forward-looking statements subject to risks and uncertainties which are based on current
forward looking uncertainties,
expectations and projections about future events and trends that may affect the Company's business. These statements
may include projections of economic growth, demand, energy supply, as well as information about its competitive position,
the regulatory environment, potential growth opportunities and other matters. Many factors could adversely affect the
est ates a d assu pt o s o
estimates and assumptions on which these statements are based.
c t ese state e ts a e based
2
4. Corporate overview – Highlights
The largest 2nd largest player in the electric sector in terms of
Market Cap (R$ 22 billion in Mar, 2011)
private player
R$ 3.4 billion EBITDA and R$ 1.6 billion Net Income1
in the Brazilian
Electric Sector Main player in Renewable Energy in Latin America
Leadership in the distribution business through
8 distributors. Energy market is concentrated in the
most developed regions of Brazil
Leadership in the commercialization business
2,396 MW generation installed capacity in 2010,
91% renewable sources. 4 biomass plants and 8
wind farms under construction
Bovespa’s Novo Mercado and NYSE’s ADR Level III
y
Differentiated Dividend Policy: minimum 50% of the
net income semi-annually. Practices 95%
4 1) IFRS
5. Brazilian’s largest player in distribution and commercialization businesses
CPFL Energia | 2010 Market-share
ALIZATION
Distribution CPFL 13%1
Concession Area (captive + TUSD)
COMMERCIA
• 6.7 million customers
Others:
• 568 municipalities 87%
• Sales of 52,378 GWh2
3 major
Market leader players
p y : 34%
Generation CPFL 2%3
Focused mainly in renewables
• 45 power plants operating Others:
ON
2,396
2 396 MW installed capacity
GENERATIO
• 98%
• 12 plants under construction
3 major
3rd private generator players: 28%
Comercialization
DISTRIBUTION
N
CPFL 16%3
Energy free market and Services
• 129 free customers
• Sales of 13,000 GWh Others:
• Services: revenues of R$ 120 million
$ 84%
D
Market leader 3 major
players: 35%
5 1) Aneel – last available information 2) Concession area sales (excludes CCEE) 3) In Dec, 2010
6. Best corporate governance practices
Advanced Corporate Governance Practices:
1st Brazilian company
• Shares listed on differentiated segments:
• Bovespa Novo Mercado
• ADR III - NYSE Annual Client Leadership
Award IFC 2008
• Compliance with the Sarbanes-Oxley Act
• Board of Directors made up of 7 members:
• 1 Independent Member
I d d tM b Member of the Companies
• 3 Board Advisory Committees Circle – OCDE/IFC
• Self-Assessment through Fiscal Council
• General Shareholders Meeting Participation Manual
• Securities Information Disclosure and Trading Manual Ranked on the 50 Largest Sustainable Latin
• Dividend Payout Policy: American companies list (2008/2009)
• Minimum dividends of 50% of net income, paid twice a year Ranked on Ibovespa’s Transparency in
Sustainability list of companies (2nd place - 2009)
• Succession Plan
1st Place CPFL Energia was the
Energy Sector – The
company with the highest
Most Sustainable Large
result among the sectors
Companies in Latin
p
America studied (Energy, Mining
t di d (E Mi i
May, 2010 and Oil and Gas)
6
7. Sales and Results – CPFL presents consistent growth
Concession Area Sales (GWh)1 Breakdown | 2010 Concession Area Sales (GWh)
TUSD CAGR = 6.3% p.y.
Captive 7.3% Industrial
52.378 46%
49.033 48.799
46.475
38.498
41.363
11.710 10.978 13.138 15% Commercial
36.364 11.230
3.288 7.263 9.585
25% 14%
35.245 37.323 37.821 39.250
33.076 31.778
31.235 Others
Residential
2004 2005 2006 2007 2008 2009 2010
EBITDA (R$ million)2 Breakdown | 2010 Reported EBITDA
BRGAAP IFRS
-3,0%
Generation
3.345
3 345 3.453 3.350
3 350 R$ 809 million
2.789 2.808 24%
2.120 67%
1.681
9%
Commercialization Distribution
Di t ib ti
R$ 308 million R$ 2,265 million
2004 2005 2006 2007 2008 2009 2010
1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market). 2009 TUSD adjusted (97 CAT Resolution)
7 2) 2007 and 2008 adjusted by the impact of Law 11,638 and PM 449/08
8. Comparative of global electricity consumption
Electricity consumption | per capita/GDP1
14.000
12.000
000 United
onsumption pe capita (KWh)
)
States
10.000 Australia
8.000 Japain
France
er
Taiwan
T i
Singapure Germany
6.000
South Korea UK
Greece Spain
Brasil Italy Hong Kong
4.000 Venezuela
2014 Portugal
Chile
Brasil
Co
Argentina
2.000 2010
China Mexico
Peru
GDP per
5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 capita (US$)
Brazil 2010 2014 2019 ∆ %
Population (million)2 194.1 200.2 206.6 12.5 6
Electricity consumption (TWh)
y p ( ) 415.9 506.8 633.0 217.1 52
Consumption per capita (MWh/year) 2.1 2.5 3.0 0.9 46
8 1) Source: U.S Energy Information Administration 2) Source: PDE 2019
13. Capital market performance
Shares performance1 – 2010 Shares performance1 – 2010 Daily average volume
Bovespa NYSE
CPL
CPFE3 +33,9% +22%
+25,7%
33,3
IEE DJ 27,3
+12,0% +10,9%
17,4
DJBr20 15,7
IBOV 3,9%
+1,0% 11,6 15,9
2009 2010
NYSE Bovespa
1Q10 2Q10 3Q10 4Q10 1Q10 2Q10 3Q10 4Q10
2010 Latin American Executive Team The Best Companies for Shareholders
in 2010 Rank | Capital Aberto Magazine
CPFL Energia – 3rd place
Market Cap above R$ 15 billion
• Best IR Team – Buy Side and Sell Side 24 companies evaluated
• Best CEO – Buy Side and Sell Side
• Best IRO – Sell Side
1) Closing price in December 30th, 2010 – adjusted per dividends (CPFE3: R$ 41,20/CPL: US$ 76.81)
13 2) Excludes Bradespar’s blocktrade in May 19th, 2009 (R$ 531,2 million)
14. TSR Performance
Total Shareholder Return1 - 2005-2010(e) [% a.a.2]
25%
21%
20% 19%
17% 17% 16%
Average3 = 14
4%
3%
AES Tietê
Ti ê Copel
C l Tractebel
T b l Cemig
C i Light
Li h AES Edp
Ed Eletrobras
El b
Eletropaulo
Note: 2010 dividends estimates from a research report (Itaú) 1) TSR: shareholder TIR – market cap values in Dec, 04 and Dec, 10.
14 2) Values updated by IGP-M 3) Source: Thomson Financial; Economática and Itaú Securities
16. 16
CPPFL CPFL
4,5
Moc
coca
4,6
Mococa
CP
PFL CPFL Santa
5,1
Paulista
5,5
Cruz
CPFFL CPFL
5,2
Piratini
inga
5,7
Paulista
FEC1 | 2010
DEC1 | 2010
Eletropa
aulo CPFL
5,4
6,9
Piratininga
Coe
elce
5,6
Coelce
7,5
Elek
ktro CPFL Leste
5,7
8,3
Paulista
Li
ight
5,8
Escelsa
9,0
Esc elsa CPFL Sul
6,3
9,2
Paulista
CPFL Santa CPFL
6,5
z
Cruz
9,2
Jaguari
Ce
emig
6,6
Elektro
9,5
Cos
sern
7,0
Eletropaulo
10,6
Bandeira
ante
7,1
Light
Ce
elpe
7,3
73
Copel
CPFL Leste
L
7,7
77
Paulis
sta Bandeirante
11,3 11,5 12,2
CPFL Sul
L
7,8
78
Paulista Cosern
C
CPFL
7,8
78
Jaguari Cemig
Operational Efficiency – Distribution companies
opel
Co
9,5
Celesc
12,7 13,0 13,5
R
RGE
9,7
RGE
14,7
AES Sul Celpe
17,1
Cel
lesc
,
10,1 10,2
AES Sul
17 1 18,0
Coe
elba
11,2
Cemar
Am
mpla
12,7
CEEE
21,5 21,6
Cem
mar
14,0
Ampla
1) DEC-Duration of outages per consumer per year (in hours); FEC-Frequency of outages per consumer per year (number of outages). Excluding power outage effect in Nov, 09.
23,8
CE
EEE
15,0
Coelba
26,6
18. Operational Efficiency – Distribution companies
Delinquency1 (%) | CPFL Energia
4T09 4T10
1,16 1,27
an, 08 Apr, 08 Jul, 08 Oct, 08 Jan, 09 Apr, 09 Jul, 09 Oct, 09 Jan, 10 Apr, 10 Jul, 10 Dec, 10
Program f R d ti
P for Reduction of C
f Commercial L
i l Losses
2007 – 2010
2 million of consumer units (CU) inspected
• 305 thousand CU identified and regularized
• 211 thousand CU with fraud
• 413 thousand measuring equipments replaced
• 37 thousand regularization of illegal connections
18 1) Bills overdue more than 30 days - % of 12 months billings. In 2010 it doesn’t consider: CPFL Leste Paulista, Sul Paulista, Jaguari and Mococac
19. CPFL Energia Group’s Awards
Abradee
Best Electric Energy Distribution Economic-Financial Management:
Company in Brazil: CPFL Paulista – 1999|2000|2008
CPFL Paulista–2000|2003|2006|2008|2009
Paulista 2000|2003|2006|2008|2009 CPFL Piratininga – 2004|2007
RGE – 2010
Management Quality:
Best Electric Energy Distribution CPFL Paulista – 2005|2006|2008|2009
Company in the South Region CPFL Piratininga – 2010
RGE – 2003|2009|2010
Best Social Responsibility:
Operational Management: CPFL Paulista – 2002|2003|2004|2005|2008
CPFL Paulista – 2001|2003|2005|2007|2008 RGE – 2009|2010
RGE – 2010
PNQ® – National Quality Award
Awarded Awarded Finalist
19
23. Generation – Termonordeste TPP commercial startup in Dec, 2010 and
Termoparaíba TPP in Jan, 2011
Epasa TPPs – CPFL Stake (51%)
• Installed Capacity: 174.2 MW
• Investment: R$ 310 million
• Capital structure: ~35% equity / 65% debt
• Location: Paraíba
Start of Commercial Start-up:
construction Termonordeste: Dec, 10
Oct, 09 Termoparaíba: Jan, 11
Annual fixed revenue around of R$ 85 million
23
24. Expansion in generation | 4 biomass’ projects under construction
Installed capacity of sugarcane-fired TPPs will reach 230MW until Jun 2012
Biomass projects already represent investments of about R$ 600 million
Installed
60% of TPP Investment (e)
Capacity
Brazilian Baldin
B ldi 45 MW R$ 104 million
illi √ Bio P d
Bi Pedra
sugarcane Bio Buriti 50 MW R$ 135 million
production is Bio Ipê 25 MW R$ 26 million
located in the Bio Formosa 40 MW R$ 127 million R$ 597
countryside million
Bio Pedra 70 MW R$ 205 million
$
of São Paulo1 Total 230 MW R$ 597 million Bio Formosa
R$ 362
million
Commercial start-up Bio I ê
Bi Ipê Investment
Bio Buriti (accumulated)
~700 MW(e)
R$ 265
million 230 MW
√ 160 MW
Baldin
120 MW
R$ 104
million
45 MW
5 Installed Capacity
s a ed Capac y
(accumulated)
Sep Jun Sep Dec Mar Jun Sep Dec Mar Jun 2014
08 08 10 10 11 11 11 11 12 12
24 1) Source: Única
27. Expansion in Generation | Joint Venture between CPFL and ERSA Energias
Renováveis and incorporation of CPFL Energias Renováveis
9.3% 9.1% 7.5% 4.9% 3.2% 2.4%
100% 100%
63.6% 36.4%
Small power plants (SPPs) Biomass Wind
• Operating: 278 MW
p g • Operating: 160 MW
p g • Operating: 210 MW
p g
• Under construction: 20 MW • Under construction: 70 MW • Under construction: 296 MW
• Under development: 508 MW • Under development: 1,361 MW • Under development: 1,472 MW
Total: 806 MW Total: 1,591 MW Total: 1,978 MW
Total: 4,375 MW
27
27
28. CPFL Energias Renováveis | Installed Capacity and Assured Energy
Installed capacity (MW) Installed capacity
Assured energy (AvgMW) 3.341 4.375 (Total: 4,375 MW)
SPP
18%
1.359 1.831 Bio
36%
386 Wind
648 305 45%
167
Operating (Aug, 11) Under Under Total
construction development
4.375 Garantia Física
Estimated Evolution
(Total 1.831 MWmédios)
Installed capacity (MW)
Assured energy (AvgMW) SPP
2.092
2 092 25%
1.692 1.831
1.174 Bio
907 741 919 31%
648 409 537 Wind
305
44%
2011 2012 2013 2014 2015 Total
28
29. Generation – strong growth and energy matrix diversification
Foz do Bio Formosa 7 Wind Farms
Chapecó Biomass
2029 2045
Campos Novos 2036
Buriti Biomass Pedra Biomass
Monte Claro 2035 2030
Baldin 2031
2036 Castro Alves Biomass Ipê Biomass
p
Lajeado
L j d 2036 2025 2030
10 Wind Farms
2032 SIIF 2046
14 de Julho EPASA´s TPPs 2032
2 PCHs
CPFL 2036 2042 ERSA’s SPPs
CPFL Geração 2040
Jaguariúna 2029-2032
SPP´s Barra Grande SPP s
SPP´s³ Diamante SPP
2027 2036 2027
2015
Serra da CPFL Sul2
Mesa1
2028 2.974
2.640 2.804
2.396
2 396
1.588 1.704 1.737
915 1.072
812 854
1.271 1.337
1 337 1.419
1 419
1.220
800 862 864
434 472 525 571
2003 2004 2005 2006 2007 2008 2009 2010 2011(e) 2012(e) 2013(e)
Concession contract Installed Capacity (MW) Assured Energy (AverageMW)
1) Guarantee of 51.54% of the assured energy until 2028 2) Hydroelectric power projects with less than 1,000 Kw that are not considered concession by the grantor
29 3) From 9 SPPs from CPFL Jaguariúna (today are in the Distribution), 6 are in the situation described in note 2
30. Brazilian generation – expansion
Northeast
• Wind potential
North
• Local thermal
• High hydro-
generation (LNG)
eletric potential
available • Nuclear
• Thermal
generation using
Wind potential: 75 GW2
imported coal
Potential used: 5%
Hydro potential: 111 GW1
Potential used: 9%
South Southeast/CO
• Local thermal • Local thermal
generation using generation
domestic coal (biomass, pre-salt
and LNG)
p g
• Developing
Wind potential: 23 GW1 wind potential Biomass potential:
Potential used: 3% 23 GW3
30 1) Source: MME 2) Source: EPE. Consider the energy contracted until 2013 3) Source: COGEN (expected by 2019)
