São Paulo, 07 de março de 2012November 2013

Corporate Presentation

2 Distribution

3 Generation

Competitive Power Supply and Services4

1 Corporate Overview

Agenda

Consolidated financial figures5

2

6 The Electric Sector

2 Distribution

3 Generation

Competitive Power Supply and Services4

1 Corporate Overview

Agenda

Consolidated financial figures5

3

6 The Electric Sector

4

• Largest private player in the Brazilian electricity sector

• Market cap of ≈ R$19 billion1, listed on BM&FBovespa Novo Mercado and on NYSE (ADR Level III)

• LTM3Q13 Adj. EBITDA2 of R$ 4.4 billion and Adj. Net Income2 of R$ 1.5 billion

• Differentiated Dividend Policy: >50% of net income, semi-annually. Payout ratio of ≈95% since IPO in 2004

• Presence concentrated in the most developed regions of Brazil

• Leadership in Distribution through 8 subsidiaries

• Leadership in Competitive Power Supply and a world-class provider of Value-Added Services

• Leadership in Renewable Energy in Brazil

• 2nd largest private Generator with an equivalent stake of 2,987 MW of installed capacity, more than 93% from renewable sources1) On Nov, 14, 2013; 2) IFRS (+) proportionate consolidation of minorities’ stakes at gencos (+) regulatory assets & liabilities (-)

non-recurring items.

Corporate overview – Highlights

551) Termoparaíba and Termonordeste thermal power facilities; 2) CPFL Energia has a 58.8% indirect interest in CPFL Renováveis through CPFL Geração.

Free Float

DIS

TR

IBU

TIO

N

100%

100%

100%

100%

100%

100%

100%

100%

65%

25.01%

48.72%

52.75%

51%

GEN

ER

ATIO

N

100%

100%

99.95%

100%

CO

MM

ER

CIA

LIZ

ATIO

N100%

100%

REN

EW

AB

LES

59.93%

Investco5.94%

SER

VIC

ES 100%

100%

100%

58.8%2

100%

15.1% 30.5%

Nect Serviços100%

1

Corporate structure

24.4% 30.0%

• 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

World-Class Corporate Governance Practices

66

Corporate governance

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 Piratining

a

HPPSerra da Mesa1

CPFLPaulista

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

203620352032202820272015 …

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

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.

DistributionGeneration

3rd Tariff Review Cycle

CPFL Piratininga Oct-122

CPFL Santa Cruz

Feb-132

CPFL Leste Paulista

CPFL Jaguari

CPFL Sul Paulista

CPFL Mococa

CPFL Paulista Apr-13

RGE Jun-13

8

CPFL Energia – LTM3Q13 Adj. EBITDA Breakdown¹ | R$ million

CPFL Santa Cruz

CPFL Leste Paulista

CPFL JaguariCPFL Sul Paulista

CPFL Mococa

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

55%

14%

5%

26%

8

AlternativeEnergy

599

Conventional

1,208

CPFL Paulista

RGE

CPFL Piratininga

Competitive Supply3

113

Generation1,808

CPFL Energia - Consolidated1 | 4,427

Distribution2,506

67%

33%

57%

41%

2%

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

COMPETITIVE SUPPLY

• Leadership in commercialization in the free market

• Maximization of profitability, through a best-in-class set of solutions

GENERATION

• Operational Excellence, presenting the highest margins of the sector

• Expansion of installed capacity in hydro and thermal with attractive returns

• Leadership in renewable sources (> 4 GW by 2020)

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

CPFL Energia’s ambitions

2 Distribution

3 Generation

Competitive Power Supply and Services4

1 Corporate Overview

Agenda

Consolidated financial figures5

10

6 The Electric Sector

Distribution Segment

• 7.3 million customers

• 569 municipalities

• Footprint: most developed regions

• High potential in per capita consumption

1º1º

Distribution LeaderMarket share: 13% Sales in the Concession Area (TWh)1

Industrial

Commercial

Residential

Others

Sales Breakdown | LTM 3Q13

3.6 3.7

2.9 3.6

4.1 3.7

1) Excluding sales at CCEE; 2) Source: EPE.

Number of Consumers | # Thousands

2008 2009 2010 2011 2012 2013

7,3307,176

6,9546,750

6,5686,427

11

Sales CAGR - by Region2 |2008 - 2012

2008 2009 2010 2011 2012 LTM 3Q12

LTM 3Q13

37.3 37.8 39.3 39.9 40.7 40.4 41.1

11.7 11.013.1 14.7 16.0 15.5 17.1

Captive TUSD

52.449.0 48.8

56.7 55.9

+4.1%

58.2

CAGR 2008-123.7%

54.6

26% 44%

16%14%

Brazilian economy and market performance

Real wage bill1 and CPFL’s residential consumption | %YoY growth

2006 2007 2008 2009 2010 2011 2012

5.9 5.9 6.1

3.9

7.3

4.5

6.6

4.5

6.9 6.86.0

5.2 4.9

6.9

Real wage bill

Retail sales2 and CPFL’s commercial consumption3 | %YoY growth

2006 2007 2008 2009 2010 2011 2012

6.2

9.7 9.1

5.9

10.9

6.78.5

5.57.7

5.6 5.2 6.0 6.6 6.8

Industrial production2 and CPFL’s industrial consumption3 | %YoY growth

2006 2007 2008 2009 2010 2011 2012

2.86.0

3.1

-7.4

10.5

0.4

-2.7

3.36.1

2.9

-6.7

9.3

3.90.7

Industrial production

1) Source: IBGE/LCA. 2) Source: IBGE. 3) Take into account changes in billing calendar for free consumers.

Other variables influencing energy consumption

• Population growth• Migration• Credit• Household appliances • Temperature• Rainfalls• Public investments

12

Southeast:CPFL Paulista, CPFL Piratininga, CPFL Santa Cruz,

CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista,

CPFL Mococa

South: RGE

Footprint in the most developed regions of Brazil

131313

Distribution business

• 8 distribution companies;• 13% of market share;• 7.3 million customers;• 569 municipalities;• LTM3Q13 sales of 58,197 GWh | 04-12 CAGR of

3.7%

Leadership in the distribution segment

2006 20071912

Discos’ Acquisitions | Key dates

1997-2001

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%).

CPFL

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4.2 4.6 4.7 4.7 5.3 5.4 5.7 5.8 6.0 6.4 6.6 7.07.9 8.1 8.4 8.9 8.9 9.0 9.1

10.911.8

13.0

CPFL

Jag

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CPFL

San

ta C

ruz

CPFL

Pir

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CPFL

Moco

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CPFL

Pau

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CPFL

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4.55.3 5.7 5.87.5 8.1 8.3 8.4 9.4 9.8 9.910.8

14.514.614.716.516.918.219.319.420.0

21.6

14

Avg. Frequency of Power Outages per Consumer per Year – FEC2012 (# occurrences)

Avg. Length of Power Outages per Consumer per Year - DEC2012 (hours)

Distribution: best-in-class operational efficiency

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

• 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%

Operational Level

Value Initiatives

• 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): ≈R$ 320 million

EBITDA acumulado até setembro: R$ 24 milhões1616

• Automated dispatch + tablets deployed in ~35% of all teams (RGE and CPFL Piratininga)

• 10,500 smart meters already installed as of Nov-13 (42%) – (Target: 25,000 large consumers)

• Implementation of RF Mesh Telecom Network already concludedEBITDA 9M13: R$ 24 million

Achievements

Telemetering – Large Consumers

• Real-time consumption readings

• Analysis of consumer load curve

• Real-time fraud detection

• Real-time power outage detection

Mobile Workforce Management

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

Projeto Tauron – smart grid

Distribution | Key financial figures

Net revenues1 – Adjusted2

EBITDA – Adjusted2 Net income – Adjusted2

2010 2011 2012 LTM 3Q12 LTM 3Q13

9,432 9,794 10,763 10,279

11,123

2010 2011 2012 LTM 3Q12

LTM 3Q13

2,267 2,351

2,678 2,444 2,506

2010 2011 2012 LTM 3Q12

LTM 3Q13

1,309 1,235

1,399 1,298 1,236

1) Excludes construction revenue; 2) Adjusted by non-recurring items and regulatory assets & liabilities.

CAGR = +6.8%

+8.2%

CAGR = +8.7%

+2.6%

CAGR = +3.4%

-4.8%

Sales in the Captive Market (TWh)

2010 2011 2012 LTM 3Q12 LTM 3Q13

39.3

39.9

40.740.4

41.1

+1.8%

CAGR = +1.8%

17

2 Distribution

3 Generation

Competitive Power Supply and Services4

1 Corporate Overview

Agenda

Consolidated financial figures5

18

6 The Electric Sector

• Long Term Concessions

• Brazil’s largest Portfolio in Alternative Energy

• Renewable Sources: higher than 93%

2º2º

2nd Largest Private Generation Company

Market share: 2.3%

Hydro power 67%

Thermal7%

SHPP8%

Wind12%

Biomass6%

Solar0%

Portfolio by source

25%

Generation Segment

1) Considering 58.8% stake at CPFL Renováveis, since its creation.

Installed Capacity1 (MW) | Estimated growth

CAGR 2000-16e = 21.5% a.a.

Semesa Baesa

Enercan Ceran

Foz Chapecó

EpasaBaldin

Creation ofCPFL

Renováveis

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013(e)

2014(e)

2015(e)

2016(e)

2017(e)

- 657 660 747 751 931 1,047 1,047

-

143

801 812 812 854 915 1,072

1,588 1,704 1,7372,203

2,6172,912 3,105 3,105 3,105 3,254

0

Privatization assets Brownfield Greenfield

19

Serra da Mesa

Monte Claro

Barra Grande

CamposNovos Lajeado Castro

Alves 14 de Julho

Foz do Chapecó Epasa

Commercial Startup

1998 2004 2005 2007 2007¹ 2008 2008 2010 2010-11

Installed Capacity(MW)

1,275.0 130.0 690.0 880.0 902.5 130.0 100.0 855.0 341.6

Assured Energy (MWavg)

671.0 59.0 380.6 377.9 526.6 64.0 50.0 432.0 247.6

CPFL Stake 51.54% 65.00% 25.01% 48.72% 6.93% 65.00% 65.00% 51.00% 52.75%

Installed Capacity CPFL (MW)

657.1 84.5 172.5 428.7 62.5 84.5 65.0 436.1 180.2

Assured Energy CPFL (MWavg)

345.8 38.4 95.2 184.1 36.5 41.6 32.5 220.3 130.6

Flooded area (km2)

1.784 1.4 95.0 32.9 630 5.0 5.0 80.0 -

(MW/km2) 0.7 92.9 7.3 26.7 1.4 26.0 20.0 10.7 -

Concession terms 2028 2036 2036 2035 2032 2036 2036 2036 2042

Conventional generation | 2,234 MW1 of installed capacity

CPFL Energia’s power plants – state-of-the-art environmental efficiency

201) Equivalent stake, including 38MW of small plants at CPFL Geração and 24MW of SHPP embedded in the distribution companies.

CPFL Renováveis | Corporate structure

21

58.8% 37.0%

Free float

16.6%

100%

63.0% 24.6% 0.0%

Small Hydro Biomass Wind

Pre-IPO

Post-IPO

Solar

222222

• 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

High Quality Development, Construction and Operation

Complementarity of Sources Mitigating Risks

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecWind (Generation - MWavg)Reservoir Storage

• Reservoir storage at high levels in the first semester while wind energy generation is concentrated in the second semester of the year

CPFL Renováveis benefits from the complementarity of sources

Wind PortfolioAttractive location

due to high wind speeds

SHPP PortfolioExposure to

abundant hydro resources

Installed Capacity1

Total: 1,735 MW

Solar

19%

60%

21%0%

SHPP

Wind

Biomass Solar

Operating:

HydroWind

Biomass

Under Construction:HydroWind SHPP Potential (Southeast and Midwest Regions)

Wind Potential (Northeast and South Regions)

Biomass Portfolio

Proximity to sugarcane production centers

Biomass

Region MW

NE 958

CW/SE 506

SO 271

Rese

rvoir

Sto

rag

e

(%)

Win

d G

en

era

tion

MW

Diversified and high quality portfolio, delivering superior performance, mitigating risks, ensuring reliable load factors and providing capacity to grow

with different sources

CPFL Renováveis | High quality and diversified portfolio

1) To be fully operational by 2016

23

Technology Has Shown Great Improvements in Recent Years | Recently developed technology for wind power plants allows greater load factors

Europe United States Brazil (NE)

Area89%

Area95%

Fre

qu

en

cy

Wind Speed (m/s)

Fre

qu

en

cy

Wind Speed (m/s)

Fre

qu

en

cy

Wind Speed (m/s)Ideal Wind Speed

Ideal Wind Speed

Area99%

Ideal Wind Speed

1.500kW

1.800kW80m

3.000kW

100m

70m

750kW50m

30m

300kW

75kW

17m

1980 -1990

1990 -1995

1995 -2000

2000 -2005

2000 -2005

20100

20

40

60

80

100

120

140

160

180

Rotor Diameter (m) Rating (kW)

Alt

ura

(m)

1.500kW

1.800kW80m

3.000kW

100m

70m

750kW50m

30m

300kW

75kW

17m

1980 -1990

1990 -1995

1995 -2000

2000 -2005

2000 -2005

20100

20

40

60

80

100

120

140

160

180

Rotor Diameter (m) Rating (kW)

Alt

ura

(m)

BrazilEurope and EUA

Improved availabilit

y

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

CPFL Renováveis | Unparalleled wind conditions combined with top technology

24

Operating (Nov-13)

Under

construction

End of2016

Under development

Total Portfolio

100% with PPA

1,735

5,553

PossibleProbableHighly Confident

3,818

Small Hydro

• 35 operating: 327MW

• Under construction: -

• Under development: 626MW

Total: 953MW

Biomass

• 8 operating: 370MW

• Under construction: -

• Under development: -

Total: 370MW

• 16 operating: 586MW

• 17 under construction: 452MW

• Under development: 3,192MWTotal: 4,230MW

Wind

• 60 operating: 1,283MW1

• 17 under construction: 452MW

• Under development: 3,818MWTotal: 5,553MW1

Total

1) Including Tanquinho solar power plant – 1MWp of installed capacity

1,283

WindSHPP – Small HydroBiomass

452

2,214

1,077

527

4,230

953

370

582

370327

1,038

370327

CPFL Renováveis | Installed capacity (MW)

Commercial start-up / Acquisition

Installed Capacity (MW)

Assured Energy (MWavg)

PPA Comments

CPFL Renováveis(Aug-11)

652 314

Bio Ipê TPP 2Q12 25 8.2 Free market -

Bio Pedra TPP 2Q12 70 24.4Reserve auction(R$158.81/MWh)

Revenue(e): R$ 20 million/year

Bons Ventos wind farms

2Q12 158 63Proinfa PPA(R$ 310.51/MWh)

Acquisition price: R$ 1,062 million

Santa Clara wind farms

3Q12 188 76Reserve auction(R$ 175.51/MWh)

Revenue(e): R$ 115 million/year

Ester TPP 4Q12 40 11Alternative sources auction (64%) and free market (36%)

Acquisition price: R$ 111.5 million

Tanquinho Solar PP 4Q12 1 1 Free market -

Salto Góes SHPP 4Q12 20 11Alternative sources auction (R$166.41/MWh)

Revenue(e): R$ 112 million/year

TPP Coopcana 3Q13 50 18 Free market Revenue(e): R$ 22.6 million/year

Campo dos Ventos II wind farm

4Q13 30 15Reserve auctionR$ 142,51/MWh

Revenue(e): R$ 18.5 million/year

TPP Alvorada 4Q13 50 18 Free market Revenue(e): R$ 22.6 million/year

Current portfolio(Nov-13)

1,283 5591) Constant currency (Dec-12)25

CPFL Renováveis | Track record

26

CPFL Renováveis | Portfolio under construction

Commercial start-up (e)

Installed capacity (MW)

Assured Energy (MWavg)

PPA Status

Atlântica wind farms1 4Q135 120 52.7

R$ 154.87

20 years

10 wind turbines installed and in test phase; 5 wind turbines in final installation phase

Macacos I wind farms2 4Q135 78.2 37.5

R$ 152.67

20 yearsStarting final installation phase

Campo dos Ventos wind farms3,6

1Q16 82.0 40.2Free market19 years

Contract to supply wind turbines signed; executive projects underway

São Benedito wind farms4,6 2Q16 172.0 89.0

Free market19 years

Contract to supply wind turbines signed; executive projects underway

Commercial start-up in 2013-2016(e) | 452 MW / 219 MWavg

1) Atlântica I, II, IV and V; 2) Macacos, Pedra Preta, Costa Branca and Juremas; 3) Campo dos Ventos I, III, V; 4) Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica, Santa Úrsula São Domingos and Ventos de São Martinho; 5) Considering the start-up of the first farm in the complex; 6) Projects with energy sold to the free market in the long term, with contract for the supply of equipment and awaiting connection definition to start construction. 7) Constant currency (Dec/12).

Atlântica wind farms

Conventional and Alternative Energy | Key financial figures

Net Revenues (R$ million) - Adjusted1 EBITDA (R$ million) - Adjusted1

Net Income (R$ million) - Adjusted1

1) Adjusted by proportional consolidation and non-recurring items.

2010 2011 2012 LTM3Q12 LTM3Q13

1,121

1,520

2,350

2,062

2,729CAGR = +44.8%

+32.4%

2010 2011 2012 LTM3Q12 LTM3Q13

810

1,181

1,672 1,571

1,863CAGR = +43.7%+18.6%

2010 2011 2012 LTM3Q12

LTM3Q13

262

778

384

833

404

-51.6%

EBITDA Margin - Adjusted1

72.3%77.7%

71.2%76.2%

68.3%

27

2 Distribution

3 Generation

Competitive Power Supply and Services4

1 Corporate Overview

Agenda

Consolidated financial figures5

28

6 The Electric Sector

Competitive power supply| Regulated vs. free market

  Regulated market Free market

Energy supplier No choice - distribution company Free choice

Tariff of the use of distribution system (TUSD) Distribution company Distribution company

Energy prices Regulated by ANEEL Free negotiation

Consumer Capacity Connection date Voltage Energy source

Free > 3,000 kW

after July, 1995 any any

before July, 1995> 69 kV any

< 69 kV incentivized

Special500-3,000 kW - Group A incentivized

units totaling 500 kW - Group A incentivized

29 1) Source: EPE. 12 months ended in Sep-13.

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

• 288 free consumers

• Nationwide outreach

• Value-added product portfolio

• Synergy with CPFL Renováveis

Number of Consumers (#) | CPFL Brasil

1º1º

Sector Leader

Market share: 10%

2008 2009 2010 2011 2012 3Q13

80 74129 141

231288

CAGR = 30%

Portfolio (Free Consumers)

179

52

Inside the concession area

Outside the concession

area

Current: 11.7 GW avgPotential: +7.1 GW avg

Free Market in Brazil

213

75

Competitive power supply

30

• CPFL Brasil was awarded 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 Brazil2010 | 2011 | 2013

31

Sep/09 Sep/10 Sep/11 Sep/12 Sep/13

204

221 539

897

1,141

Sep/09 Sep/10 Sep/11 Sep/12 Sep/13

441 477 503 578 616

Current: 9.8 GWavgPotential: +2.1 GWavg

Current: 1.9 GWavgPotential: +5.0 GWavg

Competitive advantages of CPFL: market leadership, expertise and synergies with CPFL Renováveis

Source: ANEEL and CCEE

# of competitive customers – larger than 3 MW

# of special customers – from 0.5 to 3 MW

Number of free clients in Brazil

CAGR=8.7% CAGR=53.8%

Competitive power supply | Opportunities

Transmission networks

Self-generation networks

Distributionnetworks

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

Net revenues EBITDA Net income

2010 2011 2012 LTM3Q13 2010 2011 2012 LTM3Q13 2010 2011 2012 LTM3Q13

Competitive power supply and Services | Financials1

1,909

1,699

2,040

2,161

303278

293

113

201

164

124

56

1) Pro forma34

2 Distribution

3 Generation

Competitive Power Supply and Services4

1 Corporate Overview

Agenda

Consolidated financial figures5

35

6 The Electric Sector

36

37,821 39,250 39,917 40,683 41,096

13,269 13,132 12,489 14,278 15,587 445.752

2,167 3,023

2009 2010 2011 2012 LTM3Q13

10,566 10,962 11,47613,399

14,206

CPFL Energia | Key financial figures – Sales

36

51,090 52,382

1) Disregarding CCEE and intercompany sales. 2) 100% - IFRS criteria. 3) Incl. provision adjustments of 88 GWh in 9M12 and equivalent stakes at Foz do Chapecó, Baesa, Enercan and Epasa. 4) Take into account changes in billing calendar for permissionaires in RGE in 2Q12. 5) Adjusted by generation proportionate consolidation (IFRS 11), regulatory assets & liabilities, non-recurring items and ex-construction revenues.

52,85157,128 59,706

CPFL Renováveis2 Commercialization + Conventional generation3

Captive market4

LTM3Q132012201120102009

Total energy sales1 (GWh)

Net revenues (R$ million) – adjusted5

CAGR 2009-12

3.8%

CAGR 2009-12

7.0%

4.5%

7.3%

2009 2010 2011 2012 LTM3Q13

2,7623,320

3,770

4,625 4,415

2009 2010 2011 2012 LTM3Q13

1,2861,544 1,560

1,6761,455

CPFL Energia | Key financial figures EBITDA and net income

EBITDA (R$ million) | Adjusted1

Net Income (R$ million) | Adjusted1

1) Adjusted by generation proportionate consolidation (IFRS 11), regulatory assets & liabilities and non-recurring items37

26.1%

30.3%

32.9%

34.5%

30.7%

11.7%

14.6%

13.6%

12.5% 10.1

%

EBITDA

EBITDA Margin

Net Income

Net Margin

-4.5%

-13.2%

CAGR 2009-12

11.7%

CAGR 2009-12

9.2%

2H04

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09

2H09

1H10

2H10

1H11

2H11

1H12

2H12

1H13

140

401498

612722

842719

602 606 572655

774

486

748 758640

456363

3.7%

6.5%

9.1% 8.7%9.6%

10.9%9.7%

7.6% 7.3% 7.6% 7.9% 8.6%6.9%

6.0%7.1%

6.1%4.6% 3.9%

8.29 9.4311.67

15.0214.1315.8717.9918.0516.6915.7716.5118.4420.1822.0521.9526.30

22.7821.11

Since its IPO, CPFL Energia has distributed R$ 10.6 billion in dividends. Payout ratio has been close to 100%. 1H13 Dividends: R$ 363 million | 0.38/share

Dividend Yield 1 (LTM) Declared dividends (R$ Mi) CPFL average price (R$/ORD)2

1) On a LTM basis; 2) Adjusted by reversal stock split and simultaneous split of shares on June 29, 2011 (not dividend adjusted).38

CPFL Energia | Key financial figures – Dividends

2012 actual(cash flow)

2013 2014 2015 2016 2017

1,403

1,1171,047

1,3211,231 1,265

1,043 1,072

72

9

23

4

15

1122

13

6

14

7

15

1

12

0

11

3

Total:R$ 8,709 million1

Distribution: R$ 5,981 million

Generation:R$ 2,062 million2

Commercialization and Services:R$ 667 million

R$ 2,468 R$ 2,325 R$ 1,923 R$ 1,706 R$ 1,367 R$ 1,389

1) Constant currency Dec-12. Take into account 100% interest in CPFL Renováveis and Ceran (IFRS); 2) Conventional + Alternative Energy

39

Capex 2013 - 2017

40

CPFL Energia | Indebtedness and leverage

2012 1Q13 2Q13 3Q13

12.6 12.5 12.6 12.2Leverage1 | R$ billion

Adjusted EBITDA2

R$ million

64%

2%7%

27% CDI

Fixed (PSI)

IGP

TJLP

2004

2005

2006

2007

2008

2009

2010

2011

2012

1Q

13

2Q

13

3Q

13

9.4%7.9%

9.9%7.3%7.1%

4.9% 4.4% 4.3%3.0%

1.7% 1.2% 2.0%

17.7%13.9%

13.4% 12.1%13.4%

9.4%10.5%11.1%9.0% 8.4% 8.0% 8.0%

Nominal

Real

2.89 3.033.42 3.53

Adjusted net debt1/Adjusted EBITDA2

4,377 4,111 3,676 3,466

Gross debt cost3 | LTM Gross debt breakdown3

1) Financial covenants criteria. 2) LTM recurring EBITDA (covenants criteria). 3) Financial debt (+) private pension fund (-) hedge (considering proportional consolidation).

41

CPFL Energia | Strong and robust liquidity

Cash Short-term

2014² 2015 2016 2017 2018 2019+

5,406

2,231

198

3,315

2,6862,283

2,886

4,200

Average tenor: 4.08 yearsShort-term (12M): 14.4% of total

Debt amortization schedule1 (Sep/13) | R$ million

Cash coverage:

2.4x short-termamortization (12M)

1) Disregard financial charges (ST = R$ 350 million; LT = R$ 61 million), hedge (net positive effect of R$ 350 million) and MTM (R$ 60 million). 2) Considers amortization as of October 01, 2014.

42

Perspectives 2H13 Achievements

Productivity gains

• Focus on reduction and cost optimization (Zero Based-Budget and Corporate Services Center)

• Maturation of Tauron Project (smart grid): higher productivity, lower costs

• Optimization in the occupation of Company’s buildings – sale of idle assets

Recovery signals in industrial segment, favoring energy consumption: +2.7% in 2Q13

CPFL Renováveis new projects• 2H13: 328 MW to be added

Productivity gains

• PMSO – real decrease of R$ 137 million(9M13 x 9M11)

• Tauron Project – EBITDA of R$ 24 millionin 9M13

• Sale of properties and vehicles – R$ 47 million in 3Q13

Industrial segment growing again:+2.5% in 3Q13

• Start-up: Coopcana (50 MW), Campo dos Ventos II (30 MW) and Alvorada (50 MW)

• 4Q13: 198 MW to be added

Achievements

2 Distribution

3 Generation

Competitive Power Supply and Services4

1 Corporate Overview

Agenda

Consolidated financial figures5

43

6 The Electric Sector

Energy sector in Brazil: business segments

Consumers

1) Source: ANEEL - November 21, 2013; 2) Source: EPE - 12 months ended in Set -13.

Free Market

Captive Market

74.2 million consumers

1,757 Consumers125 TWh of billed

energy2

74.2 million Consumers334 TWh of billed

energy2

Transmission

• 68 Companies

• 107,400 km of transmission lines

• Eletrobrás: ~56% of total assets

Distribution

• 63 Companies

• 459 TWh of billed energy2

• Top 5: ~50% of the market

Competitive Power Supply

Generation

• 126 GW of installed capacity1

• 78.2% Renewable energy1

• Eletrobrás: ~31% of total assets

44

Brazilian electricity matrix

1) Source: EPE - National Energy Balance 2013 and 10-year Energy Plan 2013-2022; 2) Others: considers coal, oil, diesel and process gas.

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.

Brazilian Energy Matrix

Hydro 69%

Nuclear2%

SHPP4%

Wind3%

Biomass7%

Natural gas9%

Others7%

129 GW 153 GW 183 GW

2013 2017 2022

Evolution of Installed Capacity (GW) 2013-20221

2

45

Hydro 67%

Nuclear1%

SHPP4%

Wind8%

Biomass6%

Natural gas8%

Others6%

2

Hydro 65%

Nuclear2%

SHPP4%

Wind10%

Biomass8%

Natural gas8%

Others5%

2

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 must purchase electric energy to supply their captive market, five years in advance,in public auctions (Regulated Market – ACR)

Discos

Gencos

Mechanics of regulated auctions

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)

• “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

46

47 Source: ANEEL, PDE 2021 and Company; 1) Projected to 2020; 2) Considers the export of 2/3 of energy produced by the Company;

Unrealized Potential to be Explored in Brazil

Evolution of Brazilian Installed Capacity by Source | GWh

Highly Fragmented Market | Renewables Market Share in Brazil based on contracted energy (22GW)

Wind Potential: 143GW Installed capacity: 2.0GW

1%

SHPP Potential: 17.5GW Installed capacity: 5.0GW

29%

Biomass Potential: 17.2GW Installed capacity: 8.9GW

52%

Potential Realized

2012A 2021E

85

11710

13

10

16

16

36Renewables

Other

Natural Gas

Hydro

4.6% p.a.182

122

8%Renova 5%

Energimp

QGER 4%BrookfieldCosan2 3%

EletrosulElecnor 2%Bioenergy

Others 66%

3%

2%

4%

3%CAGR

5.1%

9.5%

2.7%

3.6%

Renewables in Brazil are expected to grow at a CAGR of 9.5%, from 16 GW in 2012 to 36 GW in 2021 and still a highly fragmented market

World’s most attractive alternative energy market

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

Stable and solid regulatory framework

The Distribution segment, intensive in O&M expenses, has gone through periodic tariff reviews to reduce costs and improve efficiency, while Generation and Transmission

segments, capital-intensives, did not suffer the same regulation

Average tariff1 (CPFL Piratininga) - [R$/MWh]2

-13.3 -16%

20.0 88%

-25.6 -38%

-7.4 -24%

-25.8 -16%

R$/MWh

∆ 1º CRTP / 3º CRTP

%

-24%

Generation

Transmission

Distribution

Sector charge

s

Taxes

31 (9%)

82(22%)

23 (6%)

67(18%)

164(45%)

367

138(44%)

24 (8%)

42 (13%)

316

68(22%)

43 (14%)

3rd CRTP3

2011-2014

1st CRTP3

2003-2006

1) Average of all classes and voltages; does not take into account financial components. 2) Constant figures in December/12. Amounts adjusted by IPCA | Source: CPFL Energia. 3) Periodic Tariff Review. 4) Extraordinary Tariff Review.49

275

60(22%)

19 (7%)41

(15%)10 (4%)

146(53%)

2012 Tariff after RTE4

-22.1 -27%

-4.2 -18%

-26.0 -39%

-21.6 -69%

-18.5 -11%

R$/MWh

∆ 1º CRTP / RTE

%

Pressure on tariffs