institutional presentation cpfl energia itaú ny final

May, 2012

Agenda

Corporate Overview

Commercialization | Opportunities

Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia

Distribution | Operational Efficiency

3

Sales and Financials

Annex

4

Corporate overview – Highlights

The largest

private player

in the Brazilian Electric Sector

� R$25+ billion of Market Cap as of Apr, 2012

� Leadership in distribution of energy through 8 subsidiaries. Presence concentrated in the most developed regions of Brazil

� Leadership in Commercialization and a world-class provider of Value-Added Services

� Leadership in Renewable Energy in Latin America

� 2,768 MW of generation installed capacity (Mar-12), more than 93% from renewable sources

� LTM1Q12 EBITDA of R$ 3.8 billion and net income of R$ 1.5 billion

� Listed on Bovespa’s Novo Mercado and on NYSE (ADR Level III)

� Differentiated Dividend Policy: minimum of 50% of net income, semi-annually. Practice of 95% since IPO in 2004

1) Aneel – last available information 2) Concession area sales (excludes CCEE) 3) In Apr, 2011. Generation figures after ERSA and Jantus’ deals closing 4) CPFL Energia’s equivalent stake in each project 5) 2011 accumulated (October, 2011) 6) Take into account sales of commercialization and generation outwards the Group5

Brazil’s largest player in the electric sector

CPFL 2%3

CPFL Energia

CPFL 11%5

Others: 87%

CPFL 13%1

Market-share

Distribution (2011)Concession Area (captive + TUSD)

• 7.0 million customers• 569 municipalit ies• Sales of 54,590 GWh2

Generation (Mar-12)Focused mainly on renewables

• 65 power plants in operation• 2,768 MW of installed capacity4

• 30 plants under construction

Commercialization (2011)Free Energy market and Services

• 140 free customers• Sales of 12,173 GWh6• Added value services

Market leader

2rd private generator

Main player

Others: 98%

Others:89%

3 majorplayers: 34%

3 majorplayers: 28%

3 majorplayers: 29%

DISTRIBUTION

COMMERCIALIZATION

5

GENERATION

9 SPPs

33 Wind Farms8 (CE), 21 (RN) and 4 (RS)

8 TPPs Sugarcane5 (SP), 1 (RN), 1 (MG) and 1 (PR)

5 (SC) and 4 (RS)

2 TPPs Fuel Oil

35 SPPs

6

Corporate structure | CPFL Energia (December 2011)Increased stake at CPFL Renováveis to 63.00% and at Epasa to 52.75% as from Dec/11

6

Free Float

DISTRIBUTION

GENERATION

3

COMMERCIALIZATION

RENEWABLES

Investco

Paulista Lajeado

SERVICES

1

1) C ontrolling shareholders; 2) Includes the 0.1% direct stake owned by C amargo Corrêa S.A.; 3) Termoparaíba and Termonordeste Thermoelectric F acilities; 4) C PFL Energia owns a 63.0% indirect interest in C PFL Renováveis through C PFL Geração, with 35.5% and C PFL Brasil w ith 27.5%

7

Best corporate governance practices

7

• Shares listed in differentiated segments:• Bovespa 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 through Fiscal Council

• Enforcement of policies for information disclosure and trading of company’ shares by employees

• Dividend Payout Policy:• Minimum of 50% of net income, semi-annually

1st Brazilian company

Annual Client Leadership Award IFC 2008

Member of the Companies Circle – OCDE/IFC

Ranked in the 50 Largest Sustainable Latin American companies list (2008/2009)

Ranked in Ibovespa’s Transparency in Sustainability list (2nd place - 2009)

1st Place – May, 2011Energy Sector – The Most Sustainable Large Companies in Latin America for the 3rdconsecutive year

World-Class Corporate Governance Practices:

8

GENERATION

� Leader in renewable sources of energy in Latin America(> 4 GW through 2020)

� Operational excellence:

EBITDA margin > 70% for renewables and > 80% for conventional energy

� Successful track record in the development and construction of generation capacity

� Pursuing new opportunities (HPP and thermoelectric)

DISTRIBUTION

� Market leader, doubling market share;

� Operational excellencethrough use of innovation and best-in-class technologies

COMMERCIALIZATION

� Leader in energy sales, with a market share of over 10%

� Expansion of range of services and integration with the other business segments (more synergies)

Leadership in the Brazilian electricity sector, with a diversified portfolio

88

CPFL Energia strategic plan 2012-2016

Agenda

Corporate Overview




9


Annex

10

Leadership in the distribution business:

� 8 distribution companies;� 13% of market share;� 7.0 million customers;� 569 municipalities;� Sales of 54,590 GWh1 | 6.0% CAGR from 2004 to 2011

5,5 5,6 5,7

6,3 6,4 6,6 6,77,0

2004 2005 2006 2007 2008 2009 2010 2011

+1.5 million

Acquisitions2006 | Cia. Luz e Força Santa Cruz | RGE’s additional stake (32.69%);2007 | CMS Energy Brasil2 (4 distribution companies).

R$ 1,029 million in acquisitions

Presence in the most developed regions of Brazil

1) Concession area 2) CPFL Jaguariúna

Southeast region

South region

Number of customers

Distribution business

1010

Positioned in a very promising region

Commercial: expected inauguration of shopping malls2012-20131

São Paulo

1) Source: A BRASCE 2) Source and projection: IBGE and LC A Consultores

AraçariguamaBauruBoituvaBotucatu CampinasJundiaí (2)Ribeirão PretoS.J. do Rio Preto (2)São RoqueSorocaba (2)Sumaré

FarroupilhaGravataí

14In the

concession area

25 malls(total)

2In the

concession area

6 malls(total)

Rio Grande do Sul

Residential:Population growth2

Accumulated variation

SP RGE RS

14,1%11,4%

5,5% 5,0%

Concessionarea of

CPFL Energia(Southeast)

SP RGE RS

9,5%7,7%

5,5% 4,6%

Concessionarea of

CPFL Energia(Southeast)

2000-2010

2010-2022(e)

Larger growth rates in the concession areas of CPFL Energia

11

Campinas São Paulo Rio de Janeiro

• Total Investment (e)1: R$ 34.6 billion

• 1st Phase (e): R$ 6.7 billion

• 2nd Phase (e): R$ 27.9 billion

• Construction of terminal (1st

phase) and expansion of departure area

• Investment (e):R$ 873 millionby 20141

• Construction of the 3rd terminal, expansion of the departure area and construction of a taxi lane

• Investment(e):R$ 1.38 billionby 20141

• Expansion of the passengers terminal, garage, highway system and departure area

• Investment(e):R$ 627 million by 20141

Viracopos BrasíliaGuarulhos

Investments announced for 2012-2013(e)2

• Expansion of the container terminal at Santos Port (SP)• Expansion of the gas concessionaire network (Jundiaí, Piracicaba e Hortolândia)• Expansion of the telecommunication network in the Ribeirão Preto region (SP)• Construction of an ethanol terminal in Paulínia (SP)• Construction of a servicing center for transportation equipment in Sorocaba (SP)

Total:R$ 3 billion

Applications at BNDES for new projects amounted to R$ 55.7 billion in the 1Q123Up 37%

compared to 1Q11

1) Source: STN/Dept. of the treasury | Estimated values subject to changes 2) Source: Press (investments announced between Jan. and Apr/12) 3) Source: BNDES | Performance Report – 03/31/12

Large investments will lead to growth in the concession area

121212

26.6

21.419.2

17.617.117.116.715.214.3

12.710.610.410.49.79.49.39.19.08.4

7.06.86.46.0

CPFL

Mococa

CPFL

Piratininga

CPFL

Paulista

CPFL

Jaguari

CPFL Santa

Cruz

Elektro

CPFL Sul

Paulista

Coelce

Bandeirante

CPFL Leste

Paulista

Eletropaulo

Escelsa

Copel

Cosern

Cemig

RGE

Light

Celpe

Celesc

CEEE

Ampla

Cem

ar

Coelba

DEC1 | 2011 (hours)

FEC1 | 2011 (#)

1) DEC /FEC: Average duration/frequency of power outages per consumer per y ear (in hours/# of outages).

Operational Efficiency – Distribution companies

13

22.5

16.815.2

13.211.811.6

9.89.48.38.27.87.06.36.26 .26.05.75.55.45.45.25.14.9

CPFL

Piratininga

CPFL

Jaguari

CPFL

Mococa

CPFL

Paulista

Elektro

Eletropaulo

CPFL Sul

Paulista

Coelce

CPFL Leste

Paulista

Bandeirante

Escelsa

Cem

ig

Light

CPFL Santa

Cruz

Copel

RGE

Ampla

Cem

ar

Celesc

CEEE

Cosern

Celpe

Coelba

Methodology of the 3rd tariff review cycle for distributors

1414

CPFL Energia - Recurring EBITDA Breakdown¹ - LTM1Q12 | R$ million | %

Commercialization264 | 7%

Generation1.251 | 33%

Consolidated3,832

Distribution2,314 | 60%

CPFL Paulista

CPFL Santa CruzCPFL Leste PaulistaCPFL JaguariCPFL Sul PaulistaCPFL Mococa

RGE

CPFL Piratininga

15% 19% 47% 60%

CPFL Piratininga

Oct/122

CPFL Santa CruzCPFL Leste PaulistaCPFL JaguariCPFL Sul PaulistaCPFL Mococa

Feb/132

CPFL Paulista

Apr/13

RGE

Jun/13

% of CPFL Energia’sEBITDA affected

Notes: 1) Excludes intercompany transactions and equity attributed to non-controlling shareholders; 2) Effectiv e date

47.0%

24.4%22.4%

6.3%

Some Value Initiatives aimed at boosting efficiency and productivity

� Increase of operating productivity and efficiency� Growth at a lower incremental cost� Cost reduction per transaction via specialization,

e.g.: procurement 50%; payroll 35%; facilities

40%

CSCCorporate Services Center

IRPIncentivized Retirement

Program

ZBBZero-Based

Budget

Tauron Smart Grid

� Total of 445 adherences� Total costs: R$ 49.8 million (recorded in 2Q and 3Q of 2011)

� 43% reduction in the salary base of this population;

� Savings estimated at R$25m per year

� Zero-Based Budgetmethodology implemented

� Inefficiencies from past budgets are not carried over to the next periods

� Improvements in the budgeting process and the organization’s cost culture;

� Avg. reduction of R$50m per year in the next 5 years

� Implementation of smart grid concept: IT+Automation+Telecom

� Telemetering and self-healing

� Maximize return on electricity assets� Gains in productivity, efficiency and quality� Benefits estimated at R$106m per year

Description Objectives

� Transference of transactional corporate activities to the CPFL CSC

� Corporate depts. focused on strategic, value-added levers vs. transactions

15

Some Value Initiatives aimed at boosting efficiency and productivity

16

Smart Grid | 1st Phase

• Mobile Workforce Management:Teams dispatched electronically

• Telemetering 1st Phase:Installation of 25,000 intelligent meters in large clients and a metering center

• Self Healing:Installation of 5,000 automatic switches/restarters by all of the Group’s distribution companies

Project status

System in operation at CPFL Paulista e Pratininga

Start up of installation as from May, 12Investments (e): R$ 57 millionGains (e ) R$ 15 million

2.887 automatic switches in operation(Mar, 12)Investments (e): R$ 125 millionEnabler for other projects

All suppliers contractedInvestments (e): R$ 33 millionGains (e) R$ 42 million

Benefício anual (e) a partir de dez/13: R$ 106 milhões

On progressGains (e): R$ 49 million

Process Management

• Commercial, operational e logisticsProcess reviewUse of anti-fraud standards (shielded cable, etc.)

• Digital Bill:Electronic delivery of bills

Current investments: R$ 50 million | Total investments (e): R$ 215 million

Annual benefits (e) as from Dec/13: R$ 106 million

1) Bills ov erdue more than 30 day s – % of 12 months billings

Operational Efficiency – Distribution companies

17

jan/09

feb/09

mar/09

apr/09

may

/09

jun/09

jul/09

aug/09

sep/09

oct/09

nov/09

dec/09

jan/10

feb/10

mar/10

apr/10

may

/10

jun/10

jul/10

aug/10

sep/10

oct/10

nov/10

dec/10

jan/11

feb/11

mar/11

apr/11

may

/11

jun/11

jul/11

aug/11

sep/11

oct/11

nov/11

dec/11

1.424Q09

4Q10 4Q11

1.291.16

1.27

Delinquency (%)1 | CPFL Energia

2.4 million consumer units (CU) inspected

• 375 thousand CU identified and overhauled

• 591 thousand measuring equipment replaced

• 42 thousand regularization of illegal connections

Program for Reduction of Commercial Losses2007-2011

18

CPFL Energia Awards

Economical-Financial Management:

Management Quality:

Best Social Responsability:

Best Electic Energy DistributionCompany in Brazil:

Best Electic Energy DistributionCompany in the South Region:

Operational Management

Agenda

Corporate Overview




19


Annex

Expansion in Generation (conventional + renewable)

20

7,15

2,95 2,66 2,23 1,71 1,37 1,25 1,21 1,20 1,00

Genco 1 CPFLEnergia

Genco 3 Genco 4 Genco 5 Genco 6 Genco 7 Genco 8 Genco 9 Genco 10

2nd largest private player in generation (Mar-12):

� 65 power plants in operation

� 2,768MW1 of installed capacity (2.947MW1 in FY12e)

� 30 power plants under construction

854 915 1,0721,588 1,704 1,737

2,396 2,644 2,947 3,166 3,326

2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e

FY12e Installed Capacity Ranking (GW) | Private players

Installed capacity evolution (MW) | CPFL Energia

1) C PFL Energia’s equiv alent stake in each project

Creation of CPFL Renováveis on August 24, 2011

Corporate structure considering the projects involved in the JV

+ wide portfolio for development

21

CPFL Renováveis | Current portfolio as of Mar, 2012

100% 100%

63.0% 37.0%

SPP

▪ 34 operating: 307MW

▪ 1 under construction: 20MW

▪ Under development: 608MW

Total: 935MW

Biomass



Total: 1,270MW



▪ Under development: 2,484MW

Total: 3,522MW

▪ Under development: 900MW1

22 1) C ogeneration projects depend on third-parties to explore the upstream sugarcane business (planting, harv esting and processing)

Wind



▪ Under development: 3,992MW

Total: 5,727MW

Total

CPFL Renováveis | Current portfolio

23 1) F rom A ugust 1, 2011 until Nov ember 30, 2011 = 54.5%. F rom December 1, 2011 = 63.0%

Installed capacity (MW)Assured energy (AvgMW)

Installed capacity(Total: 5,727 MW)

Biomass19%

SPP19%

Wind61%

2012

� 7 Wind Farms: Santa Clara� 2 Biomass TPPs: Ipê and Pedra

2013 2014

� 1 SPP: Salto Góes� 2 Biomass TPPs: Coopcana and Alvorada

� 13 Wind Farms: Macacos I, Campo dos Ventos II and Atlântica

� 9 Wind Farms: Campo dos Ventos and São Benedito

Projects under construction – Start-up

Operating(Mar 2012)

Underconstruction

Operating (until 2014)

Under development

Total

850384

885388

1,735

772

100%with PPA

3,992

1,917

5,727

2,689

Wind: 1,038 MWBiomass: 370 MWSPP: 327 MW

283 MW 348 MW 254 MW

Biomass

22%

SPP

16%

Wind61%

CPFL Renováveis

24

412 MW | Certified projects

320 MW | Non-certified projects

Total | 732 MW

Acquisition of 100% of the Jantus SL (SIIF Énergies Brasil)

per R$ 823million (equity) and R$ 675 million (net debt)

1)

M&A | Acquisition of Santa Luzia SPP in Aug/11

25

Santa Luzia SPPLocation: Chapecó River | Operational Sinergy

CPFL Renováveis SPP´s

• Commercial start-up: 3Q11

• Installed Capacity: 28.5 MW

• Assured Energy: 18 avg.MW

• PPA:• 14 avg.MW | 2007 LFAPrice: R$ 170/MWh (jun/11)Long Term contract: Dez/39

• 4 avg.MW | Free Market

ArvoredoAlto Irani

Plano AltoSalto Góes

Santa Luzia

Atlântica wind farm (under construction)Location: Palmares do Sul | RS

Taíba

Ester TPP | biomass (into commercial operation)Location: Cosmópolis | SP

• Acquisition: R$ 111.5 million2

• Installed Capacity: 40 MW• Physical guarantee: 11 avg. MW• PPA: 7 avg. MW (LFA 2007) | 15 years;4 avg. MW (ACL)

Bons Ventos wind farms(in commercial operation)

• Acquisition: R$ 1,062 million1

• 157.5 MW

• 63 avg. MW

• Commercial Start-up• Taíba: 4Q08• Bons Ventos, Canoa Quebrada e Enacel: 1Q10

• PPA:• Proinfa | R$ 290.50/MWh(Dec/11)

• 20 years

Location: Ceará

M&A | Acquisitons in 1Q12

26

• 4 wind farms

• Installed Capacity: 120 MW• Physical guarantee : 52.7 avg. MW• PPA: LFA (Aug/10) | R$ 147.44/MWh (Dec/11) | 20 years

Generation | Portfolio of projects under construction

1) Constant currency (Dec/2011)27

(e) (MW) (Avg. MW) (e)

2Q12 25 8.4 79% BNDES21% equity

ACL

2Q12 70 24.473% BNDES27% equity

LER (Aug/10)R$ 154.121

3Q12 188 76.0 65% BNDES35% equity

LER (Dec/09)R$ 168.321

99% concluded (commercial start-up (e) in Jun/12)

73% concluded

Commercial start-up in 2012(e) | 283 MW / 109 avg. MW

Bio Pedra TPP

Santa Clara Wind Farm

94% concluded

Bio Ipê TPP

28


Alvorada TPP

Coopcana TPP


1Q13 20 11.1BNDES funding(63% debt /37% equity)

LFA Aug/10R$ 160.411

2Q13 50 18.0BNDES funding(under review) ACL

2Q13 50 18.0 BNDES funding(under review)

ACL

9% concluded

9% concluded

Commercial start-up in 2013(e) | 120 MW/47 avg. MW

61% concluded

Salto Góes SPP

1) Constant currency (Dec/2011)

29



3Q13 78.2 37.1 BNDES funding(under review)

LFA Aug/10R$ 137.33

3Q13 30 14.0BNDES funding(under review)

LER Aug/10R$ 133.73

2H13 120 52.7BNDES funding(under review)

LFA 2010R$ 147.443

1) Macacos, Pedra Preta, Costa Branca and Juremas 2) Atlântica I, II, IV and V 3) Constant currency (Dec/2011)


Macacos I Wind Farms1

6% concluded

7% concluded

23% concluded

Atlântica Wind Farms2

(e) (MW) (avg. MW) (e)

2Q14 138 68.5BNDES funding(under review)

Free Market2033

2Q14 116 60.6 BNDES funding(under review)

Free Market2034


61% concluída

Pending approval by ANEEL

Pending approval by ANEEL

1) Campo dos Ventos I, III, V, São Domingos and Ventos de São Martinho 2) Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica and Santa Úrsula


30

Agenda

Corporate Overview




31


Annex

Commercialization business

32 1) Exclude non-controlling shareholders32

192 219

455

587

456 446

485

514

Dec/2008 Dec/2009 Dec/2010 Dec/11

4.1%45.1%

Dec/2008 Dec/2009 Dec/2010 Dec/2011

Current: 9.1 GW averagePotential: + 2 GW average

Current: 1.1 GW averagePotential: + 6 GW average

# of competitive customers – >3 MW # of special customers – from 0.5 to 3 MW

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

Number of free clients in Brazil

Agenda

Corporate Overview




33


Annex

Sales – CPFL presents consistent growth

Sales in the Concession Area (GWh)1 Breakdown | 1Q12

CAGR = +6.0% p.a.

1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market). 2010 TUSD adjusted (97 CAT Resolution) 2) Source: EPE

TUSDCaptive Industrial

Commercial

ResidentialOthers33,076 31,235 31,778 35,245 37,323 37,821 39,250 39,917

9,983 10.220

3,288 7,263 9,58511,230 11,710 10,978 13,138 14,674

3,499 3.718

36,364 38,498 41,36346,475 49,033 48,799

52,378 54,590

13,482 13.938

2004 2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12

45%

15%

14%25%

34

+3.4%

Annual Sales Growth in the Concession Area | 2012 (GWh)2

Financial results

35

EBITDA Margin

EBITDA (R$ million)IFRS

Net Income² (R$ million)IFRS

Net Revenues (R$ million)IFRS

2009 2010 2011 1Q11 1Q12

11,358 12,024 12,794

3,023 3,421

31.7% 33.7%

1Q11 1Q12

+13.2%

1) Exclude non-controlling shareholders 2) Adjusted by regulatory assets & liabilities and non-recurring effects35

CAGR = +6.1%

2009 2010 2011 1Q11 1Q12

3,453 3,3503,769

1,020 1,084

+6.2%

CAGR = +4.5%

2009 2010 2011 1Q11 1Q12

1,689 1,560 1,582

466 423

-9,2%

Adj. Net Income2 = +9.5%

Adj. EBITDA2 = +17.9%

Dividends

36

2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11

140

401498

612722

842719

602 606 572655

774

486

748 758

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%

8.29 9.43 11.6715.02 14.13 15.87 17.99 18.05 16.69 15.77 16.51 18.44 20.18 22.05 21.95

CPFL has distributed 95% of the net income since its IPOCumulative dividends since IPO (Sep/04): R$ 9,1 billion

Dividend Yield 1 (LTM) Declared dividends2 (R$ Mi) CPFL average price (R$/ORD)3

1) Considering last two half years’ div idend yield 2) Refer to declared div idend. 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 div idends).

Indebtedness

37

2009 2010 2011 1Q12

6.47.9

10.7 10.9

CDI

Prefixed (PSI)

IGP

TJLP

Gross debt breakdown1 | 1Q12Gross debt cost1

Net debt2 | R$ billion2.53x:Excluding debt of projects under construction and considering pro forma LTM Ebitda(e) of CPFL Renováveis

Net debt/EBITDA3

1.952.38

2.84 2.85

1) Financial debt + pension fund; 2) Net debt calculation pursuant to financial covenants methodology. Excludes pension fund debt and judicial deposits related to income tax at CPFL Paulista. Does not take into account regulatory assets and liabilities in EBITDA; 3) LTM EBITDA

9.4%7.9%

9.9%7.3% 7.1%

4.9% 4.4% 4.3% 5.2%

17.7%

13.9%13.4%

12.1%13.4%

9.4%10.5%11.1% 10.7%

2004

2005

2006

2007

2008

2009

2010

2011

1Q12

Nominal Real

CashR$ million 1,487 1,563 2,700 2,707

Debt profile as of Mar 31, 2012

383838

Cash Short Term* 2013 2014 2015 2016 2017 2018+

2,707

1,565

1,229

1,9651,806 1,863

1,484

3,540

Debt amortization schedule1 | R$ million

Cash coverage:

1,7x short-term amortizations (12M)

Average tenor: 4.2 yearsShort-term (12M): 11.6% of total debt

1) Disregard financial charges (ST = R$ 376 million), hedge (net positive effect of R$ 240 million) and MTM (R$ 36 million)*Considering debt related to the next 12 months (from Apr 01, 2012)

Capex(e) 2012-2016

391) Constant currency (Dec/11). Take into account 100% interest in CPFL Renováveis and Ceran (IFRS) and proportional stake in the others generation plants. 2) Take into account private network incorporation and Tauron Project. 3) Take into account generation plants released until Mar 12, 2012

Total Capex(e) 2012-2016| R$ 8,310 million1

2011 actual(cash flow)

2012 2013 2014 2015 2016

1,9052,943

2,3701,115 946 935

Distribution2

R$ 4,983 million

Commercialization and Services

R$ 230 million

Generation (Convencional + Renewables3

R$ 3,097 million

2011 actual

2012

2013

2014

2015

2016 860

843

972

1,102

1,207

1,065

20

68

111

1,215

1,683

823

55

35

32

53

54

17

Agenda

Corporate Overview




40


Annex

Capex 2004-2011

2004 2005 2006 2007 2008 2009 2010 2011

261 368 527 676 665 746 1.128

741 343 255 266

445 502 570

645

449 626

412929

Distribution Generation Acqusitions

Investments of

• R$ 5.1 billion in Distribution and

R$ 3.6 billion in Generation since IPO

604 623

1,419 1,5331,167

1,316

1,7732,119

Capex + Acquisitions1 | in R$ million

Acquisitions

• R$ 2.0 billion (equity)

1) Taking into account the acquisitions (equity) of 32.69% of RGE’s additional stake, 11% of Foz do Chapecó’s additional stake, Cia. Luz e Força Santa Cruz, CMSEnergy , SPP Santa Luzia (63%) and SIIF Énergies Brasil;41

Stock performance | CPFL Energia outperformed the main indices

42

25.5%18.0%

-5.9%

LTM share performance on BM&FBovespa LTM share performance on NYSE

Daily average trading volume on BM&FBovespa + NYSE (R$ million)

9,9% 7,2%-13,1%

• Increase in market capof free float (+30%)1

• Increase in daily average trading volume (+18%)1

1) Considers LTM (Feb/12) Note: CPFL integrated DJ Br20 composition for the first time in Feb/05 and remained until Feb/10

1Q11 1Q12

13.5 15.3

17.2 20.3

+15,5%30.735.5

1,3682,512+83.7%

Bovespa NYSE Daily avg. number of trades

Dow Jones Brazil Titans 20ADR IndexSM

CPFL’s ADRs reselectedin Mar/12

CPL Dow Jones Index Dow Jones Br20CPFE3 IEE IBOV

43

TSR Performance

Total Shareholder Return1 2005 – 20112 | % p.a.

Note: 1) TSR = TIR shareholder – Market cap v alues on 12/31/2004 and 12/31/2011. Amounts adjusted by IGP-M (Dec/11)Source: Thomson F inancial; Economática;

Genco Genco Integrated Disco Integrated Integrated Integrated Genco

24%

21% 21%18% 18% 18%

14%

5%

2%

Methodology of the 3rd tariff review cycle for distributors

4444

•Maintenance

•WACC of

• Capital structure (D/E)

• Adjustment of leverage Beta:

of proposal of the 2nd phase, with improvements

• Single productivity of

•Deliquency and with a limit determined by ANEEL

central point of calculation

considers the companies differently; companies that perform better have a greater benefit and lower fee. The reverse is true for companies that have a poorer quality performance, when compared with the history of the company itself.

• For , the variation in the DEC and FEC quality indicators between

• XT limited to

(Nov, 11)

Comparison of global electricity consumption

45

Consumption of electricity versus GDP¹

institutional presentation cpfl energia itaú ny final

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