9ª Conferência Anual Brasil Santander*
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9ª Conferência Anual Brasil Santander*

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    9ª Conferência Anual Brasil Santander* 9ª Conferência Anual Brasil Santander* Presentation Transcript

    • CPFL Energia – Highlights • Brazilian’s largest player in distribution and commercialization businesses • Energy market is concentrated in the most developed regions of Brazil (South/Southeast) • CPFL is listed in the Novo Mercado in Bovespa and ADR level III in NYSE • Differentiated Dividend Policy: payment of 50% of the net income on a semi-annual basis • 100% hydraulic generation portfolio, with a strong growth in the installed capacity in the last few years • Long term generation and distribution concessions • 5 distribution companies’ acquisition, 9 SPP’s and RGE’s stake (33%), Foz do Chapecó HPP’s stake (11%) and Lajeado HPP’s stake (7%) in the last 2 years, with a R$ 1.1 billion investment • First company in the Brazilian electric sector to negotiate carbon credits, through a run-of-stream HPP • Constitution of CPFL Bioenergia, for investments in energy generation from biomass 2
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    • CPFL Energia’s Investment Case join the current portfolio growth with acquisition opportunities • Organic growth and leadership in market-share • Operational efficiency focus • Small distribution companies acquisition, strategically located Distribution • Large distribution companies acquisition • Cooperatives acquisition • Private networks incorporation • High EBITDA margin • Long term concessions • Projects’ conclusion Generation • SPP’s repowering, construction and acquisition • Energy cogeneration through biomass • Green field projects - Auctions • Leadership in market-share: 21.3% • Increasing in Value Added Services (VAS) and new products and services Commercialization • New opportunities - clients between 0.5 and 3.0 MW, supplied by cogeneration or SPP’s • Consistent results 4
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    • Strong growth in the installed capacity and long term concessions in the generation ventures GENERATION Installed Capacity (MW) % 25.1 Assured Energy (MWmedium) 9.4% 2,174 % Concession Term 48.2 1,738 1,738 1,588 % 25.5 1,072 7.7% 812 854 915 40.2 % 862 862 1,082 800 434 472 525 571 2003 2004 2005 2006 20073 2008(e) 2009(e) 2010(e) SPP’s CPFL Geração Monte Claro Barra Grande Campos Novos Castro Alves Foz do Chapecó 2027 2036 2036 2035 2036 2036 Serra da Mesa1 CPFL Sul2 Lajeado 14 de Julho 2028 2032 2036 SPP’s CPFL Jaguariúna3 2015 7 (1) CPFL has the right of 51.54% of the Assured Energy until 2028 (2) Hydroelectric projects with installed capacity <= 1,000 kW are not eligible to concession 7 (3) Among the 9 SPP’s of CPFL Jaguariúna, 6 are in the situation mentioned in note 2
    • SPP’s: Greenfield Projects GENERATION Partnership to studies and implementation of SPP’s Feasible in the medium and long term 70 analysed projects and enrollment in ANEEL for 10 projects Capacity: 6 75.6 MW 60 4 Estimated discarded investment: • Low Internal Rate of Return • PPA’s already signed with unattractive prices projects R$ 285 million • Impracticable environmental requirements Feasible in the short term Basic projects and Technical ANEEL and Installation environmental Feasible Projects in the short studies and studies environmental License and term (up to 30 months) enrollment agencies’ construction of (necessary for in ANEEL approval the SPP’s the previous license) OK 2008 2008/2009 24 months 8
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    • CPFL presents sales growth in the concession area and in the free market Concession Area Sales - GWh Free Market Sales (GWh) 27.8% TUSD 46,475 178.9% CAPTIVE 38,498 41,363 36,364 11,230 3,288 7,263 9,585 9,334 8,951 24,117 7,120 5,828 33,076 31,235 31,778 35,245 3,209 4,277 18,289 2004 2005 2006 2007 1H08 2004 2005 2006 2007 1H08 Concession Area Sales – GWh – 1H08 6,0% South2 4,8% Brazil2 3,4%1 3,5% Southeast2 2,8%1 2,8% Note: excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market) 11 11 1) Excluding the effect of acquisition of CPFL Jaguariúna 2) Source: EPE (2Q08)
    • Conclusion of the 2nd Periodic Tariff Revision cycle for the Group’s distributors, with CPFL Paulista and RGE’s indexes released in April 1st Cycle 20031 2nd Cycle 2007/08 CPFL Paulista, CPFL Paulista, Acquisitions (CPFL CPFL Piratininga CPFL Piratininga Santa Cruz and Total and RGE and RGE CPFL Jaguariúna) Gross RAB 8,173 9,897 21% 528 10,425 28% Reintegration Quote 371 430 16% 23 454 22% Net RAB 3,857 4,547 18% 284 4,832 25% Parcel B1 1,823 2,206 21% 173 2,378 30% Reference Company 783 1,028 31% 104 1,132 45% R$ million 12 Note: Nominal values (1) Values for the 1st and 2nd cycle using the same methodology: 2nd cycle – exclude PIS/COFINS and R&D charges (2) With financial components
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    • Summary Energy market overview CPFL Energia’s investments Dividends Capital market performance 15
    • Brazilian market has 64 distribution’s companies • Distribution Business: 2007 Market ShareMarket Share1 % Distribution 1 (%) Distributors (#) 64 CELESC 4.0% Clients (million) 61 COPEL 6.8% EdB 5.7% Ashmore Energy Neoenergia 3.7% 7.4% Distributed Energy (TWh) 376.9 Energisa 3.5% CEMIG Companhia Energética 8.6% Others 34.8% Market Breakdown Brasiliana Energia 12.1% • The 5 largest groups have 50% of market-share CPFL Energia 13.3% • State-owned companies: 34% • Private Company: 66% Spreading proposes consolidation opportunities 1) ANEEL – Ref. 2Q07 (Recalculation of CPFL’s participation) – last information available 16 16
    • Brazilian market has 1,695 generation companies. The public sector concentrates 70% of the assets • Generation Business: 1Q08 Market Share (%) Generation Companies (#) 1,695 Installed Capacity (MW) 108,852 Others 35% CPFL Energia 2% Chesf 10% Duke 2% AES Tietê 3% Furnas 9% Market Breakdown Copel 4% Tractebel 6% Eletronorte 9% Cemig 6% • The 5 largest groups have 50% of the market CESP 7% Itaipu 7% • State-owned companies: 70% • Private Company: 30% Source: Aneel – last information available 17 17 Market breakdown: Acende Brasil
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    • CPFL Energia supports investment politics aligned with the Group’s growth strategy Actual Investment (R$ million) 1,425 1,551 418 627 606 633 1,133 606 627 797 2004 2005 2006 2007 Capex Total(1) Acquisitions(2) May, 2006 Aug, 2006 Oct, 2006 Apr, 2007 Asset Acquired 32.69% 11% 99.9% 100% Stake Investment – Equity 414 9 203 412 (R$ million) 19 (1) Considers minority shareholder participation’s acquisitions (2) Considers CERFRA Cooperative assets acquisition Note: Hedge not included
    • CPFL’s estimated Capex CPFL Energia’s investment in the next 5 years: R$ 5 billion Total Capex (R$ million) 1,196 1,124 890 837 789 677 828 782 815 783 519 296 108 22 6 2008E 2009E 2010E 2011E 2012E Generation Distribution Distribution - R$ million 362 Generation - R$ million 570 546 515 512 391 225 285 258 267 269 271 157 71 81 27 17 5 6 0,3 2008E 2009E 2010E 2011E 2012E 2008E 2009E 2010E 2011E 2012E Expansion Maintenance Debt Equity 20
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