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Apresentação institucional cpfl energia eng final Presentation Transcript

  • 1. 2012 Brazil ConferenceBank of America Merrill LynchMarch, 2012
  • 2. 2
  • 3. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex3
  • 4. Corporate overview – Highlights The largest R$ 28+ billion of Market Cap as of March 13, 2012 private player Leadership in distribution of energy through 8 in the Brazilian subsidiaries Presence concentrated in the most developed Electric Sector 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, more than 90% from renewable sources 2011 EBITDA of R$ 3.8 billion and net income of R$ 1.6 billion Listed on Bovespa’s Novo Mercado and on NYSE (ADR Level III) Differentiated Dividend Policy: minimum of 50% of net income, semi-annually. Practices 95% since IPO in 20044
  • 5. Brazil’s largest player in the electric sector CPFL Energia | 2011 Market-shareCOMMERCIALIZATION Distribution CPFL 13%1 Concession Area (captive + TUSD) • 7.0 million customers Others: • 569 municipalities 87% • Sales of 54,590 GWh2 3 major Market leader players: 34% Generation CPFL 2%3 Focused mainly in renewables • 64 power plants in operation Others: • 2,644 MW installed capacity 98% • 30 plants under construction4 3 major GENERATION 3rd private generator players: 28% DISTRIBUTION Commercialization CPFL 11%5 Free Energy market and Services • 140 free customers • Sales of 12,173 GWh6 Others: 35 SPPs 5 (SC) and 4 (RS) • Added value services 89% 33 Wind Farms 8 (CE), 21 (RN) and 4 (RS) 7 TPPs Sugarcane Main player 3 major 4 (SP), 1 (RN), 1 (MG) and 1 (PR) players: 29% 1) Aneel – last available information 2) Concession area sales (excludes CCEE) 3) In Apr, 2011. Generation figures after ERSA and Jantus’ deals closing 4) Includes CPFL Energia’s 5 stake in CPFL Renováveis (63.0%) 5) 2011 accumulated (October, 2011) 6) Take into account sales of commercialization and generation outwards the Group
  • 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 1 Free Float DISTRIBUTION COMMERCIALIZATION GENERATION 3 Paulista Lajeado Inv estco SERVICES RENEWABLES 1) C ontrolling shareholders; 2) Includes the 0.1% direct stake ow ned by C amargo Corrêa S .A.; 3) Termoparaíba and Termonordeste Thermoelectric F acilities;6 4) C P FL E nergia ow ns a 63.0% indirect interest in C P FL Renováveis through C PFL G eração, with 35.5% and C PFL Brasil w ith 27.5%
  • 7. Best corporate governance practices World-Class Corporate Governance Practices: 1st Brazilian company • Shares listed in differentiated segments: • Bovespa Novo Mercado Annual Client Leadership • NYSE (ADR Level III) Award IFC 2008 • Compliant with the Sarbanes-Oxley Act • Board of Directors composed by 7 members: Member of the Companies Circle – OCDE/IFC • 1 Independent Member • Advised by 3 Committees • Self-Assessment through Fiscal Council • Enforcement of policies for information disclosure and trading 1st Place – May, 2011 of company’ shares by employees Energy Sector – The Most Sustainable Large Companies in Latin America for the 3 rd • Dividend Payout Policy: consecutive year • Minimum of 50% of net income, semi-annually Ranked in the 50 Largest Sustainable Latin • Succession Plan American companies list (2008/2009) Ranked in Ibovespa’s Transparency in Sustainability list (2 nd place - 2009)7
  • 8. CPFL Energia strategic plan 2012-2016Leadership in the Brazilian electricity sector, with a diversified portfolio GENERATION DISTRIBUTION Leader in renewable sources Market leader, doubling of energy in Latin America market share; (> 4 GW through 2020) Operational excellence Operational excellence: through use of innovation and EBITDA margin > 70% for best-in-class technologies renewables and > 80% for conventional energy Successful track record in COMMERCIALIZATION the development and Leader in energy sales, with construction of generation a market share of over 10% capacity Expansion of range of Pursuing new opportunities services and integration (HPP and thermoelectric) with the other business segments (more synergies)88
  • 9. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex9
  • 10. Distribution business Leadership in the distribution business: 8 distribution companies; 13% of market share; 7.0 million customers; 569 municipalities; Sales of 54,590 GWh 1 | 6.0% CAGR from 2004 to 2011 Southeast region Number of customers +1.5 million 7,0 6,6 6,7 6,3 6,4 South region 5,6 5,7 5,5 2004 2005 2006 2007 2008 2009 2010 2011 Acquisitions Presence in the 2006 | Cia. Luz e Força Santa Cruz | RGE’s additional stake (32.69%); most developed 2007 | CMS Energy Brasil2 (4 distribution companies). regions of Brazil R$ 1,029 million in acquisitions1010 1) Concession area 2) CPFL Jaguariúna
  • 11. Positioned in a very promising region Commercial: expected inauguration of shopping malls Residential: 2012-20131 Population growth2 25 malls Accumulated variationSão Paulo (total) 2000-2010 Araçariguama Bauru 14,1% Boituva 11,4% 14 Botucatu In the 5,5% 5,0% Campinas concession Jundiaí (2) area Ribeirão Preto S.J. do Rio Preto (2) Concession SP RGE RS São Roque area of Sorocaba (2) CPFL Energia Sumaré (Southeast) 2010-2022(e) 9,5%Rio Grande do Sul 7,7% 5,5% 4,6% 6 malls (total) Farroupilha Concession SP RGE RS 2 Gravataí area of In the CPFL Energia concession (Southeast) area Larger growth rates in the concession areas of CPFL Energia11 1) S ource: A BRASCE 2) S ource and projection: IBG E and LC A Consultores
  • 12. Operational Efficiency – Distribution companies Companies with more than 400,000 customers | in % 99 98 97 96 93 85 82 82 81 76 75 72 69 67 67 64 64 67 59 57 56 51 5 50 49 49 47 45 45 43 42 Coelba CPFL Paulista Coelce Bandeirante Elektro Ampla Celpa CELPE ESE EPB CEEE CEPISA AES Sul Enersul Copel Ceal Celtins Celesc Amazonas Light Cemat CEMIG Piratininga Cosern Escelsa Eletropaulo Celg Cemar CEB RGE Companies with less than 400,000 customers | in % 95 91 86 77 77 76 64 63 60 57 54 54 50 50 50 50 48 47 47 45 42 42 41 41 41 41 39 55 38 21 Cooperali… Cocel EBO EMG Caiua Santa Maria Bragantina Sulgipe Hidropan EFLUL Eletroacre EVP CHESP CPFL Sul Jaguari Nacional Uhenpal DMED Santa Cruz Muxfeldt CFLO DEMEI Mococa CPFL Leste João Cesa Iguaçu Boa Vista Eletrocar ENF Efficiency Average1212 Source : ANEEL NT 294/2011 – Average of the methodology DEA and COLS without environmental components
  • 13. 13 CPFL CP FL 4.5 4.6 Mococa Mococa CPFL CP FL San ta 5.1 5.5 Paulista Cruz CPFL CP FL 5.2 5.7 Piratini nga Paulista El etro pau lo CPFL 5.4 6.9 Piratinin ga FEC 1 | 2010 (#) Coelce 5.6 Coelce 7.5 DEC 1 | 2010 (hours) E lektro CPFL Leste 5.7 8.3 P aul ista Li ght 5.8 E scel sa 9.0 E scel sa CPFL Sul 6.3 9.2 Pau lista CP FL Santa CPFL 6.5 9.2 Cruz Jag uari Cemi g 6.6 E lektro 9.5 Co sern 7.0 El etrop aul o Band eirante 7.1 Lig ht Cel pe 7.3 Copel 10.6 11.3 11.5 CPFL Leste 7.7 P aul ista Bandeirante CPFL Su l Operational Efficiency – Distribution companies 7.8 Pau lista Co sern CPFL 7.8 Jag uari Cemi g 12.2 12.7 13.0 Copel 9.5 Celesc 13.5 RGE RGE 14.7 AES S ul Celp e Celesc 9.7 10.1 10.2 AES Su l 17.1 18.0 Coelb a 11.2 Cemar Ampl a 12.7 CEE E 21.5 21.6 Cemar 14.0 Ampla 23.8 CE EE 15.0 Coelba 26.6 1) DE C -Duration of outages per consumer per y ear (in hours); F E C-Frequency of outages per consumer per y ear (number of outages). E xcluding pow er outage effect in N
  • 14. Methodology of the 3rd tariff review cycle for distributors CPFL Energia - Recurring EBITDA Breakdown¹ - 2011 | R$ million | % Commercialization 278 | 7% CPFL Santa Cruz CPFL Leste Paulista CPFL Jaguari CPFL Paulista CPFL Sul Paulista 49.4% Generation 6.3% Distribution CPFL Mococa 1.189 | 31% 2,350 | 62% 22.0% RGE 22.3% CPFL Consolidated Piratininga 3,769Affected 14% 18% 48% 62%CPFL Energia’sEBITDA Oct/112 Feb/12 Apr/13 Jun/13 CPFL CPFL Santa Cruz CPFL Paulista RGE Piratininga CPFL Leste Paulista CPFL Jaguari CPFL Sul Paulista CPFL Mococa1414 N otes: 1) E xcludes intercompany transactions and equity attributed to non-controlling shareholders; 2) E ffectiv e enforcement: aw aiting A NEEL’s decision
  • 15. Some Value Initiatives aimed at boosting efficiency and productivity Description Objectives CSC Transference of transactional Increase of operating productivity and efficiency corporate activities to the CPFL CSC Growth at a lower incremental cost Corporate Corporate depts. focused on strategic, Cost reduction per transaction via specialization, Services value-added levers vs. transactions e.g.: procurement 50%; payroll 35%; facilities Center 40% IRP Total of 445 adherences 43% reduction in the salary base of this Incentivized Total costs: R$ 49.8 million population; Retirement (recorded in 2Q and 3Q of 2011) Savings estimated at R$25 Mn per year Program Zero-Based Budget Improvements in the budgeting process and the methodology implemented organization’s cost culture; ZBB Inefficiencies from past budgets are Avg. reduction of R$50 Mn per year in the Zero-Based not carried over to the next periods next 5 years Budget Implementation of smart grid Maximize return on electricity assets concept: IT+Automation+Telecom Gains in productivity, efficiency and quality Tauron Smart Grid Telemetering and self-healing Benefits estimated at R$106 Mn per year15
  • 16. Operational Efficiency – Distribution companies Delinquency (%)1 | CPFL Energia 4Q10 4Q111.42 4Q09 1.27 1.29 1.16 m ay / 09 n ov /0 9 m ay / 10 n ov /1 0 m ay / 11 n ov /1 1 j an / 09 j ul/ 09 aug / 09 j an / 10 j un / 10 j ul/ 10 aug / 10 j an / 11 j un / 11 j ul/ 11 feb / 09 m ar / 09 a pr / 09 j un / 09 s ep / 09 o ct/ 09 d ec / 09 feb / 10 m ar / 10 a pr / 10 s ep / 10 o ct/ 10 d ec / 10 feb / 11 m ar / 11 a pr / 11 aug / 11 s ep / 11 o ct/ 11 d ec / 11 Program for Reduction of Commercial Losses 2007-2011 2.4 million consumer units (CU) inspected • 375 thousand CU identified and overhauled • 591 thousand measuring equipment replaced • 42 thousand regularization of illegal connections 16 1) Bills ov erdue more than 30 day s – % of 12 months billings
  • 17. CPFL Energia Awards Best Electic Energy Distribution Economical-Financial Management: Company in Brazil: Management Quality: Best Electic Energy Distribution Company in the South Region: Best Social Responsability: Operational Management17
  • 18. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex18
  • 19. Expansion in Generation (conventional + renewable) 2nd largest private player in generation: 78 power plants in operation 2,768MW of installed capacity (2.947 MW in FY12e) 21 power plants under construction 2012e Installed Capacity Ranking (GW) | Private players 7,15 2,95 2,66 2,23 1,71 1,37 1,25 1,21 1,20 1,00 Genco 1 CPFL Genco 3 Genco 4 Genco 5 Genco 6 Genco 7 Genco 8 Genco 9 Genco 10 Energia Installed capacity evolution (MW) | CPFL Energia 3,166 3,326 2,644 2,947 2,396 1,588 1,704 1,737 854 915 1,072 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e19
  • 20. Incorporation of CPFL Renováveis on August 24, 2011 Corporate structures considering the projects involved in the joint venture + wide portfolio for development20
  • 21. CPFL Renováveis | Current portfolio 100% 100% 63.0%1 37.0% SPP Biomass Wind • 34 operating: 307 MW • 4 operating: 175 MW • 8 operating: 368 MW • 1 under construction: 20 MW • 4 under construction: 195 MW • 25 under construction: 670 MW • Under development: 603 MW • Under development: 1,190 MW • Under development: 910 MW Total: 930 MW Total: 1,560 MW Total: 1,949 MW Total: 4,438 MW21 1) F rom A ugust 1, 2011 until N ov ember 30, 2011 = 54.5% . F rom December 1, 2011 = 63.0%
  • 22. CPFL Renováveis | Current portfolio CPFL Renováveis Installed capacity Installed capacity (MW) (Total: 4,438 MW) Assured energy (AvgMW) Wind: 1,038 MW 4,438 Biomass: 370 MW SPP: 327 MW SPP 100% 2,704 SPP 22% with PPA 1,968 19% 1,734 1,196 Biomass Wind 849 885 772 Biomass 384 388 32% 61% Wind 19% 47% Operating Under Operating Under Total (Mar 2012) construction (until 2014) development Projects under construction – Start-up 2012 2013 2014 7 Wind Farms: Santa Clara 1 SPP: Salto Góes 9 Wind Farms: Campo dos 2 Biomass TPPs: Ipê and Pedra 2 Biomass TPPs: Coopcana Ventos and São Benedito and Alvorada 13 Wind Farms: Macacos I, Campo dos Ventos II and Atlântica 283 MW 348 MW 254 MW22 1) F rom A ugust 1, 2011 until N ov ember 30, 2011 = 54.5% . F rom December 1, 2011 = 63.0%
  • 23. Expansion | Wind Farms and Biomass TPP Acquisitons Bons Ventos wind farms (in commercial operation) Location: Ceará Taíba • Acquisition: R$ 1,062 million1 • Commercial Start-up • PPA: • 157.5 MW • Taíba: 4Q08 • Proinfa | R$ 290.50/MWh • Bons Ventos, Canoa (Dec/11) • 63 avg. MW Quebrada e Enacel: 1Q10 • 20 yearsAtlântica wind farm (under construction) Ester TPP | biomass (into commercial operation)Location: Palmares do Sul | RS Location: Cosmópolis | SP • 4 wind farms • Acquisition: R$ 111.5 million2 • Installed Capacity: 120 MW • Installed Capacity: 40 MW • Physical guarantee : 52.7 avg. MW • Physical guarantee: 11 avg. MW • PPA: 7 avg. MW (LFA 2007) | 15 years; • PPA: LFA (Aug/10) | R$ 147.44/MWh (Dec/11) | 20 years 4 avg. MW (ACL) 23
  • 24. Expansion | Acquisition of Santa Luzia SPP on Aug/11• Commercial start-up: 3Q11• Installed Capacity: 28.5 MW• Assured Energy: 18 avg.MW• PPA: Santa Luzia • 14 avg.MW | 2007 LFA Price: R$ 170/MWh (jun/11) Long Term contract: Dez/39 Arvoredo Alto Irani • 4 avg.MW | Free Market Plano Alto Salto Góes CPFL Renováveis SPP´s Location: Chapecó River | Operational Sinergy Santa Luzia SPP24
  • 25. Acquisition of 100% of the Jantus SL (SIIF Énergies Brasil)per R$ 823million (equity) and R$ 675 million (net debt) 412 MW | Certified projects 320 MW | Non-certified projects Total | 732 MW25 1)
  • 26. Generation | Portfolio of projects under construction Commercial start-up in 2012(e) | 283 MW / 109 avg. MW C (Avg. (e) (MW) MW) (e) 95% concluded 79% BNDES 2Q12 25 8.4 ACL 21% equityBio Ipê TPP 83% concluded 73% BNDES LER (Aug/10) 2Q12 70 24.4 27% equity R$ 154.121Bio Pedra TPP 60% concluded 65% BNDES LER (dez/09) 3Q12 188 76.0 35% equity R$ 168.321Santa Clara wind farm26 1) Constant currency (Dec/2011)
  • 27. Generation | Portfolio of projects under construction Commercial start-up in 2013(e) | 348 MW / 144 avg. MW1 (e) (MW) (MWmédios) (e) 54% concluded BNDES funding LFA Aug/10 1Q13 20 11.1Salto Góes SPP (63% debt / 37% equity) R$ 160.412 8% concluded BNDES funding 2Q13 50 18.0 ACLCoopcana TPP (under review) 8% concluded BNDES funding 2Q13 50 18.0 ACLAlvorada TPP (under review) 10% concluded BNDES funding LFA Aug/10 3Q13 78.2 37.1 (under review) R$ 137.32 7% concluded BNDES funding LER Aug/10 3Q13 30 14.0 (under review) R$ 133.72 27 1) Tak es into account Atlântica wind farms (120MW/53av g. MW) 1) Macacos, Pedra Preta, Costa Branca and Juremas 2) Constant currency (Dec/2011)
  • 28. Generation | Portfolio of projects under construction Commercial start-up in 2014(e) | 254 MW / 129 avg. MW (e) (MW) (MWmédios) (e) Pending approval by ANEEL BNDES funding Free Market 2Q14 138 68.5 (under review) 2033 Pending approval by ANEEL BNDES funding Free Market 2Q14 116 60.6 (under review) 2034 1) Campo dos Ventos I, III, V, São Domingos and Ventos de São Martinho 2) Ventos de São Benedito, Ventos de São Dimas, Santa Mônica and Santa28 Úrsula
  • 29. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex29
  • 30. Commercialization business Number of free clients in Brazil # of competitive customers – >3 MW # of special customers – from 0.5 to 3 MW 205.7% 12.7% 587 514 455 485 456 219 446 192 Dec/2008 Dec/2009 Dec/2010 Dec/11 Dec/2008 Dec/2009 Dec/2010 Dec/2011 Current: 9.1 GW average Current: 1.1 GW average Potential: + 2 GW average Potential: + 6 GW average Competitive advantages of CPFL in this market: market leadership, expertise and synergies with CPFL Renováveis3030 1) Exclude non-controlling shareholders
  • 31. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex31
  • 32. Sales – CPFL presents consistent growth Sales in the Concession Area (GWh)1 Breakdown | 2011 TUSD +4.9% CAGR = +6.0% p.a. Industrial Captive 54,590 45% 46,475 49,033 48,799 52,378 41,363 13,138 14,674 15% Commercial36,364 38,498 11,230 11,710 10,9783,288 7,263 9,585 1 25% 14%33,076 31,235 31,778 35,245 37,323 37,821 39,250 39,917 Others Residential2004 2005 2006 2007 2008 2009 2010 2011 Annual Sales Growth in the Concession Area | 2011 (GWh)2 1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market). 2010 TUSD adjusted (97 CAT Resolution)32 2) Source: EPE
  • 33. Financial results Net Revenues (R$ million) EBITDA (R$ million) IFRS IFRS +12.5% +6.2% 12,794 3.769 12,024 3.453 11,358 3.350 2009 2010 2011 2009 2009 2010 2010 2011 2011 Net Income² (R$ million) EBITDA Margin IFRS +1.4% 1.689 29.5% 27.9% 1.560 1.582 2009 2010 2011 2010 20113333 1) Exclude non-controlling shareholders
  • 34. Dividends Dividend Yield 1 (LTM) Declared dividends2 (R$ Mi) CPFL average price (R$/ORD)3 10.9% 9.1% 8.7% 9.6% 9.7% 7.9% 8.6% 7.6% 7.3% 7.6% 6.9% 7.1% 6.5% 6.0% 3.7% 842 722 774 748 758 719 612 602 606 655 572 498 486 401 140 2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 22.05 21.95 17.99 18.05 16.69 15.77 16.51 18.44 20.18 15.02 14.13 15.87 9.43 11.67 8.29 CPFL has distributed 95% of the net income since its IPO Cumulative dividends since IPO (Sep/04): R$ 9,1 billion 1) Considering last two half y ears’ div idend y ield 2) Refer to declared div idend. Pay ment in the next half y ear 3) Considers share price adjusted for34 rev ersal stock split and simultaneous split of shares on June 29, 2011 (not adjusted per div idends).
  • 35. Debt profile and Leverage Gross debt real cost1 | LTM Gross debt breakdown1 9.4% 9.9% 7.9% 7.3% 7.1% 4.9%4.4% 4.3%4.4% CDI 3.9%4.3% TJLP 2004 2005 2006 2007 2008 2009 2010 1Q11 2Q11 3Q11 4Q11 Prefixed IGP (PSI) Net debt2 | R$ billion 2,55x: 10.7 Excluding debt 8.9 of projects 7.9 7.6 8.0 under 6.4 construction and considering Net debt/ 2.84 pro forma LTM EBITDA 3 2.38 2.43 Ebitda(e) of 2.27 2.33 CPFL 1.95 Renováveis 2009 2010 1Q11 2Q11 3Q11 4Q11 (R$ million) 1) Financial debt + pension fund; 2) Net debt calculation pursuant to financial cov enants methodology . Excludes pension fund debt and judicial35 deposits related to income tax at CPFL Paulista. Doesn’t tak e into account regulatory assets and liabilities in EBITDA; 3) EBITDA LTM
  • 36. Debt profile Amortization schedule (R$ million) 3.338 Cash coverage: 1.9x short-term amortizations Average tenor: 4.3 years 2.700 1.971 1.857 1.779 1.510 1.468 1.436 Cash 2012 2013 2014 2015 2016 2017 2018+3636 1) Disregard f inancial charges (ST = R$225 million; LT = R$24 million) and hedging (net positiv e effect of R$219 million)
  • 37. Capex(e) 2012-2016 Total Capex(e) 2012-2016| R$ 8,310 million1 2,943 2,370 1,905 1,115 946 935 2011 actual 2012 2013 2014 2015 2016 (cash flow) Generation (Convencional + Commercialization and Distribution2 Renewables3 Services R$ 4,983 million R$ 3,097 million R$ 230 million2011 actual 1,065 823 17 2012 1,207 1,683 54 2013 1,102 1,215 53 2014 972 111 32 2015 843 68 35 2016 860 20 55 1) Constant currency (Dec/11). Tak e into account 100% interest in CPFL Renov áv eis and Ceran (IFRS) and proportional stak e in the others generation37 plants. 2) Tak e into account priv ate network incorporation and Tauron Project. 3) Tak e into account generation plants released until Mar 12, 2012
  • 38. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex38
  • 39. Capex 2004-2011 Capex + Acquisitions1 | in R$ million 2,119 1,773 1,419 1,533 1,316 929 412 1,167 645 604 626 570 623 445 502 449 266 1.128 343 255 746 741 527 676 665 261 368 2004 2005 2006 2007 2008 2009 2010 2011 Distribution Generation Acqusitions Investments of Acquisitions • R$ 5.1 billion in Distribution and • R$ 2.0 billion (equity) R$ 3.6 billion in Generation since IPO 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, CMS39 Energy , SPP Santa Luzia (63%) and SIIF Énergies Brasil;
  • 40. Stock performance | CPFL Energia outperformed the main indices 2011 share performance on Bovespa1 2011 share performance on NYSE1 34.0% 25.9% 19.7% 5.5% -18.1% -20.6% CPFE3 IEE IBOV CPL Dow Jones Dow Jones Br20 Index Daily average trading volume on Bovespa + NYSE in 2011 Main electricity companies (R$ million) 109 Private company with 69 greater liquidity 46 31 27 23 22 20 15 14 13 Integrated Genco Genco Disco Genco Integrated Integrated Genco Genco Genco (State- (State- (State- owned) owned) owned) MSCI Indexes40 1) Cotações de fechamento em 29/dez/2011 – com ajuste por prov entos (CPFE3: R$ 26,02/CPL: US$22,15)
  • 41. TSR Performance Total Shareholder Return1 2005 – 20112 | % p.a. 24% 21% 21% 18% 18% 18% 14% 5% 2% Genco Genco Integrated Disco Integrated Integrated Integrated Genco N ote: 1) TS R = TIR shareholder – M arket cap v alues on 12/31/2004 and 12/31/2011. A mounts adjusted by IGP-M (Dec/11)41 S ource: Thomson F inancial; E conomática;
  • 42. Methodology of the 3rd tariff review cycle for distributors (Nov, 11) • 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 to4242
  • 43. Comparison of global electricity consumption Consumption of electricity versus GDP¹43