Institutional presentation cpfl energia itaú ny final

901 views
830 views

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
901
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Institutional presentation cpfl energia itaú ny final

  1. 1. May, 2012
  2. 2. 2
  3. 3. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex3
  4. 4. Corporate overview – Highlights The largest R$25+ billion of Market Cap as of Apr, 2012 private player Leadership in distribution of energy through 8 in the Brazilian subsidiaries. Presence concentrated in the most Electric Sector developed regions of Brazil Leadership in Commercialization and a world-class provider of Value-Added Services Leadership in Renewable Energy in Latin America 2,768 MW of generation installed capacity (Mar-12), more than 93% from renewable sources LTM1Q12 EBITDA of R$ 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 20044
  5. 5. Brazil’s largest player in the electric sector CPFL Energia Market-shareCOMMERCIALIZATION Distribution (2011) 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 (Mar-12) CPFL 2%3 Focused mainly on renewables • 65 power plants in operation Others: • 2,768 MW of installed capacity4 98% • 30 plants under construction 3 major GENERATION 2rd private generator players: 28% DISTRIBUTION 9 SPPs Commercialization (2011) CPFL 11%5 2 TPPs Fuel Oil 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) 8 TPPs Sugarcane Main player 3 major 5 (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) CPFL Energia’s equivalent 5 stake in each project 5) 2011 accumulated (October, 2011) 6) Take into account sales of commercialization and generation outwards the Group
  6. 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. 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 American companies list (2008/2009) Ranked in Ibovespa’s Transparency in Sustainability list (2 nd place - 2009)7
  8. 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. 9. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex9
  10. 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. 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. 12. Large investments will lead to growth in the concession areaCampinas São Paulo Rio de Janeiro Viracopos Guarulhos Brasília • Construction of • Construction of the • Expansion of the terminal (1 st 3 rdterminal, passengers • Total Investment (e)1: R$ 34.6 billion phase) and expansion of the terminal, garage, expansion of departure area and highway system • 1st Phase (e): R$ 6.7 billion departure area construction of a and departure taxi lane area • 2nd Phase (e): R$ 27.9 billion • Investment (e): R$ 873 million • Investment(e): • Investment(e): by 2014 1 R$ 1.38 billion R$ 627 million by 2014 1 by 2014 1 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) Total: • Expansion of the telecommunication network in the Ribeirão Preto region (SP) R$ 3 billion • Construction of an ethanol terminal in Paulínia (SP) • Construction of a servicing center for transportation equipment in Sorocaba (SP) Up 37% Applications at BNDES for new projects amounted to R$ 55.7 billion in the 1Q123 compared to 1Q1112 1) Source: STN/Dept. of the treasury | Estimated v alues subject to changes 2) Source: Press (inv estments announced between Jan. and A pr/12)12 3) Source: BNDES | Performance Report – 03/31/12
  13. 13. 13 CP FL CP FL 4.9 6.0 Piratini nga Mococa CP FL CPFL 5.1 6.4 Jaguari Piratinin ga CPFL CP FL 5.2 6.8 Mococa Paulista CPFL CPFL 5.4 7.0 FEC 1 | 2011 (#) Paul ista Jag uari CP FL San ta 5.4 Elektro DEC 1 | 2011 (hours) 8.4 Cruz 5.5 E letro paulo E lektro 9.0 CPFL S ul CPFL Sul 5.7 9.1 Paulista Pau lista 6.0 Co el ce Coelce 9.3 CP FL Leste 6 .2 Bandeirante 9.4 Pau lista Band eirante CPFL Leste 6.2 9.7 P aul ista 6.3 Escelsa El etrop aul o 7.0 Cemig E scel sa 7.8 Li ght Copel 10.4 10.4 10.6 CPFL Santa 8.2 Cruz Co sern Operational Efficiency – Distribution companies 12.7 8.3 Cop el Cemi g1) DE C /FEC: Average duration/frequency of pow er outages per consumer per y ear (in hours/# of outages). 9.4 RGE RGE 14.3 15.2 9.8 Amp la Lig ht Cemar Celp e Cel esc 1 1.6 11.8 Celesc CE EE 13.2 CEE E 16.7 17.1 17.1 17.6 Cosern 15.2 Ampla 19.2 Cel pe 16.8 Cemar 21.4 Co el ba 22.5 Coelba 26.6
  14. 14. Methodology of the 3rd tariff review cycle for distributors CPFL Energia - Recurring EBITDA Breakdown¹ - LTM1Q12 | R$ million | % Commercialization 264 | 7% CPFL Santa Cruz CPFL Leste Paulista CPFL Jaguari CPFL Paulista CPFL Sul Paulista 47.0% Generation 6.3% Distribution CPFL Mococa 1.251 | 33% 2,314 | 60% 22.4% RGE 24.4% CPFL Consolidated Piratininga 3,832% of CPFL Energia’s 15% 19% 47% 60% EBITDA affected Oct/122 Feb/132 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 date
  15. 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$25m 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$50m per year in the next Zero-Based not carried over to the next periods 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$106m per year15
  16. 16. Some Value Initiatives aimed at boosting efficiency and productivity Smart Grid | 1st Phase Project status All suppliers contracted • Mobile Workforce Management : Investments (e): R$ 33 million Teams dispatched electronically Gains (e) R$ 42 million • Telemetering 1st Phase: Start up of installation as from May, 12 Installation of 25,000 intelligent meters in large clients Investments (e): R$ 57 million and a metering center Gains (e ) R$ 15 million • Self Healing: 2.887 automatic switches in operation Installation of 5,000 automatic switches/restarters by all (Mar, 12) of the Group’s distribution companies Investments (e): R$ 125 million Enabler for other projects Process Management • Commercial, operational e logistics On progress Process review Gains (e): R$ 49 million Use of anti-fraud standards (shielded cable, etc.) • Digital Bill: System in operation at CPFL Paulista e Electronic delivery of bills Pratininga Current investments: R$ 50 million | Total investments (e): R$ 215 million Annual benefits (e) a partir de dez/13: R$ 106 milhões Benefício anual as from Dec/13: R$ 106 million16
  17. 17. 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 17 1) Bills ov erdue more than 30 day s – % of 12 months billings
  18. 18. 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 Management18
  19. 19. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex19
  20. 20. Expansion in Generation (conventional + renewable) 2nd largest private player in generation (Mar-12): 65 power plants in operation 2,768MW 1 of installed capacity (2.947MW 1 in FY12e) 30 power plants under construction FY12e 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 2014e20 1) C P FL E nergia’s equiv alent stake in each project
  21. 21. Creation of CPFL Renováveis on August 24, 2011 Corporate structure considering the projects involved in the JV + wide portfolio for development21
  22. 22. CPFL Renováveis | Current portfolio as of Mar, 2012 100% 100% 63.0% 37.0% SPP Biomass Wind Total▪ 34 operating: 307MW ▪ 4 operating: 175MW ▪ 8 operating: 368MW ▪ 46 operating: 850MW▪ 1 under construction: 20MW ▪ 4 under construction: 195MW ▪ 25 under construction: 670MW ▪ 30 under construction: 885MW▪ Under development: 608MW ▪ Under development: 900MW1 ▪ Under development: 2,484MW ▪ Under development: 3,992MW Total: 935MW Total: 1,270MW Total: 3,522MW Total: 5,727MW22 1) C ogeneration projects depend on third-parties to explore the upstream sugarcane business (planting, harv esting and processing)
  23. 23. CPFL Renováveis | Current portfolio CPFL Renováveis Wind: 1,038 MW Installed capacity Installed capacity (MW) Biomass: 370 MW (Total: 5,727 MW) Assured energy (AvgMW) SPP: 327 MW 5,727 3,992 100% SPP SPP 2,689 16% with PPA 19% 1,735 1,917 Wind Wind 850 885 772 Biomass Biomass 61% 61% 384 388 22% 19% 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 MW23 1) F rom A ugust 1, 2011 until N ov ember 30, 2011 = 54.5% . F rom December 1, 2011 = 63.0%
  24. 24. 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 MW24 1)
  25. 25. M&A | Acquisition of Santa Luzia SPP in 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 SPP25
  26. 26. M&A | Acquisitons in 1Q12 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) 26
  27. 27. Generation | Portfolio of projects under construction Commercial start-up in 2012(e) | 283 MW / 109 avg. MW (e) (MW) (Avg. MW) (e) 99% concluded (commercial start-up (e) in Jun/12) 79% BNDES 2Q12 25 8.4 ACL 21% equityBio Ipê TPP 94% concluded 73% BNDES LER (Aug/10) 2Q12 70 24.4 27% equity R$ 154.121Bio Pedra TPP 73% concluded 65% BNDES LER (Dec/09) 3Q12 188 76.0 35% equity R$ 168.321Santa Clara Wind Farm 27 1) Constant currency (Dec/2011)
  28. 28. Generation | Portfolio of projects under construction Commercial start-up in 2013(e) | 120 MW/47 avg. MW (e) (MW) (Avg. MW) (e) 61% concluded BNDES funding LFA Aug/10 1Q13 20 11.1 (63% debt / R$ 160.411 37% equity)Salto Góes SPP 9% concluded BNDES funding 2Q13 50 18.0 ACL (under review)Coopcana TPP 9% concluded BNDES funding 2Q13 50 18.0 ACL (under review)Alvorada TPP 28 1) Constant currency (Dec/2011)
  29. 29. Generation | Portfolio of projects under construction Commercial start-up in 2013(e) | 228 MW/104 avg. MW (e) (MW) (Avg. MW) (e) 23% concluded BNDES funding LFA Aug/10 3Q13 78.2 37.1 (under review) R$ 137.33Macacos I Wind Farms1 7% concluded BNDES funding LER Aug/10 3Q13 30 14.0 (under review) R$ 133.73 6% concluded BNDES funding LFA 2010 2H13 120 52.7 (under review) R$ 147.443Atlântica Wind Farms2 29 1) Macacos, Pedra Preta, Costa Branca and Juremas 2) Atlântica I, II, IV and V 3) Constant currency (Dec/2011)
  30. 30. Generation | Portfolio of projects under construction Commercial start-up in 2014(e) | 254 MW/129 avg. MW (e) (MW) (avg. MW) (e) Pending approval by ANEEL 61% concluída 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 Santo Dimas, Santa Mônica and Santa30 Úrsula
  31. 31. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex31
  32. 32. Commercialization business Number of free clients in Brazil # of competitive customers – >3 MW # of special customers – from 0.5 to 3 MW 45.1% 4.1% 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 Renováveis3232 1) Exclude non-controlling shareholders
  33. 33. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex33
  34. 34. Sales – CPFL presents consistent growth Sales in the Concession Area (GWh)1 Breakdown | 1Q12 TUSD CAGR = +6.0% p.a. Industrial Captive 52,378 54,590 45% 46,475 49,033 48,799 41,363 15% Commercial 13,138 14,67436,364 38,498 11,230 11,710 10,9783,288 7,263 9,585 +3.4% 25% 14% 39,917 13,482 13.93833,076 31,235 31,778 35,245 37,323 37,821 39,250 Others 3,499 3.718 Residential 9,983 10.2202004 2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12 Annual Sales Growth in the Concession Area | 2012 (GWh)2 1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market). 2010 TUSD adjusted (97 CAT Resolution)34 2) Source: EPE
  35. 35. Financial results Net Revenues (R$ million) EBITDA (R$ million) IFRS IFRS Adj. CAGR = +6.1% CAGR = +4.5% EBITDA 2 = +17.9% +13.2% +6.2% 12,794 3,453 3,769 11,358 12,024 3,350 3,023 3,421 1,020 1,084 2009 2010 2011 1Q11 1Q12 2009 2010 2011 1Q11 1Q12 Net Income² (R$ million) EBITDA Margin IFRS Adj. Net Income 2 = +9.5% -9,2% 1,689 33.7% 1,560 1,582 31.7% 466 423 2009 2010 2011 1Q11 1Q12 1Q11 1Q123535 1) Exclude non-controlling shareholders 2) Adjusted by regulatory assets & liabilities and non-recurring effects
  36. 36. 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 for36 rev ersal stock split and simultaneous split of shares on June 29, 2011 (not adjusted per div idends).
  37. 37. Indebtedness Gross debt cost1 Gross debt breakdown1 | 1Q12 17.7% Nominal Real 13.9% 13.4% 13.4% 12.1% CDI 10.5% 11.1% 10.7% 9.4% 9.4% TJLP 7.9% 7.3% 7.1% 9.9% 4.9% 4.4% 4.3% 5.2% Prefixed IGP 2004 2005 2006 2007 2008 2009 2010 2011 1Q12 (PSI) Net debt2 | R$ billion 2.53x: 10.7 10.9 Excluding debt of 7.9 projects under 6.4 2.84 construction and 2.85 considering pro Net debt/ EBITDA 3 2.38 forma LTM Ebitda(e) 1.95 of CPFL Renováveis 2009 2010 2011 1Q12 Cash 1,487 1,563 2,700 2,707 R$ million 1) Financial debt + pension fund; 2) Net debt calculation pursuant to financial cov enants methodology . Excludes pension fund debt and judicial37 deposits related to income tax at CPFL Paulista. Does not tak e into account regulatory assets and liabilities in EBITDA; 3) LTM EBITDA
  38. 38. Debt profile as of Mar 31, 2012 Debt amortization schedule1 | R$ million Cash coverage: 3,540 Average tenor: 4.2 years 1,7x short-term Short-term (12M): 11.6% of total debt amortizations (12M) 2,707 1,965 1,806 1,863 1,565 1,484 1,229 Cash Short Term* 2013 2014 2015 2016 2017 2018+ 1) Disregard financial charges (ST = R$ 376 million), hedge (net positiv e effect of R$ 240 million) and MTM (R$ 36 million)3838 *Considering debt related to the next 12 months (from Apr 01, 2012)
  39. 39. 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 generation39 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
  40. 40. Agenda Corporate Overview Distribution | Operational Efficiency Generation | Growth - Incorporation of CPFL Renováveis - CPFL Energia Commercialization | Opportunities Sales and Financials Annex40
  41. 41. 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, CMS41 Energy , SPP Santa Luzia (63%) and SIIF Énergies Brasil;
  42. 42. Stock performance | CPFL Energia outperformed the main indices LTM share performance on BM&FBovespa LTM share performance on NYSE 25.5% 9,9% 18.0% 7,2% -13,1% -5.9% CPFE3 IEE IBOV CPL Dow Jones Index Dow Jones Br20 Daily average trading volume on Dow Jones Brazil Titans 20 BM&FBovespa + NYSE (R$ million) ADR IndexS M 2,512 CPFL’s ADRs reselected 1,368 +83.7% in Mar/12 +15,5% 35.5 30.7 • Increase in market cap 17.2 20.3 of free float (+30%)1 13.5 15.3 • Increase in daily average 1Q11 1Q12 trading volume (+18%)1 Bovespa NYSE Daily avg. number of trades42 1) Considers LTM (Feb/12) Note: CPFL integrated DJ Br20 composition for the first time in Feb/05 and remained until Feb/10
  43. 43. 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)43 S ource: Thomson F inancial; E conomática;
  44. 44. 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 to4444
  45. 45. Comparison of global electricity consumption Consumption of electricity versus GDP¹45

×