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Corporate Profile
CPFL Energia is a holding company that, through its sub- After the IPO in September, 2004, CPFL Energia became the first
sidiaries, distributes, commercializes and generates energy Brazilian private company to simultaneously trade in São Paulo
in Brazil, standing as the largest private group in Brazilian Stock Exchange (Bovespa Novo Mercado) and in the NYSE as Level
electric sector. Its subsidiaries are widely recognized for its III ADRs, both requiring the highest levels of Corporate Governace
excellence and sustainability of its business practices, and practices. The new partnership with capital markets reinforced abili-
regarded as references in management, quality and operating ty of CPFL Energia to grow and expand its business in a consistent
efficiency. and sustainable way.
Corporate Structure
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Dividends Declared Dividend (R$ millions) vs. CPFE3 Price (R$)
Declared Dividend1 Average Price End of Period Price
CPFL Energia announced intermediary divi-
38.76
dend based on the first half-year of 2007 in the
30.05 30.00
amount of R$ 842 million, which corresponds to 28.00
31.74
R$ 1.76 per share approximately. This dividend 28.25
17.96 18.85 26.46
842
represent 100% of CPFL net profit, a measure 23.33 722
which surpasses the current dividend policy 18.40 612
16.58 498
which stipulates a payout of not less than 50% 401
of net income adjusted half-yearly. 140
The 1Q07, annualized half-yearly dividend yield,
calculated as the average share price over the
2S04 1S05 2S05 1S06 2S06 1S07
period (R$ 31.74) is 11.1%. The Shares were Annualized
Dividend Yield
considered ex-dividend on August 15, 2007, and (average price2)
3.7% 9.3% 8.9% 8.5% 10.7% 11.1%
was effected in september 28, 2007.
Since the IPO (2H04), CPFL Energia’s dividend yield has already reached 39.3%3
1
Declared dividend: payment in the next half year | 2Half year daily closing price average | 3IPO’s price per
share: R$ 17.22
3. Fact Sheet 3Q07 | CPFL Energia
Value Creation Agenda Goals Strategies
Operational Efficiency
CPFL Energia’s success is supported by clearly defined Value Synergic Growth
business strategies and by management excellence Liquidity Financial Discipline
criteria directed to the sustained growth of its busi- Security Sustainability and Social Responsibility
nesses. Differentiated Corporate Governance
Market
Total Energy Sales – GWh 1 Sales by Customer Class 2
6.9%
11,211
10.488 2,460 30.5% Residential
2,323
8,751 17.0% Commercial
8,166
7.7% Rural
Mercado livre
Cativo 11.8% Others
3Q06 3Q07 33.1% Industrial
1
Excluding transactions between group’s companies (consolidation accounting criteria), CCEE and generation sales (except to the free market) | 2Captive Market
Financial Performance
Net Revenue (R$ million) Ebitda3 (R$ million) Net Income4 (R$ million)
20.8%
15.8%
2,404 29.8%
2,076 880
428
729
330
3Q06 3Q07 3Q06 3Q07 3Q06 3Q07
EBITDA – Not excluding non-recurrig effects: R$ 792 million (3Q06) + 11.2% | Sale of stake in Comgás | 4Net Income – Not excluding non-recurrig effects: R$ 447
3
million (3Q06) -4.1% | Sale of stake in Comgás - Favorable decision related to PIS/CONFIS in CPFL Paulista and CPFL Piratininga
Adjusted Net Debt / EBITDA5 (R$ billion) Debt Breakdown – September 2007
Net Debt/EBITDA
Adjusted Net Debt 5.44
4.92
4.39 4.42 4% Dollar
4.11
3.78 3.70
2.85x
2.25x 1.67x 28% TJLP
1.74x 1.57x 1.55x
1.37x 17% IGP
51% CDI
2003 2004 2005 2006 1Q07 2Q07 3Q07
Last 12 months EBITDA
5
4. Fact Sheet 3Q07 | CPFL Energia
Corporate Governance Sustainability and
Social Responsibility
CPFL Energia adopts differentiated practices of Corporate CPFL Energia practices ethical and transparent relations
Governance, based on the principles of transparency, fair- with all its stakeholders, acting responsibly and developing
ness, accountability and corporate responsibility. programs that ensure the sustained growth of the businesses.
Shares are listed on Bovespa’s Novo Mercado and ADS’s
Internal Program of ethics reflection
Level III on the New York Stock Exchange
Respect of diversity
100% of Common Shares with 100% of Tag Along Life quality program
Encouraging volunteerism
Free Float above of 25% Professional development Investment
Subsidiary Companies’ Bylaws aligned to CPFL Energia
Environmental Development of CDMs (Clean Development
Bylaws
Commitment Mechanisms) and carbon neutralization
Financial Statements in compliance with US GAAP and BR Urban forestation program
GAAP standards Environmental Education
Preservation of aquatic enviromental
Board of directors and Fiscal Council self-evaluation Support programs for municipal development
and historical heritage recovery
Annual Report in consensus with Global Reporting Initia-
tive-GRI
Business Continuous improvement in client
3 Board Advisory Committees to the Board of Directors relationship channels
Chain
Improve suppliers relationship
Review of Ethics and Corporate Conduct based on recom-
mendations in the Sarbanes-Oxley Act.
Private Social Philanthropic hospitals revitalization
CPFL complies with section 404 of the Sarbanes-Oxley Act.
Investment Development of Cultural Center at CPFL
head office
Management excellence and practices of
social responsibility for small and medium
companies
Shares’ Information1 09/28/2007
CPFE3 (R$) CPL (US$) Ownership breakdown
Shares Price 33.55 58.23
Maximum – 52 weeks 40.44 65.87 72.9% Controlling block
Minimum – 52 weeks 31.03 45.78
27.1% Free-float
Market Cap R$ 17.1 Billion
US$ 9.3 Billion
Market Cap 479,756,730
Exchange Rate2 R$/US$ 1.83
1
Without income adjustments
2
Dollar Ptax
Investor Relations
CPFL Energia – Rodovia Campinas Mogi-Mirim, Km 2,5 | Cep 13088.900 | Campinas | SP
Phone: 55 19 3756-6083 | Fax.: 55 19 3756-6089 | www.cpfl .com.br/ir | ri@cpfl.com.br