CPFL Energia is the largest private electricity company in Brazil. It distributes, commercializes, and generates energy through subsidiaries across Brazil. After its IPO in 2004, CPFL Energia became the first private Brazilian company to trade on the São Paulo Stock Exchange and NYSE, requiring the highest levels of corporate governance. In the first half of 2009, CPFL Energia announced an interim dividend of R$572 million, equivalent to a 7.6% dividend yield. The company focuses on operational efficiency, synergic growth, financial discipline, and sustainability to create value for shareholders.
1. Corporate Profile
CPFL Energia is a holding company that, through its subsidiaries, After the (IPO) in September 2004, CPFL Energia became the first
distributes, commercializes and generates energy in Brazil, private Brazilian company to simultaneously trade on the São Paulo
standing as the largest private group in the Brazilian electric Stock Exchange (Bovespa Novo Mercado) and on the NYSE as Level
sector. Its subsidiaries are widely recognized for its excellence and III ADR, both requiring the highest levels of Corporate Governance
the sustainability of their business practices and are regarded as practices.
benchmarks in management, quality and operating efficiency.
Corporate Structure
Free Float
25.7% 31.1% 12.7% 30.5%
.
. .
.
.
.
.
. 90.15%
. 59.93% Paulista Lageado
Energia S/A
5.91% Investco
1
Includes Camargo Correa S.A. stake
2. Service Territory
2
3
1
4
CPFL Geração
HPP Luis Eduardo Magalhães
CPFL Bio. Formosa
5
5
EPASA
11
HPP Serra da Mesa
SP (26 SPPs e 1 TPP)
MG (3 SPPs)
6 7
9
HPP Foz de Chapecó 8
10
HPP Campos Novos
HPP Barra Grande
9 CPFL Sul
SPPs
10 Ceran Complex
HPP Monte Claro
HPP Castro Alves
HPP 14 de Julho
11 Baldin TPP
Dividends Dividends and Dividend Yield
Declared Dividend¹ Dividend Yield²
CPFL Energia has announced an intermediate (R$ million) (last 12 months)
dividend distribution, for 1H09, in the amount
of R$ 572 million, equivalent to R$ 1.191201324
9.6% 10.9% 9.7%
per share and corresponding to 100% of net 9.1% 8.7%
6.5% 7.6% 7.3% 7.6%
income for the period. 3.7% 842
722 719
612 602 606 572
498
401
The 1H09 dividend yield, calculated on the
140
average share price in the period (R$ 31.55)
is 7.6% (last 12 months). The shares were
2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09
considered ex-dividends on August 18, 2009.
16.58 18.85 23.33 30.05 28.25 31.74 35.99 36.11 33.38 31.55
CPFL Price ($/ON) - Average
Since the IPO (2H04), CPFL Energia’s dividend yield has already reached 71.03%3
Payment in the next half year | 2Considering last two half-year’s dividends yield | 3IPO price per share: R$ 17.22
1
3. Fact Sheet 3Q09 | 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 Security Sustainability and Corporate Responsibility
businesses. Differentiated Corporate Governance
Market
Total Energy Sales – GWh1
Sales by Customer Class – 3Q092
2.9%
11,666 12,004
24.8% Residential
9,373 9,354 13.6% Commercial
Captive Market
23.8% Tusd
2,293 2,650 Free Market 23.9% Industrial
3Q08 3Q09 14.0% Others
1
Excluding transactions between group’s companies (consolidation accouting criteria), CCEE and generation sales (except to the free market) | 2 Captive Market
Financial Performance
Reported Recurring
Net Revenue (R$ million) Ebitda (R$ million) Net Income (R$ million)
13.2% 15.9%
2,768 4.5% 5.6%
2,704 -10.1% 778 -15.8%
363
2,389 2,389 745 745 344 344
290
670
3Q08 3Q09 3Q08 3Q09 3Q08 3Q09 3Q08 3Q09 3Q08 3Q09 3Q08 3Q09
Note: Numbers already incorporate the impacts of Law 11,638/07 na PM 449/08
Adjusted Net Debt/EBITIDA3 (R$ billion) Debt breakdown - 3Q09
Adjusted Net Debt Net Debt /EBITDA
52.5% CDI
59.3% CDI
6.28 6.50
5.09 5.65
4.39 4.42
3.78 3.70 30.9% TJLP 32.0% TJLP
1.10: excluding
4.92
Foz do Chapecó
2.85 2.25 HPP debt
2.39
1.74 1.57 1.53
2.01 13.7% IGP 7.3% IGP
2002 2003 2004 2005 2006 2007 2008 3T09 1.9% Dollar *
1.4% Dollar*
3Q08 3Q09
3
Last 12 monts EBITDA. *
Hedge Natural.
4. Fact Sheet 3Q09 | CPFL Energia
Corporate Governance Sustainability and
Corporate Responsibility
CPFL Energia adopts differentiated practices of Corporate CPFL Energia believes that the pursuit of sustainability is a process
Governance, based on the principles of transparency, fair that demands the constant and innovative management of economic,
ness, accountability and corporate responsibility. environmental and social impacts together with the maintenance of
ethical and transparent relationships with all its stakeholders.
Shares are listed on Bovespa’s Novo Mercado and ADS’s The company has a management model structured on a diversity of
Level III on the New York Stock Exchange programs classified in the following groups:
100% of Common Shares with 100% of Tag Along
Free Float of 30.5% Environmental education for the communities
Subsidiary Companies’ Bylaws aligned to CPFL Energia Bylaws Environment Conservation of biodiversity
Financial Statements in compliance with US GAAP and BR Conscientious corporate consumption.
GAAP standards New Clean Development Mechanism
Report in consensus with Global Reporting Initia tive - GRI Technologies and Projects (MDL)
Board of Directors consists of seven members, one being
Community CPFL Program of Volunteerism
independent
Municipal Council Support Program for the
3 Board Advisory Committees to the Board of Directors Rights of Children and Adolescents (CMDCA)
Board of Directors and Fiscal Council self-evaluation The CPFL Program for the Revitalization of
Review of Ethics and Corporate Conduct based on recom Philanthropic Hospitals
mendations in the Sarbanes-Oxley Act
CPFL complies with section 404 of the Sarbanes-Oxley Act Internal Program of Reflection and Ethical Management
Personnel Respect for Diversity Program
Value Network
Value Chain
The Tear Program
Knowledge CPFL Culture
Management Communications for Sustainability
Shares’ Information1
09/30/2009
CPFE3 (R$) CPL (US$) Ownership breakdown
Shares Price 31.94 54.01
Maximum – 52 weeks 37.00 57.32 69.5% Controlling block
Minimum – 52 weeks 26.83 35.27
30.5% Free-float
Market Cap R$ 15.3 billion
US$ 8.6 billion
Market Cap 479,910,938
Exchange Rate 2 R$/US$ 1.78
1
Without income adjustments | 2Dollar Ptax
Investor Relations
CPFL Energia – Rodovia Campinas Mogi-Mirim, km 2,5 | Zip Code 13088.900 | Campinas | SP
Phone: 55 19 3756-6083 | Fax.: 55 19 3756-6089 | www.cpfl .com.br/ir | ri@cpfl.com.br