CPFL Energia reported strong financial results in 2004 and 1Q05, driven by growth across its distribution, commercialization, and generation businesses. Distribution sales increased 7.3% in 1Q05 due to higher average consumption and economic growth. Commercialization captured a 19% market share by attracting free customers. Generation benefited from the startup of a new hydroelectric plant and energy sales being fully contracted. Overall, CPFL Energia achieved a 18% increase in gross revenues in 2004 and 14% increase in 1Q05, with net income growing 194% in 2004 and 1,485% in 1Q05. The company plans to invest $2.6 billion through 2008 to expand its businesses and maintain operations.

1. 1

2. CPFL Energia
Merrill Lynch
Global Emerging Markets Conference
José Antonio Filippo - CFO
Vitor Fagá de Almeida – Investors Relations
June, 2005
2

3. A History of Success
Since 1997, we have been acquiring, integrating and consolidating companies
Creation of CPFL
Energia (holding)
Spin-off of CPFL Paulista;
creation of CPFL Geração Partnerships in CPFL Energia IPO
Privatization three Generation
of CPFL Paulista Partnership in Ceran Complex projects
auction
1997 1998 2000 2001 2002 2003 2004
Acquisition of Acquisition of RGE Creation of CPFL Brasil
Bandeirante Energia (commercialization company)
Spin-off of Bandeirante;
creation of Piratininga
Acquisition of SEMESA
EBITDA growth of 556% in 7 years
Best Equity Deal 2004
3

4. Organizational Structure
Distribution Commercialization Generation
94,94% 100% 97,01%
97,41% 100%
100%
67,07%
65,00%
48,72%
40,00%
25,01%
6 HPP under construction - Monte Claro started its commercial operations in Dec 2004
4

5. Highlights CPFL Energia
Private Company
Leader in Energy Sector
R$ 9.5 billion gross revenues and R$ 1.7 billion EBITDA in 2004 (R$ 507 million in 1Q05)
Well-established operations leading the distribution and commercialization markets
Successful history of acquisitions, restructuring and consolidation
Distribution Commercialization Generation
The largest distribution Market leader, with a 19% High growth on installed
platform, with a 12.2% market share capacity
market share
Outstanding performance in Generate energy totally
Operating in a high capturing free customers contracted with distributors of
consumption regions the Group
Development of value added
Benchmark in operating services EBITDA Margin above 90%
efficiency
Efficient Distribution Success in Strong growth
Operation in a Commercialization in the Generation
high growth area Business Business
High Corporate Governance Standards
5

6. Best Corporate Governance and IR Practices
Common shares with 100% tag along rights – equal rights to
One Class of
shareholders
Shares and
liquidity increase Current Free Float of 15.65%, to be increased to 25% by 2007
Benchmark in Minimum dividend payout of 50% adjusted net profit, paid on a
Dividend Policy semiannual basis
Targeting main indexes: Dow Jones ADR 20 Titan (Mar,2005)
IR Commitment Increase analysts coverage: 11 institutions already covering CPFL and
6 more under process
Presence in main the investors conferences
Sarbanes-Oxley Act Compliance – NYSE (Level III ADR)
Alignment with
the Best Market Commitment to Novo Mercado – BOVESPA Rules (Level III)
Practices
Annual Report in compliance with the Global Reporting Initiative
Common share price evolution 1 ADR price evolution ¹
Share price
evolution CPFE3 19.6% CPL 41.3%
IEE 29.1% Dow Jones 4.7%
Ibovespa 14.7% S&P 500 8.6%
¹ - Evolution from 09/29/04 (IPO) to 02/06/05 6

7. Free float increase initiatives
IFC conversion CPFL Geração minorities migration
Issue of 3,783 thousand shares of CPFL
June, 03: US$ 40 million Investment Energia: capital increase of R$ 88.3 MM
Agreement with equity conversion rights Exchange ratio: 1,622 shares of CPFL
April, 05: IFC announces conversion of Geração = 1 share of CPFL Energia
US$ 10 million –free float increases 0,32%
(total free float increased from 15,65% to Free float increase of 0,12%
15,92%)
CPFL Energia’s current shareholders
IFC announces its intention to exercises its basis increase by 4.45 thousand
remaining subscription rights : CPFL
Energia’s free float will increase nearly Possibilities of similar operation for the
0,8%¹ minorities of CPFL Piratininga and CPFL
Paulista
Free – Float de 16,04%2
Mercado IFC
37,82% 32,67% 13,47% 5,04% 10,68% 0,32%
¹ Estimate considering current parameters
2 Estimate after 1st tranche IFC conversion and CPFL Geração minorities migration 7

8. Trading on local and international market
are balanced
Allocation - ONs and ADRs Allocation vs. Volume traded
- 59.8% ADRs
IPO allocation: - 40.2% ONs 39.7% 45.7%
31/12/04 31/03/05
60.3% 54.3%
39.0%
39.7%
61.0%
60.3% Allcation Volume traded¹
ADR ON
ON ADR ON ADR
Balance between the volume
traded at BOVESPA and NYSE
¹ - March accumulated volume is the sum of the volume traded at Bovespa plus the volume traded at NYSE in USD exchange for reais using
8
Ptax of 03/31/05

9. CPFL ENERGIA
9

10. CPFL Energia – 2004 and 1Q05 Highlights
Consolidation as a market leader
Net income of R$ 279 million in 2004 and R$ 166 million in 1Q05,
which represent R$ 0,62 and R$ 0,37 per share, respectively
EBITDA of R$ 1.7 billion in 2004 and R$ 507 million in 1Q05
Total energy sales increase of 4.9% in 2004 and 4.3% in 1Q05
Financial Debt profile improvement
Start up of Monte Claro Hydroelectric Plant commercial operations
Planned investments of R$ 2.6 billion on business expansion and
maintenance until 2008
1 With schedule adjustment 10

11. R$ 9.5 billion Gross Revenues in 2004 an 18%
increase compare to 2003
Sales (GWh) Gross Revenues (R$ million)
36.647
34.945
9.549
4.9%
8.082 18%
8.700 9.070 2.500
2.189
4.3% 14%
2003 2004 1Q04 1Q05 2003 2004 1Q04 1Q05
Sales increase of 4.3% Gross revenue increase of 14%
5.1%, 8.7% and 2.3% consumption increase 4.3% increase in energy sold
rate in the residential, commercial and
Increase in energy tariff of Paulista, RGE and
industrial segments, respectively
Piratininga
Increase number of customers of 3.3%
TUSD revenue increase of 171%
Increase in energy sold to free customers by
Start up of Monte Claro HPP operation
CPFL Brazil
Inflation adjustment in generation contracts
11

12. Net income of R$ 279 million in 2004
EBITDA (R$ million)
1.541 1.681
9%
EBITDA increase of 21%
507 Gross revenue increase of 14%
420
21%
Efficient management on operations
2003 2004 1Q04 1Q05 Increasing generation participation in the
business portfolio
Net Income (R$ million)
279 Increase net income of 1485%
166
Financial expenses reduction of 14%
194% 1485%
Reduction of goodwill amortization cost
(12)
(297)
2003 2004 1Q05 1Q05
12

13. All business units have positively contributed to
the consolidated net income
Generation Commercialization Distribution
R$ Million
1Q04 1Q05
+13% +15%
1765
+12% +44%
1.635 1530
1.448
178 256
Net revenue 81 91
+21%
+24%
507
+10% +25% 420
376
304
74 81 46 57
EBITDA
+1485% 166
+613% 122
+44% +26%
17 24
Net Income 26 39
(12)
(24)
13

14. Dividend payout of 95% of 2004 net income
Dividend payment higher than the minimum payment of 50% as established by
the company policy
Net Income R$ million Dividends R$ million
279 265
154 140
125 125
1ºS 04 2ºS 04 2004 1ºS 04 2ºS 04 2004
Dividend per share Dividend Yield
1ºS04¹ – R$ 0.30
2ºS04 – R$ 0.31 2004E² - 3.2%
2004 – R$ 0.61
1Q05 net income of R$166 million will represent R$ 0,37 per share
¹ - Consider the dividend paid, divided by the number of shares before the IPO issued
14
² - Dividend paid in the 1ºS plus the dividend of the 2ºS divided by the share price on 03/21/05

15. Debt profile
Financial debt management resulted in improvement on cost, maturity and
interest rate exposure
Average Maturity
Debt cost (years)
-2 1 %
1 9 ,6 3 %
1 5 ,5 5 % 5 ,5 9%
6 ,0
2003 1Q 05 2003 1Q 05
Debt Breakdown by Index Type
2003 1Q05
D ó la r D ó la r
T JLP TJLP
4% 5%
19% 25%
CDI
30%
CDI
46%
IGP IGP
31% 40%
Adjusted debt excluding RTE 15

16. Capital structure
CPFL Energia seeks capital structure in order to minimize WACC and
maximize shareholder value
Solid debt reduction Ideal leverage parameters:
(R$ billion) Net debt / EBITDA = 2.5
Debt / Equity ratio 65% / 35%
6,3 Respecting the minimum limit on
distribution business 50% / 50%
4,9
4,4
3,8 3,7
2,9
1Q05 Capital structure
2,3 2,1 Debt 55% / Equity 45%
Net debt / EBITDA = 2.1
2002 2003 2004 1Q05
Adjusted Net Debt *
Net Debt/EBITDA
Adjusted net debt = total debt + Pension funds – regulatory assets / CVA – cash and cash equivalents
16

17. CAPEX needs for expansion
By 2008 CPFL Energia will invest around R$ 2.6 billion
TOTAL CAPEX
(R$ million)
723
681 % of
626 total
179 559
158
159
161 25%
544 523
467
398 75%
2005E 2006E 2007E 2008E
E x p a n s io n M a in t e n a n c e
In the 1Q05 the Group invested R$ 147 million
and generated EBITDA of R$ 507 million
17

18. Small CAPEX needs to maintain Distribution and
Generation businesses
By 2008 CPFL Energia will invest around R$ 657 million to business
maintenance
CAPEX – MAINTENANCE
% of
(R$ million) total
179
15 158 159 161
15 9 10 7%
164
150 151 93%
143
2005E 2006E 2007E 2008E
D is t r ib u t io n G e n e r a t io n
In the 1Q05 the Group invested R$ 37 million
to the business maintenance
18

19. Funding needs for the new projects are already
dully provided – Current business plan
By 2008 R$ 1.9 billion will be invested in expansion of Generation and
Distribution businesses. In the 1TQ5 the Group invested R$ 110 million
CAPEX – NEW PROJECTS GENERATION AND
Additional funds provided through
DISTRIBUTION (R$ million)
financings:
544 • Generation – BNDES
523
467 • Distribution – Finem BNDES
398 Equity guaranteed by IPO
320 270
218 (R$ 310 million) plus operating cash
373 374 311 240
180 generation
Generation investments will add 1,177
53 104 93 60
MW to the Group's
capacity (R$ 2.03 million per MW)
171 149 156 158
Investments in distribution will attend
to nearly 600 thousand of new
2005E 2006E 2007E 2008E
customers in the next 4 years (R$ 1.05
Gneration Distribution thousand per customers)
Capex - Equity Capex total expansion
Capex - Debt
* - December 2004 19

20. Business Highlights
Distribution
Operating center - Campinas
20

21. Distribution –Business results
Sales (GWh)
8.119 7.714
-5%
1T04 1T05
AJ¹ Sales (GWh)
Santos – Operational center
7.714 C e n tr o d e O p e r a ç õ e s - S a n to s
7.192 -
7,3% Adjusted sales increase of 7.3%
Average consumption increase of 7.3%
Economy growth
Higher temperature
1T04 1T05
Increase of captive market
TUSD Revenue residential 5%; commercial 9%; rural 9%
(R$ million)
Increase of 171% in the revenue for the system utilization
95
Captive costumers migration to the free market
171% 8 customers2 migrated to the free market 6 of them were
35
retained in the group through the commercialization unit in 1Q05
The potential energy sales reduction through captive customers
1T04 1T05 losses reduce from 37% in 2003 to 21% in 1Q05
ADJ¹ = excludes from 1Q03 basis the effect of the free customers losses in 1Q05; considering schedule adjustment.
2 – Refer to Paulista and Piratininga.
21

22. Distribution –Business results
17% increase in the gross revenue from 2003 to 2004
Gross Revenue (R$ million)
Comparing 1Q05 to 1Q04:
9.067
7.763 Energy sales¹ increase of 7.3%
17%
Charges for the usage of the energy distribution
system (TUSD) increase of 171%
2.322
Financial expenses reduction of 35%
2.082
11% Goodwill amortization cost reduction
2003 2004 1Q04 1Q05
Net Income (R$ million)
EBITDA (R$ million) 323
1.295 888%
1.235 5%
122
613%
304 24%
376
(41) (24)
2003 2004 1Q04 1Q05
2003 2004 1Q04 1Q05
ADJ¹ = excludes from1Q04 basis the effect of the free customers migration in 1Q05 22

23. Business Highlights
Commercialization
Energy Trading Desk - Campinas
23

24. Commercialization – 2004 and 1Q05 Results
Gross Revenue (R$ million) EBITDA (R$ million)
152
893
114%
166%
71
336 57
296 46
57% 25%
189
2003 2004 1Q04 1Q05 2003 2004 1Q04 1Q05
Highlights
Net Income (R$ million)
Increase in energy sales of 133%
Gross revenue increase of 57% 102
CPFL Brasil supply energy to 62 free customers
100%
20 of those outside the distribution 51
companies’ concession area 39
31
CPFL Brasil has a strong and reliable brand which 26%
allows differentiation
Sales of value added service growing significantly 2003 2004 1Q04 1Q05
24

25. Commercialization – Results of 1Q05
Energy sold to Energy sold to Energy sold
Free customers (GWh) Bilateral contracts¹ (GWh) free customers + bilateral¹
(GWh)
1.052 304 1.356
113%
133%
495 252% 581
86
1Q04 1Q05 1Q04 1Q05 1Q04 1Q05
Highlights
Operating in buying and selling energy to
distributors through long term regulated contracts
CPFL Brasil has competitive prices due to the
purchase of big energy volume
12 new free customers in the 1Q05
7 customers outside the distribution
companies’ concession area
¹ Excluding intercompany transactions and bilateral with less than 3 months 25

26. Business Highlights
Generation
Barra Grande HPP
26

27. Gereneration – 2004 and 1Q05 Results
Gross Revenue (R$ million) EBITDA (R$ million)
331 282
291 251
14% 12%
87 101 81
16%
74
10%
2003 2004 1Q04 1Q05 2003 2004 1Q04 1Q05
Highlights Net Income (R$ million)
All generated energy contracted in self –dealing 71
basis
Energy supply contracts indexed to IGP-M
2267% 24
EBITDA margin of aprox. 90% 17 41%
3
Inflation adjustment in generation contracts
2003 2004 1Q04 1Q05
New projects will increase installed power capacity by 2.5x with the addition of
1,177 MW – 56% to be delivered by January, 2006
27

28. CPFL Energia launched Monte Claro
Hydroelectric Plant in RS State
Inauguration of Monte Claro
High technology employed
- Turbine and generator
- Digital Control and Supervision System
Excellent installed power output by flooded area ratio – with
low environmental impact level - 93 MW/Km²
5.1 MW/KM² average of the new energy projects¹
14 MW/Km² average of the public projects bided between
2000 and 2002²
Construction concluded in less than 3 years, 14 months ahead
of Aneel´s concession agreement timetable
Proving the planning and administrative experience on
generating projects implementation
Barra Grande
Concluded all requirements to the Operational License issue, which is expected to the next days
Campos Novos
In period of vegetal supression, with beginning of reservoir's filling forecasted to September 2005
¹ New generation projects to be auctioned by Aneel 28

29. Business Outlook
29

30. Business Outlook - Commercialization
High free customer retention in CPFL group and growth in the
market
Working closely to free customers
Free customers represented 12% of the Brazilian market in 2004 - 50% growth
forecasted for 2005.
Strong and reliable brand for capturing free customers
Competitive prices due to high energy volumes purchase
The largest buyer from several suppliers
High growth on sales of value added services with adequate margins
CPFL Brasil is the largest supplier of energy substations
30

31. Business Outlook – Generation
To add value through the continuous increase in operating efficiency and the
conclusion of ongoing generation projects
Barra Campos Foz do
Monte Claro Castro Alves 14 de Julho
Grande Novos Chapecó
PPA’s OK OK OK OK OK OK
Environmental
OK OK OK OK OK OK
Licenses
Terms
Financing OK OK OK OK OK released by
BNDES
Current Stage Concluded 93% 89% 13% 4% 2005
Installed capacity (MW Average) New projects will increase the Group installed
%
power capacity by 2.5x
2. 0 1990
): 2
3 -08 Power capacity addition of 1,177 MW – 56% to be
R (0 1647
CAG 1498
delivered by January, 2006
897 954 • Barra Grande: 173 MW (Oct/05)
• Campos Novos: 429 MW (Jan/06)
• Group will present a 22% CAGR in installed
power capacity from 2004 to 2008
2004 2005 2006 2007 2008
31

32. Business Outlook – Generation
CPFL seeks to be in the 3rd highest position among the private
players in energy generation by 2010
Plants in which CPFL is involved will account for 35% of all new energy
added to Brazilian electric sector until 2008
The Group intends to participate of the “New Energy Auction”, investment in
generation Greenfield's (sale in ACR)
Investments in construction, acquisition and repotentiation of PCH’s
Acquisition of existing assets
32

33. Business Outlook – Distribution
Adding value through maximizing the distribution business operational efficiency
Technical and commercial indicators are reference in the
Benchmark in sector
Technical and
1,5% reduction loss is the CPFL target for the next 2 years
Commercial
Losses Losses reduction add more than R$ 100 million
EBITDA/year to CPFL results
Proven experience in acquisition, restructuring and integration
― Piratininga acquisition
Distribution
Search for opportunities in the industry’s consolidation
expansion
― players leaving the industry;
― players with high operational synergies.
Low investment required by the universalization program
33

34. CPFL Energia
Merrill Lynch
Global Emerging Markets Conference
José Antonio Filippo - CFO
Vitor Fagá de Almeida – Investors Relations
June, 2005
34