2. Summary
Brazilian Electricity Sector
Balanço dos 3–anos de IPO
CPFL Energia Highlights and Results
CPFL Energia – Performance in the Capital Markets
2
3. Brazilian market has 64 distribution’s companies
Distribution Business: Distribution Market Share1 %
2006
Distributors (#) 64
CELESC 4.8%
Clients (million) 59.1 COPEL 6.7% EdB 5.7%
ENDESA 4.2%
Neoenergia
Distributed Energy (TWh) 347.4 7.3% Ashmore Energy
3.7%
CEMIG
Companhia
Energética
8.6%
Market Breakdown Brasiliana
Others 33,1%
Energia 12.1%
The 5 largest groups have 50% of market-share CPFL Energia
13.8%
State-owned companies: 34%
Private Company: 66%
Spreading proposes consolidation opportunities
1) 1Q07
3 Source: Aneel – Installed capacity: PDEE 2007-2016 Market breakdown: Acende Brasil
4. Brazilian market has 1,600 generation companies.
The public sector concentrates 72% of the assets
Generation Business: Generation Market Share %
2006
Generation Companies (#) 1,660
Installed Capacity
104,822
(MW)
Others 35%
CPFL Energia 2%
Chesf 10%
Duke 2%
AES Tietê 3%
Furnas 9%
Market Breakdown Copel 4%
Tractebel 6%
Eletronorte 9%
Cemig 6%
The 5 largest groups have 50% of the market CESP 7%
Itaipu 7%
State-owned companies: 72%
Private Company: 28%
Source: Aneel – Installed capacity: PDEE 2007-2016
4 Market breakdown: Acende Brasil
6. Summary
Brazilian Electricity Sector
Balanço dos 3–anos de IPO
CPFL Energia Highlights and Results
CPFL Energia – Performance in the Capital Markets
6
7. Since 1997, CPFL Energia has developed an aggressive strategy of
growth in distribution, generation and commercialization of energy
IPO
CPFL
Jaguariúna1
1997 1998 2000 2001 2002 2003 2004 2005 2006 2007
• CPFL Paulista’s Privatization Recent Acquisitions:
• CPFL Jaguariúna1 in Apr/07
• Acquisitions: 12 companies
• CPFL Santa Cruz in Oct/06
• Creation of 2 companies
• 11% of CEEE stake in HPP Foz do Chapecó in
• Spin-off and Restructuring: 5 companies
Aug/06
• Generation projects: 6 HPP (hydroelectric
power plant) • 32.69% of PSEG stake in RGE in May/06
• CPFL Sul Centrais Elétricas in Nov/05
7 1) Old company name: CMS Energy Brasil
8. The solidity achieved by CPFL reflects its operational efficiency
and the quality of the markets in which it operates
Distribution – 2007
Distribuitors (#) 8
Municipalities 568
Concession Area (in thousand km2) 208
Market Share (%) 13,8
Customers (million) 6.3
Concession Area Sales (GWh) 46.4751
8 Includes CMS 1) TUSD + Captive. Excludes CCEE sales.
9. Strong growth in distribution: organic and by acquisitions
DISTRIBUTION
IPO (Sep/04) – Distribution: 3 companies Sep/07 – Distribution: 8 companies
• May/06 – Acquisition of 32,69% stake of RGE
• Oct/06 – Acquisition of Cia. Luz e Força Santa Cruz
• Apr/07 – Acquisition of CMS Energy Brasil
• Companhia Paulista de Energia Elétrica
• Companhia Jaguari de Energia
(67.07%) • Companhia Sul Paulista de Energia
• Companhia Luz e Força Mococa
• Aug/07 – Acquisition of CERFRA’s assets
Operations in SP and RS States Operations in SP, RS, PR and MG States
Growth by
IPO – Sep/041 Organic Growth Dec/07 Var. %
Acquisition
Municipalities (#) 523 - 45 568 8.6%
Distribution Network (km) 165,8272 15,332 14,196 196,749 18.6%
Customers (thousand) 5,411 459 350 6,256 15.6%
Concession Area Sales -
33,2483 4,282 2,866 46,475 39.8%
Year (GWh)
Market Share 12.2% 0.8% 0.8% 13.8% 1.6 p.p.
1) Considers 100% of RGE, except for Concession area Sales 2) Data basis: Jun,04
9 3) Considers 67.07% of RGE Note: Concession Areas Sales (TUSD + captive market)
10. CPFL Energia: Distribution Business
DISTRIBUTION
Net Revenue – R$ billion EBITDA – R$ billion
44%
8.382 91%
7.060
6.323
5.804
2.472
2.011
1.595
1.295
2004 2005 2006 2007 2004 2005 2006 2007
Net Income – R$ billion Nº Customers – in million
327% 15%
1.380
6.3
1.073 5.5 5.6 5.7
756
323
2004 2005 2006 2007 2004 2005 2006 2007
10
11. Construction and repowering of power plants in line with the
generation growth strategy
GENERATION
Generation – 2007
In operation
Installed Capacity (MW) 1,673
Assured Energy (MWmedium) 842
HPPs (#) 9
SPPs (#) 33
Under Construction
Installed Capacity (MW) 501
Assured Energy (MWmedium) 257
HPPs (#) 2
Installed Capacity until 2010 (MW) 2,174
Campos Novos HPP Castro Alves HPP CPFL Sul Centrais Elétricas
11
12. Construction and repowering of power plants in line with the
generation growth strategy
GENERATION
33 HPP HPP HPP Complexo Ceran HPP
HPP
Power Plant Serra da Barra Campos Foz do
Lajeado HPP Monte HPP Castro HPP 14 de
SPP's Mesa Grande Novos Chapecó
Claro Alves Julho
CPFL Ownership (%) 100% 51,54% 25,01% 48,72% 6,93% 65% 65% 65% 51%
Installed capacity (MW) 147 657 173 429 63 85 85 65 436
Assured energy (MWmedium) 75 346 95 184 36 38 42 33 220
Commercial start-up (year) in operation
in operation 1Q08 3Q08
4Q08 2010
12 * Installed Capacity and Assured Energy related to CPFL´s stake.
24. Differentiated Corporate Governance: commitment with the best
practices
Shares lited on the Bovespa’s Novo Mercado
and ADR Level III – NYSE
100% common shares with 100% tag along
Free Float above 25%
Subsidiaries’ Bylaws aligned with CPFL
Energia’s Bylaws
Annual Report in compliance with the Global
Reporting Initiative – GRI
Ethics Code aligned with Sarbanes Oxley Law’s
recommendations
1 Independent Director
3 Commitees supporting the Board: Process
Management, Human Resources and Related-
Parties Committees
Dividend policy of minimum 50% semi-
annually
Disclosure and Trading of Securities Policies
24
25. Summary
Brazilian Electricity Sector
Balanço dos 3–anos de IPO
CPFL Energia Highlights and Results
CPFL Energia – Performance in the Capital Markets
25
28. CPFL Energia has consolidated its participation in the capital markets
Listed on the main indexes
MSCI Index
+ +
IPO 2005/2006 2007
Transparency and capital market proximity
• 37 APIMEC’s meetings – 12 per year
• 35 Conferences – 17 local and 18 international
• 19 Teleconferences and Webcast Results
594 one-on-one meetings... almost 1 meeting per business day
Sell side coverage 2004 2005 2006 2007
# of institutions 7 14 22 24
28 Events since the IPO
29. Market Recognition
• 1st place in Corporate Governance – Latin
America Electric Utilities – 2004
• 2nd place in Investor Relations – Latin America
• Best Publicly-traded Company – 2004
Electric Utilities – Sell Side – 2004
• 2nd place in Investor Relations – Latin America
Electric Utilities – Buy Side – 2004
• CPFL Energia – Deal of the Year in
• Quality Award – Best 2005 and 2007 Presentation
Latin America 2004 – Equity Category
• ExpoMoney 2006 Award – Respect to • ABERJE 2006 “Investor Relations”
Individual Investor • ABERJE 2006 and 2007: “Company of the Year in
• Special Mention Expomoney Circuit 2006 Corporate Communication”
• 9th ABRASCA Award – Annual Report
• 8th Best Company to Invest in – 2006
2007 Edition – 5th place
• Honorable Mention – Best
• Best Investor Relations
Corporate Governance
• Honorable Mention – Best Performance by a CEO/CFO
• Best Conference Call
Investor Relations in IPO • Honorable Mention – Best
• Best Investor Relations Program
Corporate Governance
(large cap)
