Corporate presentation cpfl energia nov2018 en

1. Corporate
Presentation
November 2018
1

2. 2 1) On November 23, 2018; 2) Considering CPFL’s stake on each generation project.
Company Overview
Plants
 One of the largest private players in the Brazilian electricity sector
 Market Cap of R$ 26.6 billion1, listed on B3’s Novo
Mercado and on NYSE (ADR Level III)
 In LTM3Q18, EBITDA of R$ 5,650 million and Net
Income of R$ 1,993 million
 Presence concentrated in the most developed regions of
Brazil
 2nd largest player in the Distribution segment, through 5
distributors, and a market share of 14%
 3rd largest private generator with 3,283 MW2 of installed
capacity, of which 95% from renewable sources
 Leader in Renewable Energy in Brazil, with the largest capacity
in operation
 Outstanding performance in the Commercialization segment
with free consumers, focusing on special consumers

3. 33 1) 51.54% stake of the availability of power and energy of Serra da Mesa HPP, regarding the Power Purchase Agreement between CPFL Geração and Furnas; 2) RGE Sul is controlled by
CPFL Energia (76.3893%) and by CPFL Brasil (23,4561%).
Company Profile
Lajeado HPP
5.94%
Nect / Authi
CPFL Centrais
Geradoras
DISTRIBUTION
100%
SERVICES
100%
RENEWABLES
51.60%
65% 48.72% 51%
25.01%
Serra da Mesa
HPP
51.54%1
53.34%
GENERATION
100%
COMMERCIALIZATION
100%
Commercialization,
Services & Others
184
CPFL Energia - Consolidated | 5,650
LTM3Q18 EBITDA Breakdown | R$ million Concession’s expiration
2045
CPFL Santa
Cruz
Free Float
5.25%
52
%
22
%
22
%
3%
Conventional
Generation
1,255
Distribution
2,946
Renewable
Generation
1,265
94.75%
2
2027 2028 2032 2035 2036
CPFL
Paulista
CPFL
Piratininga
Luis Eduardo
Magalhães
HPP
Campos
Novos HPP
Foz do
Chapecó HPP
RGE
Serra da
Mesa HPP2
Barra
Grande HPP
RGE Sul
Castro Alves
HPP
19 SHPPs
(CPFL
Renováveis)
Monte Claro
HPP
14 de Julho
HPP
CPFL GD

4. 29% 37%
16%
17%
Distribution Segment
• 9.5 million customers
• 679 municipalities
• Presence in the most developed regions
• High potential in per capita consumption
• Market Size: 67.0TWh/year
2st
Market share: 14%
Industrial
Commercial
Residential
Others
1) Source: EPE.4
CPFL
Santa
Cruz
CPFL Piratininga
RGE
LTM3Q18 EBITDA
Breakdown
R$ million
CPFL
Paulista
Tariff Review Comparison by Region1,2 |
Sales in the concession area |
3Q184th
Tariff Review Cycle
CPFL Piratininga Oct-15
CPFL Santa Cruz Mar-16
CPFL Paulista Apr-18
RGE Sul Apr-18
RGE Jun-18
LTM3Q18 Sales
Breakdown
GWh
RGE Sul
40%
19%
14%
22%
5%

5. 55
Generation Segment
• 3,283 MW of installed capacity
• 1,538 avg-MW of physical guarantee
• Long Term Concessions
• Largest portfolio in Renewable Energy
• Renewable Sources: 95%
3rd
Market share: 2% Installed Capacity | %
• Contracted portfolio in the long term with
low risk exposure
• Agreements average price: R$ 233/MWh
Contract Profile
61%
5%
7%
6%
21%
HPP
TPP
SHPP
BIO
WIND
Contracting Level | %
Total: 3,283 MW
2018 2019 2020 2021 2022
100% 100% 99% 94% 94%
1.1% 5.6% 5.9%
Contract Energy Available Energy

6. 1998 2004 2005 2007 2001 2008 2008 2010 2010-11
1,275.0 130.0 690.0 880.0 902.5 130.0 100.0 855.0 341.6
637.5 56.1 372.7 379.7 505.1 61.8 47.5 427.2 247.6
51.54% 65.00% 25.01% 48.72% 6.93% 65.00% 65.00% 51.00% 53.34%
657.1 84.5 172.6 428.7 62.5 84.5 65.0 436.1 182.2
328.6 36.5 93.2 185.0 35.0 40.2 30.9 217.9 132.1
1.784 1.4 95.0 32.9 630 5.0 5.0 80.0 -
0.7 92.9 7.3 26.7 1.4 26.0 20.0 10.7 -
2039 2036 2036 2035 2032 2036 2036 2036 2042
Conventional Generation | 2,198 MW of installed capacity
CPFL Energia’s Power Plants – state-of-the-art environmental efficiency
6

7. (MW)
CPFL Renováveis (Aug-11) 652
2Q12 25 Free Market
2Q12 70 Reserve Auction
2Q12 155 PROINFA
3Q12 188 Reserve Auction
4Q12 40 Auction and Free Market
4Q12 1 Free Market
4Q12 20 Alternative Sources Auction
3Q13 50 Free Market
4Q13 30 Reserve Auction
4Q13 50 Free Market
1Q14 14 PROINFA
1Q14 120 Alternative Sources Auction
2Q14 78 Alternative Sources Auction
3Q14 278 -
2Q15 29 Reserve Auction
2Q16 24 Free Market
4Q161 231 Free Market
2Q17 48 Alternative Sources Auction
Current Portfolio 2,103
CPFL Renováveis | Track Record
Installed Capacity of 2,103 MW
7 1) Gradual commercial start-up since 2Q16.

8. Commercial start-
up in
2020-
2024(e)
127.2 MW
of installed
capacity
Renewable Generation | Greenfield projects
8
1) 14.0 average-MW of energy contracted in the 2015 A-5 Auction; 2) Constant currency (Sept-18); 3) It comprises the following wind farms: Costa das Dunas, Figueira Branca, Farol de
Touros and Gameleira; 4) 12.0 average-MW of energy contracted in the 2018 A-6 Auction; the remaining energy was sold in the free market.
Boa Vista II SHPP Cherobim SHPP Gameleira Wind Complex3
Commercial Start-up 2020 2024 2024
Installed Capacity 29.9 MW 28.0 MW 69.3 MW
Physical Guarantee 15.2 average-MW1 16.5 average-MW 12.0 average-MW4
PPA
21st LEN 2015
R$ 240.47/MWh2 until 2049
28th LEN 2018
R$ 189.95/MWh until 2053
28th LEN 2018
R$ 89.89/MWh until 2043
Financing BNDES To be structured To be structured
2018
A-6 Auction
Winner
2018
A-6 Auction
Winner
Photo: Boa Vista II SHPP
Anticipation foreseen

9.  Foundation: 2003
 1,358 free customers, of which 1,225 special
customers (Sep-18)
 Special customer market: current ~ 4.6 avgGW
 Competitive customer market: current ~ 11.8 avgGW
 Nationwide outreach
 Foundation: 2006
 Offers a wide range of value-added
services:
 Engineering projects for transmission and distribution
grids
 Equipment maintenance and recovery
CPFL Energia | Commercialization & Services
9
- 275 transmission contracts, being:
 127 contracts for works on transmission
lines/substations
 148 O&M contracts
 Foundation: 2012
 Management of services of collection
of companies that use the energy bill
to charge their services;
 Main services charged: affinity insurance, newspaper,
discount cards, funeral plans, health plans, water
purifiers, etc.
 Aggregation of advertisers for advertising or
advertising placement on energy bill;
 20 MM people in 9 MM residences and 679 municipalities
- 40 partners companies
- 10 MM collection
- R$ 320 MM - fin. vol. captured/passed on
 Foundation: 2008
 Provision of services of customer
relationship :
 Call Center
 Ombudsman
 Back Office
2017
3Q18
- 6.1 MM phone calls received
- 6.0 MM phone calls answered
- 27.4 MM speaking time minutes
9M18

10. CPFL Energia Strategy
10
• Be the leader in
operating efficiency by
investing in technology,
automation and innovation
• Act on both institutional
and regulatory fronts to
ensure sustainability of
the sector
• Expand the presence in retail through a
commercial front and customer energy
management
• Add new products besides energy trading
• Focus on the technical services with quality,
productivity and safety
• Provide technical and financial solutions to
increase the competitiveness of our clients
• Operating Efficiency with
Innovation & Technology
• Act in both institutional
and regulatory levels
• Strategic growth with
value creation
Distribution
Generation and
Renewable
Trading, Services & Others
• Be a benchmark in sustainability
• People management, promoting
workplace safety and respect to
diversity
• Operational efficiency and
investment in new technologies

11. Energy Sales - Distribution | TWh
1111 1) EBITDA is calculated from the sum of net income, taxes, financial result, depreciation/amortization, as CVM Instruction no. 527/12.
CPFL Energia | Operational and Financial figures
Key Financial Figures | R$ million
2013 2014 2015 2016 2017 LTM3Q18
CAGR
2013-LTM3Q18
LTM3Q18 vs.
2017
TOTAL 58.5 60.0 57.6 57.0 65.6 67.0 2.8% 2.2%
Captive 41.1 43.2 41.7 41.3 45.4 45.5 2.1% 0.4%
TUSD 17.3 16.8 15.8 15.7 20.2 21.5 4.4% 6.2%
2013 2014 2015 2016 2017 LTM3Q18 CAGR
2013-LTM3Q18
LTM3Q18 vs.
2017
NET REVENUE 14,634 17,306 20,599 19,112 26,745 28,910 14.6% 8.1%
Distribution 11,568 13,665 16,968 15,040 21,077 23,057 14.8% 9.4%
Generation 1,943 2,437 2,582 2,676 3,149 3,231 10.7% 2.6%
Trading & Services 2,031 2,498 2,143 2,487 3,900 4,097 15.1% 5.1%
EBITDA¹ 3,547 3,761 4,143 4,126 4,864 5,650 9.8% 16.2%
Distribution 2,115 2,180 2,144 1,845 2,234 2,946 6.8% 31.8%
Generation 1,378 1,343 1,894 2,103 2,421 2,520 12.8% 4.1%
Trading & Services 74 263 134 241 258 241 26.6% -6.6%
NET INCOME 949 886 875 879 1,243 1,993 16.0% 60.4%
Distribution 853 948 626 407 665 1,258 8.1% 89.2%
Generation 261 -48 226 364 671 801 25.1% 19.4%
Trading & Services 52 168 87 166 145 136 21.3% -6.5%

12. 1212
Indebtedness | Financial Covenants Management
 Leverage l Financial covenants criteria | R$ billion
 Gross debt cost3 l IFRS | end of period  Gross debt breakdown by
indexer3 | IFRS | 3Q18
1) LTM EBITDA; 2) Adjusted by the proportional consolidation; 3) Financial debt (-) hedge.
Adjusted EBITDA1,2
R$ million
Adjusted Net Debt1
/Adjusted EBITDA2
2014 2015 2016 2017 1Q18 2Q18 3Q18
13.0 12.2
13.2
14.5
15.6 15.7 15,5
3.49 3.41
3.21 3.20 3.31
3,11 2,92
3,736 3,584 4,117 4,531 4,708 5,041 5,306
Nominal
Real

13. 1313
Debt Profile | On September 30, 2018
 Debt amortization schedule1 l IFRS | R$ million
1) Considers debt principal, including hedge; 2) October 2018 – September 2019.
Average Tenor: 3.16 years
Short-Term (12M): 16% of total
Short-term2
Long-term
Cash coverage:
0.94x short-term
amortization
(12M)
3,819

14. Commercialization & Services:
R$ 176 million
1414
1) Constant currency; 2) Investment plan disclosed in 4Q17 Earnings Release, in March 2018; 3) Disregard investments in Special Obligations on Distribution segment
(among other items financed by consumers); 4) Conventional + Renewable.
Capex(e)1,2 2018-2022 | R$ Million
Total:
R$ 10,432 million
Distribution3:
R$ 9,802 million
Generation4:
R$ 455 million
Transmission
2,617
2,108
2,217
2,117
1,8522,139

15. Annex
15

16. Energy Sector in Brazil: Business segments
Consumers
1) Source: ANEEL/BIG; 2) Source: EPE; 3) Source: CCEE; 4) Source: EPE - Oct/17-Sep/18 (consumption of electricity in the grid).
Free Market
Captive Market
12,185 Consumers3
155 TWh of billed energy4
80 MM Consumers2
316 TWh of billed energy4
Transmission
• 141,576 km of
transmission lines2
• Eletrobrás: ~51%
of total line
extension
Distribution
• 56 Companies
• 471 TWh of billed
energy4
• Top 5: ~58% of
the market
Competitive Power Supply
Generation
• 160.0 GW of
installed capacity1
• 82% Renewable
Energy2
• Eletrobrás: ~30%
of total assets
16

17. Brazilian electricity matrix
1) Source: 10-Year Energy Expansion Plan - PDE 2017-2026; 2) Others: considers coal, oil, diesel and process gas
Brazil’s electricity matrix is predominantly renewable, with hydro installed capacity totaling 61% of the
total supply, while biomass, wind, SHPPs and solar account for 16%. In the next years, it is expected that
other sources will grow, mainly wind and solar, reaching 9% and 2% respectively of total installed
capacity in 2026.
Brazilian Electricity Matrix
148 GW 176 GW
2017 2026
17
Wind
 Potential: 350 GW3
 Instal. capacity: 3.8 GW
3%
SHPP
 Potential: 17.5 GW
 Instal. capacity: 5.8 GW
33%
Biomass  Potential: 17.2GW
 Instal. capacity: 12.9 GW
75%
Potential Realized
Potential to be Explored in Brazil
Evolution of Installed Capacity (GW) 2017-20261

18. 18
Smart distribution was a key
theme addressed by the Project
"Energy in the City of the
Future"
• The smart grid technology will provide
increased network monitoring capabilities and
greater quality and commercial opportunities
• Smart Grids will boost the amount of
information available, which will be used in
innovative ways to optimize operations and
services
Smart Grid | The Future of Distribution
 Vision of the Future of Distribution is
directly associated with Smart Grids:

19. 19
Emergency Dispatch
 The past:
 The future:
System intervention
or self-healing
Automatic failure detection Real-time information
for customers
Intelligent meter
• Reduced unnecessary travel;
• Shorter average service;
• Reduced SAIDI (optimization of possibilities of
network maneuvering);
• Greater customer satisfaction (real-time
information);
• Optimization of service to nearly 600,000 tickets
every year.
Gains

20. 20
Reading and Delivery
Reading Energy bill Delivering the bill Payment
Making the paymentSmart Metering Center
and/or automatized
software
Data networkIntelligent
meters
Bill via e-mail
and/or app
(cons. manag.)
 The past:
 The future:
• Greater employee safety (reduced travel and exposure to risk);
• Data gathering from load curve and customer consumption profile;
• More sustainable process (reduced use of paper).
Gains

21. Sustainability at CPFL: Incorporation of strategic guidelines
21
Energy is essential to
the well-being of
people and the
development of society
We believe that
produce and use
energy in a
sustainable way is
vital to the future of
humanity
Vision
To provide
sustainable energy
solutions, with
excellence and
competitiveness,
acting in an integrated
way to the community
Mission
• Value creation
• Commitment
• Safety and Quality of
Life
• Austerity
• Sustainability
• Trust and Respect
• Overcoming
• Entrepreneurship
Principles
CPFL Energia is the
largest private group in
the Brazilian electric
sector, which through
innovative strategies
and talented
professionals offers
sustainable energy
solutions
Positioning
Built in 2013 with the objectives of defining the relevant themes to the sustainability strategy business and
managing our performance on these issues through indicators and targets. Currently part of the CPFL
Energia's Strategic Plan, incorporates the United Nations Sustainable Development Objectives and is made
up of indicators, monitored monthly, with goals for the short and medium term.
Sustainability Platform

22. CPFL Energia | Sustainability
Actions and Results 2017/2018 Recognitions 2017/2018
Assistance
until 1999
Social
Responsibility
2000 to 2006
Increasingly comprehensive responsibility concept
Level of
incorporation
of Sustainability
theme
Note 1: Brazilian Association of Electric Energy Distributors recognized, in the category above 500 thousand consumers, RGE as the best Distributor of the South and RGE Sul for Best Evaluation
by the Client and, in the category up to 500 thousand consumers, CPFL Santa Cruz as Best in Social and Environmental Responsibility | Note 2: Finalist of the Award (disclosure of results in
December / 2018) | Note 3: Greenhouse Gases | Note 4: DJSI Emerging Markets from 2012 to 2016/17, ISE B3 from 1st edition to 2017/18, MSCI in 2016 and 2017 and FTSE4Good in 2017
Corporate Sustainability
Added to business from 2007
• ABRADEE 2018 Award1, categories
Socio-Environmental Responsibility,
Customer Evaluation and South Region
• Cases recognized in SDG in Brazil -
The role of the private sector (NY)
and SDG Brazil Award2
• Transparency on strategy and
information related to climate change
and GHG emissions3
• Outstanding performance in market
indexes4: DJSI Emerging Markets in
which it was considered the best in the
Brazilian power sector in 2016-2017,
ISE B3, MSCI and FTSE4Good
22
More information: Annual Report 2017
Sustainable Business
Focus on low-carbon
from 2011
Advocacy and strengthening commitments related to the
Sustainable Development Goals (SDG), and acting in
management and incentive to the carbon market
Sustainability Platform: Matrix structure, with value drivers
(material topics) and key business stakeholders, resulting in 13
levers, 58 indicators and targets