Corporate Presentation - CPFL Energia

1. March, 2013
Corporate
Presentation
August 2018
1

2. 2 1) On August 24, 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$ 22.1 billion1, listed on B3’s Novo
Mercado and on NYSE (ADR Level III)
 In LTM2Q18, EBITDA of R$ 5,377 million and Net
Income of R$ 1,757 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
186
CPFL Energia - Consolidated | 5,377
2017 EBITDA Breakdown | R$ million Concession’s expiration
2045
CPFL Santa
Cruz
Free Float
5.25%
48%
25%
24%
4%
Conventional
Generation
1,229
Distribution
2,716
Renewable
Generation
1,246
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. 28% 36%
16%20%
Distribution Segment
• 9.5 million customers
• 679 municipalities
• Presence in the most developed regions
• High potential in per capita consumption
• Market Size: 66.7 TWh/year
1st
Market share: 14%
Industrial
Commercial
Residential
Others
1) Source: EPE.4
CPFL
Santa
Cruz
41%
17%
19%
17%
6%
CPFL Piratininga
RGE
LTM2Q18 EBITDA
Breakdown
R$ million
CPFL
Paulista
Tariff Review Comparison by Region1,2 |
Sales in the concession area |
2Q184th
Tariff Review Cycle
CPFL Piratininga Oct-15
CPFL Santa Cruz Mar-16
CPFL Paulista Apr-18
RGE Sul Apr-18
RGE Jun-18
LTM2Q18 Sales
Breakdown
GWh
RGE Sul

5. 55
Generation Segment
• 3,283 MW of installed capacity
• 1,539 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$ 230/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 84.5 172.5 428.7 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. Boa Vista II SHPP – Under Construction
8
Commercial
Start-up
Installed
Capacity
Assured Energy PPA1
Location Financing
2020 29.9 MW
14.0
average-MW
21st LEN 2015
R$ 240.47/MWh
until 2049
Minas Gerais BNDES
Status: concrete of the structures and
equipment assembly in progress.
1) Constant currency (Dec-17).

9.  Foundation: 2003
 1,273 free customers, of which 1,152 special
customers (Jun-18)
 Special customer market: current ~ 4.5 avgGW
 Competitive customer market: current ~ 11.9 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
- 207 transmission contracts, being:
 66 contracts for works on transmission
lines/substations
 141 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
2Q18
- 4.6 MM phone calls received
- 3.5 MM phone calls answered
- 17.4 MM speaking time minutes
2Q18

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. 2013 2014 2015 2016 2017 LTM2Q18
CAGR
2013-LTM2Q18
LTM2Q18 vs.
2017
NET REVENUE 14,634 17,306 20,599 19,112 26,745 28,564 14.3% 6.8%
Distribution 11,568 13,665 16,968 15,040 21,077 22,723 14.5% 7.8%
Generation 1,943 2,437 2,582 2,676 3,149 3,180 10.4% 1.0%
Trading & Services 2,031 2,498 2,143 2,487 3,900 4,090 15.0% 4.9%
EBITDA¹ 3,547 3,761 4,143 4,126 4,864 5,377 8.7% 10.5%
Distribution 2,115 2,180 2,144 1,845 2,234 2,716 5.1% 21.6%
Generation 1,378 1,343 1,894 2,103 2,421 2,475 12.4% 2.2%
Trading & Services 74 263 134 241 258 229 25.3% -11.3%
NET INCOME 949 886 875 879 1,243 1,757 13.1% 41.4%
Distribution 853 948 626 407 665 1,086 5.0% 63.3%
Generation 261 -48 226 364 671 752 23.6% 12.0%
Trading & Services 52 168 87 166 145 127 19.8% -12.2%
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 LTM2Q18
CAGR
2013-LTM2Q18
LTM2Q18 vs.
2017
TOTAL 58.5 60.0 57.6 57.0 65.6 66.7 2.7% 1.7%
Captive 41.1 43.2 41.7 41.3 45.4 45.5 2.0% 0.3%
TUSD 17.3 16.8 15.8 15.7 20.2 21.2 4.1% 4.8%

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 | 2Q18
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
13.0 12.2
13.2
14.5
15.6 15.7
3.49 3.41
3.21 3.20
3.31
3.11
3,736 3,584 4,117 4,531 4,708 5,041
Nominal
Real

13. 1313
Debt Profile | On June 30, 2018
 Debt amortization schedule1 l IFRS | R$ million
1) Considers debt principal, including hedge; 2) July 2018 – June 2019.
Average Tenor: 3.14 years
Short-Term (12M): 17% of total
Short-term2
Long-term
Cash coverage:
0.67 short-term
amortization
(12M)
3,630

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 – Jun-18; 2) Source: ONS ; 3) Source: Ministry of Mines and Energy (MME) – Dec-16; 4) Source: EPE and CCEE – Dec-17; 5) Dec-16.
Free Market
Captive Market
80 MM Consumers3
3,229 Consumers5
118 TWh of billed energy4
80 MM Consumers3
346 TWh of billed energy4
Transmission
• 104 Companies2
• 133,330 km of
transmission lines3
• Eletrobrás: ~47%
of total assets
Distribution
• 56 Companies
• 464 TWh of billed
energy4
• Top 5: ~57% of
the market
Competitive Power Supply
Generation
• 159.7 GW of
installed capacity1
• 81% Renewable
Energy1
• Eletrobrás: ~30.4%
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 for
the welfare of people
and the development
of society.
We believe that
producing and using
energy sustainably is
vital to humankind’s
future.
Vision
To provide
sustainable and
competitive energy
solutions with
excellence, while
operating in close
integration with the
community.
Mission
• Value Creation
• Commitment
• Safety and Quality of
Life
• Austerity
• Sustainability
• Trust and Respect
• SurpassingExpectations
• Entrepreneurship
Principles
CPFL Energia is the
biggest private group
in the Brazilian power
sector that offers
sustainable energy
solutions through
innovative strategies
and talented
professionals
Positioning
Developed in 2013 with the objectives of defining the material issues to the business sustainability
strategy and managing our performance on these themes through indicators and targets. It is
currently part of CPFL Energia's Strategic Planning, incorporates the United Nations Sustainable
Development Goals and it is made up of indicators, which are monthly monitored, with targets for
the short and medium term (1 to 5 years)
Sustainability Platform

22. CPFL Energia | Sustainability
Actions Results 2017/2018 Recognition
Assistance until
1999
Social
Responsibility
2000 to 2006
Increasingly comprehensive responsibility concept
New Sustainability
Platform: matrix
structure, formed with
value drivers and key
stakeholders for
sustainability business, and
tangible ways to protect,
optimize and create shared
value
Advocacy and
strengthening
commitments to SDGs1
and climate change
Plataforma 2018-2022:
3 value drivers – Safe and
efficient operations; Corporate
development, growth and
innovation; Reputation and
responsibility – with with 3
stakeholders groups–
Employees and partners;
Strategic relationships;
Communities – that results in
13 sustainable value levers,
58 indicators with short and
medium term goals
Development of projects aimed
at the integration and
implementation of SDGs and
carbon portfolio
management plus the
incentive to the carbon
market
Level of
incorporation
of Sustainability
theme
Note 1: UN Sustainable Development Goals | Note 2: Environmental, Social and Governance | Note 3: Brazilian Association of Electric Power Distribution Companies recognized, in the
category above of 500 thousand consumers, RGE as the best company of the South and RGE Sul for Best Assessment by the Customer and, in the category up to 500 thousand
consumers, CPFL Santa Cruz as Best in Responsibility Socio-environmental.
Corporate Sustainability
Added to business from 2007
• Component of DJSI Emerging Markets
for 5 consecutive years
• 95 companies (2 are from power sector)
• Member of the ISE since 2005, 1st edition
• 30 companies from 12 industries
- Market cap of R $ 1.3 trillion
• MSCI member in 2016 and 2017
• Reference companies in ESG2 practices
• Member of the FTSE4Good index in 2017
• Formed by more sustainable London Stock
Exchange companies
• Transparency in information on strategy related to
climate change and greenhouse gas emissions
• Abradee 2018 Award3 - South Region, Customer
Assessment and Socio-Environmental Responsibility
22
More information in CPFL Energia's Annual Report 2017
Sustainable Business
Focus on low carbon
economy
from 2011