1. Corporate
Presentation
October 2013
São Paulo, 07 de março de 2012

2. Agenda
1
2
Distribution
3
Generation
4
Competitive Power Supply and Services
5
2
Corporate Overview
The Electric Sector

3. Agenda
1
2
Distribution
3
Generation
4
Competitive Power Supply and Services
5
3
Corporate Overview
The Electric Sector

4. Corporate overview – Highlights
• Largest private player in the Brazilian electricity sector
• Market cap of ≈ R$19 billion1, listed on BM&FBovespa Novo
Mercado and on NYSE (ADR Level III)
• LTM2Q13 Adj. EBITDA2 of R$ 4.6 billion and Adj. Net Income2
of R$ 1.6 billion
• Differentiated Dividend Policy: >50% of net income, semiannually. Payout ratio of ≈95% since IPO in 2004
• Presence concentrated in the most developed regions of Brazil
• Leadership in Distribution through 8 subsidiaries
• Leadership in Competitive Power Supply and a world-class
provider of Value-Added Services
• Leadership in Renewable Energy in Latin America
• 2nd largest private Generator with an equivalent stake of
2,941 MW of installed capacity, more than 93% from
renewable sources
4
1) On Sep, 26, 2013; 2) IFRS (+) proportional consolidation of minorities’ stakes at gencos (+) regulatory assets & liabilities (-) non-recurring items.

5. Corporate structure
Free Float
100%
100%
100%
100%
100%
99.95%
100%
GENERATION
100%
30.5%
15.1%
COMMERCIALIZATION
100%
30.0%
SERVICES
DISTRIBUTION
24.4%
100%
5
25.01%
48.72%
1
51%
100%
100%
59.93%
5.94% Investco
100%
100%
100%
Nect Serviços
RENEWABLES
100%
65%
52.75%
100%
100%
100%
58.8%2
1) Termoparaíba and Termonordeste thermal power facilities; 2) CPFL Energia has a 58.8% indirect interest in CPFL Renováveis
through CPFL Geração.

6. Corporate governance
World-Class Corporate Governance Practices
• Shares listed in differentiated segments:
• BM&FBovespa Novo Mercado
• NYSE (ADR Level III)
• Compliant with the Sarbanes-Oxley Act
• Board of Directors composed by 7 members:
• 1 Independent Member
• Advised by 3 Committees
• Self-Assessment for Board of Directors and Fiscal Council
• Enforcement of policies for disclosure of information and for
prevention of insider trading by employees
• Dividend Policy:
• Minimum of 50% of net income, semi-annually
6

7. CPFL Energia enjoys long term concessions
2015
2027
2028
2032
2035
2036
CPFL Santa
Cruz
CPFL
Paulista
CPFL
Piratininga
HPP Luis
Eduardo
Magalhães
HPP
Campos
Novos
HPP Foz do
Chapecó
CPFL Jaguari
RGE
HPP
Serra da
Mesa1
CPFL Sul
Paulista
CPFL Leste
Paulista
…
~3%
CPFL
Energia's
EBITDA
19 SHPPs
(CPFL
Renováveis)
HPP Castro
Alves
HPP Monte
Claro
1 TPP
(Carioba)
CPFL Mococa
HPP Barra
Grande
HPP 14 de
Julho
SHPP Rio do
Peixe (I/II)
SHPP Macaco
Branco
7
<1%
CPFL
Energia's
installed
capacity
CPFL Energia requested
Aneel to renew the expiring
concessions
Distribution
Generation
1) Furnas has the concession for HPP Serra da Mesa. CPFL has the contractual right of 51.54% of the plant’s assured energy, according to the 30year leasing contract, maturing in 2028.

8. CPFL Energia | Key financial figures – Sales
Total energy sales1 (GWh)
51,090
52,382
13,269
13,132
3.7%
52,852
446
12,489
57,128
59,299
2,167
3,046
14,278
15,446
CAGR 2009-12
37,821
39,250
39,917
40,683
40,807
2009
2010
2011
2012
3.8%
LTM2Q13
CPFL Renováveis2
Commercialization + Conventional generation3
Net revenues (R$ million) – adjusted5
5.9%
13,420
10,566
10,962
Captive market4
14,206
11,476
CAGR 2009-12
7.0%
2009
8
8
2010
2011
2012
LTM2Q13
1) Disregarding CCEE and intercompany sales. 2) 100% - IFRS criteria. 3) Incl. provision adjustments of 46 GWh in 1H12 and equivalent stakes at Foz do
Chapecó, Baesa, Enercan and Epasa. 4) Take into account changes in billing calendar for permissionaires in RGE in 2Q12. 5) Adjusted by generation proportionate
consolidation (IFRS 11), regulatory assets & liabilities, non-recurring items and ex-construction revenues.

9. CPFL Energia | Key financial figures – EBITDA and net
income
-0.8%
EBITDA (R$ million) | Adjusted1
4,625
3,320
4,586
EBITDA
EBITDA Margin
3,770
2,762
30.3%
32.9%
34.5%
32.3%
11.7%
26.1%
2009
2010
2011
2012
Net Income (R$ million) | Adjusted1
LTM2Q13
-4.7%
1,676
1,544
1,560
14.6%
13.6%
12.5%
2011
2012
1,598
1,286
11.7%
2009
9
2010
CAGR 2009-12
Net Income
Net Margin
CAGR 2009-12
11.2%
LTM2Q13
1) Adjusted by generation proportionate consolidation (IFRS 11), regulatory assets & liabilities and non-recurring items
9.2%

10. CPFL Energia | Key financial figures – Dividends
Dividend Yield 1 (LTM)
9.1% 8.7%
Declared dividends (R$ Mi)
9.6%
10.9%
9.7%
6.5%
3.7%
401
498
612
722
842
719
CPFL average price (R$/ORD)2
8.6%
7.6% 7.3% 7.6% 7.9%
6.9%
602 606 572
655
774
6.0%
7.1%
748 758
6.1%
4.6% 3.9%
640
486
456
363
140
2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13
22.05 21.95
17.99 18.05 16.69 15.77 16.51 18.44 20.18
15.02 14.13 15.87
11.67
8.29 9.43
26.30
22.78 21.11
Since its IPO, CPFL Energia has distributed R$ 10.6 billion in dividends. Payout ratio has been close to 100%.
1H13 Dividends: R$ 363 million | 0.38/share
10
1) On a LTM basis; 2) Adjusted by reversal stock split and simultaneous split of shares on June 29, 2011 (not dividend adjusted).

11. CPFL Energia | EBITDA breakdown
CPFL Energia – LTM2Q13 Adj. EBITDA Breakdown¹ | R$ million
CPFL Energia - Consolidated1 | 4,633
Competitive Supply3
179
4%
Generation
1,798
57%
Distribution
2,657
39%
Distribution Segment
CPFL Santa Cruz
CPFL Leste
Paulista
CPFL Jaguari
CPFL Sul Paulista
CPFL Mococa
4%
56%
CPFL
Paulista
27%
RGE
12%
CPFL
Piratininga
Generation Segment
Conventional
1,180
66%
34%
Alternative
Energy
618
3rd Tariff Review Cycle
CPFL Piratininga
Oct-122
CPFL Santa Cruz
CPFL Leste Paulista
CPFL Jaguari
Feb-132
CPFL Sul Paulista
CPFL Mococa
Apr-13
RGE
11
11
CPFL Paulista
Jun-13
1) Adjusted by regulatory assets & liabilities and non-recurring items; does not consider the holding company; 2) 12 months retroactive effect; 3)
Commercialization in the free market and Services

12. Capex 2013 - 2017
R$ 2,325
Generation:
R$ 2,062 million2
R$ 1,923
Commercialization and Services:
R$ 667 million
R$ 1,367
1,231
1,321
R$ 1,706
R$ 1,389
12
2013
2014
2015
11
113
120
15
2012 actual
(cash flow)
151
234
22
136
147
729
1,047
1,072
1,043
1,117
1,403
R$ 2,468
Distribution:
R$ 5,981 million
1,265
Total:
R$ 8,709 million1
2016
2017
1) Constant currency Dec-12. Take into account 100% interest in CPFL Renováveis and Ceran (IFRS); 2) Conventional + Alternative Energy

13. CPFL Energia | Indebtedness and leverage
Leverage1 | R$ billion
12.6
12.5
12.6
2.73x
2.89x
3.03x
3.42x
2011
2012
1Q13
2Q13
3,665
4,377
4,111
3,676
10.0
Adjusted net debt1/
Adjusted EBITDA2
Adjusted EBITDA2
R$ million
Gross debt cost3 | LTM
Gross debt breakdown3
13
3.0%
2012
2011
4.9% 4.4% 4.3%
Real
8.4% 8.0%
CDI
TJLP
1.7% 1.2%
1Q13
10.5%11.1%
9.4%
9.0%
2010
2006
2005
2004
9.9%
7.3% 7.1%
2008
7.9%
2007
9.4%
Nominal
2009
13.9%
13.4%
13.4%
12.1%
2Q13
17.7%
Prefixed
(PSI)
IGP
1) Financial covenants criterion: proportionate consolidation for all assets and adjusted by regulatory assets & liabilities; 2) LTM recurring EBITDA;
3) Financial debt (+) private pension fund (-) hedge (considering proportionate consolidation).

14. CPFL Energia | Strong and robust liquidity
Debt amortization schedule1 (Jun-13) | R$ million
Cash coverage:
2.0x short-term
amortization (12M)
Average tenor: 4.00 years
Short-term1 (12M): 16.6% of total
5,420
3,856
3,278
2,721
2,403
2,121
2,413
1,484
Cash
14
Short-term
2014²
2015
2016
2017
2018
2019+
1) Disregard financial charges (ST = R$ 295 million; LT = R$ 45 million), hedge (net positive effect of R$ 539 million) and MTM (R$ 86 million).
2) Amortization obligations as from July 01, 2014.

15. CPFL Energia | Short term outlook
Growth and productivity
• Ramp-up at CPFL Renováveis
• 2H13: 278 MW still to be started up
• Signals of recovery, favoring energy consumption –
industrial segment: +2.7% in 2Q13
• Productivity gains:
• Focus on cost reduction and optimization
(Zero Based-Budget and Corporate Services
Center)
• Tauron Project (smart grid): higher
productivity, lower costs
• Optimization in the occupancy of buildings – sale
of vacant assets
15
Optimization of capital structure
• Liability management exercise: pre funding for the
next 12m - longer terms and lower costs
• Average tenor: 4.0 years (2Q13) vs. 3.2 years
(4Q09)
• Real cost of debt: 1.2% p.a. (2Q13) vs. 4.9% p.a.
(4Q09)
• Reaffirmation of ratings: brAA+ since 2Q08
(S&P) and 3Q10 (Fitch)
• Liquidity policy (minimum cash vs. amortizations in the
next 12-18 months) – 2Q13 cash coverage: 2.0x
• Stable cash flow from operations (on avg. R$ 2.3
billion/year since 2010 | LTM2Q13: R$2.5 billion)
• Optimal capital structure
• Reduction in WACC
• Maximization of shareholder return

16. CPFL Energia’s ambitions
Leadership among private companies in the electric sector,
with a diversified portfolio in different businesses related to Energy
GENERATION
• Operational
Excellence, presenting the
highest margins of the sector
• Expansion of installed
capacity in hydro and thermal
with attractive returns
DISTRIBUTION
• Market leader, doubling the
market share in Brazil
• Operational excellence
through innovation and new
technologies (smart grid)
• Leadership in renewable
sources (> 4 GW by 2020)
COMPETITIVE SUPPLY
• Leadership in
commercialization in the free
market
• Maximization of
profitability, through a best-inclass set of solutions
16
16
SERVICES
• Largest services company in
the power sector
• Strong growth of sales

17. TSR Performance
Total Shareholder Return
1
Jun-08 to Jul-13 | % p.a.
Dividends
Stock appreciation
-2.9
13.1
4.3
8.6
14.5%
5.5
4.9
25.6%
14.5%
3.6%
5.0%
7.4%
-1.8%
-1.4%
-17.8
4.3
7.8%
7.1%
-2.8%
-2.8%
-5.8
3.9%
-9.7%
-10.2%
-27.0%
-28.5%
Genco
1
17
Genco
2
Integrated
1
Integrated
2
9.2%
Disco
1
Disco
2
Integrated
3
1) Adjusted for inflation (IGP-M in Jul-13); 2) Weighted average by Companies’ Market Cap; Source: Economática
Integrated
4
Average2
0.8%

18. Agenda
1
2
Distribution
3
Generation
4
Competitive Power Supply and Services
5
18
Corporate Overview
The Electric Sector

19. Distribution Segment
1º
Market share: 13%
CAGR 2008-12
3.7%
TUSD
+3.3%
Captive
• 7.3 million customers
• 569 municipalities
• Footprint: most developed regions
• High potential in per capita
consumption
2008
2009
2010
2011
2012
2008
2009
2010
2011
LTM2Q12 LTM2Q13
Industrial
Residential
26%
44%
14%
Others
16%
Commercial
19
1) Excluding sales at CCEE; 2) Source: EPE.
2012
2013

20. Brazilian economy and market performance
2006
2007
2008
Real wage bill
2006
20
-2.7
0.7
0.4
3.9
2007
2008
2009
2010
2011
2012
Industrial production
Industrial consumption
•
•
•
•
•
•
•
8.5
6.8
6.7
6.6
6.0
10.9
5.9
5.2
9.1
2007
2008
Retail sales
2009
2010
2011
2012
Commercial consumption
Other variables influencing energy
consumption
10.5
9.3
-7.4
-6.7
3.1
2.9
6.0
6.1
2.8
3.3
Industrial production2 and CPFL’s
industrial consumption3 | %YoY growth
2006
5.6
6.2
5.5
4.5
4.9
2009
2010
2011
2012
Residential consumption
9.7
7.7
Retail sales2 and CPFL’s commercial
consumption3 | %YoY growth
6.6
6.9
7.3
5.2
3.9
6.0
6.1
6.8
5.9
6.9
5.9
4.5
Real wage bill1 and CPFL’s residential
consumption | %YoY growth
Population growth
Migration
Credit
Household appliances
Temperature
Rainfalls
Public investments
1) Source: IBGE/LCA. 2) Source: IBGE. 3) Take into account changes in billing calendar for free consumers.

21. Distribution business
Footprint in the most developed regions of Brazil
Southeast:
CPFL Paulista, CPFL Piratininga, CPFL Santa Cruz,
CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista,
CPFL Mococa
South: RGE
Leadership in the distribution segment
•
•
•
•
•
Start Up
8 distribution companies;
13% of market share;
7.3 million customers;
569 municipalities;
LTM2Q13 sales of 57,605 GWh | 04-12 CAGR of 3.7%
Discos’ Acquisitions | Key dates
1
1
1912
21
21
1997-2001
2006
2007
1) Acquired by VBC (one of CPFL Paulista’s controlling shareholder at the time) and PSEG in 1997, during the privatization process, and incorporated by CPFL Energia
in 2001 (67,03%). In 2006, CPFL Energia acquired the additional stake (32.67%).

22. Distribution: best-in-class operational efficiency
Avg. Length of Power Outages per Consumer per Year - DEC
2012 (hours)
10.8
8.1 8.3 8.4 9.4 9.8 9.9
5.8 7.5
4.5 5.3 5.7
21.6
19.3 19.4 20.0
16.5 16.9 18.2
14.5 14.6 14.7
Avg. Frequency of Power Outages per Consumer per Year – FEC
2012 (# occurrences)
8.4 8.9 8.9 9.0 9.1
7.0 7.9 8.1
6.6
5.4 5.7 5.8 6.0 6.4
4.2 4.6 4.7 4.7 5.3
22
10.9 11.8
13.0

23. Pressure on tariffs
Average tariff1 (CPFL Piratininga) - [R$/MWh]2
-24%
Taxes
Sector
charges
Distribution
Transmission
Generation
R$/MWh
(6%)
(18%)
(9%)
(45%)
1st CRTP3
2003-2006
(14%)
(22%)
(7%)
(13%)
(8%)
(15%)
(4%)
(44%)
(53%)
3rd CRTP3
2011-2014
R$/MWh
%
-16%
-22.1
-27%
20.0
88%
-4.2
-18%
-25.6
-38%
-26.0
-39%
-7.4
-24%
-21.6
-69%
-25.8
(22%)
%
-13.3
82
(22%)
-16%
-18.5
-11%
2012 Tariff
after RTE4
The Distribution segment, intensive in O&M expenses, has gone through periodic tariff reviews to
reduce costs and improve efficiency, while Generation and Transmission segments, capitalintensives, did not suffer the same regulation
23
1) Average of all classes and voltages; does not take into account financial components. 2) Constant figures in December/12. Amounts
adjusted by IPCA | Source: CPFL Energia. 3) Periodic Tariff Review. 4) Extraordinary Tariff Review.

24. 3rd tariff review cycle for discos | Methodology
3rd Tariff Review Cycle | Final Methodology | Nov, 11
Regulatory Asset Base
• Maintenance
• WACC of 7.50%
Regulatory WACC
• Capital structure 55%/45% (D/E)
• Adjustment of levered Beta: from 0.66 to 0.74
Operational Costs
Irrecoverable Revenue
• Maintenance of proposal of the 2nd phase, with improvements
• Single productivity of 0.78%
• Delinquency by consumer class and on sector charges with limits defined by
ANEEL
• XPd: central point of 1.11%, ex-ante calculation
X Factor
• Xq: companies that perform better have a greater benefit and lower fee. The
opposite holds true for companies that have poorer quality performance, when
compared with its track record.
• Xq = 0 for changes in quality metrics (DEC and FEC ) between -5% and +5%
• Xt limited to +/- 2%
24
24

25. Cost-cutting initiatives
1
2
3
4
Zero-Base Budget
Tauron Program
Inefficiencies from
past budgets are not
carried over to the
next periods
Introduction of the
smart grid technology
in the distribution
network
Redundancy
Program
Corporate Services
Center
Special retirement
plan with 445
adherences
~R$50 million/year
(2012-15)
~R$60
million/year
~R$25
million/year
Implementation of a
back-office services
provider to increase
operating productivity
and efficiency
Value Initiatives
Corporate Level
• Reduction of consulting services
and “insourcing” of activities:
reduction of ≈47%
• Standardization of outsourced
labor: reduction of ≈52%
• Improved management of travel
expenses: reduction of ≈18%
• Consumption of paper and office
supplies: reduction of ≈66%
25
Achievements1
Operational Level
2012
• Optimization of inspections (loss
prevention), process review, and
improvement in assertiveness:
reduction of ≈17%
Reduction of 7.2% or
R$ 108 million
Personnel: -R$ 17 million
MSO: -R$ 91 million
• Metering and delivery of bills online billing (email), changes in
layout/type of paper, alignment
of bank fees for all Discos:
reduction of ≈11%
1H13
Reduction of 2.0% or
R$ 10 million
Personnel: -R$ 6 million
MSO: -R$ 4 million
1) Excluding CPFL Renováveis (ramp-up), CPFL Serviços (revenue-related expenses) and non-recurring items. In real terms. Inflation index: IGP-M.

26. Distribution | Key financial figures
Sales in the Captive Market (TWh)
Net revenues1 – Adjusted2
+0,4%
CAGR = +1.8%
40.8
40.7
40.6
2012
LTM2Q12
+13.6%
CAGR = +6.8%
9,432
9,794
2010
10,763
2011
10,120
11,495
39.9
39.3
2010
2011
EBITDA – Adjusted2
CAGR = +8.7%
2,267
26
2011
+8.3%
2,678
2,351
2010
LTM2Q13
2012
2,453
2,657
LTM 2Q12 LTM 2Q13
2012
Net income – Adjusted2
CAGR = +3.4%
1,309
2010
1) Excludes construction revenue; 2) Adjusted by non-recurring items and regulatory assets & liabilities.
+10.1%
1,399
1,250
1,235
2011
LTM 2Q12 LTM 2Q13
2012
1,376
LTM 2Q12 LTM 2Q13

27. Agenda
1
2
Distribution
3
Generation
4
Competitive Power Supply and Services
5
27
Corporate Overview
The Electric Sector

28. Generation Segment
2º
Market share: 2.3%
•
Long Term Concessions
•
Latin America’s largest Portfolio in
Alternative Energy
25%
Renewable Sources: higher than 93%
•
Installed Capacity1 (MW) | Estimated growth
CAGR 2000-16e = 21.5% a.a.
Enercan
Semesa
Ceran
Foz Chapecó
Epasa
Baldin
Creation of
CPFL Renováveis
Baesa
657
660
747
751
931
-
Greenfield
28
Brownfield
1) Considering 58.8% stake at CPFL Renováveis, since its creation.
Privatization assets
1,047
1,047

29. Conventional generation | 2,234 MW1 of installed capacity
CPFL Energia’s power plants – state-of-the-art environmental efficiency
1998
2005
2007
2007¹
2008
2008
2010
2010-11
1,275.0
130.0
690.0
880.0
902.5
130.0
100.0
855.0
341.6
671.0
59.0
380.6
377.9
526.6
64.0
50.0
432.0
247.6
51.54%
65.00%
25.01%
48.72%
6.93%
65.00%
65.00%
51.00%
52.75%
657.1
84.5
172.5
428.7
62.5
84.5
65.0
436.1
180.2
345.8
38.4
95.2
184.1
36.5
41.6
32.5
220.3
130.6
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
-
2028
29
2004
2036
2036
2035
2032
2036
2036
2036
2042
1) Equivalent stake, including 38MW of small plants at CPFL Geração and 24MW of SHPP embedded in the distribution companies.

30. CPFL Renováveis | Corporate structure
100%
Free float
63.0%
58.8%
37.0%
24.6%
0.0%
16.6%
Pre-IPO
Post-IPO
Small Hydro
30
Biomass
Wind
Solar

31. CPFL Renováveis | Installed capacity (MW)
Wind
SHPP – Small Hydro
Biomass
3,818
5,553
Under
development
Total
Portfolio
Possible
Probable
Highly Confident
100% with PPA
1,735
1,203
Operating
(Sep-13)
Small Hydro
Under
construction
End of
2016
Biomass
Wind
Total
• 35 operating: 327MW
• 7 operating: 320MW
• 15 operating: 556MW
• 58 operating: 1,203MW1
• Under construction: -
• 1 under construction: 50MW
• 18 under construction: 482MW
• 19 under construction: 532MW
• Under development: 626MW
• Under development: -
• Under development: 3,192MW
• Under development: 3,818MW
Total: 4,230MW
Total: 5,553MW1
Total: 953MW
31
Total: 370MW
1) Including Tanquinho solar power plant – 1MWp of installed capacity

32. CPFL Renováveis | Track record
(MW)
CPFL Renováveis
(Aug-11)
(MWavg)
652
314
2Q12
25
8.2
Free market
-
2Q12
70
24.4
LER auction
(R$158.81/MWh)
Estimated revenue: R$ 20
million/year
2Q12
158
63
Proinfa PPA
(R$ 310.51/MWh)
Acquisition price: R$ 1,062
million
3Q12
188
76
LER auction
(R$ 175.51/MWh)
Estimated Revenue: R$ 115
million/year
4Q12
40
11
Alternative sources
auction (64%) and
free market (36%)
Acquisition price: R$ 111.5
million
4Q12
1
1
Free market
-
4Q12
20
11
Alternative sources
auction (R$166.41/MWh)
Estimated Revenue: R$ 112
million/year
3Q13
50
18
Free market
-
1,203
526
Current portfolio
(Sep-13)
32
1) Constant currency (Dec-12)

33. CPFL Renováveis | Portfolio under construction
(e)
(MW)
(MWavg)
3Q13
50.0
18.0
3Q13
30.0
15.0
BNDES funding (under review)
COMMERCIAL BANKS (bridge loan approved and
disbursed)
Reserve auction
(Aug/10)
R$ 142,53/MWh
52.7
BNDES funding (bridge loan approved and
disbursed, long-term funding under review)
COMMERCIAL BANKS (bridge loan approved and
disbursed)
Alternative sources
auction (Aug/10)
R$ 154,83/MWh
3Q13
120.0
4Q13
82.0
40.2
3Q16
33
37.5
1Q16
Projects under
construction
78.2
172.0
89.0
532.2
(e)
BNDES funding
(approved and partially disbursed)
BNDES funding
Free market
Alternative sources
auction (Aug/10)
R$ 152,63/MWh
252.4
(bridge loan contracted and disbursed, long-term
funding under review)
BNDES funding
(structuring)
BNDES funding
(structuring)
Free market
Free market
1) Macacos, Pedra Preta, Costa Branca e Juremas; 2) Atlântica I, II, IV e V;
3) Constant currency (Dec/12);
4) Campo dos Ventos I, III, V;
5) Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica, Santa Úrsula São Domingos and Ventos de São Martinho

34. CPFL Renováveis | High quality and diversified portfolio
Diversified and high quality portfolio, delivering superior performance, mitigating
risks, ensuring reliable load factors and providing capacity to grow with different
sources
High Quality Development, Construction and
Operation
•
•
•
•
•
Biomass
Solar
21%
Selective high quality project development
Wind projects certified by industry leaders
Backed by high quality equipment suppliers
Long term O&M contracts
Energy generation monitoring and optimization
Wind Portfolio
Attractive location due
to high wind speeds
Installed Capacity1
0%
19%
SHPP
60%
Wind
Total: 1,735 MW
CPFL Renováveis benefits from the
complementarity of sources
•
Biomass Portfolio
Proximity to sugarcane
production centers
Reservoir storage at high levels in the first semester
while wind energy generation is concentrated in the
second semester of the year
Region
NE
Reservoir Storage (%)
34
34
Feb
Mar Apr May Jun Jul
Wind (Generation - MWavg)
1) To be fully operational by 2016
Aug
Sep Oct Nov Dec
Reservoir Storage
506
SO
Wind Generation MW
Jan
958
CW/SE
Complementarity of Sources Mitigating Risks
MW
271
Operating:
Hydro
Wind
Biomass
Solar
SHPP Portfolio
Exposure to
abundant hydro
resources
Under Construction:
Hydro
Wind
SHPP Potential (Southeast and Midwest Regions)
Biomass
Wind Potential (Northeast and South Regions)

35. CPFL Renováveis | Unparalleled wind conditions
combined with top technology
Wind Features in Brazil are the Most Adequate for Power Generation | The average
wind in Brazil (Northeast) has a similar intensity with less variability
Brazil (NE)
Area
89%
Frequency
United States
Frequency
Frequency
Europe
Area
95%
Ideal Wind Speed
Wind Speed (m/s)
Ideal Wind Speed
Area
99%
Wind Speed (m/s)
Ideal Wind Speed
Wind Speed (m/s)
Technology Has Shown Great Improvements in Recent Years | Recently developed technology for
wind power plants allows greater load factors
Europe and EUA
180
Brazil
100m
3.000kW
160
140
Altura (m)
120
Rotor Diameter (m)
Rating (kW)
80m
1.800kW
Greater
efficiency
70m
1.500kW
100
50m
750kW
80
30m
300kW
60
40
17m
75kW
20
0
1980 1990
35
1990 1995
1995 2000
2000 2005
2000 2005
2010
Improved
availability
Reduced
generation
losses

36. Conventional and Alternative Energy | Key financial figures
Net Revenues (R$ million) - Adjusted1
EBITDA (R$ million) - Adjusted1
2,634
2,350
CAGR = +43.7%
1,798
1,672
1,397
1,842
1,520
1,181
1,121
2010
+28.7%
+43.0%
CAGR = +44.8%
810
2011
2012
LTM2Q12 LTM2Q13
Net Income (R$ million) - Adjusted1
2010
2011
2012
LTM2Q12 LTM2Q13
EBITDA Margin - Adjusted1
-56.3%
819
778
384
262
2010
36
2011
2012
358
LTM2Q12 LTM2Q13
1) Adjusted by proportional consolidation and non-recurring items.
2010
2011
2012
LTM2Q12 LTM2Q13

37. World’s most attractive alternative energy market
Renewables in Brazil are expected to grow at a CAGR of 9.5%, from 16 GW in 2012 to
36 GW in 2021 and still a highly fragmented market
Unrealized Potential to be Explored in Brazil
Potential Realized
Wind
 Potential: 143GW
 Installed capacity: 2.0GW
1%
SHPP
 Potential: 17.5GW
 Installed capacity: 5.0GW
29%
Biomass
 Potential: 17.2GW
 Installed capacity: 8.9GW
Highly Fragmented Market | Renewables
Market Share in Brazil based on contracted
energy (22GW)
8%
Renova 5%
52%
Energimp 4%
QGER 4%
Evolution of Brazilian Installed Capacity by
Source | GWh
4.6% p.a.
182
Brookfield 3%
Cosan2 3%
CAGR
36
122
16
10
10
Renewables 9.5%
16
Other
5.1%
13
Natural Gas
Eletrosul 3%
Elecnor 2%
Bioenergy 2%
2.7%
Hydro
Others 66%
3.6%
117
85
2012A
37
2021E
Source: ANEEL, PDE 2021 and Company; 1) Projected to 2020; 2) Considers the export of 2/3 of energy produced by the Company;

38. Stable and solid regulatory framework
Description
Environmental
& Streamlined
Implementation
Process



Access to Multiple
Sales Channels



Dedicated
Sovereign
Funding Conditions
Discounts on
Transmission
Charges


Discount of at least 50% (TUST and TUSD)












38
Regulated energy auctions and the free
market
Long term inflation protected/linked PPA
(average 20-30 years)
Special niche in the free market for “special
client” (demand between 0.5-3.0MW)
Current special free market of 2.7% (1.6GW)
to potential of 9.6% (5.8GW)
BNDES Financing
Low Cost – average interest rate of 7.0%
Long-term funding of 16 years
Attractive capital structure


Favorable Tax
Regime and
Fiscal Incentives
Faster and simpler environmental process
Faster construction cycle
Sustainability
“Lucro Presumido” with reduction in the
effective tax rate to 5% - 15% from 34%
REIDI (special program of incentives for
infrastructure development) - exemption of
PIS/COFINS,
Exemption of ICMS (movement tax) and IPI
(production tax)
Source: Company ; 1) Tax on revenues



Natural consequence of projects with lower
environmental impact
Annual auctions to match growth in energy
consumption
Price of energy at the captive market structurally
higher than at the free market given regulatory
charges
Not a sector specific benefit
BNDES has been providing support for the sector for
many years
Policies in place since 1996
Not a direct government expenditure/tax break
Not applicable for regulated auctions
Tax regime for small enterprises (annual revenues
below R$78 mm), which is not sector specific
REIDI is applicable for all infrastructure projects
ICMS/IPI1: discussions on expanding tax incentives to
SHPPs

39. Agenda
1
2
Distribution
3
Generation
4
Competitive Power Supply and Services
5
39
Corporate Overview
The Electric Sector

40. Competitive power supply| Regulated vs. free market
Main differences
No choice - distribution company
Free choice
Distribution company
Distribution company
Regulated by ANEEL
Free negotiation
Advantages
Regulated Market
 Lower prices
73%
 Free choice from energy supplier
27%
 Better predictability of energy expenses
 Customization according to consumer seasonality
Free Market1
Who can join
after July, 1995
Free
Special
40
> 3,000 kW
500-3,000 kW
units totaling 500 kW
1) Source: EPE. 12 months ended in Aug-13.
before July, 1995
-
any
any
> 69 kV
any
< 69 kV
incentivized
Group A
Group A
incentivized
incentivized

41. Competitive power supply
1º
Market share: 10%
• CPFL Brasil was awarded the winner
of Exame Magazine’s 2013 Best and
Largest Companies (category
Energy)
Sector Leader
• 280 free consumers
• The Company was selected among
gencos, discos, transcos and other
players in the electric sector
throughout Brazil
2010 | 2011 | 2013
• Nationwide outreach
• Value-added product portfolio
• Synergy with CPFL Renováveis
Portfolio (Free Consumers)
210
179
Outside the
concession area
Inside the
concession area
CAGR = 30%
280
231
70
52
Free Market
in Brazil
41
Number of Consumers (#) | CPFL Brasil
129
80
Current: 11.5 GW avg
Potential: +4.8 GW avg
2009
2010
2011
74
2008
141
2012
2Q13

42. Competitive power supply | Opportunities
Number of free clients in Brazil
# of competitive customers – larger than 3 MW
# of special customers – from 0.5 to 3 MW
441
465
491
1,123
CAGR=55.5%
CAGR=8.6%
558
796
613
495
192
221
Jun/09 Jun/10 Jun/11 Jun/12 Jun/13
Jun/09 Jun/10 Jun/11 Jun/12 Jun/13
Current: 9.6 GWavg
Potential: +0.7 GWavg
Current: 1.9 GWavg
Potential: +4.1 GWavg
Competitive advantages of CPFL:
market leadership, expertise and synergies with CPFL Renováveis
42
Source: ANEEL and CCEE

43. Services Segment | CPFL Serviços
• Foundation: 2006
• Core Business: offers a wide range of value-added
services, ranging from engineering projects to maintenance and
recovery of equipment. These services are designed to help
consumers improve the efficiency, cost and reliability of their
electric equipment
• Type of services: construction of transmission and distribution
networks; maintenance and recovery of equipment; selfgeneration networks (cogeneration, energy-efficiency projects
and distributed generation arrays – solar energy)
Transmission
networks
43
Self-generation
networks
Distribution
networks
Recovery of
equipment

44. Services Segment | CPFL Total and CPFL Atende
• CPFL Total offers collection services with an
established authorized network; capacity to
collect utility bills, such as
water, energy, telephone, and cable TV.
• Capability of cross-sale with other service
providers, enabling the collection via energy
bills.
44
• Foundation: 2008
• Core Business: provider of contact center and
customer relationship services to other utility
companies
• Services: face-to-face attendance, backoffice, credit recovery, toll-free customer
support, ombudsman, service desk and sales

45. Competitive power supply and Services | Financials1
Net revenues
EBITDA
2,271
2,040
1,909
101
1,699
151
303
13
158
278
Net income
293
201
35
7
26
164
132
11
176
1,808
1,882
2,120
124
19
290
1,567
252
22
194
258
84
157
2010
2011
2012
LTM2Q13
2010
2011
2012
Commercialization
45
1) Pro forma
8
153
LTM2Q13
Services
102
2010
2011
2012
76
LTM2Q13

46. Agenda
1
2
Distribution
3
Generation
4
Competitive Power Supply and Services
5
46
Corporate Overview
The Electric Sector

47. Energy sector in Brazil: business segments
Consumers
73.8 million consumers
Generation
• 124 GW of
installed capacity1
• 79.3% Renewable
energy1
• Eletrobrás: ~33%
of total assets
Transmission
• 68 Companies
• 63 Companies
• 107,400 km of
transmission lines
• 458 TWh of billed
energy3
• Eletrobrás: ~55%
of total assets
• Top 5: ~50% of
the market
Competitive Power Supply
47
Distribution
1) Source: ANEEL - 2Q13; 2) Source: EPE - 12 months ended in Aug-13
Captive Market
Free Market

48. Brazilian electricity matrix
Brazilian Energy Matrix
Brazil’s electricity matrix is predominantly renewable, with hydro installed capacity totaling 70% of
the total supply, while biomass, wind and SHPPs account for 13%. In the next years, it is expected
that other sources will grow, mainly wind, reaching 9% of total installed capacity in 2021.
Evolution of Installed Capacity (GW) 2012-20211
2012
2021
122 GW
48
2016
151 GW
182 GW
1) Source: EPE - National Energy Balance 2013 and 10-year Energy Plan 2012-2021; 2) Others: considers coal, oil, diesel and process gas.

49. Mechanics of regulated auctions
Gencos
• New Energy: Initial supply 5 years after the auction
• Term of contract: 15-30 years
• Objective: Cover discos market growth and finance new
generation
• Energy contract limit: no limit
A-5 Auction
•
•
•
•
A-3 Auction
A-1 Auction
2013
•
•
•
•
“New” Energy: Initial supply 3 years after the auction
Term of contract: 15-30 years
Objective: Adjust discos’ contracted energy levels
Energy contract limit: 2% of the load
“Old” or Existing Energy: Initial supply in the following year
Term of contract: 1-15 years
Objective: Replace old contracts, maintaining the discos’ contracting level
Energy contract limit: 96% to 100% of the Replacement Amount (MR)
2014
2015
2016
2017
2018
Reserve Energy Auction - LER:
Discos are not required to declare contracting needs and generation costs are covered through sector charges
Discos
Discos must purchase electric energy to supply their captive market, five years in advance,
in public auctions (Regulated Market – ACR)
49

50. Overall storage conditions
Reservoir levels in the National Interconnected System (SIN) | % volume
1
Spot prices (PLD) | R$/MWh
Better hydrological conditions favored a reduction in spot prices (PLD), as many of the expensive thermal plants
were shut down from June to August. As of September, the new ONS model was implemented, incorporating the thermal
dispatch in the spot price formation. Therefore, spot prices remain at a higher level.
50
1) Until September 27, 2013.

51. Decree #7,945 – liquidity injection in the sector in 2013
On a monthly basis, sector fund CDE
covers the following items:
1
Effects of
PM 579
Thermal
dispatch
Disco’s involuntary exposure to spot market
Quotas of extended concessions were insufficient to
fulfill discos’ contracting needs
2
Hydrology risk
Assets, whose contracts were extended by
PM579, now transfer the hydrologic risks to
consumers
Thermal dispatch out of merit order since Jan-13
increases Energy Service Charges (ESS)
3
At the each disco’s tariff readjustment, the CVA balance
can be totally or partially advanced 1
Accounted as
recovery of costs
Energy purchases
R$ 4.8 billion
Sector charges
R$ 3.6 billion
Accumulated
costs not covered
by current tariffs
(CVA)
51
4
Until Dec-12, all cost difference not covered
by current level of tariffs were accumulated
and set to be discharged in the next tariff
readjustment. As tariff increases were capped at
3% in 2013, the difference is compensated by
CDE funding
Total (until Aug-13)
R$ 8.4 billion2
1) RGE periodic tariff review: Jun-13 and CPFL Piratininga annual tariff adjustment: Oct-13. 2) Source: Aneel. CPFL Energia recorded R$ 823 million
in 1H13 (R$ 495 million as energy purchases and R$ 328 million as sector charges).