Corporate Presentation CPFL Energia - August 2017

1. March, 2013
Corporate
Presentation
August 2017
1

2. 22 1) On August 24, 2017; 2) Considering CPFL’s stake on each generation project.
Company Overview
 Largest integrated private player in the Brazilian electricity sector
 Market Cap of R$ 27.5 billion1, listed on BM&FBOVESPA
– Novo Mercado and on NYSE (ADR Level III)
 In LTM2Q17, EBITDA of R$ 4,348 million and Net
Income of R$ 762 million
 Presence concentrated in the most developed regions of
Brazil
 Leadership in distribution through 9 subsidiaries and a 14%
market share
 3rd largest private generator with 3,283 MW2 of installed
capacity, of which 94% from renewable source
 Leader in Renewable Energy in Brazil with the largest
capacity in operation
 One of the most profitable operations of energy
Trading and a world-class provider of Value-Added
Services
Power Plants

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) CPFL Energia holds a
stake in RGE Sul through the CPFL Jaguariúna.
Company Profile
Lajeado HPP
5.94%
Nect Serviços/Authi
CPFL Centrais
Geradoras
DISTRIBUTION
100%
SERVICES
100%
RENEWABLES
51.61%
65% 48.72% 51%
25.01%
Serra da Mesa
HPP
51.54%1
53.34%
GENERATION
100%
TRADING
100%
Commercialization,
Services & Others
213
CPFL Energia – Consolidated | 4,348
LTM2Q17 EBITDA Breakdown | R$ million Concession’s expiration
2045
CPFL Santa
Cruz
CPFL Jaguari
CPFL Sul
Paulista
CPFL Leste
Paulista
CPFL Mococa
Free Float
45.4%
Conventional
Generation
1,179
Distribution
1,881
43%
27%
5%
25%Renewable
Generation
1,074
54.6%
2
CPFL GD
2027 2028 2032 2035 2036
CPFL
Paulista
CPFL
Piratininga
HPP Luis
Eduardo
Magalhães
HPP Campos
Novos
HPP Foz do
Chapecó
RGE
HPP Serra da
Mesa2
HPP Barra
Grande
RGE Sul
HPP Castro
Alves
19 SHPPs
(CPFL
Renováveis)
HPP Monte
Claro
HPP 14 de
Julho

4. Distribution Segment
• 9.3 million customers
• 679 municipalities
• Footprint: most developed regions
• High potential in per capita consumption
• Market size: 57.0 TWh/year
1st
Market share: 14%
Industrial
Commercial
Residential
Others
1) RGE Sul (Nov-16/Jun-17); 2) Source: EPE; 3) Excluding RGE Sul (Nov-16/Jun-17).4
29% 37%
17%
17%
5 small
discos +
RGE Sul1
41%
16%
18%
25%
RGE
CPFL Piratininga
LTM2Q17 EBITDA
Breakdown
R$ million
CPFL
Paulista
Tariff review Sales CAGR by Region2,3
2012 – LTM2Q17
4th
Tariff Review Cycle
CPFL Piratininga Oct-15
CPFL Santa Cruz
Mar-16
CPFL Leste Paulista
CPFL Jaguari
CPFL Sul Paulista
CPFL Mococa
CPFL Paulista Apr-18
RGE Sul Apr-18
RGE Jun-18
LTM2Q17 Sales
Breakdown
GWh

5. Growth Projects | Synergistic growth with RGE Sul
 Debt restructuring: debentures issue in the amount of
R$ 1.1 billion (Cost: 114.50% of CDI and term of 4 years)
 Acquisition funding: debentures issues in CPFL Energia
(R$ 620 million) and in CPFL Brasil (R$ 400 million) (Cost:
114.50% of CDI and term of 4 years)
 Completion of the acquisition of AES Sul
 Change of the corporate name to RGE Sul Distribuidora
de Energia S.A.
 Election of the new members of the Board of Directors
and of the Board of Executive Officers
 Results Consolidation
• Balance sheet as of Oct 31st, 2016
• Income statement as of Nov 1st, 2016
Completed steps:
Periodic Tariff Review
Date: April-18
5
 Development of the Integration Plan
• Diagnosis step and implementation of the Integration Plan
• Sharing of the best practices, processes and technologies adopted in
the distribution companies of CPFL Group, as well as from RGE Sul to
the other companies
• Improvement action plan in the quality of services established by
ANEEL
Expected conclusion of
Integration Plan:
Dec-17
Next step:

6. 66
Generation Segment
• 3,283 MW of installed capacity
• 1,575 avg-MW of physical guarantee
• Long Term Concessions
• Brazil’s largest Portfolio in Alternative Energy
• Renewable Sources: 95%
3rd
Market share: 2% Installed Capacity | %
• Contracted portfolio in the long term with
low risk exposure
• Agreements average price: R$ 219/MWh
• Agreements average tenor: 12.9 years
Contract Profile
61%
5%
7%
6%
21%
HPP
TPP
SHPP
BIO
WIND
Contracting Level | %
Total: 3,283 MW
2017 2018 2019 2020 2021
100% 100% 100% 98% 98%
2,3% 2,3%
Contract Energy Available Energy

7. 1998 2004 2005 2007 2007 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% 53.34%
657.1 84.5 172.5 428.7 62.5 84.5 65.0 436.1 182.2
345.8 38.4 95.2 184.1 36.5 41.6 32.5 220.3 132.1
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 -
2028 2036 2036 2035 2032 2036 2036 2036 2042
Conventional generation | 2,199 MW of installed capacity
CPFL Energia’s power plants – state-of-the-art environmental efficiency
7

8. (MW)
CPFL Renováveis (Aug-11) 652
2Q12 25 Free market -
2Q12 70 Reserve auction Revenue(e): R$ 20 million/year
2Q12 155 PROINFA Acquisition price: R$ 1,062 million
3Q12 188 Reserve auction Revenue(e): R$ 115 million/year
4Q12 40 Auction and free market Acquisition price: R$ 111.5 million
4Q12 1 Free market -
4Q12 20 Alt. Sources auction Revenue(e): R$ 112 million/year
3Q13 50 Free market Revenue(e): R$ 22.6 million/year
4Q13 30 Reserve auction Revenue(e): R$ 18.5 million/year
4Q13 50 Free market Revenue(e): R$ 22.6 million/year
1Q14 14 PROINFA Acquisition price: R$ 103.4 million
1Q14 120 Alt. Sources auction Revenue(e): R$ 76.7 million/year
2Q14 78 Alt. Sources auction Revenue(e): R$ 52.6 million/year
3Q14 278 - Partnership with Dobrevê
2Q15 29 Reserve Auction Revenue(e): R$ 17.9 million/year
2Q16 24 Free market Revenue(e): R$ 18.1 million/year
4Q162 231 Free market -
2Q17 48 Alt. Sources auction -
Current portfolio 2,103
CPFL Renováveis | Track record
Installed capacity of 2,103 MW
1) Revenue estimated by the terms of the 16th LEN 2013; 2) Gradual commercial start-up since 2Q16.8

9. Launch of the Solar Generation Company
9
Solar energy. From generation to generation.
Inaugurated on May 2,
Envo offers clean and
renewable energy and a
reduction of up to 95%
in the energy bill of its
customers
Envo offers solution for families to be able to generate solar electricity at
home and, thus, obtain a significant savings in the energy bills.
The solution delivers a project that evaluates the individual potential of each
residence, management of the homologation with the local distributor,
supply and installation of all necessary equipment.
The Solution
Area of activity
In this first moment, the sales efforts and the initial focus of action of Envo
will be the cities of the region of Campinas, Sorocaba, Jundiaí and
surroundings. The company already has plans to expand in other locations in
the state.

10. Commercial
Start-up
Installed
Capacity
Assured Energy PPA1
Location Financing
June/2017 48.3 MW
26.1
average-MW
18th LEN 2014
R$ 156.50/MWh
until 2047
Ceará
BNDES e BNB
(under analysis)
Pedra Cheirosa Wind Complex – Comercial Start-up
10
1) Constant Currency (June-17).
CPFL Renováveis
anticipated in 1 year
the Wind Complex
Start-up

11. Commercial
Start-up
Installed
Capacity
Assured Energy PPA1
Location Financing
2020 29.9 MW
14.0
average-MW
21st LEN 2015
R$ 225.53/MWh
until 2049
Minas Gerais
BNDES
(under analysis)
SHPP Boa Vista II – Under Construction
11
1) Constant Currency (June-17).

12.  982 free clients (1H17 vs. 1H16: 241%),
of which 877 special clients (1H17 vs.
1H16: 256%)
 Special client market: current ~ 4.0 avgGW
 Competitive client market: current ~ 10.8 avgGW
 Nationwide outreach
 Synergy with CPFL Renováveis
 New activities: ENVO
 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
12
1H17 - 192 transmission contracts
 Foundation: 2012
 Management of partnership with
companies that use the energy bill
to collect their services
 Main services charged to the energy bill: affinity
insurance, newspaper, discount cards, funeral plans, health
plans, water purifier, etc
 More convenience to customers, especially for those who do
not have a bank account
 Increased loyalty of payments and less delinquency for the
business
2016
- 40 partners companies
- 10 million collection
 Foundation: 2008
 Provision of customer
relationship services to
utility companies:
 Call Center
 Ombudsman
 Back Office
1H17
- 7.4 million phone calls
- 15.9 million speaking time minutes

13. CPFL Energia Strategy
13
• 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 through
acquisitions and new
projects
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

14. 1414
1) Includes Holding’s EBITDA. EBITDA is calculated from the sum of net income, taxes, financial result, depreciation/amortization, as CVM Instruction no. 527/12; 2)
Including Holding result and amortization of merged goodwill.
2012 2013 2014 2015 2016 LTM2Q17
CAGR 2012
–LTM2Q17
LTM2Q17
vs. 2016
NET REVENUE 14,891 14,634 17,306 20,599 19,112 21,796 7.9% 14.0%
Distribution 12,398 11,568 13,665 16,968 15,040 17,149 6.7% 14.0%
Generation 2,350 1,943 2,437 2,582 2,676 2,892 4.2% 8.1%
Trading & Serv. 2,031 2,031 2,497 2,094 2,487 2,997 8.1% 20.5%
EBITDA1 3,436 3,547 3,761 4,143 4,126 4,348 4.8% 5.4%
Distribution 1,914 2,115 2,180 2,144 1,845 1,881 -0.3% 2.0%
Generation 1,674 1,378 1,343 1,893 2,103 2,263 6.2% 7.6%
Trading & Serv. 289 74 263 173 241 271 -1.3% 12.5%
NET INCOME2 1,207 949 886 875 879 762 -8.8% -13.3%
Distribution 958 853 948 626 407 225 -25.2% -44.7%
Generation 361 261 -48 226 364 449 4.5% 23.4%
Trading & Serv. 130 52 168 140 166 163 4.7% -1.7%
Key Financial Figures | R$ million
2012 2013 2014 2015 2016 LTM2Q17
CAGR 2012
–LTM2Q17
LTM2Q17
vs. 2016
TOTAL 56.7 58.5 60.0 57.6 57.0 61.8 1.7% 8.4%
Captive 40.7 41.1 43.2 41.7 41.3 43.7 1.4% 5.9%
TUSD 16.0 17.3 16.8 15.8 15.7 18.0 2.4% 14.8%
Energy Sales - Distribution | TWh
CPFL Energia | Operational and Financial figures

15. 15
Indebtedness | Financial Covenant Management
Adjusted EBITDA1,2
R$ million
Nominal
Real
 Leverage1 l R$ billion
 Gross debt cost3,4 l LTM  Gross Debt Breakdown by
Indexer | 2Q171,4
Adjusted Net Debt1
/Adjusted EBITDA2
CDI
Prefixed
TJLP
1) Financial covenants criteria; 2) LTM recurring EBITDA; 3) Adjusted by the proportional consolidation since 2012; 4) Financial debt (-) hedge
Inflation
2013 2014 2015 2016 1Q17 2Q17
12.2 13.0 12.2
13.2 13.8 13.6
3,399 3,736 3,584 4,177 4,192 4,151
3.59 3.49
3.41
3.21
3.30 3.28
1.8%
3.3% 4.0%
2.4%
6.9% 7.4% 7.4%
7.8%
9.4%
10.6%
13.3% 13.6%
12.3%
10.6%
2012
2013
2014
2015
2016
1Q17
2Q17
74%
5%
19%
2%

16. 16
Debt Profile | June 30, 2017
1) Considers Debt Principal, including hedge; 2) Financial covenants criteria; 3) Short-term (Apr-17 – Mar-18) = R$ 3,441 million.
 Debt amortization schedule1,2 l Jun-17 | R$ million
Cash Coverage:
1.10x Short term
amortization (12M)
Average tenor: 2.70 years
Short term (12M): 22% of total
4,565 Short-term3
Long-term
Cash 2017 2017 July-Dec 2018 2019 2020 2021 2021+
3,038
4,251
826
1,527
5,473
2,859
1,334
2,414

17. Annex
17

18. Energy sector in Brazil: business segments
Consumers
1) Source: ANEEL – Mar-17; 2) Source: ONS ; 3) Source: Ministry of Mines and Energy (MME) – Dec-16; 4) Source: EPE and CCEE; 5) Dec-16.
Free Market
Captive Market
80.0 million Consumers3
3,229 Consumers5
118 TWh of billed energy4
80.0 million Consumers3
346 TWh of billed energy4
Transmission
• 104 Companies2
• 133,330 km of
transmission lines3
• Eletrobrás: ~47%
of total assets
Distribution
• 60 Companies
• 461 TWh of billed
energy4
• Top 5: ~46% of
the market
Competitive Power Supply
Generation
• 153.6 GW of
installed capacity1
• 81% Renewable
energy1
• Eletrobrás: ~31%
of total assets
18

19. 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
19
Wind
 Potential: 350GW3
 Installed capacity: 3.8GW
3%
SHPP
 Potential: 17.5GW
 Installed capacity: 5.8GW
33%
Biomass  Potential: 17.2GW
 Installed capacity: 12.9GW
75%
Potential Realized
Potential to be Explored in Brazil
Evolution of Installed Capacity (GW) 2014-20241

20. 20
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:

21. 21
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

22. 22
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

23. Sustainability at CPFL: Incorporation of strategic guidelines
23
Energy is essential for
the welfare of people
and the development
of society.
We believe that
producing and using
energy in a
sustainable manner
is vital for the future of
humanity.
Vision
To provide
sustainable energy
solutions with
competitiveness and
excellence, acting in a
manner that is
integrated with 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 electricity
sector which, through
innovative strategies
and talented
professionals, offers
sustainable energy
solutions.
Positioning
CPFL Energia built its Sustainability Platform in 2013 in order to define the issues material to its growth
strategy and the development of goals and indicators related to each of these issues at each business unit.
The Platform consolidation process covered the company as a whole, meaning that sustainability is not just
an element of our principles and values but included in strategic planning.
Sustainability Platform

24. Actions
Raising awareness
about the strategic
relevance of the
Sustainability
Platform
Advocacy and
strengthening
commitments on
Climate Change
Results - 2017
Integrated platform
based on the
strategic plan, with 6
themes, 17 leverages,
102 indicators and
short and medium-
term goals
Development of
projects directed to the
Brazil's Nationally
Determined
Contribution (NDC),
such as carbon
pricing, financing
and climate risks
Recognition
Welfare
Until 1999
Social Responsibility
2000 to 2006
Corporate Sustainability
Added to business from 2007
Level of
incorporation
of the theme
Sustainability
Increasingly more comprehensive concept of responsibility
CPFL Energia | Sustainability
• Component of ISE since its 1st
edition, in 2005
• 34 companies of 15 industries
- Market cap of R$ 1.3 trillion
• Component of DJSI Emerging Markets
for the 5th consecutive year
• 95 companies achieved the Dow Jones
requirements (13 Brazilian, of which 2
are in the power industry)
• Component of MSCI for the 2nd
consecutive year
• Formed by companies with the highest
ESG1 standards in their industries
• Transparent reporting of greenhouse gas
emissions since 2006
• Component of ICO2 since 2016
• 31 shares of 29 companies
- Market cap of R$ 1.4 trillion
24 1) Environmental, Social and Governance .