CPFL Energia Corporate Presentation - November 2016

March, 2013
Corporate
Presentation
November 2016
1

22
1) On November 17, 2016; 2) Considering proportional consolidation of generation assets (-) Non-recurring effects;
3) Considering CPFL’s stake on each generation project; considering 87 wind turbines of Campo dos Ventos and São Benedito Wind Complexes.
Company Overview
 Largest integrated private player in the Brazilian electricity sector
 Market Cap of R$ 24.3 billion1, listed on BM&FBOVESPA
– Novo Mercado and on NYSE (ADR Level III)
 In LTM3Q16, EBITDA of R$ 3.7 billion2 and Net
Income of R$ 1.0 billion2
 Presence concentrated in the most developed regions of
Brazil
 Leadership in distribution through 9 subsidiaries and a 14.3%
market share
 3rd largest private generator with 3,234 MW3 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

33
1) Bounded shares, according to the Shareholders Agreement; 2) 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 30-year leasing contract, maturing in 2028; 3) Adjusted by non-recurring items; does not consider the holding company; 4) Commercialization in the free market
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%2
53.34%
GENERATION
100%
TRADING
100%
Trading4
212
CPFL Energia – Consolidated3| 3,739
LTM3Q16 Adj. EBITDA Breakdown3 | R$ million Concession’s expiration
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
19 SHPPs
(CPFL
Renováveis)
HPP Castro
Alves
HPP Monte
Claro
HPP 14 de
Julho
2045
CPFL Santa
Cruz
CPFL Jaguari
CPFL Sul
Paulista
CPFL Leste
Paulista
CPFL Mococa
23.0%1
19.3%1
11.0%1
15.1%23.6% 29.4%
Free Float
31.9%
Conventional
Generation
1,337
Distribution
1,68244%
35%
6%
15%Renewable
Generation
551

Corporate Structure | Camargo Corrêa - State Grid Transaction
23.0%1 19.3%1
23.6% 29.4%
Free
Float
31.9%
1) Bounded shares, according to the Shareholders Agreement
15.1%
11.0%1
Conclusion
of
Transaction
Decision to
follow
Previ
09/23/16
Bonaire
09/28/16
Proposal
extension
to Previ
and
Bonaire
R$ 25.00/share
SPA
Signature
State Grid
Proposal
Due
diligence
Current status
Precedent Conditions:
ANEEL
Approval
Proposal to acquire
the totality of the
stake bound to the
controlling block
Acquisition of
Camargo Corrêa’s
stake (around
23.6% of the total
of CPFL Energia)
07/01/16 09/02/16
Term of
30 days09/02/16
Approved
by CADE
on
09/15/16
4 4

Distribution Segment
• 9.1 million customers
• 679 municipalities
• Footprint: most developed regions
• High potential in per capita consumption
• Market size: 56.6 TWh/year
1st
Market share: 14.3%
Industrial
Commercial
Residential
Others
1) Source: EPE.5
29% 39%
17%
16%
5 small
discos
44%
23%
9%
24%
RGE
CPFL Piratininga
3Q16LTM Adj.
EBITDA Breakdown
R$ million
CPFL
Paulista
Tariff review Sales CAGR by Region1 |
3Q11LTM – 3Q16LTM
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
3Q16LTM Sales
Breakdown
GWh

Growth Projects | Synergistic growth with RGE Sul
 Results Consolidation
• Balance sheet as of Oct 31st, 2016
• Income statement as of Nov 1st, 2016
 First step – 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
 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
Expected conclusion of
Integration Plan:
December-17
Completed steps:
Next steps:
Periodic Tariff Review
Date: April-18
6

77
Generation Segment
• 3,240 MW of installed capacity
• 1,592 MWavg of physical guarantee
• Long Term Concessions
• Brazil’s largest Portfolio in Alternative
Energy
• Renewable Sources: 94%
3rd
Market share: 2.2% 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
Total: 3.240 MW
62%
6%
7%
6%
19%
HPP
TPP
SPP
BIO
WIND
Contracting Level | %

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
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 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
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
Current portfolio 2,017
CPFL Renováveis | Track record1
Installed capacity of 2,017 MW
1) Updated until November, 2016 2) Revenue estimated by the terms of the 16th LEN 20139

Commercial
Start-up
2016-2020(e)
112 MW
of installed
capacity
61
average-MW
of assured
energy
1) Full commercial startup until December 2016; 2) Gradual commercial operation from 1H18; 3) Constant Currency (Sep-16).
Campo dos Ventos and São
Benedito Wind Farms
Pedra Cheirosa Wind Farms Boa Vista II SHPP
Commercial Start-up 20161 20182 2020
Installed Capacity 231.0 MW 48.3 MW 26.5 MW
Assured Energy 125.2 average-MW 26.1 average-MW 14.8 average-MW
PPA3 ACL 20 years
18th LEN 2014
R$ 147.24/MWh until 2037
21st LEN 2015
R$ 228.67/MWh
until 2049
Financing
BNDES
(approved)
BNDES
(under analysis)
BNDES
(under analysis)
Growth Projects: Generation | Greenfield projects
Commercial start-up of
92 wind turbines (193.2
MW) until November-16
3 GW pipeline
10

CPFL Energia – Trading & Services
11
 Foundation: 2006
 Offers a wide range of value-added
services:
 engineering projects for transmission and distribution grids
 equipment maintenance and recovery
 self-generation grids
 collection of utilities’ bills through an established
authorized network
 Incorporation: 2008
 Provision of customer
relationship services to
utility companies:
 call center
 face-to-face service
 back office
 credit recovery
 ombudsman
 help desk and sales
, of which 386 special customers (3Q16
vs. 3Q15: 112%)
current ~ 2.3 GWavg
current ~ 12.6 GWavg
• New activities: and
2015
- 197 transmission contracts
- 12 construction sites
2015
- 11.2 million phone calls
- 2.4 million electronic phone calls

CPFL Energia Strategy
• Be a benchmark in sustainability
• Maintain the highest levels of
Corporate Governance
• People management, promoting
workplace safety and respect to
diversity
• 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
• Focus on
technical
services, through
technology and
productivity
• Mitigate risks of
services by hiring
qualified labor
and suppliers
• Maximize value in
the Free Market and
be recognized for its
profitability
• Expand the
presence in retail
through a
commercial front
and customer
energy
management
• Add new products
to energy
Commercialization
• Grow while
creating value
through
acquisitions and
new projects
• Be the leader in
operating
efficiency in the
Renewable Energy
segment
• Operating
Efficiency with
Innovation &
Technology
• Act in both
institutional and
regulatory levels
• Strategic Growth
Distribution Generation Renewable Commercialization Services
12

Dividends: CPFL has presented payout ratio close to 100% since its IPO,
reaching the mark of R$ 11.6 billion distributed4
TSR5: +2.4%
1313
1) Considering proportional consolidation of generation assets (+) Regulatory assets and liabilities (-) Non-recurring effects (-) Construction revenue/cost. Disregard intercompany
transactions. 2) Considering Holding’s EBITDA. 3) Including holding result and amortization of merged goodwill. 4) For 2015, a capital increase through stock dividend was approved in AGM;
5)TSR from Sep-11 to Sep-16 = Dividends +4.5% (+) Stock performance -2.1% = +2.4%.
NET REVENUE1 11,413 13,235 13,681 15,724 18,763 16,796 8.0% -10.5%
Distribution 9,794 10,830 10,716 12,011 15,431 13,320 6.3% -13.7%
Generation 1,351 1,964 2,356 3,164 2,787 2,701 14.9% -3.1%
Trading 1,699 2,031 2,023 2,430 2,093 2,340 6.6% 11.8%
EBITDA2 3,649 4,343 3,908 3,901 3,704 3,739 0.5% 0.9%
Distribution 2,351 2,655 2,211 1,985 1,681 1,682 -6.5% 0.1%
Generation 1,060 1,427 1,643 1,680 1,886 1,887 12.2% 0.0%
Trading 278 287 74 263 173 212 -5.3% 22.5%
NET INCOME3 1,503 1,617 1,304 1,162 1,061 1,041 -7.1% -1.9%
Distribution 1,235 1,356 1,047 867 762 667 -11.6% -12.5%
Generation 721 373 419 309 368 361 -12.9% -1.9%
Trading 164 127 52 168 108 115 -6.9% 5.7%
Key Financial Figures | R$ million
2011 2012 2013 2014 2015 LTM3Q16
CAGR 2011
–LTM3Q16
LTM3Q16
vs. 2015
TOTAL 54.6 56.7 58.5 60.0 57.6 56.0 0.5% -2.7%
Captive 39.9 40.7 41.1 43.2 41.7 40.9 0.5% -2.1%
TUSD 14.7 16.0 17.3 16.8 15.8 15.1 0.6% -4.3%
Energy Sales - Distribution | TWh
CPFL Energia | Operational and Financial figures

Capex(e)1 2016-2020 | R$ Million
1) Constant currency; 2) IFRS – Considers 100% on CPFL Renováveis and Ceran; 3) Pro forma – Considers proportional stakes in the generation projects; 4) Disregard investments
in Special Obligations on Distribution segment (among other items financed by consumers); 5) For 2016, just consider November and December 2016; 6) Conventional + Renewable.
Total:
R$ 11,053 million3 (IFRS)
R$ 10,091 million4 (Pro-forma)
Distribution5:
R$ 7,033 million
Generation7:
R$ 2,092 million (IFRS)
R$ 1,130 million (Pro-forma)
Trading & Services
R$ 541 million
1,427
2,853
2,219
1,969 1,991 2,021
IFRSPro-forma
1,200
2,135 2,027 1,933 1,982 2,014
RGE Sul6:
R$ 1,387 million
14

15
3,399 3,736 3,584 3,577 3,764 3,725
Adjusted EBITDA1,2
R$ Million
Nominal
Real
 Leverage1 l R$ Billion
 Gross Debt Cost3,4 l LTM  Gross Debt Breakdown by
Indexer | 3Q161,4
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
Indebtedness | Financial Covenant Management

16
Cash Short-Term 2017 2018 2019 2020 2020+
5,246
2,363
368
4,954
4,087
1,711
2,848
1) Considers Debt Principal, including hedge; 2) Financial covenant criteria; 3) Amortization from Oct-2016 to Sep-2017
3
Cash Coverage:
2,22x Short term
amortization (12M)
Average Tenor: 3.23 years
Short term (12M): 14.5% of total
 Debt Amortization Schedule1,2 l Sep-16 | R$ Million
Debt Profile | September, 30 2016

Energy sector in Brazil: business segments
Consumers
1) Source: ANEEL – November, 2016; 2) Source: EPE and CCEE; 3) Source: ONS 4) Source: Ministry of Mines and Energy (MME) – September-16; 5) September-16
Free Market
Captive Market
80.0 million Consumers4
3,229 Consumers5
118 TWh of billed energy2
80.0 million Consumers4
346 TWh of billed energy2
Transmission
• 104 Companies³
• 133,330 km of
transmission lines4
• Eletrobrás: ~53%
of total assets
Distribution
• 63 Companies
• 461 TWh of billed
energy2
• Top 5: ~46% of
the market
Competitive Power Supply
Generation
• 149 GW of installed
capacity1
• 82.5% Renewable
energy1
• Eletrobrás: ~31.4%
of total assets
18

Brazilian electricity matrix
1) Source: 10-year Energy Plan 2024; 2) Others: considers coal, oil, diesel and process gas; 3) Abeeólica.
Brazil’s electricity matrix is predominantly renewable, with hydro installed capacity totaling 68% 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 12% and 3% respectively of total installed
capacity in 2024.
Brazilian Electricity Matrix
133 GW 206 GW
2014 2024
19
Wind
 Potential: 350GW3
 Installed capacity: 3.8GW
1%
SHPP
 Potential: 17.5GW
29%
Biomass  Potential: 17.2GW
54%
Potential Realized
Potential to be Explored in Brazil
Evolution of Installed Capacity (GW) 2014-20241

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
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
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

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
Establishing formal
sustainability
targets for internal
leaderships
Results - 2015
Integrated platform
based on the
strategic plan, with 6
themes, 17 leverages,
91 indicators and short
and medium-term
goals
Sustainability goals
published on CPFL's
website
Officers and
managers have
sustainability goals
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 first
edition, in 2005
• 35 companies of 16 industries
- Market cap of R$ 967 billion
• Component of DJSI Emerging Markets
for the fourth consecutive year
• 86 companies achieved the Dow Jones
requirements (17 Brazilian, of which 3
are in the power industry)
• Component of MSCI for the second
consecutive year
• Formed by companies with the highest
ESG standards in their industries
• Transparent reporting of greenhouse gas
emissions since 2006
• Best company in Management of Water
Resources in Latin America - 2015
• Component of ICO2 since 2016
• 31 shares of 29 companies
- Market cap of R$ 1.4 trillion

CPFL Energia Corporate Presentation - November 2016

CPFL Energia Corporate Presentation - November 2016

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