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Corporate Profile
CPFL Energia is a holding company that, through its sub-                 After the IPO in September, 2004, CPFL Energia became the first
sidiaries, distributes, commercializes and generates energy              Brazilian private company to simultaneously trade in São Paulo
in Brazil, standing as the largest private group in Brazilian            Stock Exchange (Bovespa Novo Mercado) and in the NYSE as Level
electric sector. Its subsidiaries are widely recognized for its          III ADRs, both requiring the highest levels of Corporate Governace
excellence and sustainability of its business practices, and             practices. The new partnership with capital markets reinforced abili-
regarded as references in management, quality and operating              ty of CPFL Energia to grow and expand its business in a consistent
efficiency.                                                              and sustainable way.




Corporate Structure
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Dividends                                                        Declared Dividend (R$ millions) vs. CPFE3 Price (R$)
                                                                      Declared Dividend1                       Average Price                        End of Period Price
CPFL Energia announced intermediary divi-
                                                                                                                                                                       38.76
dend based on the first half-year of 2007 in the
                                                                                                                                     30.05            30.00
amount of R$ 842 million, which corresponds to                                                                 28.00
                                                                                                                                                                       31.74
R$ 1.76 per share approximately. This dividend                                                                                                        28.25
                                                                       17.96            18.85                                        26.46
                                                                                                                                                                       842
represent 100% of CPFL net profit, a measure                                                                    23.33                                        722
which surpasses the current dividend policy                                             18.40                                                612
                                                                       16.58                                                       498
which stipulates a payout of not less than 50%                                                                   401

of net income adjusted half-yearly.                                                             140
The 1Q07, annualized half-yearly dividend yield,
calculated as the average share price over the
                                                                                                2S04            1S05               2S05      1S06           2S06       1S07
period (R$ 31.74) is 11.1%. The Shares were                          Annualized
                                                                     Dividend Yield
considered ex-dividend on August 15, 2007, and                       (average price2)
                                                                                                3.7%            9.3%               8.9%      8.5%          10.7%       11.1%
was effected in september 28, 2007.
                                                                 Since the IPO (2H04), CPFL Energia’s dividend yield has already reached 39.3%3
                                                                 1
                                                                  Declared dividend: payment in the next half year | 2Half year daily closing price average | 3IPO’s price per
                                                                 share: R$ 17.22
Fact Sheet 3Q07 | CPFL Energia



      Value Creation Agenda                                                                            Goals           Strategies
                                                                                                                       Operational Efficiency
      CPFL Energia’s success is supported by clearly defined                                           Value           Synergic Growth
      business strategies and by management excellence                                                 Liquidity       Financial Discipline
      criteria directed to the sustained growth of its busi-                                           Security        Sustainability and Social Responsibility
      nesses.                                                                                                          Differentiated Corporate Governance




Market
Total Energy Sales – GWh 1                                                                            Sales by Customer Class 2
                     6.9%
                                    11,211
         10.488                     2,460                                                                                                      30.5% Residential
         2,323
                                    8,751                                                                                                      17.0% Commercial
         8,166
                                                                                                                                               7.7% Rural
                                                             Mercado livre
                                                             Cativo                                                                            11.8% Others
         3Q06                       3Q07                                                                                                       33.1% Industrial

1
    Excluding transactions between group’s companies (consolidation accounting criteria), CCEE and generation sales (except to the free market) | 2Captive Market



Financial Performance
Net Revenue (R$ million)                                                 Ebitda3 (R$ million)                                Net Income4 (R$ million)
                                                                                       20.8%
                            15.8%
                                             2,404                                                                                              29.8%
                  2,076                                                                                  880
                                                                                                                                                             428
                                                                               729
                                                                                                                                       330




                 3Q06                        3Q07                             3Q06                      3Q07                          3Q06                  3Q07

EBITDA – Not excluding non-recurrig effects: R$ 792 million (3Q06) + 11.2% | Sale of stake in Comgás | 4Net Income – Not excluding non-recurrig effects: R$ 447
3

million (3Q06) -4.1% | Sale of stake in Comgás - Favorable decision related to PIS/CONFIS in CPFL Paulista and CPFL Piratininga


Adjusted Net Debt / EBITDA5 (R$ billion)                                                                           Debt Breakdown – September 2007

                                             Net Debt/EBITDA
                                             Adjusted Net Debt                                 5.44
                                                                                4.92
      4.39                                            4.42                                                                                                         4% Dollar
                                                                     4.11
                        3.78           3.70
      2.85x
                     2.25x                                                                     1.67x                                                               28% TJLP
                                      1.74x          1.57x                     1.55x
                                                                     1.37x                                                                                         17% IGP

                                                                                                                                                                   51% CDI
      2003           2004              2005          2006            1Q07      2Q07            3Q07


Last 12 months EBITDA
5
Fact Sheet 3Q07 | CPFL Energia




Corporate Governance                                                                  Sustainability and
                                                                                      Social Responsibility
CPFL Energia adopts differentiated practices of Corporate                             CPFL Energia practices ethical and transparent relations
Governance, based on the principles of transparency, fair-                            with all its stakeholders, acting responsibly and developing
ness, accountability and corporate responsibility.                                    programs that ensure the sustained growth of the businesses.


      Shares are listed on Bovespa’s Novo Mercado and ADS’s
                                                                                      Internal          Program of ethics reflection
      Level III on the New York Stock Exchange
                                                                                                        Respect of diversity
      100% of Common Shares with 100% of Tag Along                                                      Life quality program
                                                                                                        Encouraging volunteerism
      Free Float above of 25%                                                                           Professional development Investment

      Subsidiary Companies’ Bylaws aligned to CPFL Energia
                                                                                      Environmental     Development of CDMs (Clean Development
      Bylaws
                                                                                      Commitment        Mechanisms) and carbon neutralization
      Financial Statements in compliance with US GAAP and BR                                            Urban forestation program
      GAAP standards                                                                                    Environmental Education
                                                                                                        Preservation of aquatic enviromental
      Board of directors and Fiscal Council self-evaluation                                             Support programs for municipal development
                                                                                                        and historical heritage recovery
      Annual Report in consensus with Global Reporting Initia-
      tive-GRI
                                                                                      Business          Continuous improvement in client
      3 Board Advisory Committees to the Board of Directors                                             relationship channels
                                                                                      Chain
                                                                                                        Improve suppliers relationship
      Review of Ethics and Corporate Conduct based on recom-
      mendations in the Sarbanes-Oxley Act.
                                                                                      Private Social    Philanthropic hospitals revitalization
      CPFL complies with section 404 of the Sarbanes-Oxley Act.
                                                                                      Investment        Development of Cultural Center at CPFL
                                                                                                        head office
                                                                                                        Management excellence and practices of
                                                                                                        social responsibility for small and medium
                                                                                                        companies


Shares’ Information1 09/28/2007
                                      CPFE3 (R$)       CPL (US$)               Ownership breakdown
    Shares Price                           33.55           58.23
    Maximum – 52 weeks                     40.44           65.87                                                      72.9% Controlling block
    Minimum – 52 weeks                     31.03           45.78
                                                                                                                      27.1% Free-float
    Market Cap                      R$ 17.1 Billion
                                   US$ 9.3 Billion

    Market Cap                       479,756,730
    Exchange Rate2                   R$/US$ 1.83
1
    Without income adjustments
2
    Dollar Ptax




Investor Relations
CPFL Energia – Rodovia Campinas Mogi-Mirim, Km 2,5 | Cep 13088.900 | Campinas | SP
Phone: 55 19 3756-6083 | Fax.: 55 19 3756-6089 | www.cpfl .com.br/ir | ri@cpfl.com.br

Fact Sheet 3Q07

  • 1.
    ��������������� Corporate Profile CPFL Energiais a holding company that, through its sub- After the IPO in September, 2004, CPFL Energia became the first sidiaries, distributes, commercializes and generates energy Brazilian private company to simultaneously trade in São Paulo in Brazil, standing as the largest private group in Brazilian Stock Exchange (Bovespa Novo Mercado) and in the NYSE as Level electric sector. Its subsidiaries are widely recognized for its III ADRs, both requiring the highest levels of Corporate Governace excellence and sustainability of its business practices, and practices. The new partnership with capital markets reinforced abili- regarded as references in management, quality and operating ty of CPFL Energia to grow and expand its business in a consistent efficiency. and sustainable way. Corporate Structure ���������� ����� ����� ����� ����� � � ��� ���� ������������ ���������� � � ��� � � ��� � � ����� ����������������� � � ����� ���� ��� ������ ������ � ��� ��� � ������������������� ������������� ��������������������������� � ���������� ������������ ������������� ���������� ����� ����������������� � � ����� �����������
  • 2.
    Service Territory � � ������������ ���������� �������������� ��������������������������� ������������� ��������������������� ������������������ ������������������������� � ������������� � �������������������������� � ���������������� � ����������������� ��������������� � ��� ������������ ��� ���������������� � ������������������ � � ����������������� ����������������������� ���������������� � � ����������������������� � � � ���������������� ��������������������� � �������������� �������������� ��������������� ����������� �������������� � �������� ���� Dividends Declared Dividend (R$ millions) vs. CPFE3 Price (R$) Declared Dividend1 Average Price End of Period Price CPFL Energia announced intermediary divi- 38.76 dend based on the first half-year of 2007 in the 30.05 30.00 amount of R$ 842 million, which corresponds to 28.00 31.74 R$ 1.76 per share approximately. This dividend 28.25 17.96 18.85 26.46 842 represent 100% of CPFL net profit, a measure 23.33 722 which surpasses the current dividend policy 18.40 612 16.58 498 which stipulates a payout of not less than 50% 401 of net income adjusted half-yearly. 140 The 1Q07, annualized half-yearly dividend yield, calculated as the average share price over the 2S04 1S05 2S05 1S06 2S06 1S07 period (R$ 31.74) is 11.1%. The Shares were Annualized Dividend Yield considered ex-dividend on August 15, 2007, and (average price2) 3.7% 9.3% 8.9% 8.5% 10.7% 11.1% was effected in september 28, 2007. Since the IPO (2H04), CPFL Energia’s dividend yield has already reached 39.3%3 1 Declared dividend: payment in the next half year | 2Half year daily closing price average | 3IPO’s price per share: R$ 17.22
  • 3.
    Fact Sheet 3Q07| CPFL Energia Value Creation Agenda Goals Strategies Operational Efficiency CPFL Energia’s success is supported by clearly defined Value Synergic Growth business strategies and by management excellence Liquidity Financial Discipline criteria directed to the sustained growth of its busi- Security Sustainability and Social Responsibility nesses. Differentiated Corporate Governance Market Total Energy Sales – GWh 1 Sales by Customer Class 2 6.9% 11,211 10.488 2,460 30.5% Residential 2,323 8,751 17.0% Commercial 8,166 7.7% Rural Mercado livre Cativo 11.8% Others 3Q06 3Q07 33.1% Industrial 1 Excluding transactions between group’s companies (consolidation accounting criteria), CCEE and generation sales (except to the free market) | 2Captive Market Financial Performance Net Revenue (R$ million) Ebitda3 (R$ million) Net Income4 (R$ million) 20.8% 15.8% 2,404 29.8% 2,076 880 428 729 330 3Q06 3Q07 3Q06 3Q07 3Q06 3Q07 EBITDA – Not excluding non-recurrig effects: R$ 792 million (3Q06) + 11.2% | Sale of stake in Comgás | 4Net Income – Not excluding non-recurrig effects: R$ 447 3 million (3Q06) -4.1% | Sale of stake in Comgás - Favorable decision related to PIS/CONFIS in CPFL Paulista and CPFL Piratininga Adjusted Net Debt / EBITDA5 (R$ billion) Debt Breakdown – September 2007 Net Debt/EBITDA Adjusted Net Debt 5.44 4.92 4.39 4.42 4% Dollar 4.11 3.78 3.70 2.85x 2.25x 1.67x 28% TJLP 1.74x 1.57x 1.55x 1.37x 17% IGP 51% CDI 2003 2004 2005 2006 1Q07 2Q07 3Q07 Last 12 months EBITDA 5
  • 4.
    Fact Sheet 3Q07| CPFL Energia Corporate Governance Sustainability and Social Responsibility CPFL Energia adopts differentiated practices of Corporate CPFL Energia practices ethical and transparent relations Governance, based on the principles of transparency, fair- with all its stakeholders, acting responsibly and developing ness, accountability and corporate responsibility. programs that ensure the sustained growth of the businesses. Shares are listed on Bovespa’s Novo Mercado and ADS’s Internal Program of ethics reflection Level III on the New York Stock Exchange Respect of diversity 100% of Common Shares with 100% of Tag Along Life quality program Encouraging volunteerism Free Float above of 25% Professional development Investment Subsidiary Companies’ Bylaws aligned to CPFL Energia Environmental Development of CDMs (Clean Development Bylaws Commitment Mechanisms) and carbon neutralization Financial Statements in compliance with US GAAP and BR Urban forestation program GAAP standards Environmental Education Preservation of aquatic enviromental Board of directors and Fiscal Council self-evaluation Support programs for municipal development and historical heritage recovery Annual Report in consensus with Global Reporting Initia- tive-GRI Business Continuous improvement in client 3 Board Advisory Committees to the Board of Directors relationship channels Chain Improve suppliers relationship Review of Ethics and Corporate Conduct based on recom- mendations in the Sarbanes-Oxley Act. Private Social Philanthropic hospitals revitalization CPFL complies with section 404 of the Sarbanes-Oxley Act. Investment Development of Cultural Center at CPFL head office Management excellence and practices of social responsibility for small and medium companies Shares’ Information1 09/28/2007 CPFE3 (R$) CPL (US$) Ownership breakdown Shares Price 33.55 58.23 Maximum – 52 weeks 40.44 65.87 72.9% Controlling block Minimum – 52 weeks 31.03 45.78 27.1% Free-float Market Cap R$ 17.1 Billion US$ 9.3 Billion Market Cap 479,756,730 Exchange Rate2 R$/US$ 1.83 1 Without income adjustments 2 Dollar Ptax Investor Relations CPFL Energia – Rodovia Campinas Mogi-Mirim, Km 2,5 | Cep 13088.900 | Campinas | SP Phone: 55 19 3756-6083 | Fax.: 55 19 3756-6089 | www.cpfl .com.br/ir | ri@cpfl.com.br