INVESTOR RELATIONS 44 | YEAR 8 | JUNE/AUGUST 2012

CPFL Investor

Net revenues reach R$ 234 M in 2Q12

In This Edition

3CPFL Piratininga tariff review

4100 years of innovations

2CPFL participates in APIMEC BH

CPFL Renováveis completed its first year of operation on August 24. As was previously mentioned in this space, it is a company that is focused on energy generation from alternative sources, structured around a merger of assets belonging to CPFL Energia with those of Ersa Renováveis.

CPFL Renováveis was born as the leader of its activity sector, in line with the planning guidelines for

expanding the supply of electric power in Brazil. In its first year, it already has achieved a portfolio totaling 1,133 MW in projects in operation, as well as 602 MW under construction and 3,092 MW in projects in the development phase, totaling 4,827 MW.

Besides prospecting and monitoring Small Hydroelectric Power Plant (SHPP) projects, wind farms and biomass cogeneration plants, CPFL

Renováveis seeks innovation opportunities based on technological developments in solar, waste and biogas energy. This is accompanied by strong technical and financial discipline, permitting the creation of value for our shareholders.

Wilson Ferreira Jr.CEO CPFL Energia

The President’s Word

Wilson Ferreira Junior, CEO of CPFL Energia, presented the earnings results for the second quarter of 2012 in an August 7 webcast. According to IFRS standard (accounting criteria), Net Income reached R$ 234 million. EBITDA in 2Q12 was 14.1% higher than 2Q11, reaching R$ 930 million. Net Revenue rose 16.0%,reaching R$ 3.533 billion in 2Q12.

The 2Q12 highlight was increase of 5.3% in energy sales within the concession area and of 5.0% in sales to the captive market. Ferreira Jr. also noted the 6.2% growth in energy volume in GWh consumed by free customers in the distributors’ operational areas, billed through

the Distribution System Usage Tariff, contributing to achieve the energy sold volume of 14,116 GWh during the quarter in the concession area of all CPFL discos.

INVESTMENTSIn 2Q12, R$ 715 million

were invested in the business maintenance and expansion. Adding the value invested from 1Q12, the total Capex was R$ 1.3 billion, reflected in the expansion and modernisation of electric distribution network, maintenance of the generation plants and and the development and construction of several other greenfield projects by CPFL Renováveis.

Increase of 5.3% in energy sales within the concession area and of 5.0% in sales to the captive market;

Commercial Startup of Bio Ipê and Bio Pedra TPPs, with 95 MW of installed capacity (May/12);

Conclusion of the acquisition of Bons Ventos Wind Farms (June/12);

Distribution of interim dividends, in the amount of R$ 640 million, related to 1H12. Dividend yield of 6.1% for the last 12 months;

The award of a credit score of AA+ (bra) by Fitch Ratings for the debentures of the CPFL Paulista, CPFL Piratininga and RGE subsidiaries and Ba2 (global scale) and Aa3.br (national scale) by Moody’s for CPFL Renováveis;

Increase of 40.3% in the average daily trading volume of CPFL Energia’s shares on BM&FBOVESPA and on NYSE, to R$ 49.8 million in 2Q12 from R$ 35.5 million in 2Q11 going from R$ 35.3 million in 2Q11 to R$ 49.8 million in 2Q12;

In the last 12 months, CPFL Energia’s shares on the BM&FBOVESPA appreciated 21.8% , outperforming the Ibovespa (-2.9%) and the IEE (17.8%) indexes.

2Q12 HIGHLIGHTS

Net RevenuesIFRS

IFRS

IFRS

IFRS + Regulatory Assets and Liabilities – Non-Recurring

IFRS + Regulatory Assets and Liabilities – Non-Recurring

IFRS + Regulatory Assets and Liabilities – Non-Recurring

2Q11R$ 3,045

million

2Q11R$ 2,986

million

2Q12R$ 3,533

million

2Q12R$ 3,441

million

+ 16.0% + 15.2%

EBITDA

2Q11R$ 815

million

2Q11R$ 890

million

2Q12R$ 930

million

2Q12R$ 1,062

million

+ 14.1% + 19.3%

Net Income

2Q11R$ 294

million

2Q11R$ 344

million

2Q12R$ 234

million

2Q12R$ 344

million

-20.6% 0.0%

Wilson Ferreira Jr.: “Energy sales rose 5.3%”

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Group prepares 2013-2017 strategic plan

Analysts’ Recommendations23 financial institutions were providing coverage of CPFL Energia’s shares at

the end of July 2012, with 52% Buy or a Hold recommendation.

You can see the performance of CPFL Energia’s shares for the 12 months ending July 2012 in the chart below, both on BM&FBovespa (CPFE3) as well as NYSE (CPL), compared withthe main benchmark indexes for both exchanges.

CONFERENCES

LONDONCPFL Energia participated in the 4th Annual Brazil Energy, Power & Basic Materials Conference organized by Bradesco and held in London on June 13 and 14. Eduardo Takeiti, Investor Relations Officer, represented CPFL Energia at the conference.

SÃO PAULOThe Investor Relations Officer also was a participant in two other meetings held between June and July in São Paulo. On June 28, he attended Citi’s 5th annual Brazil Equity Conference and on July 3 EduardoTakeiti represented CPFL Energia at HSBC’s Brazil Utilities Day.

Capital Market - Our Market Performance

Source: Economática Variations adjusted per dividends

CPL DJBr20 DJIA

Share Performance - NYSE -12 months

-20.5%

7/29/11 26.28 34,338 12,1437/31/12 22.49 27,298 13,009Var. -14.4% -20.5% 7.1%

-14.4% 7.1%17.9%

CPFE3 IEE IBOV7/29/11 20.05 29,463 58,8237/31/12 22.99 34,741 56,097Var. 14.6% 17.9% -4.6%

14.6% -4.6%

Share Performance - Bovespa - 12 months

2

Lectures about the domestic and worldwide macroeconomic scenario, and contextualization of the energy market and regulatory environment have been part of the routine of many professionals since June. The lecture cycle is part of the CPFL Energia Strategic Plan for the 2013-2017 period. The document will be presented to the Board of Directors in September.

Over the course of the June, specialists

debated the key issues for CPFL Energia’s future. Next, between July and August, presentations were made containing reflections about current business and growth possibilities.

The plan for the next four years is based on Operational Excellence with Innovation in Processes and Strategic Growth, supported by the Transformation Program.

CPFL Energia participated in the event run by the Association of Capital Market Analysts and Investment Professionals (Apimec) in Belo Horizonte on August 16. During the meeting, Eduardo Takeiti, Investor Relations Officer, made a presentation to the 60 participants, emphasizing that “it is necessary to demystify the issue that the return on investment realized in the generation segment is higher than

that achieved in the distribution segment currently.”Through operational excellence, financial discipline and

synergy gains on the part of the distribution companies, it is possible to operate within the regulatory limits and, at the same time, create value for shareholders. He also discussed about solar power generation investments, that while still using expensive technology already is being exploited by companies in the industry, including CPFL Energia.

Takeiti: “It is possible to respect regulatory limits and, at the same time, create value”

Document to be delivered to the Board of Directors in September

CPFL participates in Apimec BH and remains focused on small investors

Capital Market - Our Market Performance

3

CPFL Piratininga undergoes 3rd tariff review cycle

Four cost reduction fronts

In order to anticipate the impacts of the tariff review on its electric distribution companies, CPFL Energia launched four cost reductions initiatives

The Incentivized Retirement Program (PAI) — a special

retirement plan that should reduce payroll costs by R$ 25 million per year already has been accepted by 450

employees.

The Implementation of the Corporate Services Center

— focused on the key activities and specialization of functions in our business areas, offering economies

of scale in the services provided by the center.

Zero Base Budget (ZBB) — review of the budget structure that seeks to

generate savings of R$ 50 million per year through

2015.

The Tauron Program – calls for the installation of smart grid technologies in distribution network. The estimated savings should be some R$ 100 million

per year.

1 2 3 4

The tariff for CPFL Piratininga, a company that supplies electricity to 1.5 million clients in the southern part of the state of São Paulo, was subjected for periodic review by the Aneel, as part of the 3rd Tariff Review Cycle. The preliminary proposal released by Aneel is an average reduction to consumers of 8.18% in their electric bills, although the tariff repositioning — which is essentially an economic-financial adjustment of the concession — will be less than this and will reduce the CPFL Piratininga Revenues by approximately 3.4%. “Aneel’s position generally is a reflection of consumer perception, in this case a negative 8.18%. However, the tariff repositioning —that is, the correct application of all of the tariff revision elements — is -3.4%, which means the repositioning in terms of economic values,” explained the CEO´sCPFL Energia, Wilson Ferreira Jr., during the earnings 2Q results webcast

The 3rd tariff review cycle process has began in 2010 with discussions between ANEEL and sector agents regarding

the new methodology to be applied to all companies. The decision for a new tariff for CPFL Piratininga began to be discussed last June, when Aneel sent its first proposal to the company for evaluation. On August 16, a public hearing was held in Sorocaba when the ANEEL received the company’s suggestions as well as those of society in general regarding the distribution company’s tariff revision. After the conclusion of the public hearing processes, a new proposal will be sent to CPFL Piratininga in September and new meetings will be held with the Aneel Board of Directors. The release and adoption of the new tariffs should occur at the end of October.

The new tariff was expected to be applied in October 2011, but was postponed due to the prolonging of the discussions regarding new methodology. Therefore, next October not only will the new tariff be applied but also the annual tariff readjustment, which basically involves the monetary correction of the tariff components.

New value changes the tariff charge for 1.5 million clients of the distribution company

CPFL participates in Apimec BH and remains focused on small investors

44

CPFL INVESTOR is a publication of the Investor Relations Department of CPFL Energia, published by the Corporate Communication and Institutional Affairs Department, Rodovia Campinas Mogi Mirim, Km 2.5 - Jd. Santana - Campinas/SP, Zipcode 13.088-900. Phone: (19) 3756-8197 Fax: (19) 3756-8040 – Vice President for Finance and Investor Relations Officer: Lorival Nogueira Luz Jr., IR Director: Eduardo Atsushi TakeitI, Corporate Communications and Institutional Relations Officer: Augusto Rodrigues, Communications Manager: Carlos Henrique Matos Ramos (MTb 19.163). Content, Editing and Design: Produção Coletiva - website: Investor Relations: www.cpfl.com.br/ir - e-mail:ri@cpfl.com.br.

Innovations of a century-old company

Five thousand solar panels for transforming the heat of the sun into electric energy will be installed in the Tanquinho Substation in Campinas in the month of November, when CPFL Energia will complete one century of existence. The first power plant for generating clean and sustainable energy from the solar matrix is just one of 30 R&D projects (Research and Development) in the current portfolio, wich receives investments of R$ 1.6 billion in this commemorative year. The

volume of investments in new projects shows that CPFL Energia incorporated the innovation into its activities and has reached its 100th birthday with plenty of vigor of its own to spare. Demonstrating a century-old level of wisdom, the company has diversified into renewable energy sources and has been continuously improving its distribution services, free market energy sales and services for the sector.

The company’s roots in innovation, present ever since its

creation, represents the key to the solidity of the group, which currently controls eight distribution companies, eight hydroelectric power plants (HPPs), two thermoelectric power plants, 44 small hydroelectric power plants (SPPHs), six biomass-fueled power plants and 15 wind farms, totaling installed capacity proportional to the ownership interests of each project, of 2,948 MW.

The direction being taken by the Brazilian energy industry and its history over the past 100 years motivated the discussions during CPFL Cultura’s Invention of the Contemporary Program during the month of August. Under the curatorship of Nivalde J. de Castro, professor at Institute of Economy of UFRJ and coordinator of its Electric Sector Studies Group (GESEL), the program

expanded the range of issues involving the electric sector from the point of view of four central elements of its formation and consolidation, planning, operation, regulation and financing. The videos with the presentations of the module containing reflections about the electric sector produced by CPFL Cultura are available completeness at the following website: www.cpflcultura.com.br

Reflecting on the electric sector

1912

1986

1927

1997

1964

2004

1975

2012

Four small private companies that owned electric power stations in the São Paulo hinterlands merge, originating CPFL.

Becomes the first Brazilian energy company to sell contracts for electric power obtained from biomass.

Multinational company American & Foreign Power assumes ownership control.

Returns to private sector control through VBC Energia.

Eletrobrás takes over ownership of the company.

Conducts its IPO simultaneously in the Brazilian and American markets.

State-owned CESP achieves shareholder control.

Completes 100 years of activities, now Brazil’s largest privately owned electricity sector company.

Nivalde J. de Castro discusses the sector’s planning, operation,

regulation and financing

CPFL ENERGIA’S regressive countdown clock to its 100th

anniversary

Distributors win Abradee Prize 2012Three Distribution Companies of CPFL Energia

were prize winners in July, awarded by the Brazilian Electric Energy Distributors Association (Abradee). RGE won in two categories, “Best Distributor in the South Region” and “Management Quality,” together with CPFL Paulista. For its part, CPFL Leste Paulista was a standout in the “Social Responsibility” category .

Three distribution companies recognized for best practices