CPFL discusses energy in the city of the future

3Strengthening relations with APIMEC

4Acquisition expands installed capacity of CPFL Renováveis

2Residential consumption returns to pre-rationing level

The year 2013 is being quite challenging for the electric power sector. Provisional Measure #579, announced in the end of last year, sparked widespread debate on the terms and conditions for extension of the generation and transmission concessions expiring between 2015 and 2017. Later converted into Law 12,783, the new legislation promoted an average reduction of 20% in the final consumer’s tariffs, as consequence of the extraordinary tariff review applied in January. It is worth noting that this extraordinary review did not affect the remuneration of energy distribution companies.

On the other hand, with the scarce summer rainfall, the reservoirs of hydroelectric power plants reached critical levels at the beginning

of the year. Brazil’s National Electricity System Operator (ONS) then decided to dispatch all the thermal plants for energy safety reasons in order to remove any supply issue. The decision spared the reservoirs, whose level reached 61% in May, sufficient to face the dry period. The operation of these plants, however, imposed an additional cost absorbed initially by the distributors, impacting their cash flow level. After some discussions with the government, the Decree 7,945 determined a neutralization of this effect by the injection of funds from the Energy Development Account (CDE) in the distribution companies. Until March, CPFL Energia had received R$ 698 million from the CDE. Additionally, CPFL Energia, through its prefunding strategy adopted since 2011, ended

the 1H13 with a very robust cash flow position of R$ 2.8 billion, enough to cover 1.7 times the short-term amortizations.

Therefore, I believe that, despite the challenges imposed by this scenario, opportunities emerge in this volatile environment, and CPFL Energia is going ahead with its growth strategy by seeking to expand its business in the generation, distribution, commercialization and services segments. Our capital and financial discipline, combined with our focus on operational efficiency and on creating value, certainly enables us to keep our prominent position and leadership in the coming years.

Wilson Ferreira Jr.CEO of CPFL Energia

Message from the CEO

In line with its strategy of perpetuating its business based on an agenda of innovation and efficiency, CPFL Energia launched on April 16 a cycle of workshops entitled “Energy in the city of the future” to discuss the trends and changes that the electricity sector and the urban regions will undergo over the next few decades. Ten such meetings will be held by July 2014. By bringing together a broad range of opinions from academics, executives and representatives from the government, the cycle of discussions will help the company to be even better prepared to face the changes that will occur in the coming years.

The series of workshops are part of a Research

and Development (R&D) project of Brazil’s National Electricity Regulatory Agency (Aneel) and are held in partnership with the consulting firm Roland Berger and Gesel (Electricity Sector Studies Group) of the Institute of Economics of the Federal University of Rio de Janeiro. The first workshop, held in Campinas, dwelt on “New Standards of Consumption – consumer behavior in 2030 and its impacts on the electricity sector”, addressing issues such as energy efficiency, social inclusion and new standards of consumption. The upcoming workshops will discuss issues such as “Outlook for Brazil’s Energy Matrix”, “Electric Mobility”, “Intelligent Distribution”, “Operational Trends in the Electric System” and “Low Carbon Economy”.

Second workshop, held in July

INVESTOR RELATIONS | 47 | YEAR 9 | APRIL - JUNE 2013

CPFL InvestorIn this edition

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Residential consumption returns to pre-rationing level

Analyst opinion:

At the end of June 2013, CPFL Energia stock

was covered by nine financial institutions, of which 89% gave

it a buy or hold recommendation.

The graph shows the performance of CPFL Energia’s shares in the 12-month period ended in June 2013 at the São Paulo stock exchange BM&FBOVESPA (CPFE3) and the New York Stock Exchange – NYSE (CPL), compared to the main benchmark indexes of both exchanges:

The first quarter of 2013 was marked by an important result. After 12 years, average consumption per residential consumer returned to the level before the electricity rationing in force between June 2001 and February 2002. This was only possible thanks to the positive developments in Brazil’s macroeconomic scenario during the course of this period. Thus, despite the technological advances and higher energy efficiency of equipment, per capita residential consumption increased. According to estimates by the Energy Research Company (EPE), per capita consumption should continue this growth trajectory, increasing by 23% between 2012 and 2021.

Between January and March 2013, sales in the concession area increased by 4% in comparison with the same period in 2012, with the residential and commercial segments registering significant growth, of 8.3% and 6.3%, respectively. In the commercialization segment, the company consolidated its leadership position, winning 31 new clients to expand its portfolio to 262 companies across Brazil.

At the same time as it registered market growth, CPFL Energia

remained focused on initiatives to increase operating efficiency in order to offer better services to its clients and further add value for all its shareholders. In the first quarter, we continued to invest heavily: capex totaled R$ 532 million. We also reduced costs, which resulted in savings of R$ 10 million in real terms compared to the same quarter in 2012.

The combination of a robust market, heavy investments and operational improvements helped CPFL Energia report excellent results between January and March this year: recurring net revenue, adjusted for the proportional consolidation of the generation assets, regulatory assets and liabilities, and the exclusion of non-recurring items, reached R$ 3.6 billion, an increase of 18.5% over the same period last year. Recurring EBITDA reached R$ 1.1 billion, up 6.8%. Recurring net income totaled R$ 410 million, an increase of 2.8% in relation to the first quarter of 2012.

The healthy results have been shared with all our shareholders. On April 30, we paid additional dividends of R$ 456 million relating to the second half of 2012, equivalent to R$0.473778718 per share.

Capital Markets

Source: Economática Variations adjusted by dividends

CPL DJBr20 DJIA

Share Performance - NYSE – 12 months

-18.2%

01/02/13 21.18 29,300.85 13,412.5506/28/13 18.29 23,963.21 14,909.60Var. -13.7% -18.2% 11.2%

-13.7% 11.2%-13.2%

CPFE3 IEE IBOV01/02/13 21.67 29,278.00 62,550.0006/28/13 20.71 25,407.00 47,457.00Var. -4.4% -13.2% -24.1%

-4.4% -24.1%

Share Performance - Bovespa – 12 months

2

IFRSIFRS + Regulatory Assets & Liabilities - Non-Recurring – Private Pension Fund

EBITDA

1Q12R$ 979

million

1Q12R$ 1,059

million

1Q13R$ 1,055

million

1Q13R$ 1,131

million

+ 7.8% + 6.8%

IFRSIFRS + Regulatory Assets & Liabilities - Non-Recurring – Private Pension Fund

Net Income

1Q12R$ 413

million

1Q12R$ 399

million

1Q13R$ 405

million

1Q13R$ 410

million

-1.8% +2.8%

Net RevenueIFRS

IFRS + Regulatory Assets & Liabilities - Non-Recurring – Private Pension Fund

1Q12R$ 3,123

million

1Q12R$ 3,042

million

1Q13R$ 3,457

million

1Q13R$ 3,604

million

+ 10.7% + 18.5%

Results 1Q13

Other highlights of 1Q13: Capex of R$ 532 million; Payment of R$ 456 million as complementary

dividends for 2012; 8.3% increase in the average daily trading

volume (BM&FBovespa + NYSE), totaling R$ 38.4 million; CPFL Santa Cruz topped the 2012 Aneel

Consumer Satisfaction Index among distributors in the south and southeast regions with up to 400,000 consumers and came first in Aneel’s Service Quality Ranking; CPFL Paulista, CPFL Piratininga and RGE in

Aneel’s were ranked among the top 12 in the country; 1st rank in the Utilities sector at the Sector Le-

ader Award 2013 from Environmental Tracking Global Carbon Rankings.

Transparency is a basic premise in the value creation agenda of CPFL Energia, which has participated in a series of meetings with the financial market in Brazil and abroad to disclose its consistent and value-added performance.

April 163rd Utilities Day, organized by Itaú BBA in São Paulo

April 29APIMEC Rio Meeting, with analysts and investors from Rio de Janeiro

May 15 and 168th Annual Latam CEO Conference, organized by Itaú BBA in New York

May 13 and 14Non-deal road show organized by Credit Suisse in Toronto and Montreal

June 4HSBC Utilities CEO Roundtable in São Paulo

June 4APIMEC Sul Meeting, with analysts and investors from Porto Alegre, RS

June 10 and 11Non-deal road show, organized by Credit Suisse in Edinburgh and London

June 11 and 122013 CalGEMS One-on-One Conference, organized by Merrill Lynch in California

June 12 and 13Bradesco’s 5th Annual London Conference in London

Strengthening relations with APIMEC

Government regulates injection of funds from CDE

3

On April 29, CPFL Energia participated in the meeting held by the Association of Capital Market Analysts and Investment Professionals (APIMEC) in Rio de Janeiro. At the meeting, whose 66 participants included investors, analysts, consultants, journalists and industry executives, the Company presented its results

for 2012 and the challenges faced by it, besides making a brief presentation on its growth strategy. On June 4, the Investor Relations team attended the APIMEC meeting in Porto Alegre, in which 57 people participated. At the meeting, the company presented its results for the first quarter of 2013.

Events

Due to the scarce rainfall in summer and the consequent drop in the level of the reservoirs of hydroelectric plants to the lowest levels in more than a decade, the National Electricity System Operator (ONS) has in recent months ordered the dispatch of a large portion of the installed thermal power capacity in Brazil. This cost was initially absorbed by the energy distribution companies with the expectation of passing it on to the tariffs at the time of the annual tariff revision by the concessionaires. However, the high operating cost of the thermal plants, whose power generation cost is higher than that of hydroelectric plants, as well as the increase in energy prices in the spot market (PLD), reduced the liquidity of a few distribution companies, demanding urgent measures to restore their economic and financial balance.

The solution came in the form of Decree 7,945/13, which determined the injection of funds in the distribution companies through the Energy Development Account (CDE), thereby neutralizing the effects of heavier thermal dispatch and higher prices and, consequently, minimizing the reduction in the liquidity of companies in the sector.

In the first quarter, over R$4.2 billion was injected by the CDE in the distribution companies to offset this effect, of which R$ 698 million went to the distribution companies of the CPFL Energia Group.

Eduardo Takeiti, CPFL Energia IR Officer, and Carlos Antônio Magalhães de Almeida, CEO of

Apimec Rio

4

In line with its strategy of creating value for all its shareholders, CPFL Renováveis announced in June that it signed a contract for the full acquisition of Rosa dos Ventos Geração e Comercialização de Energia, which holds the authorization to explore the Canoa Quebrada (10.5 MW) and Lagoa do Mato (3.2 MW) wind farms in the state of Ceará, for R$ 99.7 million. Both are in full commercial operation, with supply contracts signed with Eletrobrás through the Alternative Energy

Source Incentive Program (Proinfa). CPFL Renováveis will pay R$ 62 million to Martifer Renováveis Geração de Energia, which owned Rosa dos Ventos, besides absorbing its debt of R$ 37.7 million. Once the acquisition is confirmed, CPFL Renováveis will expand its portfolio of projects in operation by 13.7 MW, with its installed capacity reaching 1,166.9 MW.

CPFL Brasil Wins Exame Magazine’s Best and Largest Companies Awards

CPFL Brasil was the winner of Exame Magazine’s Best and Largest Companies Awards, from Abril Group, in the Energy sector. The company was also awarded in the 2010 and 2011 editions. In 2013, one thousand largest companies in Brazil competed, and the Award acknowledged the largest investors and the best results for each sector in the national economy. Wilson Ferreira Jr., CEO of CPFL Energia, and Marco Antônio Oliveira de Siqueira, CEO of CPFL Brasil, received the award during the

ceremony held in the night of July 1st, at Sala São Paulo, in the city of São Paulo.

In 2012, CPFL Brasil adopted a new sales strategy, which strengthened its commercial structure and led to an expressive growth in energy sales to final consumers, maintaining CPFL Brasil as a leader in the commercialization market. The company expanded its operations to regional offices – Headquarters in Campinas and offices in Caxias do Sul-RS, Rio de Janeiro-RJ e Recife-PE.

Each office has its own staff prepared to negotiate and sell energy to free and special consumers, conventional or incentivized sources, in short and long term operations. Nowadays, CPFL Brasil is the largest company in Brazilian commercialization sector with a sales’ volume of 1,775 MW average (16 thousand GWh per year) in 2012 and a 10% market share in total energy sales. CPFL Brasil’s 21% sales growth for final consumers was higher than the average in free market, of 6%, observed in 2012.

Acquisition expands installed capacity of CPFL Renováveis

Marco Antônio Oliveira de Siqueira, CEO of

CPFL Brasil, and Wilson Ferreira Jr, CEO of CPFL

Energia, receiving Exame Magazine’s Best and

Largest Companies Awards

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 – Chief Financial and Investor Relations Officer: Gustavo Estrella, IR Officer: Eduardo Atsushi Takeiti, Corporate Communications and Institutional Relations Officer: Augusto Rodrigues, Communications Manager: Carlos Henrique Matos Ramos (MTb 19.163). Content: Rockmann Press. Editing: Cárita Abdal. Design: Produção Coletiva - website: Investor Relations: www.cpfl.com.br/ir - e-mail:ri@cpfl.com.br.