II BTG Pactual Utilities Days

March, 2013September, 2013

II BTG Pactual Utilities Days

Eduardo TakeitiInvestor Relations Officer

2

33 1) Termoparaíba and Termonordeste thermoelectric facilities; 2) CPFL Energia has a 58.8% indirect interest in CPFL Renováveis through CPFL Geração.

Free Float

DIS

TR

IBU

TIO

N 100%

100%

100%

100%

100%

100%

100%

100%

65%

25.01%

48.72%

52.75%

51%

CO

NV

EN

TIO

NA

L G

EN

ER

ATIO

N

100%

100%

99.95%

100%

CO

MPETIT

IVE S

UPPLY 100%

100%

REN

EW

AB

LES

59.93%

Investco

Paulista Lajeado5.94%

SER

VIC

ES 100%

100%

100%

58.8%2

100%

30.0% 15.1% 30.5%24.4%

Nect Serviços100%

1

Corporate structure

HPP Foz do Chapecó

HPP Barra Grande

HPP Castro Alves

HPP Monte Claro

HPP 14 de Julho

HPP Campos Novos

HPP Luis Eduardo

Magalhães

CPFL Piratining

a

HPPSerra da Mesa1

CPFLPaulista

RGE

19 SHPPs (CPFL

Renováveis)

1 TPP (Carioba)

CPFL Santa Cruz

CPFL Jaguari

CPFL Sul Paulista

CPFL Leste Paulista

CPFL Mococa

SHPP Rio do Peixe (I/II)

SHPP Macaco Branco

203620352032202820272015 …

CPFL Energia requested Aneel to renew the expiring

concessions

~3%CPFL

Energia's EBITDA

<1% CPFL

Energia's installed capacity

4

CPFL Energia enjoys long term concessions

1) 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.

26%44%

16%14%

Distribution segment

• 7.3 million customers

• 569 municipalities

• Most developed regions

• High potential in per capita consumption

1º1º

Distribution LeaderMarket share: 13% Sales in the Concession Area (TWh)1

Industrial

Commercial

Residential

Others

Sales Breakdown | LTM 2Q13

Sales CAGR - by Region2 |2008 - 2012

3.6 3.7

2.9 3.6

4.1 3.7

1) Excluding sales at CCEE; 2) Source: EPE; 3) Including regulatory asset & liabilities and excl. non-recurring items.5

2008 2009 2010 2011 2012 LT-M2Q12

LT-M2Q13

37.3 37.8 39.3 39.9 40.7 20.4 20.5

11.7 11.013.1 14.7 16.0 7.7 8.5

Captive TUSD

52.449.0 48.8

56.7 55.8

+3.3%

57.6

CAGR 2008-123.7%

54.6

Number of Consumers | # Thousands

2008 2009 2010 2011 2012 2013

7,2747,176

6,9546,750

6,5686,427

3rd Tariff Review Cycle

CPFL Piratininga Oct-122

CPFL Santa Cruz

Feb-132

CPFL Leste Paulista

CPFL Jaguari

CPFL Sul Paulista

CPFL Mococa

CPFL Paulista Apr-13

RGE Jun-13

EBITDA breakdown

6

CPFL Energia – LTM2Q13 Adj. EBITDA Breakdown¹ | R$ million

CPFL Santa Cruz

CPFL Leste Paulista

CPFL JaguariCPFL Sul Paulista

CPFL Mococa

1) Adjusted by regulatory assets & liabilities and non-recurring items; does not consider intercompany eliminations; 2) 12 months retroactive effect; 3) Commercialization in the free market and Services

56%

12%

4%

27%

6

AlternativeEnergy

618

Conventional

1,180

CPFL Paulista

RGE

CPFL Piratininga

Competitive Supply3

179

Generation1,798

CPFL Energia - Consolidated1 | 4,633

Distribution2,657

66%

34%

57%

39%

4%

Generation Segment

Distribution Segment

Cost-cutting initiatives

Zero Base Budget

Inefficiencies from past budgets are

not carried over to the next periods

~R$50 million/year (2012-15)

1Tauron Program

Introduction of the smart grid

technology in the distribution

network

~R$60 million/year

2Redundancy

Program

Special retirement plan with 445 adherences

~R$25 million/year

3Corporate

Services Center

Implementation of a back-office

services provider to increase operating

productivity and efficiency

4

1) Excluding CPFL Renováveis (ramp-up), CPFL Serviços (revenue-related expenses) and non-recurring items. In real terms. Inflation index: IGP-M.

2012Reduction of 7.2% or

R$ 108 millionPersonnel: -R$ 17 million

MSO: -R$ 91 million

1H13Reduction of 2.0% or

R$ 10 millionPersonnel: -R$ 6 million

MSO: -R$ 4 million

Achievements1

Corporate Level

• Optimization of inspections (loss prevention), process review, and improvement in assertiveness: reduction of ≈17%

• Metering and delivery of bills - online billing (email), changes in layout/type of paper, alignment of bank fees for all Discos: reduction of ≈11%

Operational Level

Value Initiatives

• Reduction of consulting services and “insourcing” of activities: reduction of ≈47%

• Standardization of outsourced labor: reduction of ≈52%

• Improved management of travel expenses: reduction of ≈18%

• Consumption of paper and office supplies: reduction of ≈66%

7

CPFL

Pir

ati

nin

ga

Coelc

e

Ele

trop

au

lo

CPFL

Jag

uari

Ele

ktr

o

CPFL

Pau

lista

CPFL

Moco

ca

CPFL

San

ta C

ruz

Ban

deir

an

te

Esc

els

a

CPFL

Lest

e P

au

l...

Cem

ig

Cose

rn

Celp

e

Lig

ht

Coelb

a

RG

E

Am

pla

CPFL

Su

l Pau

lista

Cem

ar

Cele

sc

CEEE

4.2 4.6 4.7 4.7 5.3 5.4 5.7 5.8 6.0 6.4 6.6 7.07.9 8.1 8.4 8.9 8.9 9.0 9.1

10.911.8

13.0

CPFL

Jag

uari

CPFL

San

ta C

ruz

CPFL

Pir

ati

nin

ga

CPFL

Moco

ca

CPFL

Pau

lista

Coelc

e

CPFL

Lest

e P

au

l...

Ele

trop

au

lo

Ban

deir

an

te

Ele

ktr

o

Esc

els

a

CPFL

Su

l Pau

lista

Cose

rn

RG

E

Cem

ig

Cele

sc

Am

pla

Lig

ht

Celp

e

CEEE

Coelb

a

Cem

ar

4.55.3 5.7 5.87.5 8.1 8.3 8.4 9.4 9.8 9.910.8

14.514.614.716.516.918.219.319.420.0

21.6

8

Avg. Frequency of Power Outages per Consumer per Year – FEC2012 (# occurrences)

Avg. Length of Power Outages per Consumer per Year - DEC2012 (hours)

Operational excellence in distribution

The Distribution segment, intensive in O&M expenses, has gone through periodic tariff reviews to reduce costs and improve efficiency, while Generation and Transmission

segments, more capital-intensive, did not face the same regulation over time

Average tariff1 (CPFL Piratininga) - [R$/MWh]2

-13.3 -16%

20.0 88%

-25.6 -38%

-7.4 -24%

-25.8 -16%

R$/MWh

∆ 1º CRTP / 3º CRTP

%

-24%

Generation

Transmission

Distribution

Sector charge

s

Taxes

31 (9%)

82(22%)

23 (6%)

67(18%)

164(45%)

367

138(44%)

24 (8%)

42 (13%)

316

68(22%)

43 (14%)

3rd CRTP3

2011-2014

1st CRTP3

2003-2006

1) Average of all classes and voltages; does not take into account financial components. 2) Constant figures in December/12. Amounts adjusted by IPCA | Source: CPFL Energia. 3) Periodic Tariff Review. 4) Extraordinary Tariff Review.9

275

60(22%)

19 (7%)41

(15%)10 (4%)

146(53%)

2012 Tariff after RTE4

-22.1 -27%

-4.2 -18%

-26.0 -39%

-21.6 -69%

-18.5 -11%

R$/MWh

∆ 1º CRTP / RTE

%

Pressure on tariffs

Distribution | Financials

Net revenues1 – Adjusted2

EBITDA – Adjusted2 Net income – Adjusted2

2010 2011 2012 LTM 2Q12 LTM 2Q13

9,432 9,794 10,763

10,120 11,495

2010 2011 2012 LTM 2Q12

LTM 2Q13

2,267 2,351

2,678 2,453

2,657

2010 2011 2012 LTM 2Q12

LTM 2Q13

1,309 1,235

1,399 1,250

1,376

1) Excludes construction revenue; 2) IFRS less non-recurring items plus regulatory assets & liabilities.

CAGR = +6.8%

+13.6%

CAGR = +8.7%

+8.3%

CAGR = +3.4%

+10.1%

Sales in the Captive Market (TWh)

2010 2011 2012 LTM2Q12 LTM2Q13

39.3

39.9

40.7 40.6 40.8

+0,4%

CAGR = +1.8%

10

• Long Term Concessions

• Latin America’s largest Portfolio in Alternative Energy

• Renewable Sources: higher than 93%

2º2º

2nd Largest Private Generation Company

Market share: 2.3%

Hydro power 67%

Thermal7%

SHPP8%

Wind12%

Biomass6%

Solar0%

Portfolio by source

25%

Generation segment

1) Considering 58.8% stake at CPFL Renováveis, since its creation.11

Installed Capacity1 (MW) | Estimated growth

CAGR 2000-16e = 21.5% a.a.

Semesa Baesa

Enercan Ceran

Foz Chapecó

EpasaBaldin

Creation ofCPFL

Renováveis

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013(e)

2014(e)

2015(e)

2016(e)

2017(e)

- 657 660 747 751 931 1,047 1,047

-

143

801 812 812 854 915 1,072

1,588 1,704 1,7372,203

2,6172,912 3,105 3,105 3,105 3,254

0

Privatization assets Brownfield Greenfield

Serra da Mesa

Monte Claro

Barra Grande

CamposNovos Lajeado Castro

Alves 14 de Julho

Foz do Chapecó Epasa

Commercial Startup

1998 2004 2005 2007 2007¹ 2008 2008 2010 2010-11

Installed Capacity(MW)

1,275.0 130.0 690.0 880.0 902.5 130.0 100.0 855.0 341.6

Assured Energy (MWavg)

671.0 59.0 380.6 377.9 526.6 64.0 50.0 432.0 247.6

CPFL Stake 51.54% 65.00% 25.01% 48.72% 6.93% 65.00% 65.00% 51.00% 52.75%

Installed Capacity CPFL (MW)

657.1 84.5 172.5 428.7 62.5 84.5 65.0 436.1 180.2

Assured Energy CPFL (MWavg)

345.8 38.4 95.2 184.1 36.5 41.6 32.5 220.3 130.6

Flooded area (km2)

1.784 1.4 95.0 32.9 630 5.0 5.0 80.0 -

(MW/km2) 0.7 92.9 7.3 26.7 1.4 26.0 20.0 10.7 -

Concession terms 2028 2036 2036 2035 2032 2036 2036 2036 2042

Conventional generation – 2,234 MW1 of installed capacity

1) Equivalent stake, including 38MW of small plants at CPFL Geração and 24MW of SHPP embedded in the distribution companies.

CPFL Energia’s power plants – state-of-the-art environmental efficiency

12

CPFL Renováveis | Shareholders’ structure as of Sep-13

13 1) Including Tanquinho solar power plant with an installed capacity of 1MWp.

58.8% 37.0%

Free float

16.6%

100%

63.0% 24.6% 0.0%

Small Hydro Biomass Wind

Pre-IPO

Post-IPO

Solar

http://intranetcpfl/Portals/10/logotipia/PNGs%20Logotipia/Energia_pos_RGB.png

http://intranetcpfl/Portals/10/logotipia/PNGs%20Logotipia/geracao_endos_pos_RGB.png

http://intranetcpfl/Portals/10/logotipia/PNGs%20Logotipia/geracao_endos_pos_RGB.png

CPFL Renováveis | Current portfolio

14

Operating (Sep-13)

Under

construction

End of2016

Under development

Total Portfolio

100% with PPA

1,735

5,553PossibleProbableHighly Confident

3,818

Small Hydro

• 35 operating: 327MW

• Under construction: -

• Under development: 626MW

Total: 953MW

Biomass


• 1 under construction: 50MW

• Under development: -Total: 370MW



• Under development: 3,192MWTotal: 4,230MW

Wind

• 58 operating: 1,203MW1


• Under development: 3,818MWTotal: 5,553MW1

Total

1) Including Tanquinho solar power plant - 1MWp of installed capacity

1,203

WindSHPP – Small HydroBiomass

CPFL Renováveis’ Installed Capacity (MW)

532

2,214

1,077

527

4,230

953

370

556

320327

1,038

370327

Commercial start-up / Acquisition

Installed Capacity (MW)

Assured Energy (MWavg)

PPA Comments

CPFL Renováveis(Aug-11)

652 314

Bio Ipê TPP 2Q12 25 8.2 Free market -

Bio Pedra TPP 2Q12 70 24.4LER auction(R$158.81/MWh)

Estimated revenue: R$ 20 million/year

Bons Ventos wind farms

2Q12 158 63Proinfa PPA(R$ 310.51/MWh)

Acquisition price: R$ 1,062 million

Santa Clara wind farms

3Q12 188 76LER auction(R$ 175.51/MWh)

Estimated Revenue: R$ 115 million/year

Ester TPP 4Q12 40 11Alternative sources auction (64%) and free market (36%)

Acquisition price: R$ 111.5 million

Tanquinho Solar PP 4Q12 1 1 Free market -

Salto Góes SHPP 4Q12 20 11Alternative sources auction (R$166.41/MWh)

Estimated Revenue: R$ 112 million/year

TPP Coopcana 3Q13 50 18 Free market -

Current portfolio(Sep-13)

1,203 526

1) Constant currency (Dec/12)15

CPFL Renováveis | Track record

Commercial start-up

(e)

Installed Capacity

(MW)

Assured Energy

(MWavg)Capital structure(e) PPA

TPP Alvorada 3Q13 50.0 18.0 BNDES funding(approved and partially disbursed)

Free market

Campo dosVentos II wind farm

3Q13 30.0 15.0BNDES funding (under review)Commercial banks (bridge loan approved and disbursed)

Reserve auction (Aug/10)R$ 142,53/MWh

Atlântica wind farms2 3Q13 120.0 52.7

BNDES funding (bridge loan approved and disbursed, long-term funding under review)Commercial banks (bridge loan approved and disbursed)

Alternative sources auction (Aug/10)R$ 154,83/MWh

Macacos I wind farms1 4Q13 78.2 37.5

BNDES funding(bridge loan contracted and disbursed, long-term funding under review)

Alternative sources auction (Aug/10)R$ 152,63/MWh

Campo dos Ventos wind farms4

1Q16 82.0 40.2 BNDES funding(structuring)

Free market

São Benedito wind farms5 3Q16 172.0 89.0 BNDES funding

(structuring)Free market

Projects under construction

532.2 252.4

1) Macacos, Pedra Preta, Costa Branca e Juremas; 2) Atlântica I, II, IV e V; 3) Constant currency (Dec/12); 4) Campo dos Ventos I, III, V;5) Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica, Santa Úrsula São Domingos and Ventos de São Martinho

16

CPFL Renováveis | Portfolio under construction

Generation segment: conventional and alternative energy | Financials

Net Revenues (R$ million) - Adjusted1 EBITDA (R$ million) - Adjusted1

Net Income (R$ million) - Adjusted1

1) Adjusted by proportional consolidation and non-recurring items.

2010 2011 2012 LTM2Q12 LTM2Q13

1,121

1,520

2,350

1,842

2,634CAGR = +44.8%

+43.0%

2010 2011 2012 LTM2Q12 LTM2Q13

810

1,181

1,672

1,397

1,798CAGR = +43.7%+28.7%

2010 2011 2012 LTM2Q12

LTM2Q13

262

778

384

819

358

-56.3%

EBITDA Margin - Adjusted1

2010 2011 2012 LTM2Q12 LTM2Q13

72.3%77.7%

71.2%75.9%

68.3%

17

• 280 free consumers

• Nationwide outreach

• Value-added product portfolio

• Synergy with CPFL Renováveis

Number of Consumers (#) | CPFL Brasil

1º1º

Leader in Commercialization of Energy

Market share: 10%

2008 2009 2010 2011 2012 2Q13

80 74

129 141

231280

CAGR = 30%

Portfolio (Free Consumers)

179

52

Inside the concession area

Outside the concession

area

Current: 11.5 GW avgPotential: +4.8 GW avg

Free Market in Brazil

210

70

18

• CPFL Brasil was awarded the winner of Exame Magazine’s 2013 Best and Largest Companies (category Energy)

• The Company was selected among gencos, discos, transcos and other players in the electric sector throughout Brazil2010 | 2011 | 2013

Competitive power supply segment

19

Jun/09 Jun/10 Jun/11 Jun/12 Jun/13

192 221

495

796

1,123

Jun/09 Jun/10 Jun/11 Jun/12 Jun/13

441 465 491 558

613



Competitive advantages of CPFL: market leadership, expertise and synergies with CPFL Renováveis

Source: ANEEL and CCEE

Competitive power supply segment | Growth opportunities

# of competitive customers – larger than 3 MW

# of special customers – from 0.5 to 3 MW

Number of free clients in Brazil

CAGR=8.6% CAGR=55.5%

Transmission networks

Self-generation networks

Distributionnetworks

Recovery of equipment

Services Segment | CPFL Serviços

• Foundation: 2006

• Core Business: offers a wide range of value-added services, ranging from engineering projects to maintenance and recovery of equipment. These services are designed to help consumers improve the efficiency, cost and reliability of their electric equipment

• Type of services: construction of transmission and distribution networks; maintenance and recovery of equipment; self-generation networks (cogeneration, energy-efficiency projects and distributed generation arrays – solar energy)

20

Services Segment | CPFL Total and CPFL Atende

• CPFL Total offers collection services with an established authorized network; capacity to collect utility bills, such as water, energy, telephone, and cable TV.

• Capability of cross-sale with other service providers, enabling the collection via the energy bills.

• Foundation: 2008

• Core Business: provider of contact center and customer relationship services to other utility companies

• Services: face-to-face attendance, back-office, credit recovery, toll-free customer support, ombudsman, service desk and sales

21

2H04

1H05

2H05

1H06

2H06

1H07

2H07

1H08

2H08

1H09

2H09

1H10

2H10

1H11

2H11

1H12

2H12

1H13

140

401498

612722

842719

602 606 572655

774

486

748 758640

456363

3.7%

6.5%

9.1% 8.7%9.6%

10.9%9.7%

7.6% 7.3% 7.6% 7.9% 8.6%6.9%

6.0%7.1%

6.1%4.6% 3.9%

8.29 9.4311.67

15.0214.1315.8717.9918.0516.6915.7716.5118.4420.1822.0521.9526.30

22.7821.11

CPFL has distributed dividends around the entire net income since its IPO, reaching the markof R$ 10.6 billion distributed. Declaration of dividend of 1H13: R$ 363 million | 0.38/share

Dividend Yield 1 (LTM) Declared dividends2 (R$ Mi) CPFL average price (R$/ORD)3

1) Considering last two half years’ dividend yield 2) Refers to declared dividend. Payment in the next half year. 3) Considers share price adjusted for reversal stock split and simultaneous split of shares on June 29, 2011 (not adjusted per dividends).22

Dividends

2012 actual(cash flow)

2013 2014 2015 2016 2017

1,403

1,1171,047

1,3211,231 1,265

1,043 1,072

72

9

23

4

15

1122

13

6

14

7

15

1

12

0

11

3

Total:R$ 8,709 million1

Distribution: R$ 5,981 million

Generation:R$ 2,062 million2

Commercialization and Services:R$ 667 million

R$ 2,468 R$ 2,325 R$ 1,923 R$ 1,706 R$ 1,367 R$ 1,389

1) Constant currency Dec/12. Take into account 100% interest on CPFL Renováveis and Ceran (IFRS). 2) Conventional + Renewable

23

Capex 2013 - 2017

24

Indebtedness and leverage

1) Financial covenants criteria. 2) LTM recurring EBITDA (covenants criteria). 3) Financial debt (+) private pension fund (-) hedge (considering proportional consolidation).

2011 2012 1Q13 2Q13

10.0

12.6 12.5 12.6Leverage1 | R$ billion

Adjusted net debt1/Adjusted EBITDA2

3,665 4,377 4,111 3,676Adjusted EBITDA2

R$ million

65%

3%6%

26% CDI

Prefixed (PSI) IGP

TJLP

Gross debt breakdown3

3.55x:Considering

IFRS accounting

criteria

Gross debt cost3 | LTM

2004

2005

2006

2007

2008

2009

2010

2011

2012

1Q

13

2Q

13

9.4%7.9%

9.9%7.3% 7.1%

4.9% 4.4% 4.3%3.0%

1.7% 1.2%

17.7%13.9%

13.4%12.1%

13.4%

9.4%10.5%11.1%9.0% 8.4% 8.0%

Nominal

Real

2.73 2.89 3.033.42

25

Strong and robust liquidity

1) Disregard financial charges (ST = R$ 295 million; LT = R$ 45 million), hedge (net positive effect of R$ 539 million) and MTM (R$ 86 million). 2) Considers amortization as of July 01, 2014.

Cash Short-term

2014² 2015 2016 2017 2018 2019+

5,420

2,721

1,484

3,278

2,4032,121

2,413

3,856

Debt amortization schedule1 (Jun/13) | R$ million

Cash coverage:

2.0x short-termamortization (12M) Average tenor: 4.00 years

Short-term1 (12M): 16.6% of total

26

Short term outlook

• Liability management exercise: pre funding for the next 12m - longer terms and lower costs• Average tenor: 4.0 years (2Q13) vs. 3.2 years

(4Q09)• Real cost of debt: 1.2% p.a. (2Q13) vs. 4.9%

p.a. (4Q09)

• Reaffirmation of ratings: brAA+ since 2Q08 (S&P) and 3Q10 (Fitch)• Liquidity policy (minimum cash vs.

amortizations in the next 12-18 months) – 2Q13 cash coverage: 2.0x

• Stable cash flow from operations (on avg. R$ 2.3 billion/year since 2010 | LTM2Q13: R$2.5 billion)

• Optimal capital structure• Reduction in WACC• Maximization of shareholder return

• Ramp-up at CPFL Renováveis

• 2H13: 278 MW still to be started up

• Signals of recovery, favoring energy consumption – industrial segment: +2.7% in 2Q13

• Productivity gains:

• Focus on cost reduction and optimization (Zero Based-Budget and Corporate Services Center)

• Tauron Project (smart grid): higher productivity, lower costs

• Optimization in the occupancy of buildings – sale of vacant assets

Growth and productivity Optimization of capital structure