May, 2012
2
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
3
Sales and Financials
Annex
4
Corporate overview – Highlights
The largest
private player
in the Brazilian Electric Sector
� R$25+ billion of Market Cap as of Apr, 2012
� Leadership in distribution of energy through 8 subsidiaries. Presence concentrated in the most developed regions of Brazil
� Leadership in Commercialization and a world-class provider of Value-Added Services
� Leadership in Renewable Energy in Latin America
� 2,768 MW of generation installed capacity (Mar-12), more than 93% from renewable sources
� LTM1Q12 EBITDA of R$ 3.8 billion and net income of R$ 1.5 billion
� Listed on Bovespa’s Novo Mercado and on NYSE (ADR Level III)
� Differentiated Dividend Policy: minimum of 50% of net income, semi-annually. Practice of 95% since IPO in 2004
1) Aneel – last available information 2) Concession area sales (excludes CCEE) 3) In Apr, 2011. Generation figures after ERSA and Jantus’ deals closing 4) CPFL Energia’s equivalent stake in each project 5) 2011 accumulated (October, 2011) 6) Take into account sales of commercialization and generation outwards the Group5
Brazil’s largest player in the electric sector
CPFL 2%3
CPFL Energia
CPFL 11%5
Others: 87%
CPFL 13%1
Market-share
Distribution (2011)Concession Area (captive + TUSD)
• 7.0 million customers• 569 municipalit ies• Sales of 54,590 GWh2
Generation (Mar-12)Focused mainly on renewables
• 65 power plants in operation• 2,768 MW of installed capacity4
• 30 plants under construction
Commercialization (2011)Free Energy market and Services
• 140 free customers• Sales of 12,173 GWh6• Added value services
Market leader
2rd private generator
Main player
Others: 98%
Others:89%
3 majorplayers: 34%
3 majorplayers: 28%
3 majorplayers: 29%
DISTRIBUTION
COMMERCIALIZATION
5
GENERATION
9 SPPs
33 Wind Farms8 (CE), 21 (RN) and 4 (RS)
8 TPPs Sugarcane5 (SP), 1 (RN), 1 (MG) and 1 (PR)
5 (SC) and 4 (RS)
2 TPPs Fuel Oil
35 SPPs
6
Corporate structure | CPFL Energia (December 2011)Increased stake at CPFL Renováveis to 63.00% and at Epasa to 52.75% as from Dec/11
6
Free Float
DISTRIBUTION
GENERATION
3
COMMERCIALIZATION
RENEWABLES
Investco
Paulista Lajeado
SERVICES
1
1) C ontrolling shareholders; 2) Includes the 0.1% direct stake owned by C amargo Corrêa S.A.; 3) Termoparaíba and Termonordeste Thermoelectric F acilities; 4) C PFL Energia owns a 63.0% indirect interest in C PFL Renováveis through C PFL Geração, with 35.5% and C PFL Brasil w ith 27.5%
7
Best corporate governance practices
7
• Shares listed in differentiated segments:• Bovespa Novo Mercado• NYSE (ADR Level III)
• Compliant with the Sarbanes-Oxley Act
• Board of Directors composed by 7 members:• 1 Independent Member• Advised by 3 Committees
• Self-Assessment through Fiscal Council
• Enforcement of policies for information disclosure and trading of company’ shares by employees
• Dividend Payout Policy:• Minimum of 50% of net income, semi-annually
1st Brazilian company
Annual Client Leadership Award IFC 2008
Member of the Companies Circle – OCDE/IFC
Ranked in the 50 Largest Sustainable Latin American companies list (2008/2009)
Ranked in Ibovespa’s Transparency in Sustainability list (2nd place - 2009)
1st Place – May, 2011Energy Sector – The Most Sustainable Large Companies in Latin America for the 3rdconsecutive year
World-Class Corporate Governance Practices:
8
GENERATION
� Leader in renewable sources of energy in Latin America(> 4 GW through 2020)
� Operational excellence:
EBITDA margin > 70% for renewables and > 80% for conventional energy
� Successful track record in the development and construction of generation capacity
� Pursuing new opportunities (HPP and thermoelectric)
DISTRIBUTION
� Market leader, doubling market share;
� Operational excellencethrough use of innovation and best-in-class technologies
COMMERCIALIZATION
� Leader in energy sales, with a market share of over 10%
� Expansion of range of services and integration with the other business segments (more synergies)
Leadership in the Brazilian electricity sector, with a diversified portfolio
88
CPFL Energia strategic plan 2012-2016
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
9
Sales and Financials
Annex
10
Leadership in the distribution business:
� 8 distribution companies;� 13% of market share;� 7.0 million customers;� 569 municipalities;� Sales of 54,590 GWh1 | 6.0% CAGR from 2004 to 2011
5,5 5,6 5,7
6,3 6,4 6,6 6,77,0
2004 2005 2006 2007 2008 2009 2010 2011
+1.5 million
Acquisitions2006 | Cia. Luz e Força Santa Cruz | RGE’s additional stake (32.69%);2007 | CMS Energy Brasil2 (4 distribution companies).
R$ 1,029 million in acquisitions
Presence in the most developed regions of Brazil
1) Concession area 2) CPFL Jaguariúna
Southeast region
South region
Number of customers
Distribution business
1010
Positioned in a very promising region
Commercial: expected inauguration of shopping malls2012-20131
São Paulo
1) Source: A BRASCE 2) Source and projection: IBGE and LC A Consultores
AraçariguamaBauruBoituvaBotucatu CampinasJundiaí (2)Ribeirão PretoS.J. do Rio Preto (2)São RoqueSorocaba (2)Sumaré
FarroupilhaGravataí
14In the
concession area
25 malls(total)
2In the
concession area
6 malls(total)
Rio Grande do Sul
Residential:Population growth2
Accumulated variation
SP RGE RS
14,1%11,4%
5,5% 5,0%
Concessionarea of
CPFL Energia(Southeast)
SP RGE RS
9,5%7,7%
5,5% 4,6%
Concessionarea of
CPFL Energia(Southeast)
2000-2010
2010-2022(e)
Larger growth rates in the concession areas of CPFL Energia
11
Campinas São Paulo Rio de Janeiro
• Total Investment (e)1: R$ 34.6 billion
• 1st Phase (e): R$ 6.7 billion
• 2nd Phase (e): R$ 27.9 billion
• Construction of terminal (1st
phase) and expansion of departure area
• Investment (e):R$ 873 millionby 20141
• Construction of the 3rd terminal, expansion of the departure area and construction of a taxi lane
• Investment(e):R$ 1.38 billionby 20141
• Expansion of the passengers terminal, garage, highway system and departure area
• Investment(e):R$ 627 million by 20141
Viracopos BrasíliaGuarulhos
Investments announced for 2012-2013(e)2
• Expansion of the container terminal at Santos Port (SP)• Expansion of the gas concessionaire network (Jundiaí, Piracicaba e Hortolândia)• Expansion of the telecommunication network in the Ribeirão Preto region (SP)• Construction of an ethanol terminal in Paulínia (SP)• Construction of a servicing center for transportation equipment in Sorocaba (SP)
Total:R$ 3 billion
Applications at BNDES for new projects amounted to R$ 55.7 billion in the 1Q123Up 37%
compared to 1Q11
1) Source: STN/Dept. of the treasury | Estimated values subject to changes 2) Source: Press (investments announced between Jan. and Apr/12) 3) Source: BNDES | Performance Report – 03/31/12
Large investments will lead to growth in the concession area
121212
26.6
21.419.2
17.617.117.116.715.214.3
12.710.610.410.49.79.49.39.19.08.4
7.06.86.46.0
CPFL
Mococa
CPFL
Piratininga
CPFL
Paulista
CPFL
Jaguari
CPFL Santa
Cruz
Elektro
CPFL Sul
Paulista
Coelce
Bandeirante
CPFL Leste
Paulista
Eletropaulo
Escelsa
Copel
Cosern
Cemig
RGE
Light
Celpe
Celesc
CEEE
Ampla
Cem
ar
Coelba
DEC1 | 2011 (hours)
FEC1 | 2011 (#)
1) DEC /FEC: Average duration/frequency of power outages per consumer per y ear (in hours/# of outages).
Operational Efficiency – Distribution companies
13
22.5
16.815.2
13.211.811.6
9.89.48.38.27.87.06.36.26 .26.05.75.55.45.45.25.14.9
CPFL
Piratininga
CPFL
Jaguari
CPFL
Mococa
CPFL
Paulista
Elektro
Eletropaulo
CPFL Sul
Paulista
Coelce
CPFL Leste
Paulista
Bandeirante
Escelsa
Cem
ig
Light
CPFL Santa
Cruz
Copel
RGE
Ampla
Cem
ar
Celesc
CEEE
Cosern
Celpe
Coelba
Methodology of the 3rd tariff review cycle for distributors
1414
CPFL Energia - Recurring EBITDA Breakdown¹ - LTM1Q12 | R$ million | %
Commercialization264 | 7%
Generation1.251 | 33%
Consolidated3,832
Distribution2,314 | 60%
CPFL Paulista
CPFL Santa CruzCPFL Leste PaulistaCPFL JaguariCPFL Sul PaulistaCPFL Mococa
RGE
CPFL Piratininga
15% 19% 47% 60%
CPFL Piratininga
Oct/122
CPFL Santa CruzCPFL Leste PaulistaCPFL JaguariCPFL Sul PaulistaCPFL Mococa
Feb/132
CPFL Paulista
Apr/13
RGE
Jun/13
% of CPFL Energia’sEBITDA affected
Notes: 1) Excludes intercompany transactions and equity attributed to non-controlling shareholders; 2) Effectiv e date
47.0%
24.4%22.4%
6.3%
Some Value Initiatives aimed at boosting efficiency and productivity
� Increase of operating productivity and efficiency� Growth at a lower incremental cost� Cost reduction per transaction via specialization,
e.g.: procurement 50%; payroll 35%; facilities
40%
CSCCorporate Services Center
IRPIncentivized Retirement
Program
ZBBZero-Based
Budget
Tauron Smart Grid
� Total of 445 adherences� Total costs: R$ 49.8 million (recorded in 2Q and 3Q of 2011)
� 43% reduction in the salary base of this population;
� Savings estimated at R$25m per year
� Zero-Based Budgetmethodology implemented
� Inefficiencies from past budgets are not carried over to the next periods
� Improvements in the budgeting process and the organization’s cost culture;
� Avg. reduction of R$50m per year in the next 5 years
� Implementation of smart grid concept: IT+Automation+Telecom
� Telemetering and self-healing
� Maximize return on electricity assets� Gains in productivity, efficiency and quality� Benefits estimated at R$106m per year
Description Objectives
� Transference of transactional corporate activities to the CPFL CSC
� Corporate depts. focused on strategic, value-added levers vs. transactions
15
Some Value Initiatives aimed at boosting efficiency and productivity
16
Smart Grid | 1st Phase
• Mobile Workforce Management:Teams dispatched electronically
• Telemetering 1st Phase:Installation of 25,000 intelligent meters in large clients and a metering center
• Self Healing:Installation of 5,000 automatic switches/restarters by all of the Group’s distribution companies
Project status
System in operation at CPFL Paulista e Pratininga
Start up of installation as from May, 12Investments (e): R$ 57 millionGains (e ) R$ 15 million
2.887 automatic switches in operation(Mar, 12)Investments (e): R$ 125 millionEnabler for other projects
All suppliers contractedInvestments (e): R$ 33 millionGains (e) R$ 42 million
Benefício anual (e) a partir de dez/13: R$ 106 milhões
On progressGains (e): R$ 49 million
Process Management
• Commercial, operational e logisticsProcess reviewUse of anti-fraud standards (shielded cable, etc.)
• Digital Bill:Electronic delivery of bills
Current investments: R$ 50 million | Total investments (e): R$ 215 million
Annual benefits (e) as from Dec/13: R$ 106 million
1) Bills ov erdue more than 30 day s – % of 12 months billings
Operational Efficiency – Distribution companies
17
jan/09
feb/09
mar/09
apr/09
may
/09
jun/09
jul/09
aug/09
sep/09
oct/09
nov/09
dec/09
jan/10
feb/10
mar/10
apr/10
may
/10
jun/10
jul/10
aug/10
sep/10
oct/10
nov/10
dec/10
jan/11
feb/11
mar/11
apr/11
may
/11
jun/11
jul/11
aug/11
sep/11
oct/11
nov/11
dec/11
1.424Q09
4Q10 4Q11
1.291.16
1.27
Delinquency (%)1 | CPFL Energia
2.4 million consumer units (CU) inspected
• 375 thousand CU identified and overhauled
• 591 thousand measuring equipment replaced
• 42 thousand regularization of illegal connections
Program for Reduction of Commercial Losses2007-2011
18
CPFL Energia Awards
Economical-Financial Management:
Management Quality:
Best Social Responsability:
Best Electic Energy DistributionCompany in Brazil:
Best Electic Energy DistributionCompany in the South Region:
Operational Management
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
19
Sales and Financials
Annex
Expansion in Generation (conventional + renewable)
20
7,15
2,95 2,66 2,23 1,71 1,37 1,25 1,21 1,20 1,00
Genco 1 CPFLEnergia
Genco 3 Genco 4 Genco 5 Genco 6 Genco 7 Genco 8 Genco 9 Genco 10
2nd largest private player in generation (Mar-12):
� 65 power plants in operation
� 2,768MW1 of installed capacity (2.947MW1 in FY12e)
� 30 power plants under construction
854 915 1,0721,588 1,704 1,737
2,396 2,644 2,947 3,166 3,326
2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e
FY12e Installed Capacity Ranking (GW) | Private players
Installed capacity evolution (MW) | CPFL Energia
1) C PFL Energia’s equiv alent stake in each project
Creation of CPFL Renováveis on August 24, 2011
Corporate structure considering the projects involved in the JV
+ wide portfolio for development
21
CPFL Renováveis | Current portfolio as of Mar, 2012
100% 100%
63.0% 37.0%
SPP
▪ 34 operating: 307MW
▪ 1 under construction: 20MW
▪ Under development: 608MW
Total: 935MW
Biomass
▪ 4 operating: 175MW
▪ 4 under construction: 195MW
Total: 1,270MW
▪ 8 operating: 368MW
▪ 25 under construction: 670MW
▪ Under development: 2,484MW
Total: 3,522MW
▪ Under development: 900MW1
22 1) C ogeneration projects depend on third-parties to explore the upstream sugarcane business (planting, harv esting and processing)
Wind
▪ 46 operating: 850MW
▪ 30 under construction: 885MW
▪ Under development: 3,992MW
Total: 5,727MW
Total
CPFL Renováveis | Current portfolio
23 1) F rom A ugust 1, 2011 until Nov ember 30, 2011 = 54.5%. F rom December 1, 2011 = 63.0%
Installed capacity (MW)Assured energy (AvgMW)
Installed capacity(Total: 5,727 MW)
Biomass19%
SPP19%
Wind61%
2012
� 7 Wind Farms: Santa Clara� 2 Biomass TPPs: Ipê and Pedra
2013 2014
� 1 SPP: Salto Góes� 2 Biomass TPPs: Coopcana and Alvorada
� 13 Wind Farms: Macacos I, Campo dos Ventos II and Atlântica
� 9 Wind Farms: Campo dos Ventos and São Benedito
Projects under construction – Start-up
Operating(Mar 2012)
Underconstruction
Operating (until 2014)
Under development
Total
850384
885388
1,735
772
100%with PPA
3,992
1,917
5,727
2,689
Wind: 1,038 MWBiomass: 370 MWSPP: 327 MW
283 MW 348 MW 254 MW
Biomass
22%
SPP
16%
Wind61%
CPFL Renováveis
24
412 MW | Certified projects
320 MW | Non-certified projects
Total | 732 MW
Acquisition of 100% of the Jantus SL (SIIF Énergies Brasil)
per R$ 823million (equity) and R$ 675 million (net debt)
1)
M&A | Acquisition of Santa Luzia SPP in Aug/11
25
Santa Luzia SPPLocation: Chapecó River | Operational Sinergy
CPFL Renováveis SPP´s
• Commercial start-up: 3Q11
• Installed Capacity: 28.5 MW
• Assured Energy: 18 avg.MW
• PPA:• 14 avg.MW | 2007 LFAPrice: R$ 170/MWh (jun/11)Long Term contract: Dez/39
• 4 avg.MW | Free Market
ArvoredoAlto Irani
Plano AltoSalto Góes
Santa Luzia
Atlântica wind farm (under construction)Location: Palmares do Sul | RS
Taíba
Ester TPP | biomass (into commercial operation)Location: Cosmópolis | SP
• Acquisition: R$ 111.5 million2
• Installed Capacity: 40 MW• Physical guarantee: 11 avg. MW• PPA: 7 avg. MW (LFA 2007) | 15 years;4 avg. MW (ACL)
Bons Ventos wind farms(in commercial operation)
• Acquisition: R$ 1,062 million1
• 157.5 MW
• 63 avg. MW
• Commercial Start-up• Taíba: 4Q08• Bons Ventos, Canoa Quebrada e Enacel: 1Q10
• PPA:• Proinfa | R$ 290.50/MWh(Dec/11)
• 20 years
Location: Ceará
M&A | Acquisitons in 1Q12
26
• 4 wind farms
• Installed Capacity: 120 MW• Physical guarantee : 52.7 avg. MW• PPA: LFA (Aug/10) | R$ 147.44/MWh (Dec/11) | 20 years
Generation | Portfolio of projects under construction
1) Constant currency (Dec/2011)27
(e) (MW) (Avg. MW) (e)
2Q12 25 8.4 79% BNDES21% equity
ACL
2Q12 70 24.473% BNDES27% equity
LER (Aug/10)R$ 154.121
3Q12 188 76.0 65% BNDES35% equity
LER (Dec/09)R$ 168.321
99% concluded (commercial start-up (e) in Jun/12)
73% concluded
Commercial start-up in 2012(e) | 283 MW / 109 avg. MW
Bio Pedra TPP
Santa Clara Wind Farm
94% concluded
Bio Ipê TPP
28
Generation | Portfolio of projects under construction
Alvorada TPP
Coopcana TPP
(e) (MW) (Avg. MW) (e)
1Q13 20 11.1BNDES funding(63% debt /37% equity)
LFA Aug/10R$ 160.411
2Q13 50 18.0BNDES funding(under review) ACL
2Q13 50 18.0 BNDES funding(under review)
ACL
9% concluded
9% concluded
Commercial start-up in 2013(e) | 120 MW/47 avg. MW
61% concluded
Salto Góes SPP
1) Constant currency (Dec/2011)
29
Generation | Portfolio of projects under construction
(e) (MW) (Avg. MW) (e)
3Q13 78.2 37.1 BNDES funding(under review)
LFA Aug/10R$ 137.33
3Q13 30 14.0BNDES funding(under review)
LER Aug/10R$ 133.73
2H13 120 52.7BNDES funding(under review)
LFA 2010R$ 147.443
1) Macacos, Pedra Preta, Costa Branca and Juremas 2) Atlântica I, II, IV and V 3) Constant currency (Dec/2011)
Commercial start-up in 2013(e) | 228 MW/104 avg. MW
Macacos I Wind Farms1
6% concluded
7% concluded
23% concluded
Atlântica Wind Farms2
(e) (MW) (avg. MW) (e)
2Q14 138 68.5BNDES funding(under review)
Free Market2033
2Q14 116 60.6 BNDES funding(under review)
Free Market2034
Commercial start-up in 2014(e) | 254 MW/129 avg. MW
61% concluída
Pending approval by ANEEL
Pending approval by ANEEL
1) Campo dos Ventos I, III, V, São Domingos and Ventos de São Martinho 2) Ventos de São Benedito, Ventos de Santo Dimas, Santa Mônica and Santa Úrsula
Generation | Portfolio of projects under construction
30
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
31
Sales and Financials
Annex
Commercialization business
32 1) Exclude non-controlling shareholders32
192 219
455
587
456 446
485
514
Dec/2008 Dec/2009 Dec/2010 Dec/11
4.1%45.1%
Dec/2008 Dec/2009 Dec/2010 Dec/2011
Current: 9.1 GW averagePotential: + 2 GW average
Current: 1.1 GW averagePotential: + 6 GW average
# of competitive customers – >3 MW # of special customers – from 0.5 to 3 MW
Competitive advantages of CPFL in this market: market leadership, expertise and synergies with CPFL Renováveis
Number of free clients in Brazil
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
33
Sales and Financials
Annex
Sales – CPFL presents consistent growth
Sales in the Concession Area (GWh)1 Breakdown | 1Q12
CAGR = +6.0% p.a.
1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market). 2010 TUSD adjusted (97 CAT Resolution) 2) Source: EPE
TUSDCaptive Industrial
Commercial
ResidentialOthers33,076 31,235 31,778 35,245 37,323 37,821 39,250 39,917
9,983 10.220
3,288 7,263 9,58511,230 11,710 10,978 13,138 14,674
3,499 3.718
36,364 38,498 41,36346,475 49,033 48,799
52,378 54,590
13,482 13.938
2004 2005 2006 2007 2008 2009 2010 2011 1Q11 1Q12
45%
15%
14%25%
34
+3.4%
Annual Sales Growth in the Concession Area | 2012 (GWh)2
Financial results
35
EBITDA Margin
EBITDA (R$ million)IFRS
Net Income² (R$ million)IFRS
Net Revenues (R$ million)IFRS
2009 2010 2011 1Q11 1Q12
11,358 12,024 12,794
3,023 3,421
31.7% 33.7%
1Q11 1Q12
+13.2%
1) Exclude non-controlling shareholders 2) Adjusted by regulatory assets & liabilities and non-recurring effects35
CAGR = +6.1%
2009 2010 2011 1Q11 1Q12
3,453 3,3503,769
1,020 1,084
+6.2%
CAGR = +4.5%
2009 2010 2011 1Q11 1Q12
1,689 1,560 1,582
466 423
-9,2%
Adj. Net Income2 = +9.5%
Adj. EBITDA2 = +17.9%
Dividends
36
2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11
140
401498
612722
842719
602 606 572655
774
486
748 758
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%
8.29 9.43 11.6715.02 14.13 15.87 17.99 18.05 16.69 15.77 16.51 18.44 20.18 22.05 21.95
CPFL has distributed 95% of the net income since its IPOCumulative dividends since IPO (Sep/04): R$ 9,1 billion
Dividend Yield 1 (LTM) Declared dividends2 (R$ Mi) CPFL average price (R$/ORD)3
1) Considering last two half years’ div idend yield 2) Refer to declared div idend. Payment in the next half year 3) Considers share price adjusted for reversal stock split and simultaneous split of shares on June 29, 2011 (not adjusted per div idends).
Indebtedness
37
2009 2010 2011 1Q12
6.47.9
10.7 10.9
CDI
Prefixed (PSI)
IGP
TJLP
Gross debt breakdown1 | 1Q12Gross debt cost1
Net debt2 | R$ billion2.53x:Excluding debt of projects under construction and considering pro forma LTM Ebitda(e) of CPFL Renováveis
Net debt/EBITDA3
1.952.38
2.84 2.85
1) Financial debt + pension fund; 2) Net debt calculation pursuant to financial covenants methodology. Excludes pension fund debt and judicial deposits related to income tax at CPFL Paulista. Does not take into account regulatory assets and liabilities in EBITDA; 3) LTM EBITDA
9.4%7.9%
9.9%7.3% 7.1%
4.9% 4.4% 4.3% 5.2%
17.7%
13.9%13.4%
12.1%13.4%
9.4%10.5%11.1% 10.7%
2004
2005
2006
2007
2008
2009
2010
2011
1Q12
Nominal Real
CashR$ million 1,487 1,563 2,700 2,707
Debt profile as of Mar 31, 2012
383838
Cash Short Term* 2013 2014 2015 2016 2017 2018+
2,707
1,565
1,229
1,9651,806 1,863
1,484
3,540
Debt amortization schedule1 | R$ million
Cash coverage:
1,7x short-term amortizations (12M)
Average tenor: 4.2 yearsShort-term (12M): 11.6% of total debt
1) Disregard financial charges (ST = R$ 376 million), hedge (net positive effect of R$ 240 million) and MTM (R$ 36 million)*Considering debt related to the next 12 months (from Apr 01, 2012)
Capex(e) 2012-2016
391) Constant currency (Dec/11). Take into account 100% interest in CPFL Renováveis and Ceran (IFRS) and proportional stake in the others generation plants. 2) Take into account private network incorporation and Tauron Project. 3) Take into account generation plants released until Mar 12, 2012
Total Capex(e) 2012-2016| R$ 8,310 million1
2011 actual(cash flow)
2012 2013 2014 2015 2016
1,9052,943
2,3701,115 946 935
Distribution2
R$ 4,983 million
Commercialization and Services
R$ 230 million
Generation (Convencional + Renewables3
R$ 3,097 million
2011 actual
2012
2013
2014
2015
2016 860
843
972
1,102
1,207
1,065
20
68
111
1,215
1,683
823
55
35
32
53
54
17
Agenda
Corporate Overview
Commercialization | Opportunities
Generation | Growth- Incorporation of CPFL Renováveis- CPFL Energia
Distribution | Operational Efficiency
40
Sales and Financials
Annex
Capex 2004-2011
2004 2005 2006 2007 2008 2009 2010 2011
261 368 527 676 665 746 1.128
741 343 255 266
445 502 570
645
449 626
412929
Distribution Generation Acqusitions
Investments of
• R$ 5.1 billion in Distribution and
R$ 3.6 billion in Generation since IPO
604 623
1,419 1,5331,167
1,316
1,7732,119
Capex + Acquisitions1 | in R$ million
Acquisitions
• R$ 2.0 billion (equity)
1) Taking into account the acquisitions (equity) of 32.69% of RGE’s additional stake, 11% of Foz do Chapecó’s additional stake, Cia. Luz e Força Santa Cruz, CMSEnergy , SPP Santa Luzia (63%) and SIIF Énergies Brasil;41
Stock performance | CPFL Energia outperformed the main indices
42
25.5%18.0%
-5.9%
LTM share performance on BM&FBovespa LTM share performance on NYSE
Daily average trading volume on BM&FBovespa + NYSE (R$ million)
9,9% 7,2%-13,1%
• Increase in market capof free float (+30%)1
• Increase in daily average trading volume (+18%)1
1) Considers LTM (Feb/12) Note: CPFL integrated DJ Br20 composition for the first time in Feb/05 and remained until Feb/10
1Q11 1Q12
13.5 15.3
17.2 20.3
+15,5%30.735.5
1,3682,512+83.7%
Bovespa NYSE Daily avg. number of trades
Dow Jones Brazil Titans 20ADR IndexSM
CPFL’s ADRs reselectedin Mar/12
CPL Dow Jones Index Dow Jones Br20CPFE3 IEE IBOV
43
TSR Performance
Total Shareholder Return1 2005 – 20112 | % p.a.
Note: 1) TSR = TIR shareholder – Market cap v alues on 12/31/2004 and 12/31/2011. Amounts adjusted by IGP-M (Dec/11)Source: Thomson F inancial; Economática;
Genco Genco Integrated Disco Integrated Integrated Integrated Genco
24%
21% 21%18% 18% 18%
14%
5%
2%
Methodology of the 3rd tariff review cycle for distributors
4444
•Maintenance
•WACC of
• Capital structure (D/E)
• Adjustment of leverage Beta:
of proposal of the 2nd phase, with improvements
• Single productivity of
•Deliquency and with a limit determined by ANEEL
central point of calculation
considers the companies differently; companies that perform better have a greater benefit and lower fee. The reverse is true for companies that have a poorer quality performance, when compared with the history of the company itself.
• For , the variation in the DEC and FEC quality indicators between
• XT limited to
(Nov, 11)
Comparison of global electricity consumption
45
Consumption of electricity versus GDP¹
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