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Summary
Energy market overview
CPFL Energia – Highlights and Results
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Brazilian market has 64 distribution’s companies
Spreading proposes consolidation opportunities
Distribution Business – 2007
13%
12%
9%
8%
7%
6%
5%
4%
2%
35%
CPFL Energia
Brasiliana Energia
Cemig
Neoenergia
Copel
EdB
Celesc
Ashmore Energy
Energisa
Others
Distributors (#) 64
61Clients (million)
• The 5 largest groups have 50%of market-share
• State-owned companies: 34%
• Private Company: 66%
Market Breakdown
Distributed Energy (TWh) 376.9
Market Share1 (%)
1) ANEEL – Ref. 1Q08 annualized (Recalculation of CPFL’s participation)3
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Brazilian market has 1,695 hydroelectric plants. The public sector concentrates 70% of the assets
Generation Business – 1Q08
Hydroelectric plants (#) 1,695
108,852Installed Capacity (MW)
• The 6 largest groups have 50% of the market
• State-owned companies: 70%
• Private Company: 30%
Market Breakdown
10%
9%
9%
7%
7%
6%
6%
4%
4%
3%
2%
2%
31%
Chesf
Furnas
Eletronorte
Cesp
Itaipu
Cemig
Tractebel
Copel
Petrobrás
AES Tietê
Duke
CPFL Energia
Others
Market Share (%)
Source: Aneel – last information available Market breakdown: Acende Brasil
4th largest private generation company in Brazil
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Summary
Energy market overview
CPFL Energia – Highlights and Results
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CPFL Energia – Highlights
• Brazilian’s largest player in distribution and commercializationbusinesses
• Energy market is concentrated in the most developed regions of Brazil (South/Southeast)
• CPFL is listed in the Novo Mercado in Bovespa and ADR level III in NYSE
• Differentiated Dividend Policy: payment of 50% of the net income on a semi-annual basis
• 100% hydraulic generation portfolio, with a strong growth in theinstalled capacity in the last few years
• Long term generation and distribution concessions
• 5 distribution companies’ acquisition, 9 SPP’s and RGE’s stake (33%), Foz do Chapecó HPP’s stake (11%) and Lajeado HPP’s stake (7%) inthe last 2 years, with a R$ 1.1 billion investment
• First company in the Brazilian electric sector to negotiate carbon credits, through a run-of-stream HPP
• Constitution of CPFL Bioenergia, for investments in energy generation from biomass
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CPFL Energia – Corporate Structure
Free Float
25.7%¹ 31.1% 12.7% 30.5%
99.99%
100%
100%
90.15%
87.80%
89.75%
96.56%
100%
DISTRIBUTION
90.15%
Investco
Paulista Lajeado
100%
100%
65%
25.01%
48.72%
51%
100%
59.93%
5.91%
GENERATION
100%
100%
100%
99.95%
100%
100%
89.81%
COMMERCIALIZATION
As of March 31th, 2009 ¹ Includes 0.1% from Camargo Corrêa S/A company shares
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• Operational efficiency focus
• Small distribution companies acquisition, strategically located
• Large distribution companies acquisition
• Cooperatives acquisition
• Private networks incorporation
Distribution
Generation
• Projects’ conclusion
• SPP’s repowering, construction and acquisition
• Energy cogeneration through biomass
• Green field projects - Auctions
Commercialization• Increasing in Value Added Services (VAS) and new products and services
• New opportunities - clients between 0.5 and 3.0 MW, supplied by cogeneration or SPP’s
CPFL Energia’s Investment Case join the current portfolio growth with acquisition opportunities
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Focus on capturing synergies and optimization of levels of Group delinquencies
Delinquency Recovery² – R$ million
Amount sent to SPC (in R$) Amount recovered (in R$)
4Q07 4Q08
Delinquency1 – (%)
1) Receivables past due > 30 days - % of total Revenues – outstanding as at December 31 2008 2) Excluding CPFL Jaguariúna
DISTRIBUTION
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Consolidated
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Strong growth in the installed capacity and long term concessions in the generation ventures
GENERATION
812
434
854 915 1,072
1,588 1,737 1,7382,202
472 525 571 800 861 862 1,093
2003 2004 2005 2006 20073 2008(e) 2009(e) 2010(e)
Serra da Mesa1
SPP’s CPFL Geração Monte Claro Barra Grande
14 de Julho
Castro Alves Foz do ChapecóCampos Novos
CPFL Sul2 Lajeado
SPP’s CPFL Jaguariúna3
2027 2036 2036 2036 20362035
2028 20362032
2015
Installed Capacity (MW)Assured Energy (MWmedium)Concession Term 48.2%
40.2%
9.3%
7.6%
26,71%
26,9%
(1) CPFL has the right of 51.54% of the Assured Energy until 2028 (2) Hydroelectric projects with installed capacity <= 1,000 kW are not eligible to concession(3) Among the 9 SPP’s of CPFL Jaguariúna, 6 are in the situation mentioned in note 2 Note: Includes expected two SPP’s repowering in 200910
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GENERATION
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GENERATION
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• Contract signed: Aug 2008
• Construction of a sugar cane bagasse-fired thermoelectric generation plant
• Location: Pirassununga – SP
• Expected operations: April 2010
Baldin Project – CPFL Bioenergia’s 1st project
CPFL Energia is alert to the opportunities of business involving sugar cane biomass
CPFLInvestment:R$ 98 million
CPFL will have the right to 25 MW of energy exported during harvest season: 112 GWh/year
Energy supply contract
Amount: over R$ 500 millionContract period: 2009 to 2023
% of bioelectricity energy purchased in CPFL Brazil contracts
13%
10%
After the contractCurrent
Business ModelGENERATION COMMERCIALIZATION
• High pressure boilers• Condensing turbines• Back pressure turbines• Substation and transmission
CPFL invests in the generation-related
machinery…
…and receives the exceed
energy, for a certain period
Energy purchased from biomass source to sell in the free market
Sold 100%
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COMMERCIALIZATION
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CPFL presents sales growth in the concession area and in the free market
33,076 31,235 37,32335,24531,778
11,710
3,28811,230
9,5857,263
49,033
38,49836,364
46,47541,363
2004 2005 2006 2007 2008
TUSDCAPTIVE
8,9048,9519,3347,120
3,209
2004 2005 2006 2007 2008
Concession Area Sales – GWh1 Free Market Sales (GWh)1
34.8%
177.5%
1) Excludes intercompany transactions (consolidation accounting basis), CCEE and generation sales (except to the free market)2) Source: EPE
Concession Area Sales – GWh – 2008
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CPFL Energia – 4Q08 and 2008 Results
2.628 2.522
9.410 9.706
4T07 4T08 2007 2008
Net Revenue – R$ billion
EBITDA – R$ billion
781 699
3.3452.808
4T07 4T08 2007 2008
370 336
1.6411.276
4T07 4T08 2007 2008
Net Income – R$ billion
-4,0%
3,1%
-10,5%
-16,1%
-9,3%
-22,2%
Reported values. Numbers already incorporate the impact of Law 11,638/07 and PM 449/0817
2008 vs 2007
(+) Growth of 4.6 in total energy sales in 2008
(–) Average reduction of 11% in distribution tariffs in view of periodic tariff review
(+) Castro Alves HPP commercial operations start-up of on Feb 29th, 2008 and 14 de Julho HPP on Dec 25th, 2008
(+) Increase of 74% in revenues from VAS and CPFL Total
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Debt indexation Capex already signed up with BNDES CPFL Energia RatingsLocal scale
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May, 2006
32.69%
414
Aug, 2006
11%
9
Oct, 2006
99.9%
203
Apr, 2007
100%
412
AcquiredStake
Investment –Equity
(R$ million)
Asset
CPFL Energia supports investment politics aligned with the Group’s growth strategy
606 627 797
627418
606 6331,133
1,5511,425
2004 2005 2006 2007
Capex Total(1) Acquisitions(2)
Actual Investment (R$ million)
(1) Considers minority shareholder participation’s acquisitions (2) Considers CERFRA Cooperative assets acquisition Note: Hedge not included21
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