2. Highlights
The largest private player in the Brazilian Electric Sector
• Energy market is concentrated in the most developed
regions of Brazil (South/Southeast)
• Market cap of R$ 18,5 billion in March, 20101
• Listed on Bovespa’s Novo Mercado and NYSE’s ADR
Level III
• Differentiated Dividend Policy: minimum payment of
50% of the net income on a semi-annual basis
• Strong growth in the generation installed 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%),
Lajeado HPP’s stake (7%) and EPASA TPP’s stake (51%)
in the last 3 years
• First company in the Brazilian electric sector to negotiate
carbon credits, through a run-of-stream HPP
• Investments in energy generation from biomass: Baldin
Biomass TPP, Baía Formosa Biomass TPP, Pedra Biomas
TPP, Buriti Biomass TPP and Ipê Biomass TPP
• 188 MW sold in the Wind Energy Auction in Dec, 2009
2 1) Share price March 2nd 2010: R$ 38,48/ON
4. Brazilian’s largest player in distribution and commercialization businesses
COMMERCIALIZATION AND SERVICES
COMMERCIALIZATION AND SERVICES CPFL Energia Market-share
Distribution CPFL 13%1
Captive Market and System Charge
• 6.6 million customers
• 568 municipalities
• Sales of 48,799 GWh²
Market leader Others 87%
Generation
CPFL 2%1
GENERATION
DISTRIBUTION Focused mainly in renewables
• 40 HPP operating
• 1,737 MW installed capacity
• 15 plants under construction
4th Brazilian private generator
Others 98%
Commercialization CPFL 21%
Energy free market and
Businesses Units of Services
• 74 free customers
• Sales of 10,243 GWh²
• Services: revenues of R$ 88 million3
Market leader Others 79%
4 1) Aneel – last available information 2) December/09 – LTM. Concession area sales (excludes CCEE) . 3) LTM
11. CPFL presents strong growth of EBITDA and Net Income in the last years
EBITDA (R$ million)1 Net Income (R$ million)1
CAGR = 10.5% p.y. CAGR = 35.7% p.y.
3,345 1,641
2,789 2,808 1,404
2,765 1,276 1,286
2,120 1,021
1,681
279
2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009
Recurring EBITDA Breakdown –24Q9 or 2009?
Margin 4Q09 Recurring Net Margin 4Q092
Generation
25%
CPFL Energia
EBITDA Margin of 29.7%
Distribution Net Margin of 13.8%2
Commercialization 63%
and Services
12%
11 1) 2007 and 2008 adjusted by the impact of Law 11,638 and PM 449/08 2) Recurring. Includes tax credit benefits