2. Summary
CPFL Energia and Brazilian Electricity Sector
CPFL Energia – 3Q07 Highlights and Results
CPFL Energia – Performance 3 Years Since IPO
2
3. Since 1997, CPFL Energia has developed an aggressive strategy of
growth in the distribution, generation and commercialization
IPO
CPFL
Jaguariúna1
1997 1998 2000 2001 2002 2003 2004 2005 2006 2007
Recent Acquisitions:
• CPFL Jaguariúna1 in Apr/07
• CPFL Santa Cruz2 in Oct/06
• 11% of CEEE stake in HPP Foz do Chapecó in Aug/06
• 32.69% of PSEG stake in RGE in May/06
1) Old company name: CMS Energy Brasil
3 1) Old company name: Cia. Luz e Força Santa Cruz
2) Base: set/07
4. CPFL Energia – Distribution Business
Concession Area
Concession area: 8 distributors in São Paulo, Rio
Grande do Sul, Paraná and Minas Gerais States
Leadership in the distribution business: 13,8%
of market share1
Presence in the regions with high growth market
rate
73% EBITDA’s and 74% Net Income’s
contribution to CPFL Energia’s results2
Concession Area Sales by Segment – 3Q07 (GWh¹)
Rubber and
Chemical Plastic
Food and 10% 9%
23% Key Indicators – 3Q07
Beverage
16%
Municipalities 568
9% 49% Concession Area (km2) 208.300
39%
6% Population (million) 18,50
26% Others
13% Metallurgy and
Non-Metallic Minerals Clients (million) 6,22
Residential Industrial Commercial Rural Other Employees 6.620
1) Source ANEEL (Sep/07). Considers Brazilian market share
4 1) Ref.: 3Q07
2) Base: set/07
5. Brazilian market has 64 distribution’s companies
Distribution Business: Distribution Market Share1 %
2006
Distributors (#) 64
CELESC 4.8%
Clients (million) 59.1 COPEL 6.7% EdB 5.7%
ENDESA 4.2%
Neoenergia
Distributed Energy (TWh) 347.4 7.3% Ashmore Energy
3.7%
CEMIG
Companhia
Energética
8.6%
Market Breakdown Brasiliana
Others 33,1%
Energia 12.1%
The 5 largest groups have 50% of market-share CPFL Energia
13.8%
State-owned companies: 34%
Private Company: 66%
Spreading proposes consolidation opportunities
1) 1Q07
5 Source: Aneel – Installed capacity: PDEE 2007-2016 Market breakdown: Acende Brasil
6. CPFL Energia – Generation Business
EBITDA Margin around 90%
16% EBITDA’s and 14% Net Income’s
contribution to CPFL Energia’s results1
Operating Under Construction
Power Plants 5 HPPs1 and 31 SPPs 3 HPPs
Installed Capacity 1,587 MW 587 MW
Assured Energy 797 MWmedium 285 MWmedium
6 1) Considers 6.93% stake in HPP Lajeado
7. CPFL Energia’s generation capacity have been increasing since
2000, reaching 2.2 thousand MW until 2010
Monte Claro Barra Grande Campos Novos Castro Alves 14 de Julho Foz do Chapecó
CPFL’s stake (%) 65.00 25.01 48.72 65.00 65.00 51.00
CPFL’s capacity (MW) 84.5 172.5 428.8 84.5 65.0 436.1
1Q08 3Q08 3Q10
Status Operating Operating Operating Operating Operating Operating
Installed Capacity and Assured Energy Evolution
Installed Capacity (MW) 25% 2.174
Assured Capacity (MWmedium)
48% 1.588 1.737 1.737
26%
1.072
812 812 854 915 40%
801
1.082
801 861 861
143
472 525 571
440 440 434
82
2000 2001 2002 2003 2004 2005 2006 2007(e) 2008(e) 2009(e) 2010(e)
7
8. Brazilian market has 1,600 generation companies.
The public sector concentrates 72% of the assets
Generation Business: Generation Market Share %
2006
Generation Companies (#) 1,660
Installed Capacity
104,822
(MW)
Others 35%
CPFL Energia 2%
Chesf 10%
Duke 2%
AES Tietê 3%
Furnas 9%
Market Breakdown Copel 4%
Tractebel 6%
Eletronorte 9%
Cemig 6%
The 5 largest groups have 50% of the market CESP 7%
Itaipu 7%
State-owned companies: 72%
Private Company: 28%
Source: Aneel – Installed capacity: PDEE 2007-2016
8 Market breakdown: Acende Brasil
9. CPFL Energia - Commercialization
Leadership in the commercialization business: 23% of market share1
11% EBITDA’s and 12% Net Income’s contribution to CPFL Energia’s results1
Growth in the free market
91
600%
74
13
9 14
4
2003 3Q07
Outside Concession Area Group's Distribution Company
Commercial Expertise:
Competitive performance in the free market and value added services – VAS
9 1) Ref.: 3Q07 - CPFL Brasil Consolidated
10. Captive and Free Market’s Sales Evolution in Brazil
Sales Evolution - TWh
30.5
28.9
28.0
26.7 25%
25.6 24%
24.3 12% 21%
4%
1%
96% 88% 76%
99% 79% 75%
2002 2003 2004 2005 2006 2007
ACR - Free Contracting Ambience ACL - Regulated Contracting Ambience
Currently, free market is responsible for 25% of Brazilian’s energy consumption
10 Source: EPE – Information until Apr, 2007
22. CPFL Energia issues R$ 450 million in Debentures
Issuer Rating brAA-
Issuer Rating brA+
Issue Characteristics
Offering Total Value R$ 450 million
Issuing Date September 3rd, 2007
Term Equal three payments in Sep/2012, Sep/2013 and Sep/2014
Cost CDI + 0.45% per year
Yield Payment Half-yearly
Objective Extension of term from acquisition of CMS Energy Brasil
22
23. Summary
CPFL Energia and Brazilian Electricity Sector
CPFL Energia – 3Q07 Highlights and Results
CPFL Energia – Performance 3 Years Since IPO
23