São Paulo, 07 de março de 2012 January 2015

Corporate

Presentation

2 Distribution

3 Generation

Competitive Power Supply and Services 4

Corporate Overview

Agenda

Consolidated financial figures 5

2

6 Sustainability

7 The Electric Sector

1

2 Distribution

3 Generation

Competitive Power Supply and Services 4

Corporate Overview

Agenda

Consolidated financial figures 5

3

6 Sustainability

7 The Electric Sector

1

4

in the Brazilian electricity sector

• Market cap of , listed and on

• LTM 3Q14 Adj. EBITDA2 of and Adj. Net Income2 of

• Differentiated : >50% of net income, semi-annually. since IPO in 2004

• Presence concentrated in the of Brazil

through 8 subsidiaries

private Generator with an equivalent stake of ,

in in Brazil

and a

of

1) On January 14, 2015; 2) Take into account proportional consolidation of minorities’ stakes at gencos (+) regulatory assets & liabilities (-) non-recurring items.

Corporate overview – Highlights

5 5 1) Controlling shareholders; 2) Includes the 0.1% stake of Camargo Corrêa S.A.; 3) Includes the 0.2% stake of Petros and Sistel pension funds; 4) 51.54% stake of the availability of power and energy of Serra da Mesa HPP, regarding the Power Purchase Agreement between CPFL Geração and Furnas.

Corporate structure

Free Float

DIS

TR

IBU

TIO

N

100%

100%

100%

100%

100%

100%

100%

100%

65%

25.01%

48.72%

57.13%

51%

GE

NE

RA

TIO

N

100%

100%

99,95%

100%

CO

MM

ER

CIA

LIZ

AT

ION

100%

100%

RE

NE

WA

BLE

S

59.93%

Investco 5.94%

SE

RV

ICE

S

100%

100%

100%

51.61%

100%

15.1%3 30.5%

Nect Serviços 100%

24.4%2 30.0%

Paulista Lajeado

1

100% CPFL Centrais Geradoras

Serra da Mesa HPP

51.54% 4

• Shares listed in differentiated segments:

• BM&FBovespa 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 for Board of Directors and Fiscal Council

• Enforcement of policies for disclosure of information and for

prevention of insider trading by employees

• Dividend Policy:

• Minimum of 50% of net income, semi-annually

World-Class Corporate Governance Practices

6 6

Corporate governance

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 Piratininga

HPP Serra da Mesa1

CPFL Paulista

RGE

19 SHPPs (CPFL

Renováveis)

1 TPP (Carioba)

CPFL Santa Cruz

CPFL Jaguari

CPFL Sul Paulista

CPFL Leste Paulista

CPFL Mococa

2036 2035 2032 2028 2027 2015 …

~3% CPFL

Energia's EBITDA

7

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.

Distribution

Generation

CPFL Energia requested Aneel to renew the expiring

concessions

4th Tariff Review Cycle

CPFL Piratininga Oct-15

CPFL Santa Cruz

Feb-16

CPFL Leste Paulista

CPFL Jaguari

CPFL Sul Paulista

CPFL Mococa

CPFL Paulista Apr-18

RGE Jun-18

8

CPFL Energia – LTM 3Q14 Adj. EBITDA Breakdown¹ | R$ million

CPFL Santa Cruz CPFL Leste Paulista

CPFL Jaguari CPFL Sul Paulista

CPFL Mococa

1) Adjusted by regulatory assets & liabilities and non-recurring items; does not consider the holding company; 2) Commercialization in the free market and Services

50%

22%

8%

20%

8

Alternative Energy

482

Conventional 1,242

CPFL Paulista

RGE

CPFL Piratininga

Competitive Supply and Services2

259

Generation 1,724

CPFL Energia - Consolidated1 | 4,002

Distribution 2,019

72% 28%

50%

43%

6%

Generation Segment

Distribution Segment

CPFL Energia | EBITDA breakdown

9

Leadership among private companies in the electric sector, with a diversified portfolio in different businesses related to Energy

9 9

COMPETITIVE SUPPLY

• Leadership in commercialization of renewable energy in the free market

• Maximization of profitability, considering new market conditions

GENERATION

• Operational Excellence, presenting the highest margins of the sector

• Expansion of installed capacity in hydro and thermal

• Leadership in renewable sources (> 4 GW by 2020)

DISTRIBUTION

• Market leader, doubling the market share in Brazil

• Operational excellence through innovation and new technologies (smart grid)

SERVICES

• Largest services company in the power sector

• Strong growth of sales

• Synergies with other segments in the Group

CPFL Energia’s ambitions

2 Distribution

3 Generation

Competitive Power Supply and Services 4

Corporate Overview

Agenda

Consolidated financial figures 5

10

6 Sustainability

7 The Electric Sector

1

2009 2010 2011 2012 2013 3Q14

Distribution Segment

• 7.5 million customers

• 569 municipalities

• Footprint: most developed regions

• High potential in per capita consumption

1º Market share: 13%

Industrial

Commercial

Residential

Others

1) Excluding sales at CCEE; 2) Source: EPE. 11

2009 2010 2011 2012 2013 LTM3Q13

LTM3Q14

Captive TUSDCAGR 2009-13 4.6%

28% 43%

17%

12%

+2.5%

Brazilian economy and market performance

Real wage bill1 and CPFL’s residential consumption | %YoY growth

2006 2007 2008 2009 2010 2011 2012 2013

5.9

5.9

6.1

3.9

7.3

4.5

6.6

2,9

4.5

6.9

6.8

6.0

5.2

4.9

6.9

5,9

Real wage bill Residential consumption

Retail sales2 and CPFL’s commercial consumption3 | %YoY growth

2006 2007 2008 2009 2010 2011 2012 2013

6.2

9.7

9.1

5.9

10

.9

6.7

8.5

5,4

5.5

7.7

5.6

5.2

6.0

6.6

6.8

3,6

Retail sales Commercial consumption

Industrial production2 and CPFL’s industrial consumption3 | %YoY growth

2006 2007 2008 2009 2010 2011 2012 2013

2.8

6.0

3.1

-7.4

10

.5

0.4

-2.7

-3,0

3.3

6.1

2.9

-6.7

9.3

3.9

0.7

2,0

Industrial production Industrial consumption

1) Source: IBGE/LCA. 2) Source: IBGE. 3) Take into account changes in billing calendar for free consumers.

Other variables influencing energy consumption

• Population growth

• Migration

• Credit

• Household appliances

• Temperature

• Rainfalls

• Public investments

12

Southeast: CPFL Paulista, CPFL Piratininga, CPFL Santa Cruz,

CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista, CPFL Mococa

South: RGE

Footprint in the most developed regions of Brazil

13 13 13

Distribution business

• 8 distribution companies;

• 13% of market share;

• 7.5 million customers;

• 569 municipalities;

• LTM 3Q14 sales of 59,641 GWh | 04-13 CAGR of 5.4%

Leadership in the distribution segment

2006 2007 1912

Discos’ Acquisitions | Key dates

1997-2001

Start Up

1 1

1) Acquired by VBC (one of CPFL Paulista’s controlling shareholder at the time) and PSEG in 1997, during the privatization process, and incorporated by CPFL Energia in 2001 (67,03%). In 2006, CPFL Energia acquired the additional stake (32.67%).

Avg. Frequency of Power Outages per Consumer per Year – FEC 2013 (# occurrences)

4.4 4.6 4.7 4.9 5.0 5.1 5.4 5.5 5.8 6.3 6.3 6.7 6.8 8.3 8.3 8.7 8.9 9.0 9.8 10.6 10.9

15.8

14

Avg. Length of Power Outages per Consumer per Year - DEC 2013 (hours)

Distribution: best-in-class operational efficiency

4.9 5.9 7.0 7.1 7.4 7.6 8.0 8.1 8.5 9.1 9.1 9.7 12.5 13.7 15.5 17.4 18.4 18.9 20.1 22.0 22.5 23.2

Zero-Base Budget

Inefficiencies from past budgets are not carried over

to the next periods

Tauron Program

Introduction of the smart grid technology in the distribution network

Corporate Services Center

Implementation of a back-office services provider to

increase operating productivity and efficiency

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%

15

Cost-cutting Initiatives

Cost-cutting Initiatives Total (2015 x 2011):

Cost-cutting already performed (LTM3Q14 x 2011)1: ≈R$ 268 million

1) Constant value of Sept/14.

EBITDA acumulado até setembro: R$ 24 milhões 16

• Automated dispatch + tablets deployed in all emergency orders (8 discos) and commercial orders (CPFL Piratininga)

• 24,554 smart meters already installed as of December-14

• Implementation of RF Mesh Telecom Network already concluded

EBITDA 2013: R$ 52.4 million

Achievements

• Real-time consumption readings

• Analysis of consumer load curve

• Inputs to fraud detection

• Real-time power outage detection

• Savings with truck rolls

Optimized logistics for field teams (georeferenced maps)

• Faster power restoration

• Savings with optimized routes

Tablets for real-time communication

• Dynamic dispatch of teams

• Automated routing of teams

• On-line update of field services’ progress

Tauron Program – smart grid

Distribution | Key financial figures

Net revenues1 | R$ Million – Adjusted2

EBITDA | R$ Million – Adjusted2 Net income | R$ Million – Adjusted2

2010 2011 2012 2013 LTM 3Q14

9,432

9,794

10,830 10,716

11,252

2010 2011 2012 2013 LTM 3Q14

2,267 2,351

2,655

2,211 2,019

2010 2011 2012 2013 LTM 3Q14

1,309 1,235

1,356

1,047

855

1) Excludes construction revenue; 2) Adjusted by non-recurring items and regulatory assets & liabilities.

CAGR 2010-13 +4.3%

+5.0%

CAGR 2010-13 -0.8%

-8.7%

CAGR 2010-13 -7.2%

-18.4%

Sales in the Captive Market (TWh)

2010 2011 2012 2013 LTM 3Q14

39.3

39.9

40.7 41.1

42.6

+3.6%

CAGR 2010-13 +1.6%

17

2 Distribution

3 Generation

Competitive Power Supply and Services 4

Corporate Overview

Agenda

Consolidated financial figures 5

18

6 Sustainability

7 The Electric Sector

1

• Long Term Concessions

• Brazil’s largest Portfolio in Alternative Energy

• Renewable Sources: 94%

2º Market share: 2.4%

34%

Generation Segment

Installed Capacity1 (MW) | Estimated growth

CAGR 2000-18e = 21% a.a.

Semesa Baesa

Enercan Ceran

Foz Chapecó Epasa Baldin

Creation of CPFL Renováveis

19

Partnership with DESA

1) Equivalent stake for projects.

- 657 660 747 751

894 996 1,146 1,146

Privatization assets Brownfield Greenfield

1998 2004 2005 2007 2007 2008 2008 2010 2010-11

1,275.0 130.0 690.0 880.0 902.5 130.0 100.0 855.0 341.6

671.0 59.0 380.6 377.9 526.6 64.0 50.0 432.0 247.6

51.54% 65.00% 25.01% 48.72% 6.93% 65.00% 65.00% 51.00% 57.13%

657.1 84.5 172.5 428.7 62.5 84.5 65.0 436.1 195.2

345.8 38.4 95.2 184.1 36.5 41.6 32.5 220.3 141.5

1.784 1.4 95.0 32.9 630 5.0 5.0 80.0 -

0.7 92.9 7.3 26.7 1.4 26.0 20.0 10.7 -

2028 2036 2036 2035 2032 2036 2036 2036 2042

Conventional generation | 2,212 MW1 of installed capacity

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

20 1) Equivalent stake, including 24.3 MW of SHPPs at CPFL Centrais Geradoras.

CPFL Renováveis | Corporate structure after the joint venture

5.61% 5.49% 7.12% 2.97% 1.93% 1.47% 58.84% 9.32%

Market

7.24%

4.93% 4.82% 6.25% 2.60% 1.64% 0.05% 51.61% 9.49%

Market

6.35%

(ARROW)

(1)

(1)

1) Through CPFL Geração.

Pre-operation

Post-operation

21

Outros

12.27%

22

Operating (Nov-14)

Under construction

End of 2018

Under development

Total Portfolio

100% with PPA

2,108

5,875

Possible Probable Highly Confident

3,767

Small Hydro

• 38 operating: 399MW

• 1 under construction: 24 MW

• Under development: 626MW

Total: 1,049MW

Biomass

• 8 operating: 370MW

• Under construction: -

• Under development: -

Total: 370MW

• 28 operating: 1,004MW

• 12 under construction: 312MW

• Under development: 3,141MW

Total: 4,456MW

Wind

• 71 operating: 1,773MW2

• 13 under construction: 336MW

• Under development: 3,767MW

Total: 5,875MW2

Total

1) After the joint venture with Dobrevê Energia; 2) Including Tanquinho solar power plant – 1MWp of installed capacity.

1,773

Wind SHPP – Small Hydro Biomass

CPFL Renováveis | Installed capacity (MW)1

DESA is one of the main independent renewable energy companies in Brazil, with total contracted capacity of 331 MW

CPFL Renováveis | Partnership with Dobrevê Energia

23

3

2

5

1

4

1) DESA holds 60% of SHPP Ludesa. 2) The PPAs are based on January 2014 (average values when there is more than one PPA). 3) On December 31, 2013, DESA presented a consolidated net debt of R$ 656 million (preliminary value, subject to audit and, therefore, eventual changes) to be added after December 31, 2013 in approximately R$ 200 million.

(MWavg)

R$/MWh

São Domingos (SC) Jul-07 30.0 MW 21,2 202

Indiavaí (MT) Nov-10 19.4 MW 12,6 201

Campina Grande (PR) Jun-11 23.0 MW 10,4 136

João Câmara (RN) Jul-12 145.2 MW 66,1 186

João Câmara (RN) Sep-13 60.0 MW 29,5 150

João Câmara (RN) 1Q16 29.2 MW 15,1 124

Unaí (MG) 2Q16 24.0 MW 12,5 131

Portfolio of Projects in the Partnership (MW) Operation Construction Total

CPFL Renováveis 1,495.1 282.3 1,777.4

DESA 277.6 53.2 330.8

CPFL Renováveis After-Partnership 1,772.7 335.5 2,108.2

SHPP Wind

Hydro

Wind

Biomass

Solar

(MW) (MWavg)

CPFL Renováveis (Aug-11) 652 314

2Q12 25 8 Free market -

2Q12 70 24 Reserve auction (R$170.91/MWh) Revenue(e): R$ 20 million/year

2Q12 158 63 PROINFA (R$ 331.11/MWh) Acquisition price: R$ 1,062 million

3Q12 188 76 Reserve auction (R$ 184.71/MWh) Revenue(e): R$ 115 million/year

4Q12 40 11 Alt. sources auction (64%) and free market (36%) Acquisition price: R$ 111.5 million

4Q12 1 1 Free market -

4Q12 20 11 Alternative sources auction (R$176.71/MWh)

Revenue(e): R$ 112 million/year

3Q13 50 18 Free market Revenue(e): R$ 22.6 million/year

4Q13 30 15 Reserve auction (R$ 151,21/MWh) Revenue(e): R$ 18.5 million/year

4Q13 50 18 Free market Revenue(e): R$ 22.6 million/year

1Q14 14 5 PROINFA (R$ 338.41/MWh) Acquisition price: R$ 103.4 million

1Q14 120 53 Alternative sources auction (R$154.81/MWh)

Revenue(e): R$ 76.7 million/year

2Q14 78 38 Alternative sources auction (R$161.51/MWh)

Revenue(e): R$ 52.6 million/year

3Q14 278 167 - Partnership with Dobrevê

Current portfolio (Nov-14) 1,773 822

1) Constant currency (Dec-13). 24

CPFL Renováveis | Track record

CPFL Renováveis | Power plants under construction

1) Gradual commercial operation from 2Q16; 2) Gradual commercial operation from 1H18; 3) Assured Energy calculated in the P90; 4) Constant Currency (Sep-14); 5) With the anticipation of work, a bilateral contract (Free Market) will run between 2016 and 2018, when the supply of LEN 2013 starts. 25

Commercial Start-up 2016-2018(e)

Including DESA’s projects

Campo dos Ventos Wind Farms e São Benedito Wind Farms

Morro dos Ventos II Wind Farms

Mata Velha SHPP Pedra Cheirosa

Wind Farms

Commercial Start-up 20161 20161 20161 20182

Installed Capacity 231.0 MW 29.2 MW 24.0 MW 51.3 MW

Assured Energy 3 120.9 MW average 15.3 MW average 13.1 MW average 26.1 MW average

PPA4 ACL 20 years 13th LEN 2011

R$ 125.14/MWh until 2035

16th LEN 20135

R$ 143.30/MWh until 2047

A-5 Auction 2013 R$ 125.04/MWh

until 2037

Status Contract to supply wind

turbines signed; executive projects in progress

BNDES (approved in October 2014)

BNDES (under analysis) Negotiation of wind turbines supply in

progress

Conventional and Alternative Energy | Key financial figures

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 2013 LTM3Q14

1,047 1,351

1,964

2,303

2,967 CAGR 2010-13 = +30.1%

+28.8%

2010 2011 2012 2013 LTM3Q14

750

1,060

1,427 1,583

1,724

CAGR 2010-13 = +28.3% +8.9%

2010 2011 2012 2013 LTM3Q14

244

721

373 390 406

+4.0%

26

CAGR 2010-13 = +17.0%

2013 EBITDA/installed MW

2 Distribution

3 Generation

Competitive Power Supply and Services 4

Corporate Overview

Agenda

Consolidated financial figures 5

27

6 Sustainability

7 The Electric Sector

1

Competitive power supply| Regulated vs. free market

No choice - distribution company Free choice

Distribution company Distribution company

Regulated by ANEEL Free negotiation

Free > 3,000 kW

after July, 1995 any any

before July, 1995 > 69 kV any

< 69 kV incentivized

Special 500-3,000 kW - Group A incentivized

units totaling 500 kW - Group A incentivized

28 1) Source: EPE (full year 2013)

Main differences

Advantages

Who can join

Lower prices

Free choice from energy supplier

Better predictability of energy expenses

Customization according to consumer seasonality

27%

73%

Free Market1

Regulated Market

• 289 consumers

• 69 free consumers

• 220 special consumers (alternative energy)

• Nationwide outreach

• Value-added product portfolio

• Synergy with CPFL Renováveis

Number of Consumers (#) | CPFL Brasil Portfolio (Free Consumers)

179

52

Inside the concession area

Outside the concession area

Current: 11.4 GW avg Potential: +7.9 GW avg

Free Market in Brazil¹

215

74

Competitive power supply

29

• CPFL Brasil was 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 Brazil 2010 | 2011 | 2013

1) Set-14

80 74

129 141

231

284 289

2008 2009 2010 2011 2012 2013 3Q14

CAGR = 30%

30

Sep/09 Sep/10 Sep/11 Sep/12 Sep/13 Sep/14

441 477 503 578 616 621

Current: 9.3 GWavg Potential: +1.3 GWavg

Current: 1.9 GWavg Potential: +6.6 GWavg

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

Source: ANEEL and CCEE

# of competitive customers – larger than 3 MW # of special customers – from 0.5 to 3 MW

Number of free clients in Brazil

CAGR=7.1% CAGR=43.6%

Competitive power supply | Opportunities

Sep/09 Sep/10 Sep/11 Sep/12 Sep/13 Sep/14

204

221 539

897

1,048 1,164

Transmission networks

Self-generation networks

Distribution networks

Recovery of equipment

Services Segment | CPFL Serviços

31

• 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)

Services Segment | CPFL Total and CPFL Atende

32

• 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 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

Net revenues | R$ million EBITDA | R$ million Net income | R$ million

Competitive power supply and Services | Financials1

1) Pro forma 33

2010 2011 2012 2013 LTM3Q14

1,909

1,699

2,031 2,031

2,211

2010 2011 2012 2013 LTM3Q14

201

164

127

52

171

2010 2011 2012 2013 LTM3Q14

303

278 287

74

259

2 Distribution

3 Generation

Competitive Power Supply and Services 4

Corporate Overview

Agenda

Consolidated financial figures 5

34

6 Sustainability

7 The Electric Sector

1

2009 2010 2011 2012 2013 LTM3Q14

10

,53

7

10

,92

1

11

,41

3

13

,23

5

13

,67

1

14

,69

7

CPFL Energia | Key financial figures1

35 35

Net revenues | R$ million

CAGR 2009-13

6.7%

7.5%

2009 2010 2011 2012 2013 LTM3Q14

2,7

02

3,2

60

3,6

49

4,3

43

3,8

48

3,9

56

EBITDA | R$ million

25.6

% 29.8

%

32.0

%

32.8

%

28.1

%

26.9

%

2.8%

EBITDA

EBITDA Margin

CAGR 2009-13

9.2%

Net Income | R$ million

Net Income

Net Margin

CAGR 2009-13

0.4%

2009 2010 2011 2012 2013 LTM3Q14

1,2

66

1,5

26

1,5

03

1,6

17

1,2

84

1,2

35

12.0

%

14.0

%

13.2

%

12.2

%

9.4

%

8.4

%

-3.8%

1) Take into account proportionate consolidation of minorities’ stakes at gencos (+) regulatory assets & liabilities (-) construction revenues (-) non-recurring items.

36

CPFL Energia | Key financial figures – Dividends

Dividend Yield 1 (LTM) Declared dividends2 (R$ Million) 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).

2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14

140

401 498

612 722

842 719

602 606 572 655

774

486

748 758 640

456 363

568

422

8.29 9.43 11.67

15.02 14.13 15.87 17.99 18.05 16.69 15.77 16.51 18.44 20.18 22.05 21.95

26.30 22.95

21.11 19.80 18.35

CPFL has presented payout ratio close to 100% since its IPO, reaching the mark of R$ 11.6 billion distributed. Declaration of dividend for 1S14: R$ 422 million |R$ 0.44/share

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%

4.8% 5.4%

37

Capex(e) 2014-2018 | R$ Million

1,553

1,239 1,235

1) Constant currency Dec/13. Take into account 100% interest on CPFL Renováveis and Ceran (IFRS) 2) Constant currency Dec/13. Considers the proportional stake in the generation projects 3) Conventional + Renewable

1,842

1,505

1,230 1,226

Total: R$ 7,739 million1 (IFRS) R$ 7,213 million2 (Pro-forma)

Distribution: R$ 5,826 million

Generation3: R$ 1,425 million (IFRS) R$ 899 million (Pro-forma)

Commercialization and Services: R$ 488 million

2013 actual(cash flow)

2014 2015 2016 2017 2018

845 875 1,316 1,342 1,153 1,140

513 392

390 80

19 18

53 144

136

83 58 68

845 875 1,316 1,342 1,153 1,140

837 603

637 129

28 27

53 144

136

83 58 68

1,735 1,622

2,089

IFRS

Pro

-form

a

1,410 1,410

38

CPFL Energia | Indebtedness and leverage

2011 2012 2013 1Q14 2Q14 3Q14

10.0

12.6 12.2 12.8 13.2 13.0

2.73 2.89 3.59 3.58 3.44 3.33

Leverage1 | R$ billion

Adjusted net debt1/ Adjusted EBITDA2

3,665 4,377 3,399 3,570 3,830 3,896 Adjusted EBITDA1,2 R$ million

69%

3%

6%

21% CDI

Prefixed (PSI)

IGP

TJLP

Gross debt breakdown by indexer | 3Q14 1,4

Gross debt cost3,4 | LTM

9.4% 7.9%

9.9% 7.3% 7.1%

4.9% 4.4% 4.3% 3.0% 2.4% 3.0% 2.9% 3.0%

17.7%

13.9% 13.4%

12.1% 13.4%

9.4% 10.5% 11.1%

9.0% 8.4% 9.1% 9.7% 9.9%

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

1Q

14

2Q

14

3Q

14

Nominal

Real

1) Financial covenants criteria. 2) LTM recurring EBITDA; 3) IFRS criteria; 4) Financial debt (+) private pension fund (-) hedge.

39

CPFL Energia | Strong and robust liquidity

Cash Short-term 2015³ 2016 2017 2018 2019 2020+

3,822

2,833

170

2,019

2,469

3,077 3,196

2,932

Debt amortization schedule1,2 | Sep-14 | R$ million

Cash coverage:

1.35x short-term amortization (12M)

1) Considers Debt Principal; 2) Covenants Criteria; 3) Amortization from Oct-2015.

Average tenor: 3.81 years

Short-term (12M): 17.0% of total

2 Distribution

3 Generation

Competitive Power Supply and Services 4

Corporate Overview

Agenda

Consolidated financial figures 5

40

6 Sustainability

7 The Electric Sector

1

Sustainability at CPFL: Incorporation of strategic guidelines

41

Energy is essential for

the welfare of people

and the development

of society.

We believe that

producing and using

energy in a

sustainable manner

is vital for the future of

humanity.

Vision

To provide

sustainable energy

solutions with

competitiveness and

excellence, acting in a

manner that is

integrated with the

community.

Mission

• Value Creation

Commitment

• Safety and Quality of

Life

• Austerity

• Sustainability

• Trust and Respect

• Overcoming

• Entrepreneurship

Principles

CPFL Energia is the

largest private group in

the Brazilian electricity

sector which, through

innovative strategies

and talented

professionals, offers

sustainable energy

solutions.

Positioning

CPFL Energia built its Sustainability Platform in 2013 in order to define the issues material to its growth strategy and the development of goals and indicators related to each of these issues at each business unit. The Platform consolidation process covered the company as a whole, meaning that sustainability is not just

an element of our principles and values but included in strategic planning.

Sustainability Platform

Indicators 2013 x 2012

1) index obtained through the survey ABRADEE (value = average value between the distributors CPFL Paulista, CPFL Piratininga, RGE, CPFL Santa Cruz and CPFL Leste Paulista). 2) FR - represents the number of accidents involving time off work in relation to one million man hours worked (106 x total number of accidents involving time off work divided by total Man Hours Worked). 3) DS - represents the seriousness of the injury, i.e. the “non-productive time” per one million man hours worked (106 x total number of days lost + total number) of days debited divided by the total man hours

Emissions Scope 1 and 2 / Net Energy Generated (tCO2e/MWh) - EN15|EN16|EN17 0.08 0.08

Meters and transformers recuperated (%) - EN2 19 & 37 14 & 23

Critical suppliers assessed for sustainability (%) - G4-12 22.2 17.7

Number of strategic suppliers - G4-12 139 124

Energy saved by energy efficiency projects (GWh) - EU7 | EU9 | EU23 36.7 33.3

Satisfaction Index Perceived Quality - ABRADEE (%)¹ 89.4 88.2

Reverse chain - lighting, wooden cross arms, poles, transformers, other materiais (un) - EN1 284.5 350.3

Investments in the Environment (R$ million) - EN31 96 93

Contributions to society – without mandatory investments (R$ million) - EC1 22.0 23.4

Investments in energy efficiency projects for low-income consumers (R$ million) - EN31 35.5 36.3

Degree of Severity (DS)³ - LA6 1,073 415

Frequency Rate (FR)² - LA6 1.77 1.80

42

2 Distribution

3 Generation

Competitive Power Supply and Services 4

Corporate Overview

Agenda

Consolidated financial figures 5

43

6 Sustainability

7 The Electric Sector

1

Energy sector in Brazil: business segments

Consumers

1) Source: ANEEL – November 21, 2014; 2) Source: EPE and CCEE; 3) Source: ONS and Ministry of Mines and Energy (MME) – January , 2014; 4) September, 2014

Free Market

Captive Market

76.6 million consumers

1,785 Consumers4

122 TWh of billed energy2

76.6 million Consumers 350 TWh of billed energy2

Transmission

• 104 Companies³

• 118,105 km of transmission lines³

• Eletrobrás: ~55% of total assets

Distribution

• 63 Companies

• 472 TWh of billed energy2

• Top 5: ~46% of the market

Competitive Power Supply

Generation

• 132 GW of installed capacity1

• 79.2% Renewable energy1

• Eletrobrás: ~31% of total assets

44

Brazilian electricity matrix

1) Source: EPE - National Energy Balance 2013 and 10-year Energy Plan 2023; 2) Others: considers coal, oil, diesel and process gas.

Brazil’s electricity matrix is predominantly renewable, with hydro installed capacity totaling 69% of

the total supply, while biomass, wind and SHPPs account for 14%. In the next years, it is expected

that other sources will grow, mainly wind, reaching 11% of total installed capacity in 2023.

Brazilian Electricity Matrix

125 GW 167 GW 196 GW

2013 2018 2023

Evolution of Installed Capacity (GW) 2013-20231

45

2013 2014 2015 2016 2017 2018

Reserve Energy Auction - LER: Discos are not required to declare contracting needs and generation costs are covered through sector charges

Discos must purchase electric energy to supply their captive market, five years in advance, in public auctions (Regulated Market – ACR)

Discos

Gencos

Mechanics of regulated auctions

A-5 Auction

A-3 Auction

A-1 Auction

• New Energy: Initial supply 5 years after the auction

• Term of contract: 15-30 years

• Objective: Cover discos market growth and finance new generation

• Energy contract limit: no limit

• “Old” or Existing Energy: Initial supply in the following year

• Term of contract: 1-15 years

• Objective: Replace old contracts, maintaining the discos’ contracting level

• Energy contract limit: 96% to 100% of the Replacement Amount (MR)

• “New” Energy: Initial supply 3 years after the auction

• Term of contract: 15-30 years

• Objective: Adjust discos’ contracted energy levels

• Energy contract limit: 2% of the load

46

86

117

11

12

11

20 17

47

Renewables

Other

Natural Gas

Hydro

2023E 2013A

47 1) Abeeólica 2) 10-year Energy Plan 2013-2023 (preliminary); 3) Includes estimates of energy imported from Itaipu HPP, which is not consumed by Paraguay Electric System ; 4) Considers the export of 2/3 of energy produced by the Company.

Unrealized Potential to be Explored in Brazil

Evolution of Brazilian Installed Capacity by

Source2 | GW

Highly Fragmented Market | Renewables

Market Share in Brazil based on contracted

energy (26GW) Wind

Potential: 350GW1

Installed capacity: 3.8GW 1%

SHPP Potential: 17.5GW Installed capacity: 5.0GW

29%

Biomass Potential: 17.2GW¹

Installed capacity: 9.3GW 54%

Potential Realized

4.6% p.a. 196

125

Renewables in Brazil are expected to grow at a CAGR of 10.5%, from 17 GW in 2013 to 47 GW in 2023 and still a highly fragmented market

World’s most attractive alternative energy market

Renova

Energimp

QGER

Brookfield

Cosan

Eletrosul

Gestamp

Elecnor

Other

8.2%

1.3% 6.9% 7.5%

3.6% 2.9% 2.5% 2.4% 2.0% 1,8%

1,6% 67,6%

4 CAGR

0.9%

10.5%

6.5%

3.1% 3

48 48 48

• Selective high quality project development

• Wind projects certified by industry leaders

• Backed by high quality equipment suppliers

• Long term O&M contracts

• Energy generation monitoring and optimization

High Quality Development, Construction and

Operation

Complementarity of Sources Mitigating Risks

jan fev mar abr mai jun jul ago set out nov dezWind (Generation - MWavg) Reservoir Storage

• Reservoir storage at high levels in the first semester while wind energy generation is concentrated in the second semester of the year

CPFL Renováveis benefits from the

complementarity of sources

Wind Portfolio Attractive location due

to high wind speeds

SHPP Portfolio Exposure to

abundant hydro resources

Installed Capacity1

Total: 2,108 MW

Solar

20%

62%

18% 0%

SHPP

Wind

Biomass Solar

Operating:

Hydro

Wind

Biomass

Under Construction: Hydro Wind SHPP Potential (Southeast and Midwest Regions)

Wind Potential (Northeast and South Regions)

Biomass Portfolio Proximity to sugarcane

production centers

Biomass

Region MW

NE 1,234

CW/SE 550

SO 324

Rese

rvoir S

tora

ge (

%)

Win

d G

enera

tion

MW

Diversified and high quality portfolio, delivering superior performance, mitigating risks, ensuring reliable load factors and providing capacity to grow with different sources

CPFL Renováveis | High quality and diversified portfolio

1) To be fully operational by 2018

49

Technology Has Shown Great Improvements in Recent Years | Recently developed technology for

wind power plants allows greater load factors

Europe United States Brazil (NE)

Area 89%

Area 95%

Fre

qu

en

cy

Wind Speed (m/s)

Fre

qu

en

cy

Wind Speed (m/s)

Fre

qu

en

cy

Wind Speed (m/s)

Ideal Wind Speed Ideal Wind Speed

Area 99%

Ideal Wind Speed

1.500kW

1.800kW

80m

3.000kW

100m

70m

750kW

50m

30m

300kW

75kW

17m

1980 -

1990

1990 -

1995

1995 -

2000

2000 -

2005

2000 -

2005

20100

20

40

60

80

100

120

140

160

180

Rotor Diameter (m)

Rating (kW)

Alt

ura

(m)

1.500kW

1.800kW

80m

3.000kW

100m

70m

750kW

50m

30m

300kW

75kW

17m

1980 -

1990

1990 -

1995

1995 -

2000

2000 -

2005

2000 -

2005

20100

20

40

60

80

100

120

140

160

180

Rotor Diameter (m)

Rating (kW)

Alt

ura

(m)

Brazil Europe and EUA

Improved availability

Greater efficiency

Reduced generation

losses

Wind Features in Brazil are the Most Adequate for Power Generation | The average

wind in Brazil (Northeast) has a similar intensity with less variability

CPFL Renováveis | Unparalleled wind conditions combined with top technology

Description Sustainability

50

Natural consequence of projects with lower environmental impact

Environmental & Streamlined

Implementation Process

Faster and simpler environmental process Faster construction cycle

Annual auctions to match growth in energy consumption

Price of energy at the captive market structurally higher than at the free market given regulatory charges

Access to Multiple Sales Channels

Regulated energy auctions and the free market

Long term inflation protected/linked PPA (average 20-30 years)

Special niche in the free market for “special client” (demand between 0.5-3.0MW)

Current special free market of 2.7% (1.6GW) to potential of 9.6% (5.8GW)

Not a sector specific benefit BNDES has been providing support for the sector for

many years

Dedicated Sovereign

Funding Conditions

BNDES Financing Low Cost – average interest rate of 7.0% Long-term funding of 16 years Attractive capital structure

Policies in place since 1996 Not a direct government expenditure/tax break Not applicable for regulated auctions

Discounts on Transmission

Charges

Discount of at least 50% (TUST and TUSD)

Tax regime for small enterprises (annual revenues below R$78 mm), which is not sector specific

REIDI is applicable for all infrastructure projects ICMS/IPI1: discussions on expanding tax incentives to

SHPPs

Favorable Tax Regime and

Fiscal Incentives

“Lucro Presumido” with reduction in the effective tax rate to 5% - 15% from 34%

REIDI (special program of incentives for infrastructure development) - exemption of PIS/COFINS,

Exemption of ICMS (movement tax) and IPI (production tax)

Source: Company ; 1) Tax on revenues

Stable and solid regulatory framework