March, 2013

Corporate

Presentation

May 2017

1

2 2 1) On May 12, 2017; 2) Considering CPFL’s stake on each generation project.

Company Overview

Largest integrated private player in the Brazilian electricity sector

Market Cap of R$ 26.5 billion1, listed on BM&FBOVESPA – Novo Mercado and on NYSE (ADR Level III)

In LTM1Q17, EBITDA of R$ 4,287 million and Net Income of R$ 879 million

Presence concentrated in the most developed regions of Brazil

Leadership in distribution through 9 subsidiaries and a 14.3% market share

3rd largest private generator with 3,258 MW2 of installed capacity, of which 94% from renewable source

Leader in Renewable Energy in Brazil with the largest capacity in operation

One of the most profitable operations of energy Trading and a world-class provider of Value-Added Services

Power Plants

3 3 1) 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; 2) CPFL Energia holds a stake in RGE Sul through the CPFL Jaguariúna.

Company Profile

Lajeado HPP

5.94%

Nect Serviços/Authi

CPFL Centrais Geradoras

DISTRIBUTION 100%

SERVICES 100%

RENEWABLES 51.61%

65% 48.72% 51%

25.01%

Serra da Mesa HPP

51.54%1 53.34%

GENERATION 100%

TRADING 100%

Commercialization, Services & Others

213

CPFL Energia – Consolidated | 4,287

LTM1Q17 EBITDA Breakdown | R$ million Concession’s expiration

2045

CPFL Santa Cruz

CPFL Jaguari

CPFL Sul Paulista

CPFL Leste Paulista

CPFL Mococa

Free Float

45.4%

Conventional Generation

1,141

Distribution 1,870

44%

27%

5%

25% Renewable Generation

1,062

54.6%

2

CPFL GD

2027 2028 2032 2035 2036

CPFL Paulista

CPFL Piratininga

HPP Luis Eduardo

Magalhães

HPP Campos Novos

HPP Foz do Chapecó

RGE HPP Serra da

Mesa2 HPP Barra

Grande

RGE Sul HPP Castro

Alves

19 SHPPs (CPFL

Renováveis)

HPP Monte Claro

HPP 14 de Julho

Distribution Segment

• 9.3 million customers

• 679 municipalities

• Footprint: most developed regions

• High potential in per capita consumption

• Market size: 56.6 TWh/year

1st Market share: 14.3%

Industrial

Commercial

Residential

Others

1) RGE Sul (Nov-16/Mar-17); 2) Source: EPE; 3) Excluding RGE Sul (Nov-16/Mar-17). 4

29% 37%

17% 17%

5 small discos + RGE Sul1

44%

14%

17%

25%

RGE

CPFL Piratininga

LTM1Q17 EBITDA Breakdown

R$ million

CPFL Paulista

Tariff review Sales CAGR by Region2,3

2012 – LTM1Q17 4th Tariff Review Cycle

CPFL Piratininga Oct-15

CPFL Santa Cruz

Mar-16

CPFL Leste Paulista

CPFL Jaguari

CPFL Sul Paulista

CPFL Mococa

CPFL Paulista Apr-18

RGE Sul Apr-18

RGE Jun-18

LTM1Q17 Sales Breakdown

GWh

Growth Projects | Synergistic growth with RGE Sul

Debt restructuring: debentures issue in the amount of R$ 1.1 billion (Cost: 114.50% of CDI and term of 4 years)

Acquisition funding: debentures issues in CPFL Energia (R$ 620 million) and in CPFL Brasil (R$ 400 million) (Cost: 114.50% of CDI and term of 4 years)

Completion of the acquisition of AES Sul

Change of the corporate name to RGE Sul Distribuidora de Energia S.A.

Election of the new members of the Board of Directors and of the Board of Executive Officers

Results Consolidation

• Balance sheet as of Oct 31st, 2016

• Income statement as of Nov 1st, 2016

Completed steps:

Periodic Tariff Review Date: April-18

5

Development of the Integration Plan

• Diagnosis step and implementation of the Integration Plan

• Sharing of the best practices, processes and technologies adopted in the distribution companies of CPFL Group, as well as from RGE Sul to the other companies

• Improvement action plan in the quality of services established by

ANEEL

Expected conclusion of

Integration Plan:

Dec-17

Next step:

6 6

Generation Segment

• 3,258 MW of installed capacity

• 1,602 avg-MW of physical guarantee

• Long Term Concessions

• Brazil’s largest Portfolio in Alternative Energy

• Renewable Sources: 94%

3rd Market share: 2.2% Installed Capacity | %

• Contracted portfolio in the long term with low risk exposure

• Agreements average price: R$219/MWh

• Agreements average tenor: 12.9 years

Contract Profile

62% 5%

7%

6%

20%

HPP TPP

SHPP

BIO

WIND

Contracting Level | %

Total: 3,258 MW

2017 2018 2019 2020 2021

100% 100% 100% 98% 98%

2,3% 2,3%

Contract Energy Available Energy

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% 53.34%

657.1 84.5 172.5 428.7 62.5 84.5 65.0 436.1 182.2

345.8 38.4 95.2 184.1 36.5 41.6 32.5 220.3 132.1

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 | 2,199 MW of installed capacity

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

7

(MW)

CPFL Renováveis (Aug-11) 652

2Q12 25 Free market -

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

2Q12 155 PROINFA Acquisition price: R$ 1,062 million

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

4Q12 40 Auction and free market Acquisition price: R$ 111.5 million

4Q12 1 Free market -

4Q12 20 Alt. Sources auction Revenue(e): R$ 112 million/year

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

4Q13 30 Reserve auction Revenue(e): R$ 18.5 million/year

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

1Q14 14 PROINFA Acquisition price: R$ 103.4 million

1Q14 120 Alt. Sources auction Revenue(e): R$ 76.7 million/year

2Q14 78 Alt. Sources auction Revenue(e): R$ 52.6 million/year

3Q14 278 - Partnership with Dobrevê

2Q15 29 Reserve Auction Revenue(e): R$ 17.9 million/year

2Q16 24 Free market Revenue(e): R$ 18.1 million/year

4Q162 231 Free market -

Current portfolio 2,054

CPFL Renováveis | Track record Installed capacity of 2,054 MW

1) Revenue estimated by the terms of the 16th LEN 2013; 2) Gradual commercial start-up since 2Q16. 8

Growth Projects: Generation |Greenfield projects

9

Commercial Start-up

2018-2020(e)

75 MW of installed capacity

41 average-MW

of assured energy

Pedra Cheirosa Wind Farms Boa Vista II SHPP

Commercial Start-up 20181 2020

Installed Capacity 48.3 MW 26.5 MW

Assured Energy 26.1 average-MW 14.8 average-MW

PPA2 18th LEN 2014 R$ 156.50/MWh until 2037

21st LEN 2015 R$ 225.53/MWh

until 2049

Financing BNDES and BNB (under analysis)

BNDES (under analysis)

3 GW pipeline

1) Gradual commercial operation from 1H18; 2) Constant Currency (Mar-17).

Launch of the Solar Generation Company

10

Solar energy. From generation to generation.

Inaugurated on May 2,

Envo offers clean and

renewable energy and a

reduction of up to 95%

in the energy bill of its

customers

Envo offers solution for families to be able to generate solar electricity at home and, thus, obtain a significant savings in the energy bills.

The solution delivers a project that evaluates the individual potential of each residence, management of the homologation with the local distributor,

supply and installation of all necessary equipment.

The Solution

Area of activity

In this first moment, the sales efforts and the initial focus of action of Envo will be the cities of the region of Campinas, Sorocaba, Jundiaí and

surroundings. The company already has plans to expand in other locations in the state.

690 free clients (2016 vs. 2015: 180%), of which 616 special clients (2016 vs. 2015: 224%)

Special client market: current ~ 2.5 avgGW

Competitive client market: current ~ 12.4 avgGW

Nationwide outreach

Synergy with CPFL Renováveis

New activities: Energy Efficiency and Retail Commercialization

Foundation: 2006

Offers a wide range of value-added services:

Engineering projects for transmission and distribution grids

Equipment maintenance and recovery

self-generation grids

Collection of utilities’ bills through an established authorized network

CPFL Energia – Commercialization & Services

11

2016 - 182 transmission contracts

- 17 construction sites

Foundation: 2012

Management of partnership with companies that use the energy bill to collect their services

Main services charged to the energy bill: affinity insurance, newspaper, discount cards, funeral plans, health plans, water purifier, etc

More convenience to customers, especially for those who do not have a bank account

Increased loyalty of payments and less delinquency for the business

2016 - 40 partners companies - 10 million collection

Foundation: 2008

Provision of customer relationship services to utility companies:

Call center

Face-to-face service

Back-office

Credit recovery

Ombudsman

Help desk and sales

2016 - 10,7 million phone calls

- 48,9 million speaking time minutes

CPFL Energia Strategy

• Be a benchmark in sustainability

• Maintain the highest levels of Corporate Governance

• People management, promoting workplace safety and respect to diversity

• Be the leader in operating efficiency by investing in technology, automation and innovation

• Act on both institutional and regulatory fronts to ensure sustainability of the sector

• Focus on technical services, through technology and productivity

• Mitigate risks of services by hiring qualified labor and suppliers

• Maximize value in the Free Market and be recognized for its profitability

• Expand the presence in retail through acommercial front and customer energy management

• Add new products to energy Commercialization

• Grow while creating value through acquisitions and new projects

• Be the leader in operating efficiency in the Renewable Energy segment

• Operating Efficiency with Innovation & Technology

• Act in both institutional and regulatory levels

• Strategic Growth

Distribution Generation Renewable Commercialization Services

12

13 13 1) Includes Holding’s EBITDA. EBITDA is calculated from the sum of net income, taxes, financial result, depreciation/amortization, as CVM Instruction no. 527/12; 2) Including Holding result and amortization of merged goodwill.

2012 2013 2014 2015 2016 LTM1Q17 CAGR 2012 –LTM1Q17

LTM1Q17 vs. 2016

Distribution 12,398 11,568 13,665 16,968 15,040 15,975 5.2% 6.2%

Generation 2,350 1,943 2,437 2,582 2,676 2,793 3.5% 4.4%

Trading & Serv. 2,031 2,031 2,497 2,094 2,487 2,694 5.8% 8.3%

EBITDA1 3,436 3,547 3,761 4,142 4,126 4,287 4.5% 3.9%

Distribution 1,914 2,115 2,180 2,144 1,845 1,870 -0.5% 1.4%

Generation 1,674 1,378 1,343 1,893 2,093 2,203 5.6% 5.2%

Trading & Serv. 289 74 263 173 241 265 -1.8% 9.9%

NET INCOME2 1,207 949 886 875 879 879 -6.2% 0.0%

Distribution 958 853 948 626 407 335 -18.9% -17.6%

Generation 361 261 -48 226 364 443 4.2% 21.6%

Trading & Serv. 130 52 168 140 166 170 5.5% 2.1%

Key Financial Figures | R$ million

2012 2013 2014 2015 2016 LTM1Q17 CAGR 2012 –LTM1Q17

LTM1Q17 vs. 2016

TOTAL 56.7 58.5 60.0 57.6 57.0 59.6 1.0% 4.5%

Captive 40.7 41.1 43.2 41.7 41.3 42.8 1.0% 3.7%

TUSD 16.0 17.3 16.8 15.8 15.7 16.7 0.9% 6.6%

Energy Sales - Distribution | TWh

CPFL Energia | Operational and Financial figures

14

Indebtedness | Financial Covenant Management

Adjusted EBITDA1,2 R$ million

Nominal

Real

Leverage1 l R$ billion

Gross debt cost3,4 l LTM Gross Debt Breakdown by

Indexer | 1Q171,4

Adjusted Net Debt1

/Adjusted EBITDA2

CDI

Prefixed

TJLP

3,399 3,736 3,584 4,117 4,192

1) Financial covenants criteria; 2) LTM recurring EBITDA; 3) Adjusted by the proportional consolidation since 2012; 4) Financial debt (-) hedge

Inflation

15

Debt Profile | March 31, 2017

1) Considers Debt Principal, including hedge; 2) Financial covenants criteria; 3) Short-term (Apr-17 – Mar-18) = R$ 3,441 million.

Debt amortization schedule1,2 l Mar-17 | R$ million

Cash Coverage:

1.39x Short term amortization (12M)

Average tenor: 2.80 years

Short term (12M): 18.9% of total

4,510

Short-term3

Long-term

Annex

16

Energy sector in Brazil: business segments

Consumers

1) Source: ANEEL – Mar-17; 2) Source: ONS ; 3) Source: Ministry of Mines and Energy (MME) – Dec-16; 4) Source: EPE and CCEE; 5) Dec-16.

Free Market

Captive Market

80.0 million Consumers3

3,229 Consumers5

118 TWh of billed energy4

80.0 million Consumers3

346 TWh of billed energy4

Transmission

• 104 Companies2

• 133,330 km of transmission lines3

• Eletrobrás: ~53% of total assets

Distribution

• 63 Companies

• 461 TWh of billed energy4

• Top 5: ~46% of the market

Competitive Power Supply

Generation

• 152 GW of installed capacity1

• 81% Renewable energy1

• Eletrobrás: ~31% of total assets

17

Brazilian electricity matrix

1) Source: 10-Year Energy Expansion Plan - PDE 2024 (current plan), published in Dec-15; 2) Others: considers coal, oil, diesel and process gas; 3) Abeeólica.

Brazil’s electricity matrix is predominantly renewable, with hydro installed capacity totaling 68% of the

total supply, while biomass, wind, SHPPs and solar account for 16%. In the next years, it is expected that

other sources will grow, mainly wind and solar, reaching 12% and 3% respectively of total installed

capacity in 2024.

Brazilian Electricity Matrix

133 GW 206 GW

2014 2024

18

Wind Potential: 350GW3

Installed capacity: 3.8GW 1%

SHPP Potential: 17.5GW Installed capacity: 5.0GW

29%

Biomass Potential: 17.2GW

Installed capacity: 9.3GW 54%

Potential Realized

Potential to be Explored in Brazil

Evolution of Installed Capacity (GW) 2014-20241

19

Smart distribution was a key theme addressed by the Project

"Energy in the City of the Future"

• The smart grid technology will provide increased network monitoring capabilities and greater quality and commercial opportunities

• Smart Grids will boost the amount of information available, which will be used in innovative ways to optimize operations and services

Smart Grid | The Future of Distribution

Vision of the Future of Distribution is directly associated with Smart Grids:

20

Emergency Dispatch

The past:

The future:

System intervention or self-healing

Automatic failure detection Real-time information for customers

Intelligent meter

• Reduced unnecessary travel;

• Shorter average service;

• Reduced SAIDI (optimization of possibilities of network maneuvering);

• Greater customer satisfaction (real-time information);

• Optimization of service to nearly 600,000 tickets every year.

Gains

21

Reading and Delivery

Reading Energy bill Delivering the bill Payment

Making the payment Smart Metering Center and/or automatized

software

Data network Intelligent meters

Bill via e-mail and/or app

(cons. manag.)

The past:

The future:

• Greater employee safety (reduced travel and exposure to risk)

• Data gathering from load curve and customer consumption profile;

• More sustainable process (reduced use of paper).

Gains

Sustainability at CPFL: Incorporation of strategic guidelines

22

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

Actions

Raising awareness about the strategic

relevance of the Sustainability

Platform

Structuring a Climate Platform

Results - 2016

Integrated platform based on the

strategic plan, with 6 themes, 17 leverages, 91 indicators and short

and medium-term goals

Development of projects directed to the

Brazil's Nationally Determined

Contribution (NDC), such as carbon

pricing, financing and climate risks

Recognition

Welfare Until 1999

Social Responsibility 2000 to 2006

Corporate Sustainability Added to business from 2007

Level of incorporation of the theme Sustainability

Increasingly more comprehensive concept of responsibility

CPFL Energia | Sustainability

• Component of ISE since its 1st edition, in 2005

• 40 companies of 19 industries - Market cap of R$ 1.2 trillion

• Component of DJSI Emerging Markets for the 5th consecutive year

• 95 companies achieved the Dow Jones requirements (13 Brazilian, of which 2 are in the power industry)

• Component of MSCI for the 2nd consecutive year

• Formed by companies with the highest ESG1 standards in their industries

• Transparent reporting of greenhouse gas emissions since 2006

• Component of ICO2 since 2016 • 31 shares of 29 companies - Market cap of R$ 1.4 trillion

23 1) Environmental, Social and Governance .