March, 2013

Corporate

Presentation

November 2016

1

2 2 1) On November 17, 2016; 2) Considering proportional consolidation of generation assets (-) Non-recurring effects; 3) Considering CPFL’s stake on each generation project; considering 87 wind turbines of Campo dos Ventos and São Benedito Wind Complexes.

Company Overview

Largest integrated private player in the Brazilian electricity sector

Market Cap of R$ 24.3 billion1, listed on BM&FBOVESPA – Novo Mercado and on NYSE (ADR Level III)

In LTM3Q16, EBITDA of R$ 3.7 billion2 and Net Income of R$ 1.0 billion2

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 3,234 MW3 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) Bounded shares, according to the Shareholders Agreement; 2) 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; 3) Adjusted by non-recurring items; does not consider the holding company; 4) Commercialization in the free market and Services.

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%2 53.34%

GENERATION 100%

TRADING 100%

Trading4

212

CPFL Energia – Consolidated3| 3,739

LTM3Q16 Adj. EBITDA Breakdown3 | R$ million Concession’s expiration

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

19 SHPPs (CPFL

Renováveis)

HPP Castro Alves

HPP Monte Claro

HPP 14 de Julho

2045

CPFL Santa Cruz

CPFL Jaguari

CPFL Sul Paulista

CPFL Leste Paulista

CPFL Mococa

23.0%1 19.3%1 11.0%1

15.1% 23.6% 29.4% Free Float

31.9%

Conventional Generation

1,337

Distribution 1,682 44%

35%

6%

15% Renewable Generation

551

Corporate Structure | Camargo Corrêa - State Grid Transaction

23.0%1 19.3%1

23.6% 29.4%

Free Float

31.9%

1) Bounded shares, according to the Shareholders Agreement

15.1%

11.0%1

Conclusion of

Transaction

Decision to follow

Previ 09/23/16

Bonaire 09/28/16

Proposal extension to Previ

and Bonaire

R$ 25.00/share

SPA Signature

State Grid Proposal

Due diligence

Current status

Precedent Conditions:

ANEEL Approval

Proposal to acquire the totality of the stake bound to the controlling block

Acquisition of Camargo Corrêa’s

stake (around 23.6% of the total of CPFL Energia)

07/01/16 09/02/16 Term of 30 days 09/02/16

Approved by CADE

on 09/15/16

4 4

Distribution Segment

• 9.1 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) Source: EPE. 5

29% 39%

17% 16%

5 small discos

44%

23%

9%

24% RGE

CPFL Piratininga

3Q16LTM Adj. EBITDA Breakdown

R$ million

CPFL Paulista

Tariff review Sales CAGR by Region1 |

3Q11LTM – 3Q16LTM 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

3Q16LTM Sales Breakdown

GWh

Growth Projects | Synergistic growth with RGE Sul

Results Consolidation

• Balance sheet as of Oct 31st, 2016

• Income statement as of Nov 1st, 2016

First step – 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

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

Expected conclusion of

Integration Plan:

December-17

Completed steps:

Next steps:

Periodic Tariff Review Date: April-18

6

7 7

Generation Segment

• 3,240 MW of installed capacity

• 1,592 MWavg 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

Total: 3.240 MW

62% 6%

7% 6%

19%

HPP TPP

SPP

BIO

WIND

Contracting Level | %

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

8

(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

2Q16 193 Free market -

Current portfolio 2,017

CPFL Renováveis | Track record1

Installed capacity of 2,017 MW

1) Updated until November, 2016 2) Revenue estimated by the terms of the 16th LEN 2013 9

Commercial Start-up

2016-2020(e)

112 MW of installed capacity

61 average-MW

of assured energy

1) Full commercial startup until December 2016; 2) Gradual commercial operation from 1H18; 3) Constant Currency (Sep-16).

Campo dos Ventos and São Benedito Wind Farms

Pedra Cheirosa Wind Farms Boa Vista II SHPP

Commercial Start-up 20161 20182 2020

Installed Capacity 231.0 MW 48.3 MW 26.5 MW

Assured Energy 125.2 average-MW 26.1 average-MW 14.8 average-MW

PPA3 ACL 20 years 18th LEN 2014

R$ 147.24/MWh until 2037

21st LEN 2015 R$ 228.67/MWh

until 2049

Financing BNDES

(approved) BNDES

(under analysis) BNDES

(under analysis)

Growth Projects: Generation | Greenfield projects

Commercial start-up of 92 wind turbines (193.2 MW) until November-16

3 GW pipeline

10

CPFL Energia – Trading & Services

11

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

Incorporation: 2008

Provision of customer relationship services to utility companies:

call center

face-to-face service

back office

credit recovery

ombudsman

help desk and sales

, of which 386 special customers (3Q16

vs. 3Q15: 112%)

current ~ 2.3 GWavg

current ~ 12.6 GWavg

• New activities: and

2015 - 197 transmission contracts

- 12 construction sites

2015 - 11.2 million phone calls

- 2.4 million electronic phone calls

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

Dividends: CPFL has presented payout ratio close to 100% since its IPO, reaching the mark of R$ 11.6 billion distributed4

TSR5: +2.4%

13 13 1) Considering proportional consolidation of generation assets (+) Regulatory assets and liabilities (-) Non-recurring effects (-) Construction revenue/cost. Disregard intercompany transactions. 2) Considering Holding’s EBITDA. 3) Including holding result and amortization of merged goodwill. 4) For 2015, a capital increase through stock dividend was approved in AGM; 5)TSR from Sep-11 to Sep-16 = Dividends +4.5% (+) Stock performance -2.1% = +2.4%.

NET REVENUE1 11,413 13,235 13,681 15,724 18,763 16,796 8.0% -10.5%

Distribution 9,794 10,830 10,716 12,011 15,431 13,320 6.3% -13.7%

Generation 1,351 1,964 2,356 3,164 2,787 2,701 14.9% -3.1%

Trading 1,699 2,031 2,023 2,430 2,093 2,340 6.6% 11.8%

EBITDA2 3,649 4,343 3,908 3,901 3,704 3,739 0.5% 0.9%

Distribution 2,351 2,655 2,211 1,985 1,681 1,682 -6.5% 0.1%

Generation 1,060 1,427 1,643 1,680 1,886 1,887 12.2% 0.0%

Trading 278 287 74 263 173 212 -5.3% 22.5%

NET INCOME3 1,503 1,617 1,304 1,162 1,061 1,041 -7.1% -1.9%

Distribution 1,235 1,356 1,047 867 762 667 -11.6% -12.5%

Generation 721 373 419 309 368 361 -12.9% -1.9%

Trading 164 127 52 168 108 115 -6.9% 5.7%

Key Financial Figures | R$ million

2011 2012 2013 2014 2015 LTM3Q16 CAGR 2011 –LTM3Q16

LTM3Q16 vs. 2015

TOTAL 54.6 56.7 58.5 60.0 57.6 56.0 0.5% -2.7%

Captive 39.9 40.7 41.1 43.2 41.7 40.9 0.5% -2.1%

TUSD 14.7 16.0 17.3 16.8 15.8 15.1 0.6% -4.3%

Energy Sales - Distribution | TWh

CPFL Energia | Operational and Financial figures

Capex(e)1 2016-2020 | R$ Million

1) Constant currency; 2) IFRS – Considers 100% on CPFL Renováveis and Ceran; 3) Pro forma – Considers proportional stakes in the generation projects; 4) Disregard investments in Special Obligations on Distribution segment (among other items financed by consumers); 5) For 2016, just consider November and December 2016; 6) Conventional + Renewable.

Total: R$ 11,053 million3 (IFRS) R$ 10,091 million4 (Pro-forma)

Distribution5: R$ 7,033 million

Generation7: R$ 2,092 million (IFRS) R$ 1,130 million (Pro-forma)

Trading & Services R$ 541 million

1,427

2,853

2,219

1,969 1,991 2,021

IFRS

Pro

-form

a

1,200

2,135 2,027 1,933 1,982 2,014

RGE Sul6: R$ 1,387 million

14

15

3,399 3,736 3,584 3,577 3,764 3,725 Adjusted EBITDA1,2 R$ Million

Nominal

Real

Leverage1 l R$ Billion

Gross Debt Cost3,4 l LTM Gross Debt Breakdown by

Indexer | 3Q161,4

Adjusted Net Debt1

/Adjusted EBITDA2

CDI

Prefixed

TJLP

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

Indebtedness | Financial Covenant Management

16

Cash Short-Term 2017 2018 2019 2020 2020+

5,246

2,363

368

4,954

4,087

1,711

2,848

1) Considers Debt Principal, including hedge; 2) Financial covenant criteria; 3) Amortization from Oct-2016 to Sep-2017

3

Cash Coverage:

2,22x Short term amortization (12M)

Average Tenor: 3.23 years

Short term (12M): 14.5% of total

Debt Amortization Schedule1,2 l Sep-16 | R$ Million

Debt Profile | September, 30 2016

Annex

17

Energy sector in Brazil: business segments

Consumers

1) Source: ANEEL – November, 2016; 2) Source: EPE and CCEE; 3) Source: ONS 4) Source: Ministry of Mines and Energy (MME) – September-16; 5) September-16

Free Market

Captive Market

80.0 million Consumers4

3,229 Consumers5

118 TWh of billed energy2

80.0 million Consumers4

346 TWh of billed energy2

Transmission

• 104 Companies³

• 133,330 km of transmission lines4

• Eletrobrás: ~53% of total assets

Distribution

• 63 Companies

• 461 TWh of billed energy2

• Top 5: ~46% of the market

Competitive Power Supply

Generation

• 149 GW of installed capacity1

• 82.5% Renewable energy1

• Eletrobrás: ~31.4% of total assets

18

Brazilian electricity matrix

1) Source: 10-year Energy Plan 2024; 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

19

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

20

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:

21

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

22

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

23

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

24

Actions

Raising awareness about the strategic

relevance of the Sustainability

Platform

Establishing formal sustainability

targets for internal leaderships

Results - 2015

Integrated platform based on the

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

and medium-term goals

Sustainability goals published on CPFL's

website

Officers and managers have

sustainability goals

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 first edition, in 2005

• 35 companies of 16 industries - Market cap of R$ 967 billion

• Component of DJSI Emerging Markets for the fourth consecutive year

• 86 companies achieved the Dow Jones requirements (17 Brazilian, of which 3 are in the power industry)

• Component of MSCI for the second consecutive year

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

• Transparent reporting of greenhouse gas emissions since 2006

• Best company in Management of Water Resources in Latin America - 2015

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