INVESTOR RELATIONS 42 | YEAR 8 | JANUARY/FEBRUARY 2012

Net Income grows 22.6%In this edition

3New wind farms

4CPFL initiates program focused on technology, operating efficiency and performance management

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Group has new Vice President for Business Development

CPFL Energia’s capital expenditures program for the 2012 to 2016 period calls for R$ 8.3 billion in investments. Of this amount, R$ 2.9 billion will be carried out this year, divided as following: R$ 1.2 billion for distribution; R$ 1.7 for conventional and renewable generation; and R$ 54 million for commercialization and services.

Of the R$ 8.3 billion scheduled for the next five years, most will be earmarked for distribution,

the Group’s main business segment — nearly R$ 5.0 billion, designed to increase quality, support expansion of the network and advance the smart grid program. Generation will receive R$ 3.1 billion, mostly for the conclusion of construction projects currently underway — 25 wind farms, 4 biomass plants and 1 small hydroelectric plant, as well as the maintenance of the existing portfolio. The commercialization and

services segment will receive R$ 230 million.This is a vigorous investment program that has

been especially prepared to sustain the company’s growth plan in the forthcoming years, aligned with its strategic guidelines.

Wilson Ferreira Jr.President of CPFL Energia

The President’s Word

1) Total Net Income. Excluding non-controlling shareholders: 4Q11 = R$ 414 million | 4Q10 - R$ 356 million a) Includes 100% of CPFL Renováveis (consolidated accounting criteria –IFRS)

CPFL executives during the earnings report presentation

4Q11 Earnings - IFRS

Net Revenues

4Q10R$ 3,179

million

4Q11R$ 3,404

million

+ 7.1%

Net Income1

4Q10R$ 362

million

4Q11R$ 443

million

+ 22.6%

EBITDA

4Q10R$ 810

million

4Q11R$ 978

million

+ 20.8%

CPFL President Wilson Ferreira Jr. presented the earnings results for the last quarter of 2011 on March 13. “It was a very good quarter,” he said. Net income was up 22.6%, reaching R$ 443 million. Our sales in the concession area were up 4.9%, whereas sales around Brazil grew 3.6% over the same period.

Expectations for an increase in residential and commercial consumption also are promising. According to the Brazilian Shopping Center Association, through 2013 some 25 shopping centers will be built in the state of São Paulo, of which 14 will be in the CPFL Group’s concession area. In Rio Grande do Sul, projections also are favorable: of the six projects scheduled, two are within the Group’s concession area.

During the conference call, Ferreira Jr. confirmed the interest of the company in new acquisitions in the renewable energy segment. “There is room for and there is interest in the purchase of assets. We are selective: we look at the quality and we think about synergy with regard to management. If the assets are close, management can be unified, which reduces costs,” he said.

CPFL’s CEO also highlighted the distribution of dividends during 2011: some R$ 1,506 million was paid out, representing approximately 95% of net income. And he said he was satisfied with the increase in the price of the company’s shares on the BM&FBovespa: up 34%, whereas the Ibovespa was down -18.1%. On the NYSE, shares rose 25.6% while the Dow Jones Index ended the year with a 5.5% increase and the Dow Jones Br index was down by -20.6%. CPFL also was the private corporation with highest liquidity last year, with R$ 31 million in average daily trading volume, totaling the BM&FBovespa and the NYSE together.

See below the main figures:

370

270

13545

20102011

2012(e)2013(e)

Installed capacity (MW)

Startup of operations

Baldin 45 MWBuriti 50 MW

Formosa 40 MWPedra 70 MWEster 40 MW

Ipê 25 MWAlvorada 50 MW

Coopcana 50 MW

45

135

270

370

Analysts’ RecommendationsA total of 23 financial institutions were providing coverage of CPFL Energia’s

shares at the end of February 2012, with 57% having either a Buy or a Hold recommendation.

You can see the performance of CPFL Energia’s shares for the 12 months ending February 2012 in the chart below, both on the BM&FBovespa (CPFE3) as well as the New York Stock Exchange (CPL), compared to the main benchmark indexes for both exchanges.

CPFL PARTICIPATES IN BTG PACTUAL CONFERENCE The Investor Relations Department (IR) was on hand for the 2012 BTG Pactual XIII CEO Conference, held in February in São Paulo. In a single day, the IR team conducted meetings with 15 investors. Eduardo Takeiti, IR director, Alessandra Munhoz Andretta, IR manager, and Marcelo Souza, CFO of CPFL Renováveis, represented the company at the meetings. Wilson Ferreira Jr., president of CPFL Energia, made a presentation to more than 70 people about the achievements and prospects of the company in the forthcoming years. “The event is a traditional one and has become a !xed item on our yearly calendar. Each year, the number of investments increases, as does interest in our company,” said Takeiti.

ELECTRICITY SECTOR EVENT ON THE AGENDA Also on the investor relations agenda, CPFL Energia participated in the III Electric Sector Conference Brazil organized by Banco Santander in February. President Wilson Ferreira Jr. made a presentation about the company and focused on the growth prospects for the electricity sector as well as, naturally, the company itself. Some 30 investors participated representing the main investment funds in Brazil. Also making presentations at the event were representatives from the EPE, Aneel and other companies in the industry.

Capital Market - Our Market Performance

Source: Economática Variations adjusted per dividends

CPL DJBr20 DJIA

Share Performance NYSE – 12 months

-5.1%

2/28/11 23.12 36,337 12,2262/29/12 32.41 34,473 12,952Var. 40.2% -5.1% 5.9%

40.2% 5.9%22.1%

CPFE3 IEE IBOV2/28/11 20.40 28,124 67,3832/29/12 27.67 34,328 65,811Var. 35.7% 22.1% -2.3%

35.7% -2.3%

Share Performance Bovespa – 12 months

2

Carlos Parcias Jr. took over the job as vice president for Business Development of CPFL Energia in March. The executive holds a degree in Economic Sciences from the Universidade Federal do Rio de Janeiro (UFRJ) and a Master’s Degree in Economics from the Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio).

Parcias Jr. previously was an independent financial consultant focused on M&As,

private equity business structuring and financial consulting for special situations, during which time he conducted more than 20 projects for large organizations.

He previously worked with or for companies such as Icatu Gestão de Participações, Banco Fleming, BBA Creditanstalt Bank, JPMorgan, BNDES and Camargo Corrêa Investimentos em Infraestrutura.

New Business Development VP

370

270

13545

20102011

2012(e)2013(e)

Installed capacity (MW)

Startup of operations

Baldin 45 MWBuriti 50 MW

Formosa 40 MWPedra 70 MWEster 40 MW

Ipê 25 MWAlvorada 50 MW

Coopcana 50 MW

45

135

270

370

Capital Market - Our Market Performance

CPL DJBr20 DJIA

Share Performance NYSE – 12 months

-5.1%

2/28/11 23.12 36,337 12,2262/29/12 32.41 34,473 12,952Var. 40.2% -5.1% 5.9%

40.2% 5.9%22.1%

CPFE3 IEE IBOV2/28/11 20.40 28,124 67,3832/29/12 27.67 34,328 65,811Var. 35.7% 22.1% -2.3%

35.7% -2.3%

Share Performance Bovespa – 12 months

3

New wind farms

In February 24, CPFL Renováveis acquired all of the quotas of “Bons Ventos Geradora de Energia S.A” and its four wind farms in operation on the coast of Ceará, with installed capacity of 157.5 MW. The company will pay R$1,062 million for the Taíba Albatroz, Canoa Quebrada, Bons Ventos and Enacel wind farms, of which R$ 600 million is for the sellers; it also will assume R$ 462 million in debt. The Taíba facility began operating in the fourth quarter of 2008 and the others started operations during the !rst quarter of 2010. The total amount of assured power of the four wind farms already has been sold for a 20-year period to Eletrobrás, through the PROINFA program (R$ 290.50/MWh using December 2011 as the base date).

“The acquisition represents an important step in the strategic growth of CPFL Renováveis and consolidates us as one of the main wind power operators in Brazil,” said Miguel Saad, president of CPFL Renováveis.

Through this new acquisition, CPFL Renováveis will own a portfolio of eight wind farms in commercial operation (all of them in the state of Ceará), totaling 367.5 MW. Another 25 farms farms are under construction, in the states of Rio Grande do Norte, Rio Grande do Sul (the Eólico Atlântica Complex, recently acquired from Cobra Instalaciones Y Servicios S.A.), with installed capacity of 670 MW and startup scheduled by 2014.

CPFL Renováveis acquired, on March 9, 100% of the electric power co-generation and steam assets of SPE Lacenas Partipações Ltda., a subsidiary of Usina Açucareira Ester. With this new acquisition, the company has now reached a total of eight biomass co-generation projects in its portfolio.

Usina Ester is located in Cosmópolis, in upstate São Paulo. The installed capacity totals 40 MW and the power injected is limited to 30 MW. Some 7 average MW of co-generation power from the plant already were sold through the alternative sources auction in 2007 and the remainder will be sold on the free market.

The investment in the deal totaled

R$ 111,5 million. The transaction calls for CPFL Renováveis to make further investments to increase the production and co-generation efficiencies of the plant, going from 11 average MW (2012) to 16.3 average MW (2016) in volume of exportable power. It should be noted that the transfer of shares still is conditioned to approval in advance by Aneel and the other appropriate regulatory authorities.

As a result of the new acquisition, CPFL Renováveis has reached 175 MW of power rating through four biomass plants. Under construction or another for plants totaling 195 MW of installed capacity that are scheduled to start up operations by 2013.

In commercial operation 849.5 MWWind Farms 367.5 MWSHPPs 307 MWBiomass TPPs 175 MWUnder construction 885 MWWind Farms 670 MWSHPPs 20 MWBiomass TPPs 195 MWPortfolio for development 2,704 MW

CPFL Renováveis Portfolio

CPFL Renováveis announces another acquisition

Taíba Albatroz, in Ceará,

a CPFL Renováveis

wind farm

44

CPFL INVESTOR is a publication of the Investor Relations Department of CPFL Energia, published by the Corporate Communication and Institutional A"airs Department, Rodovia Campinas Mogi Mirim, Km 2.5 - Jd. Santana - Campinas/SP, Zipcode 13.088-900. Phone: (19) 3756-8197 Fax: (19) 3756-8040 – Vice President for Finance and Investor Relations O#cer: Lorival Nogueira Luz Jr., IRM Director: Eduardo Atsushi TakeitI, IRM Manager: Alessandra Maria Mazia Munhoz Andretta, Corporate Communications O#cer: Augusto Rodrigues, Journalism Manager: Carlos Henrique Matos Ramos (MTb 19.163). Content, Editing and Design: Produção Coletiva - website: Investor Relations: www.cp$.com.br/ir - e-mail:ri@cp$.com.br.

CPFL begins program focused on technology and operating efficiency

During the year it is commemorating the centennial of the distribution company that originated the group, CPFL Energia is emphasizing investments through an innovative program focused on technology, the management of assets, the management of performance and leadership, seeking to improve operating performance and client service quality.

The proposal of the Tauron program, in the first stage of R$ 215 million in investments through 2013, is to reduce network interruptions and time taken to resolve occurrences of power outages, the optimizing of service logistics for

field teams and the merging of the meter reading-billing-bill delivery process, generating benefits for consumers and for the company.

“The initiative incorporates the best practices of power companies from Europe, Asia and the United States, in order to deliver innovation and additional efficiencies through the CPFL Group,” said program director Heider Araújo.

The program’s most immediate action is to apply smart grid technology by installing 25,000 intelligent meters in Group A consumer units (large power consumers), seeking the automation of services, remote management, improved consumer

interface, outage m a n a g e m e n t , revenue protection and cost reductions.

For clients of CPFL Piratininga, the Tauron program will implement in March its Bill via E-mail service. By the end of the year, consumers of the CPFL Paulista, CPFL Jaguari, CPFL Leste Paulista, CPFL Mococa and CPFL Sul Paulista distribution companies will have the same service. This action will make it possible to substitute paper for electronic means of payment, reducing operating costs and contributing to the preservation of the environment.

The CPFL Group this year is commemorating the 10th anniversary of the publishing by the Ethics Committee of its Code of Ethics and Business Conduct, considered a point of reference document in Brazil.

The first version of the Code, launched in 2002, was updated in 2006 in light of the recommendations of the Sarbanes-Oxley Act, and will be revised again this year to contain contributions from employees based on meetings to be held to discuss possible changes and to add them to this important document.

CPFL’s Code of Ethics and Business Conduct is comprised of ethical principles and guidelines for conduct, including elements that are essential that must be present in the relations that the companies of the Group maintains with its different stakeholders: shareholders, clients, employees, suppliers, service providers, competitors, government, community and society.

Adhesion and compliance with these principles and guidelines are essential conditions for behavior in the Group’s companies. As a result, the company runs a dissemination program regarding the Code

for all employees. In November 2011, the code was implemented at CPFL Renováveis and in March of this year it will be the turn of EPASA - Centrais Elétricas da Paraíba.

To read the CPFL Energia Code of Ethics, please access: http://www.cpfl.com.br/etica.

CPFL’s Code of Ethics completes 10th anniversary

Heider Araújo, Tauron director: “We’ve

brought best practices to CPFL”