merrill lynch bahia all-in-one pan-latam conference*

Summary

Balanço dos 3 anos de IPO

Brazilian Electricity Sector

CPFL Energia – Performance in the Capital Markets

CPFL Energia – Highlights and Results

2

Spreading proposes consolidation opportunities

Distributors (#) 64

2006

59.1

347.4

Clients (million)

Distributed Energy (TWh)

Distribution Business:

Brazilian market has 64 distribution’s companies

Market Breakdown

The 5 largest groups have 50% of market-share

State-owned companies: 34%

Private Company: 66%

1) 1Q07Source: Aneel – Installed capacity: PDEE 2007-2016 Market breakdown: Acende Brasil

Distribution Market Share1 %

COPEL 6.7%

CELESC 4.8%

EdB 5.7%

ENDESA 4.2%

Ashmore Energy3.7%

Others 33,1%

CPFL Energia 13.8%

Brasiliana Energia 12.1%

CEMIG Companhia Energética 8.6%

Neoenergia7.3%

3

4

Generation Companies (#) 1,660

2006

104,822Installed Capacity(MW)

Generation Business:

Brazilian market has 1,600 generation companies. The public sector concentrates 72% of the assets

Market Breakdown

The 5 largest groups have 50% of the market

State-owned companies: 72%

Private Company: 28%

Source: Aneel – Installed capacity: PDEE 2007-2016Market breakdown: Acende Brasil

Generation Market Share %

Others 35%

Chesf 10%

Furnas 9%

Eletronorte 9%

CESP 7%Itaipu 7%

Cemig 6%

Tractebel 6%

Copel 4%

AES Tietê 3%

Duke 2%

CPFL Energia 2%

4

Summary





6

7

Since 1997, CPFL Energia has developed an aggressive strategy of growth in distribution, generation and commercialization of energy

1998 2002 2004 200620001997 2001 2005 20072003

IPO

CPFLJaguariúna1

1) Old company name: CMS Energy Brasil

Recent Acquisitions:

• CPFL Jaguariúna1 in Apr/07

• CPFL Santa Cruz 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

• CPFL Sul Centrais Elétricas in Nov/05

• CPFL Paulista’s Privatization

• Acquisitions: 12 companies

• Creation of 2 companies

• Spin-off and Restructuring: 5 companies

• Generation projects: 6 HPP (hydroelectric power plant)

7

The solidity achieved by CPFL reflects its operational efficiency and the quality of the markets in which it operates

8Distribuitors (#)

46.4751Concession Area Sales (GWh)

6.3Customers (million)

13,8Market Share (%)

208Concession Area (in thousand km2)

568Municipalities

Distribution – 2007

8 Includes CMS 1) TUSD + Captive. Excludes CCEE sales.8

Strong growth in distribution: organic and by acquisitions

1.6 p.p.13.8%0.8%0.8%12.2%Market Share

33,2483

5,411

165,8272

523

IPO – Sep/041

4,282

459

15,332

-

Organic Growth

2,866

350

14,196

45

Growth by Acquisition

46,475

6,256

196,749

568

Dec/07

39.8%Concession Area Sales -Year (GWh)

15.6%Customers (thousand)

18.6%Distribution Network (km)

8.6%Municipalities (#)

Var. %

1) Considers 100% of RGE, except for Concession area Sales 2) Data basis: Jun,043) Considers 67.07% of RGE Note: Concession Areas Sales (TUSD + captive market)

• May/06 – Acquisition of 32,69% stake of RGE• Oct/06 – Acquisition of Cia. Luz e Força Santa Cruz• Apr/07 – Acquisition of CMS Energy Brasil

• Companhia Paulista de Energia Elétrica• Companhia Jaguari de Energia• Companhia Sul Paulista de Energia• Companhia Luz e Força Mococa

• Aug/07 – Acquisition of CERFRA’s assets

Operations in SP and RS States Operations in SP, RS, PR and MG States

IPO (Sep/04) – Distribution: 3 companies Sep/07 – Distribution: 8 companies

(67.07%)

DISTRIBUTION

9

CPFL Energia: Distribution Business

Net Revenue – R$ billion EBITDA – R$ billion

1.2951.595

2.0112.472

2004 2005 2006 2007

323

756

1.073

1.380

2004 2005 2006 2007

6.35.75.65.5

2004 2005 2006 2007

Net Income – R$ billion Nº Customers – in million

327%

91%

15%

DISTRIBUTION

5.804 6.3237.060

8.382

2004 2005 2006 2007

44%

10

Construction and repowering of power plants in line with the generation growth strategy

Generation – 2007

33SPPs (#)

2HPPs (#)

9HPPs (#)

2,174Installed Capacity until 2010 (MW)

257 Assured Energy (MWmedium)

501Installed Capacity (MW)Under Construction

842Assured Energy (MWmedium)

1,673Installed Capacity (MW)

In operation

GENERATION

Campos Novos HPP CPFL Sul Centrais ElétricasCastro Alves HPP

11

Construction and repowering of power plants in line with the generation growth strategy

GENERATION

33

SPP'sHPP Monte

ClaroHPP Castro

AlvesHPP 14 de

Julho

CPFL Ownership (%) 100% 51,54% 25,01% 48,72% 6,93% 65% 65% 65% 51%

Installed capacity (MW) 147 657 173 429 63 85 85 65 436

Assured energy (MWmedium) 75 346 95 184 36 38 42 33 220

Commercial start-up (year) 1Q08 3Q08 2010

HPP Campos Novos

HPP Serra da

MesaPower Plant

HPP Lajeado

Complexo Ceran

in operation

HPP Foz do

Chapecó

HPP Barra

Grande

* Installed Capacity and Assured Energy related to CPFL´s stake. 12

in operation 4Q08

CPFL Energia: Generation Business

313393

511

663

2004 2005 2006 2007


282345

437545

2004 2005 2006 2007

71117

165

282

2004 2005 2006 2007

Net Income – R$ billion

297%

112% 93%

GENERATION

13

Expansion and consolidation of commercialization business

1) Consolidated commercialization business: Jan – Aug, 07

Commercialization office | Campinas | SP

Commercialization – 2007

74Distributors’ origin

23Market Share1 (%)

17Outside concession area

91Free clients

Commercial Expertise: Competitive performance in energy free market and in Value Added

Services – VAS’

14

COMERCIALIZATION

Commercial Expertise

Competitive operations in the free market

Value added services’ sales

1) Excludes CCEE and intercompany transactions

Number of customers in the free market

Market-share(%)

Free marketsales (GWh)1

VAS’ Revenue(R$ million)

117%

9142

IPO – Sep/04 2007

4 p.p.

2319

IPO – Sep/04 2007

179%

8,9513,209

2004 2007

136%

3314

2004 2007

Expansion and consolidation of commercialization business

15

Commercialization Business

783

1.227

1.578 1.612

2004 2005 2006 2007


152225

276

357

2004 2005 2006 2007

102154

188241

2004 2005 2006 2007


136%

106%135%

COMERCIALIZATION

16

CPFL Energia - Results

6.2276.992

7.9129.410

2004 2005 2006 2007


1.6812.120

2.7893.345

2004 2005 2006 2007

279

1.0211.404

1.643

2004 2005 2006 2007


489%

51%

99%

18

Differentiated Corporate Governance: commitment with the best practices

Shares lited on the Bovespa’s Novo Mercado and ADR Level III – NYSE

100% common shares with 100% tag along

Free Float above 25%

Subsidiaries’ Bylaws aligned with CPFL Energia’s Bylaws

Annual Report in compliance with the Global Reporting Initiative – GRI

Ethics Code aligned with Sarbanes Oxley Law’s recommendations

1 Independent Director

3 Commitees supporting the Board: Process Management, Human Resources and Related-Parties Committees

Dividend policy of minimum 50% semi-annually

Disclosure and Trading of Securities Policies

24

Summary





25

594 one-on-one meetings... almost 1 meeting per business day

Listed on the main indexes

IPO 2005/2006 2007

CPFL Energia has consolidated its participation in the capital markets

MSCI Index

+ +

Events since the IPO

Transparency and capital market proximity

• 37 APIMEC’s meetings – 12 per year• 35 Conferences – 17 local and 18 international• 19 Teleconferences and Webcast Results

Sell side coverage# of institutions

2004 2005 20077 14 24

200622

28

Market Recognition

• 1st place in Corporate Governance – Latin America Electric Utilities – 2004

• 2nd place in Investor Relations – Latin America Electric Utilities – Sell Side – 2004

• 2nd place in Investor Relations – Latin America Electric Utilities – Buy Side – 2004

• Best Publicly-traded Company – 2004

• CPFL Energia – Deal of the Year in Latin America 2004 – Equity Category

• Quality Award – Best 2005 and 2007 Presentation

• ExpoMoney 2006 Award – Respect to Individual Investor

• Special Mention Expomoney Circuit 2006

• ABERJE 2006 “Investor Relations”• ABERJE 2006 and 2007: “Company of the Year in

Corporate Communication”

• 8th Best Company to Invest in – 2006• 9th ABRASCA Award – Annual Report

2007 Edition – 5th place

• Honorable Mention – Best Investor Relations in IPO

• Best Investor Relations Performance by a CEO/CFO

• Honorable Mention – Best Corporate Governance

• Honorable Mention – Best Corporate Governance

• Best Conference Call• Best Investor Relations Program

(large cap)

merrill lynch bahia all-in-one pan-latam conference*

Documents

brazilian market

marketsharecpfl energia

generation companies

ipo cpfl energia highlights

distribution market

companies cpfl santa

generation market share

market cesp