2. Summary
Energy market overview
CPFL Energia – Highlights and Results
2
3. Brazilian market has 64 distribution’s companies
Market Share1 (%)
Distribution Business – 2007
CPFL Energia 13%
Distributors (#) 64
Brasiliana Energia 12%
Clients (million) 61 Cemig 9%
Distributed Energy (TWh) Neoenergia 8%
376.9
Copel 7%
EdB 6%
Market Breakdown
Celesc 5%
• The 5 largest groups have 50%
of market-share Ashmore Energy 4%
• State-owned companies: 34% Energisa 2%
• Private Company: 66% Others 35%
Spreading proposes consolidation opportunities
33 1) ANEEL – Ref. 1Q08 annualized (Recalculation of CPFL’s participation)
4. Brazilian market has 1,695 hydroelectric plants. The public sector
concentrates 70% of the assets
Market Share (%)
Generation Business – 1Q08
Chesf 10%
Hydroelectric plants (#) 1,695 Furnas 9%
Eletronorte 9%
Installed Capacity (MW) 108,852
Cesp 7%
Itaipu 7%
Cemig 6%
Market Breakdown Tractebel 6%
Copel 4%
• The 6 largest groups have 50%
Petrobrás 4%
of the market
AES Tietê 3%
• State-owned companies: 70% Duke 2%
• Private Company: 30% CPFL Energia 2%
Others 31%
4th largest private generation company in Brazil
44 Source: Aneel – last information available Market breakdown: Acende Brasil
5. Summary
Energy market overview
CPFL Energia – Highlights and Results
5
6. CPFL Energia – Highlights
• Brazilian’s largest player in distribution and commercialization
businesses
• Energy market is concentrated in the most developed regions of Brazil
(South/Southeast)
• CPFL is listed in the Novo Mercado in Bovespa and ADR level III in
NYSE
• Differentiated Dividend Policy: payment of 50% of the net income on a
semi-annual basis
• 100% hydraulic generation portfolio, with a strong growth in the
installed capacity in the last few years
• Long term generation and distribution concessions
• 5 distribution companies’ acquisition, 9 SPP’s and RGE’s stake (33%),
Foz do Chapecó HPP’s stake (11%) and Lajeado HPP’s stake (7%) in
the last 2 years, with a R$ 1.1 billion investment
• First company in the Brazilian electric sector to negotiate carbon
credits, through a run-of-stream HPP
• Constitution of CPFL Bioenergia, for investments in energy generation
from biomass
6
7. 7 1) Includes 0.2% of others 2) Aneel (estimated) Note: CPFL Jaguariúna will be maintened out of operation
8. CPFL Energia’s Investment Case join the current portfolio growth with acquisition
opportunities
• Operational efficiency focus
• Small distribution companies acquisition, strategically located
Distribution • Large distribution companies acquisition
• Cooperatives acquisition
• Private networks incorporation
• Projects’ conclusion
• SPP’s repowering, construction and acquisition
Generation
• Energy cogeneration through biomass
• Green field projects - Auctions
• Increasing in Value Added Services (VAS) and new products and services
Commercialization • New opportunities - clients between 0.5 and 3.0 MW, supplied by cogeneration or SPP’s
8
9. Focus on capturing synergies and optimization of levels of Group delinquencies
DISTRIBUTION
Delinquency1 – (%)
Consolidated
Delinquency Recovery² – R$ million
4Q07 4Q08
Amount sent to SPC (in R$) Amount recovered (in R$)
9 1) Receivables past due > 30 days - % of total Revenues – outstanding as at December 31 2008 2) Excluding CPFL Jaguariúna
10. Strong growth in the installed capacity and long term concessions in the generation
ventures
GENERATION
Installed Capacity (MW) 1%
26,7
Assured Energy (MWmedium) 9.3% 2,202
%
Concession Term 48.2
1,737 1,738
1,588
%
26,9
1,072 7.6%
812 854 915 40.2
%
861 862 1,093
800
434 472 525 571
2003 2004 2005 2006 20073 2008(e) 2009(e) 2010(e)
SPP’s CPFL Geração Monte Claro Barra Grande Campos Novos Castro Alves Foz do Chapecó
2027 2036 2036 2035 2036 2036
Serra da Mesa1 CPFL Sul2 Lajeado 14 de Julho
2028 2032 2036
SPP’s
CPFL Jaguariúna3
2015
(1) CPFL has the right of 51.54% of the Assured Energy until 2028 (2) Hydroelectric projects with installed capacity <= 1,000 kW are not eligible to concession
10 (3) Among the 9 SPP’s of CPFL Jaguariúna, 6 are in the situation mentioned in note 2 Note: Includes expected two SPP’s repowering in 2009
13. CPFL Energia is alert to the opportunities of business involving sugar cane biomass
GENERATION Business Model COMMERCIALIZATION
• High pressure boilers
CPFL invests in the
• Condensing turbines Energy purchased from biomass source to sell
generation-related
• Back pressure turbines in the free market
machinery…
• Substation and transmission
…and receives
the exceed
energy, for a
Energy supply
certain period
contract
Baldin Project – CPFL Bioenergia’s 1st project
• Contract signed: Aug 2008
Amount: over R$ 500 million Sold
• Construction of a sugar cane 100%
CPFL Contract period: 2009 to 2023
bagasse-fired thermoelectric Investment:
generation plant R$ 98 million
• Location: Pirassununga – SP
% of bioelectricity energy purchased in
• Expected operations: April 2010 CPFL Brazil contracts
13%
CPFL will have the right to 25 MW of energy exported 10%
during harvest season: 112 GWh/year
Current After the contract
13
