INVESTOR RELATIONS | 45 | YEAR 8 | DECEMBER 2012

CPFL Investor

Sales in concession area rise 2.8% in 3Q12 and the scenario is optimistic

In This Edition

3VI Investors Meeting

4100 years in great style

2Electric sector safe haven page

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The electric energy sector is on the national agenda. And swirling in the midst of this is the debate about the consolidation process in the country, now a mandatory topic for industry managers. For its part, CPFL Energia has always publicly positioned itself as a consolidating agent.

To this end, it has maintained financial discipline,

seeking to ensure its potential consolidation capacity — particularly its operating excellence — along with synergy and innovation, while constantly boosting shareholder value. CPFL Energia believes that these considerations will be of fundamental importance to enable it to confront the sector’s new moment.

So we are hereby reiterating the company’s

viewpoint on this subject and its ambition to consolidate itself as a major player in the Brazilian electricity sector and its long-term commitment to the country.

Wilson Ferreira Jr.President of CPFL Energia

The President’s Word

Electric energy sales in CPFL Energia’s concession area in the third quarter of 2012 rose 2.8% compared to the same period of the previous year, totaling 13,890 GWh. Total electric power revenues, comprising sales to the captive market and trade and generation sales, were also up 6.2% in this period, reaching 14,237 GWh. Company´s CEO Wilson Ferreira Jr. presented these results on November 6 during the quarterly earnings webcast.

“These are important sales results as the economy resumes growth. The scenario used to base our positive expectation for the fourth quarter is seen in the set of measures established by the government that, in our opinion, will drive energy sales

in the different segments in which the company operates,” Ferreira Jr. said during the presentation.

CPFL Energia posted an EBITDA of R$ 1,044 million in 3Q12, representing a 9.2% increase over the same quarter of the previous year. The company’s net revenues rose 16% during this period, using the IFRS criteria, totaling R$ 3,454 million while net income was down 15% for the quarter.

INVESTMENTSThe volume of investments

in 3Q12 remained within the company’s expectations, totaling R$ 660 million. Accrued between January/September, CPFL Energia’s investments totaled R$1,930 million.

2.8% growth in concession area sales; Startup of the Santa Clara (188 MW) wind

farms in July 2012; Conclusion of the acquisition of the Ester

Biomass TPP (40 MW), in October 2012; Payment of interim dividends, in the

amount of R$ 640 million, referring to 1H12 on September 28, 2012; Investments of R$ 660 million in 3Q12 and R$

1,930 million in 9M12; Maintenance of the brAA+ (national scale)

credit rating granted to CPFL Energia and its subsidiaries by Standard&Poor’s; In the 12 months ending Sep/12,

CPFL Energia’s shares rose 15.0% on the BM&FBOVESPA, outperforming the Ibovespa (13.1%) and the IEE (8.2%); Você S.A. Survey — Best Companies In Which

You Can Work; ÉPOCA Climate Change 2012 Prize and the Época 360% Business Prize (1st place among electric energy sector companies).

3Q12’S HIGHLIGHTS

IFRSIFRS + Regulatory Assets and

Liabilities – Non-Recurring

EBITDA

3Q11R$ 956

million

3Q11R$ 996

million

3Q12R$ 1,044

million

3Q12R$ 1,184

million

+ 9.2% + 18.9%IFRS

IFRS + Regulatory Assets and Liabilities – Non-Recurring

Net Income

3Q11R$ 379

million

3Q11R$ 401

million

3Q12R$ 321

million

3Q12R$ 425

million

-15.2% + 6.1%

Net RevenuesIFRS

IFRS + Regulatory Assets and Liabilities – Non-Recurring

3Q11R$ 2,978

million

3Q11R$ 2,951

million

3Q12R$ 3,454

million

3Q12R$ 3,374

million

+ 16.0% + 14.3%

Electric sector safe haven

CPFL picks up Lot C in Transmission auction

CPFL commits to purchase of Rede Group

Analysts’ RecommendationsA total of nine financial

institutions were

providing coverage of

CPFL Energia’s shares at

the end of November

2012, with 89% having

either a Buy or a Hold

recommendation.

You can see the performance of CPFL Energia’s shares for the 12 months ending July 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.

Between September and November, CPFL Energia participated in nine national and international events, including conferences and non-deal roadshows

NATIONALSep/12 14– 13th Annual Santander Conference/Guarujá

Oct/1218 — BTG Pactual Utilities Day/SP

Nov/1228 — JP MORGAN BRAZIL Opportunities Conference/SP

INTERNATIONALSep/12 5 and 6 — Deutsche Bank Global Emerging Markets Conference / NY 10 and 11 – Morgan Stanley 15th Annual Latin America Conference/ London

Oct/12 10 and 11 — BTG Pactual 2012 LatAm CEO Conference/NY

Capital Market - Our Market Performance

Source: Economática Variations adjusted per dividends

CPL DJBr20 DJIA

Share Performance - NYSE – 12 months

-9.3%

11/30/11 24.84 29,435 12,04611/30/12 21.84 26,700 13,026Var. -12.1% -9.3% 8.1%

-12.1% 8.1%-8.0%

CPFE3 IEE IBOV11/30/11 21.61 29,793 56,87411/30/12 22.85 27,412 57,474Var. 5.7% -8.0% 1.1%

5.7% 1.1%

Share Performance - Bovespa – 12 months

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The changes in the rules for the renewal of concessions proposed by the federal government through provisional measure 579 have led to a sense of insecurity across the entire electric sector. However, the shares of some BM&FBovespa-listed companies have been standouts, despite the uncertain scenario presented by many analysts’ pessimistic forecasts, because the new rules should not impact them in a major way. This is the case of CPFL Energia.

In an analysis of the BM&FBovespa’s indexes, CPFL’s shares have remained unfettered from the negative performance posted by IEE stock index, which comprises electric sector companies.

One of the apparent reasons for the

“shielding” of CPFL Energia, according to the analysts, is that the majority of its concession contracts will expire only between 2027 and 2039. Analysts also highlighted the diversity of the company’s business interests.

CPFL requested renewals on October 11 from National Electric Energy Agency (Aneel) along the lines established by the federal government for its concessions expiring in 2015. These include the CPFL Jaguari, CPFL Mococa, CPFL Sul Paulista, CPFL Leste Paulista and CPFL Santa Cruz distribution companies, representing 3% of the parent company’s EBITDA, along with its Small Hydroelectric Power Plants (SHPPs), which represent less than 1% of the Group’s installed generating capacity.

In association with Equatorial, on December 19 CPFL signed an “Investments, Sale and Purchase Agreement” leading to the acquiring of the assets of Grupo Rede.

Equatorial and CPFL Energia each committed to making the necessary investments to reorganize and recover Rede’s financial and operating structure, including the electric energy distribution concessionaires controlled by Rede that currently are under intervention by National Electric Energy Agency (Aneel).

A number of precedent conditions for the effective conclusion of the transactions were stipulated, such as Aneel s prior authorization and the approval by the Administrative Council for Economic Defense (Cade), as well as the approval of Grupo Rede’s creditors and its other companies subject to a judicial recovery program.

CPFL Geração won Lot C of Transmission Auction 07/2012 held December 19 by National Electric Energy Agency (Aneel). The lot comprises the Piracicaba

substation and associated transmission lines. The concession guarantees CPFL the right to Annual Permitted Remuneration (RAP) of R$ 8.8 million.

The investment will be financed with own funds and loans from the Brazilian National Economic and Social Development Bank (BNDES). Commercial

operation is scheduled to begin in 22 months, as of the signing of the contract.

Conferences and Roadshows

VI Investor Meeting

CPFL Piratininga tariff review approved by Aneel

Capital Market - Our Market Performance

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A day spent learning about and obtaining deeper understanding of CPFL Energia’s businesses. That was the objective of the VI Inves-tor Meeting, held on December 4. The president of CPFL Energia, Wilson Ferreira Jr., and the main executives from the Finance, Operations, Renewable Energy and Commercialization divisions hosted a group of approximately 100 investors and analysts at the group’s Campinas (SP) headquar-

ters to delve into the company’s strategic issues.

Besides the presentations and a question and answer session, the CPFL Energia investors who parti-cipated in the event also had the opportunity to make a technical visit to both the recently inaugu-rated Tanquinho Solar Power Plant (see more information below) and an important substation the company owns and operates in the region.

CPFL Piratininga’s tariff review was conducted by National Electric Energy Agency (Aneel) in October. Applying the methodology of the 3rd Tariff Review Cycle, there was an average reduction in tariffs of 5.43%.

“CPFL Piratininga was the company in our Group with the greatest growth rate and we imagined there would be a reduction in EBITDA of about 30%. This is exactly what happened,” said CPFL Energia’s CEO Wilson Ferreira Jr.

The tariff review was supposed to be applied in October 2011. However, the discussions regarding the methodology of

the 3rd Cycle were extended until November 2011 and the review could only be approved by the regulatory agency this year.

Therefore, the annual tariff adjustment was made simultaneously with the application of the tariff review taking into account cost pressures such as inflation and the dollar exchange rate. The Aneel also took into consideration the return to consumers of the first portion of the overpayment of amounts received between October 2011 and October 2012, the period in which the tariffs were frozen. The final result was an average increase of 8.79%, which went into effect on October 23.

CEO Wilson Ferreira Jr. answers questions from investors

Tanquinho Solar Power Plant: generation of 1.6 GWh/yr of clean energy

Tanquinho now operatingAs of December, for the first time

the state of São Paulo can count upon a source of clean and renewable energy generation based on solar power. The photovoltaic plant that CPFL Energia put into operation on November 27 was the result of a R$ 13.8 million research and development project that introduced the bases for diversification of the Brazilian energy matrix.

The solar panel generation plant was built on a 700-m2 plot on the

grounds of the Tanquinho substation (on CPFL Paulista concession area) in Campinas (SP). The company estimates it will generate 1.6 GWh/year — sufficient, for the effects of comparison, to supply 657 clients consuming 200 kWh/month each.

This project is a Research & Development investment portfolio project, involving approximately R$ 32 million annually as part of Aneel R&D Program.

A MORE EFFICIENT COMPANYCPFL Energia is committed to reducing

its operating and personnel costs in order to continue to generate profitability for shareholders and quality service for power consumers. From January to September 2012, the cost reductions — both operating and payroll — totaled about R$ 78 million.

The initiative to lessen costs anticipated the impacts of the tariff review, focusing on four fronts: Incentivized Retirement Program; implementation of a Shared Services Center; Zero Base Budget; and the Tauron Program (smart grid implementation).

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CPFL INVESTOR is a publication of the Investor Relations Department of CPFL Energia, published by the Corporate Communication and Institutional Affairs 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 Officer: Lorival Nogueira Luz Jr., IR Director: Eduardo Atsushi TakeitI, Corporate Communications and Institutional Relations Officer: Augusto Rodrigues, Communications Manager: Carlos Henrique Matos Ramos (MTb 19.163). Content, Editing and Design: Produção Coletiva - website: Investor Relations: www.cpfl.com.br/ir - e-mail:ri@cpfl.com.br.

100 Years in great style

CPFL Energia has been able to count on another 180 megawatts (MW) of installed capacity since last June. Santa Clara wind power complex located in Rio Grande do Norte became part of the company’s portfolio after authorization by National Electric Energy Agency (Aneel). The seven individual wind farms of the complex total 76 MW average of assured energy, already contracted through an auction conducted by the government in December 2009.

With this plant, the company’s Generation segment now consists of 2,948 MW installed capacity.

CPFL commemorated the 100th anniversary of its creation — through the 1912 merger of four electricity generation companies in the hinterlands of São Paulo — on November 16. The grand celebration of the Centennial, with the peak occurring in November, encompassed cultural and sporting activities as well as the inauguration of the Tanquinho Solar Power Plant. It also included many other events with partners and stakeholders in a climate of pride in the company’s history and the expectation of innovations yet to come.

The night of November 20 will linger in the memories of CPFL Energia’s guests for a long time to come. Zuza Homem de Melo and Gringo Cardia headed up a special MPB (Brazilian Popular Music) show in São Paulo’s Teatro Alfa. The previously

unseen spectacle presented a history of Brazilian music over the decades.

The Centennial’s extensive and very robust cultural activities included the production of a documentary film, two books and a traveling exhibition on the history of energy. Furthermore, CPFL Cultura ran a heavy schedule of special programs over the full course of 2012.

Two other important events on the Centennial calendar were the CPFL 100-Year Night Run, held in Campinas on November 24, and the inauguration of the Tanquinho Solar Power Plant on November 27.

Favorable winds

The celebration included a night run in Campinas

Barra Grande power plant on the Pelotas River

Bons Ventos wind power complex, in Aracati, Ceará

CDP 2012: sustainable recognitionCPFL Energia was

recognized by the Carbon Disclosure Project (CDP) in its 2012 report as one of the best-rated companies in terms of CO2 Performance and Disclosure. The report highlighted the consistence and the objectivity of the data disclosed by the company. The company’s actions to reduce CO2

emissions include initiatives to mitigate climate change, engagement of suppliers and investments in innovation and technology, such as renewable sources of energy generation and smart grids. The CDP is comprised of more than 670 investors from around the world that manage assets totaling some US$ 78 trillion.