ubs conference*

José Antônio Filippo - CFO

Vitor Fagá de Almeida - Investors Relations

2

Summary

CPFL Energia’s Highlights and Results

IPO - Results After 1st Year

Value Creation Agenda

3

Organizational Structure

37.48% 32.38% 13.34% 16.80%

Free-Float

DISTRIBUTION GENERATIONCOMMERCIALIZATION100% 100%94.94%

66.67%

65%

25.01%

48.72%

100%

100%

60%

67.07%

97.41%

4

CPFL Energia – Business Units

Well-established operations leading the distribution and commercialization markets

Successful history of acquisitions, restructuring and consolidation

Private Company Leader in Energy Sector

Market leader, with a 25% market share

Outstanding performance in capturing free customers

Development of value added services

Success in Commercialization

Business

High growth on installed capacity

Generate energy totally contracted with distributors of the Group

EBITDA Margin ~ 90%

Strong growth In the Generation

Business

The largest distribution platform, with a 12.4% market share

Operating in a high consumption regions

Benchmark in operating efficiency

Efficient Distribution Operation in a

high growth area

Commercialization GenerationDistribution

High Corporate Governance Standards

5

CPFL Energia – 3Q05 Highlights

Net Income of R$ 240 million in 3Q05 and R$ 641 million in 9M05

Growth of 17% in Gross Revenue and 79% in EBITDA in 3Q05 over 3Q04 comparison

Electric Energy Index (IEE) and IBX-100 - Bovespa inclusion

CPFL Paulista and CPFL Piratininga’s minority shareholders migration announcement, with potential free-float increase from 16.8% to 17.8%

Final Tariff Review for CPFL Piratininga

Growth of 45% in the Commercialization business Gross Revenue and 31% in EBITDA in 3Q05 over 3Q04 comparison

HPP Campos Novos reservoir water filling started on Oct 10, 2005

HPP Barra Grande commercial operation started on Nov 1st, 2005

6

3Q05 Energy Sales

Distribution sales evolution

Commercialization sales growth in the free market

Total Energy Sales (GWh)1

Concession Area Sales3 (GWh)

Free Market Sales 2 (GWh)

1,652 GWh sales in the free market, representing growth of 85% in 3Q05 over 3Q04 comparison

Captive market growth: residential 5.8% and commercial 6.0%

93% increase in “TUSD” sales

27,852 26,718

9,293 9,139

3Q04 3Q05 9M04 9M05

1.7%

4.2%

4,643

2,1691,652

891

3Q04 3Q05 9M04 9M05

114%

85%

967 1,864

2,270 5,079

7,641 8,248

24,549 23,209

3Q04 3Q05 9M04 9M05Cativo TUSD

28,28826,819

9,5059,215

5.5%

3.1%

¹ With calendar adjustment. Does not include supply, CCEE and sales to Group’s distribution companies2 Does not include supply, CCEE and sales to Group’s distribution companies3 With calendar adjustment.

7

CPFL Energia – 3Q05 Results

Gross Revenue – R$ million

8,016

6,996

2,7632,360

3Q04 3Q05 9M04 9M05

17%

15%

17% Gross Revenue increase

1.7% energy sales growth

Average price increase in distribution and generation companies, due to price readjustments

111% growth in “TUSD” sales

EBITDA – R$ million

1,631

1,166

570318

3Q04 3Q05 9M04 9M05

79%

40%

79% EBITDA increase

17% increase in gross revenue0.3% increase in energy costs4.8% increase in operational costs and expenses

Net Income – R$ million641

119

240

-6

3Q04 3Q05 9M04 9M05

4,105% 439%

4.105% Net Income increase79% EBITDA increase

51% reduction in net financial expenses

Recognition of the adjustments related to CPFL Piratininga´s 2004 tariff review

8

2,130

1,964

1,824

1,694

1,642

3Q04 4Q04 1Q05 2Q05 3Q05

429

297

211

610

806

3Q04 4Q04 1Q05 2Q05 3Q05

CPFL Energia has reporting consistent growth in EBITDA and Net Income

30%

282%

Net Income¹ - Last Twelve Months

EBITDA¹ - Last Twelve Months

Amounts in R$ million

¹ With CPFL Piratininga Tariff Revision effects adjustment

9

Distribution business – 3Q05 Results


3.1% sales growth in concession area

111% “TUSD” revenue growth

Tariff increase in distribution companies – tariff

Gross Revenue7,443

6,656

2,559 2,235

3Q04 3Q05 9M04 9M05

14%

12%

adjustments:

CPFL Piratininga 14.00% (Oct/04) CPFL Paulista 18.76%1 (Apr/05)RGE 21.93% (Apr/05)

EBITDA1,242

867

443219

3Q04 3Q05 9M04 9M05

103%

43%

103% EBITDA increase14% growth in gross revenue

2% reduction in energy costs

6% growth in operational costs and expenses

Net Income501

103190

(21)

3Q04 3Q05 9M04 9M05

1,026%

385% 1,026% Net Income increase103% EBITDA increase

57% improvement in financial income

1 On Apr 08, 2005: 17.74% plus 1.01% granted by ANEEL in jul/05

10

Commercialization business – 3Q05 ResultsGross Revenue

1,013

649

373257

3T04 3T05 9M04 9M05

45%

56%


85% growth in free market sales

77% growth in products and services revenues

EBITDA164

114

4938

3T04 3T05 9M04 9M05

31%

44%

31% EBITDA increase

45% gross revenue growth

Taxes (ICMS and ISS) and energy costs increaseabove revenues rates

Net Income112

76

3425

3T04 3T05 9M04 9M05

38%

48% 38% Net Income increase

31% EBITDA increase

209% financial revenues growth

11

Generation Business – 3Q05 Results

Gross Revenue320

243

11077

3Q04 3Q05 9M04 9M05

42%

31%


Monte Claro HPP start-up with additional 88 GWh in 3Q05 (9% on the total)

Average price increase:Semesa 12.42%Centrais Elétricas 11.12%

EBITDA258

208

8965

3Q04 3Q05 9M04 9M05

36%

24%

36% EBITDA increase

42% gross revenue growth

Increase in PIS/COFINS rates

Net Income87

52

32

14

3Q04 3Q05 9M04 9M05

125%

66%

125% Net Income increase

36% EBITDA increase

6% financial income improvement

12

Capex is adequate with the Group’s financial reality

By 2008 CPFL Energia will invest around R$ 2.6 billion to business expansion and maintenance

544 523 467 398

179

161159

158

2005E 2006E 2007E 2008E

Expansion Maintenance

723681

626559

TOTAL CAPEX(R$ millions)

% oftotal

25%

75%

In 9M05 the Group generated R$ 1,631 million EBITDA

13

Summary

CPFL Energia´s Highlights and Results



14

Stock Performance Since IPO

BOVESPA1 NYSE1

1 From IPO to Nov 04, 2005 – adjusted for dividends

6 0 %6 0 %

4 0 %4 0 %

I P O O c t 3 1 , 2 0 0 5

5 3 %

4 7 %

Ownership Total Trading Volume2

ADRON

Liquidity maintenance

in both markets

5 1 %4 5 %

3 3 %

I B O V E S P A I E E C P F E 3

9 7 %

6 8 %

5 %

D o w J o n e s D J B R 2 0 C P L

2 From IPO to Nov 04, 2005

15

Stock Performance – Increasing Liquidity

BOVESPA

ITAG Differentiated Tag Along Shares Index

IGC Differentiated Corporate Governance Shares Index

DJBr20 Dow Jones Brazil Titans 20 ADR Index

IBrX Brazil Index – IBrX (IBX-100)

IEE Electric Energy Index

3 . 55 . 9

6 . 9

1 3 . 6

J a n - O c t / 0 5 O c t / 0 5

B o v e s p a B o v e s p a + N y s e

CPFL EnergiaDaily Average Trading Volume

R$ million

NYSE

Aiming for inclusion in IBX-50 and ISE

Negotiability Index: 63rd place over the past 12 months 45th in October, 2005

Wide analyst coverage

13 institutions release research reports about the company

10 buy recomendations

16

Summary

CPFL Energia´s Highlights and Results



17

Defined strategy focused on value creation

ObjectivesStrategies Programs

Operating Efficiency

Standardization and Certification of ProcessesSystem Automation and ModernizationCall Center

Value

Liquidity

Security

Synergic Growth

Financial Discipline

Distribution: Opportunities of Scale GainsGeneration: PPA’s GuaranteeCommercialization: Free Clients Retention

Debt managementFinancial Investment PolicyTax planning

Differentiated Corporate Governance

Single class of shares: 100% Tag AlongCommitment to increase the Free FloatDividend Policy

18

Continuous search for operating efficiency

Distribution

• 51 thousand new connections in 3Q05, 14% above 1H05 monthly average

• Continuous commercial losses reduction1

• 292 thousand inspections in 9M05

• R$ 49 million revenues recovery in 9M05

• 65 GWh annual recovery perspective

• Delinquency levels reduction, with the historical best indexes in the CPFL Paulista e CPFL Piratininga in 3Q05

1 CPFL Paulista and CPFL Piratininga

Commercial Losses %1 . 8 9

1 . 6 01 . 4 91 . 7 6

1 . 3 71 . 2 6

2 0 0 4 1 H 0 5 3 Q 0 5

C P F L P a u l i s t a C P F L P i r a t i n i n g a

Delinquency %

2.76 2.63

1.95 1.86

2.82

3.20

3.66

2.022.22

2.42

2002 2003 2004 1H05 3Q05

CPFL Paulista CPFL Piratininga

19

Strong activity in free market

Commercialization business

• 9 new free customers in 3Q05Highlight for customers recovery from the CPFL concession area

• 50 customers in Dec/04 e 83 in 3Q0525 outside concession area

5 8

2 5

9

3 74 9

5

1 3

2 5

2 0 0 3 2 0 0 4 1 H 0 5 3 Q 0 5

o u t s i d e c o n c e s s i o n a r e aI n s i d e c o n c e s s i o n a r e a

Free customers number in free market

14

50

7483

Energy commercialization desk

20

Synergic Growth

54% Barra Grande HPP assured energy in the 1st turbine and 100% in the 2nd turbine

91% Campos Novos HPP assured energy in the 1st turbine

nov/05

Estimated Evolution of Installed Capacity - MW

Campos NovosHPP operation in

Jan/06Barra Grande HPP operation

in Oct/05

Generation business

• HPP Barra Grande commercial operation started on Oct 31, 2005

• R$ 102 million/year1 additional in Group’s revenue

• HPP Campos Novos reservoir water filling started on Oct 10, 2005

• Small power plant repowering

1 Considering approximately 100% Normative Value tariffs

21

Financial Discipline

3Q05

CDI32%

Dollar5% TJLP

26%

IGP37%

Debt Breakdown1

3Q04

CDI53%

Dollar3%

TJLP16%

IGP28%

Debt 55% / Equity 45%Net Debt / EBITDA = 1.8

Capital Structure 3Q05

Nominal Debt Cost

3Q04 3Q05

Indebtedness (R$ billion)6.28

4.39

3.78 3.87

1.82.3

2.9

4.9

2002 2003 2004 3Q05

Adjusted Net Debt*Net Debt/EBITDA

18.4% 13.2% -28%

Amortization Average Term - years 20%5.1 6.1

EBITDA 3Q05: considering last 12 months.¹ Debt without RTE* Adjusted net debt = total debt + pension funds - regulatory assets / CVA – cash

22

CPFL Energia’s float increase

Migration of CPFL Paulista and CPFL Piratininga’s minority shareholders

Free-Float37,48% 32,38% 13,34% 16,80%

Jul/05

Benefits to CPFL Paulista and CPFL Piratininga shareholders

receipt of ordinary shares with 100% tag along rights

shares with higher liquidity, traded in Bovespa´s Novo Mercado and NYSE

Benefits to CPFL Energia and its shareholders

7.7 million new shares on the free float, representing around R$ 182 thousand1 (+10%)

bigger float in the private electric sector

increase by 10.5 thousand2 in the current shareholders base

reduction in the number of subsidiaries trading at Bovespa

liquidity concentration in CPFL Energia shares

Dez/05 - estimado

38,32% 31,11% 12,82% 17,75%

Free-Float

1 Based on Oct. 31, 2005 share price2 Estimated – standard lot

ubs conference*

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