March, 2013

Corporate

Presentation

March 2016

1

221) On March 23,2016; 2) Considering proportional consolidation of generation assets (+) Regulatory assets and liabilities (-) Non-recurring effects; 3) Considering CPFL’s stake on each generation project

Company Overview

Largest integrated private player in the Brazilian electricity sector

Market Cap of R$ 19 billion1, listed on BM&FBovespa –Novo Mercado and on NYSE (ADR Level III)

In 2015, EBITDA of R$ 3.9 billion2 and Net Income of R$ 1.1 billion2

Presence concentrated in the most developed regionsof Brazil

Leadership in distribution through 8 subsidiaries and a 12,4% market share

3rd largest private generator with 3,129MW3 of installed capacity, of which 94% from renewable source

Leader in Renewable Energy in Brazil with the largest capacity in operation

One of the most profitable operations of energy Trading and a world-class provider of Value-Added Services

Power Plants

331) Bounded shares, according to the Shareholders Agreement; 2) Furnas has the concession for HPP Serra da Mesa. CPFL has the contractual right of 51.54% of the plant’s assured energy, according to the 30-year leasing contract, maturing in 2028; 3) Adjusted by regulatory assets & liabilities and non-recurring items; does not consider the holding company; 4) Commercialization in the free market and Services.

Company Profile

Lajeado HPP

5.94%

Nect Serviços/Authi

CPFL CentraisGeradoras

DISTRIBUTION 100%

SERVICES100%

RENEWABLES51.61%

65% 48.72% 51%

25.01%

Serra da Mesa HPP

51.54%253.34%

GENERATION100%

TRADING100%

Trading4

173

CPFL Energia – Consolidated3| 3,948

2015 Adj. EBITDA Breakdown3 | R$ million Concession’s expiration

2027 2028 2032 2035 2036

CPFL Paulista

CPFL Piratininga

HPP Luis Eduardo

Magalhães

HPP Campos Novos

HPP Foz do Chapecó

RGEHPP Serra da

Mesa2HPP Barra

Grande

19 SHPPs(CPFL

Renováveis)

HPP Castro Alves

HPP Monte Claro

HPP 14 de Julho

2045

CPFL Santa Cruz

CPFL Jaguari

CPFL Sul Paulista

CPFL Leste Paulista

CPFL Mococa

23.6%1 19.8%1 11.3%1

15.1%23.6% 29.4%Free Float

31.9%

Conventional Generation

1,415

Distribution1,83046%

36%

4%

14%Renewable Generation

558

Distribution Segment

• 7.8 million customers

• 561 municipalities

• Footprint: most developed regions

• High potential in per capita consumption

• Market size: 57.6 TWh/year

1st Market share: 12.4%

Industrial

Commercial

Residential

Others

1) Source: EPE.4

28% 40%

17%

15%

5 small discos

46%

23%

8%

23%RGE

CPFL Piratininga

2015 Adj. EBITDA Breakdown

R$ million

CPFL Paulista

Tariff review Sales CAGR by Region1 |

2010 - 20154th Tariff Review Cycle

CPFL Piratininga Oct-15

CPFL Santa Cruz

Mar-16

CPFL Leste Paulista

CPFL Jaguari

CPFL Sul Paulista

CPFL Mococa

CPFL Paulista Apr-18

RGE Jun-18

2015 Sales Breakdown

GWh

55

Generation Segment

• 3,129 MW of installed capacity

• 1,538 MWavg of physical guarantee

• Long Term Concessions

• Brazil’s largest Portfolio in Alternative Energy

• Renewable Sources: 94%

3rd Market share: 2.2%

Installed Capacity1 (MW) | Contracted Growth

1) Equivalent stake for project

Portfolio by source | 2020(e)

34%

66 1) Amounts in currency Dec/14. PMSO excludes fuel cost at EPASA.

Conventional Generation Segment

Sector Average

142.7 150.2185.7 188.1

219.4255.0

205.0

Genco 1 Genco 2 Genco 3 Genco 4 Genco 5

73.3 72.290.0

103.6 108.8 118.594.4

Sector Average

Genco 1 Genco 2 Genco 3 Genco 4 Genco 5

PMSO1 / Physical Guarantee (R$/MWavg) PMSO1 / Installed Capacity (R$ MW)

-30% -22%

Renewable Generation Segment1,2 | Installed Capacity (MW)

7

399595

190 26934 19 70 75 42

1.032

150

662 285 179

365 385 375 343 161280 295

370

940

175

77

53213

131

1,1

1 3

SHPPBIOSOL WIND

330

2.132

Under Construction1.802

940920

552

448 400 385 375375 337355

532

Solar

Biomass

SHPP

Wind

(2) (2)(3)

365

662

Source: Company - ANEEL and other companies websites; Notes: 1) Installed capacity in operation (MW); 2) Renewable energy is not the core business; 3) Pro-forma for assets sales to Terraform

Renewable Generation Segment | Portfolio and Pipeline

8

2,986 MW

Ready to sell energy in the

next 12 months

SolarBiomassWindHydro

Evolution of Installed Capacity (MW)

Visible growth through development of high quality pipeline

174MW of projects with a highly confident execution profile, ready to sell energy in the next 12 months

Pipeline of projects in three of the four renewable sources

2011 2013 InstalledCapacity

UnderConstruction

ContractedPortfolio

HighlyConfident

Probably Possible OverallPotential

6521,283

1,8022,132

330174

2,151

661

5,118

(MW)

CPFL Renováveis (Aug-11) 652

2Q12 25 Free market -

2Q12 70 Reserve auction Revenue(e): R$ 20 million/year

2Q12 158 PROINFA Acquisition price: R$ 1,062 million

3Q12 188 Reserve auction Revenue(e): R$ 115 million/year

4Q12 40 Auction and free market Acquisition price: R$ 111.5 million

4Q12 1 Free market -

4Q12 20 Alt. Sources auction Revenue(e): R$ 112 million/year

3Q13 50 Free market Revenue(e): R$ 22.6 million/year

4Q13 30 Reserve auction Revenue(e): R$ 18.5 million/year

4Q13 50 Free market Revenue(e): R$ 22.6 million/year

1Q14 14 PROINFA Acquisition price: R$ 103.4 million

1Q14 120 Alt. Sources auction Revenue(e): R$ 76.7 million/year

2Q14 78 Alt. Sources auction Revenue(e): R$ 52.6 million/year

3Q14 278 - Partnership with Dobrevê

2Q15 29 Reserve Auction Revenue(e): R$ 17.9 million/year

Current portfolio (Mar-16) 1,802

9

CPFL Renováveis | Track record

10

CPFL Renováveis | Greenfield projects

Commercial Start-up 2016-2020(e)

330 MW5 of installed capacity

183 average-MW of Physical Guarantee

Campo dos Ventos Wind Farms e São Benedito Wind Farms

Mata Velha SHPPPedra Cheirosa Wind

FarmsBoa Vista II SHPP

Commercial Start-up 20161 20161 20182 2020

Installed Capacity 231.0 MW 24.0 MW 48.3 MW 26.5 MW

Physical Guarantee 129.2 average-MW3 13.1 average-MW 26.1 average-MW3 14.8 average-MW

PPA4 Free market - 20 years16th LEN 20135

R$ 143.30/MWhuntil 2047

18th LEN 2014R$ 133.00/MWh

until 2037

21st LEN 2015R$ 207.64/MWh

until 2049

FinancingBNDES

(contracted)BNDES

(contracted)

BNDES(to be structured)

Bridge loan(contracted)

BNDES(to be structured)

Bridge loan(contracted)

1) Gradual commercial operation from 2Q16; 2) Gradual commercial operation from 1H18; 3) Physical Guarantee calculated in the P90; 4) Constant Currency (dec/15); 5) With the anticipation of work, a bilateral contract (Free Market) will run between 2016 and 2018, when the supply of LEN 2013 starts. 5) The decrease in the installed capacity of these complexes, from 51.3MW to 48.3MW, is due to the change of Wind turbines. The new turbines operate more efficiently, enabling the average energy in the purchase agreements to be accomplished with a reduced generation capacity.

Foundation: 2006

Offers a wide range of value-added services:

engineering projects for transmission and distribution grids

equipment maintenance and recovery

self-generation grids

collection of utilities’ bills through an established authorized network

1111

Incorporation: 2008

Provision of customer relationship services to utility companies:

call center

face-to-face service

back office

credit recovery

ombudsman

help desk and sales

CPFL Energia – Trading & Services

, of which 190 special

customers (CAGR 2010-15: 32.2%)

current = 1.9 GWavg |

current = 9.6 GWavg |

• New activities: and

2015- 197 transmission contracts

- 12 construction sites2015

- 11.2 million phone calls

- 2.4 million electronic phone calls

CPFL Energia Strategy

12

• Be a benchmark in sustainability

• Maintain the highest levels of Corporate Governance

• People management, promoting workplace safety and respect to diversity

• Be the leader in operating efficiency by investing in technology, automation and innovation

• Act on both institutional and regulatory fronts to ensure sustainability of the sector

• Focus on technical services, through technology and productivity

• Mitigate risks of services by hiring qualified labor and suppliers

• Maximize value in the Free Market and be recognized for its profitability

• Expand the presence in retail through acommercial front and customer energy management

• Add new products to energy Commercialization

• Grow while creating value through acquisitions and new projects

• Be the leader in operating efficiency in the Renewable Energy segment

• Operating Efficiency with Innovation & Technology

• Act in both institutional and regulatory levels

• Strategic Growth

Distribution Generation Renewable Commercialization Services

Dividends: CPFL has presented payout ratio close to 100% since its IPO, reaching the mark of R$ 11.6 billion distributed4

TSR5: -8.4%

13131) Considering proportional consolidation of generation assets (+) Regulatory assets and liabilities (-) Non-recurring effects (-) Construction revenue/cost. Disregard intercompany transactions. 2) Considering Holding’s EBITDA. 3) Including holding result and amortization of merged goodwill. 4) For 2014, a capital increase through stock dividend was approved in AGM; 5)TSR from Dec-10 to Dec-15 = Dividends 4.8% (+) Stock performance -13.3% = -8.4%.

NET REVENUE1 10,921 11,413 13,235 13,681 15,724 18,915 11.6% 20.3%

Distribution 9,432 9,794 10,830 10,716 12,011 15,581 10.6% 29.7%

Generation 1,047 1,351 1,964 2,356 3,164 2,785 21.6% -12.0%

Trading 1,909 1,699 2,031 2,031 2,497 2,130 2.2% -14.7%

EBITDA2 3,260 3,649 4,343 3,908 3,901 3,948 3.9% 1.2%

Distribution 2,267 2,351 2,655 2,211 1,985 1,830 -4.2% -7.8%

Generation 750 1,060 1,427 1,643 1,680 1,973 21.3% 17.5%

Trading 303 278 287 74 263 173 -10.6% -34.2%

NET INCOME3 1,526 1,503 1,617 1,304 1,162 1,124 -5.9% -3.2%

Distribution 1,309 1,235 1,356 1,047 867 762 -10.3% -12.1%

Generation 244 721 373 419 309 425 11.7% 37.4%

Trading 201 164 127 52 168 108 -11.6% -35.5%

Key Financial Figures | R$ million

2010 2011 2012 2013 2014 2015CAGR 2010-

20152015 x 2014

TOTAL 52.4 54.6 56.7 58.5 60.0 57.6 2.2% -4.0%

Captive 39.3 39.9 40.7 41.1 43.2 41.7 1.2% -3.3%

TUSD 13.1 14.7 16.0 17.3 16.8 15.8 3.8% -5.8%

Energy Sales - Distribution | TWh

CPFL Energia | Operational and Financial figures

14

Capex(e) 2016-2020 | R$ Million

1) Current investment plan released in 4Q15 Earnings Release on March 21, 2016. 2) Constant currency. Considers 100% interest on CPFL Renováveis and Ceran (IFRS); 3) Considers proportional stake in the generation projects; 4) Disregard investments in Special Obligations (among other items financed by consumers); 5) Conventional + Renewable.

Total:R$ 9,666 million2 (IFRS)R$ 8,704 million3 (Pro-forma)

Distribution4: R$ 7,033 million

Generation5:R$ 2,092 million (IFRS)R$ 1,130 million (Pro-forma)

Commercialization and ServicesR$ 541 million

1,427

2,813

1,9111,640 1,648 1,654

IFRS

Pro

-form

a

1,200

2,0951,719 1,604

1,639 1,647

CPFL Energia | Indebtedness and leverage

Leverage1 | R$ billion

Adjusted net debt1/Adjusted EBITDA2

3,399 3,736 3,835 3,755 3,971 3,584Adjusted EBITDA1,2

R$ million

3.59 3.49 3.54 3.673.46 3.41

3.533.25 3.28 3.26

2.98 2.94

Evolution of Cash Balance and CVA3 | R$ billion7,136

5,6224,8084,8014,9994,134

+27%

-12%

+47%

Adjusted with CVA in cash balance

1) Financial covenants criteria. 2) LTM recurring EBITDA. 3) Balance of sectoral financial assets and liabilities, excluding tariff flags not approved by Aneel up to the date and special obligations accounted under 4th Tariff Review Cycle methodology.

15

CPFL Energia | Indebtedness and leverage

Debt amortization schedule3,4 | Dec-15 | R$ million

Cash coverage:2.36x short-term amortization (12M)

Average tenor: 3.44 years

Short-term (12M): 13.3% of total

4.9%

4.4%

4.3% 3.0% 2.4%3.7%

2.3% 2.3% 2.5% 1.9%

9.4%10.5%

11.1%

9.0% 8.4%10.3% 10.6% 11.4% 12.2% 12.7%

2009

2010

2011

2012

2013

2014

1Q

15

2Q

15

3Q

15

4Q

15

CDI

Prefixed(PSI)

IGP

TJLP

Gross debt breakdown by indexer | 4Q15 2,4

Gross debt cost1,2 | LTM

Nominal

Real

5

1) Adjusted by the proportional consolidation since 2012; 2) Financial debt (+) private pension fund (-) hedge; 3) Considers Debt Principal, including hedge; 4) Covenants Criteria; 5) Amortization from January-2016.

16

Annex

Energy sector in Brazil: business segments

Consumers

1) Source: ANEEL – March, 2016; 2) Source: EPE and CCEE; 3) Source: ONS 4) Source: Ministry of Mines and Energy (MME) – Mar-16; 4) Dec-15

Free Market

Captive Market

79.0 million consumers

1,826 Consumers4

115 TWh of billed energy2

79.0 million Consumers349 TWh of billed energy2

Transmission

• 104 Companies³

• 129,259 km of transmission lines4

• Eletrobrás: ~47%of total assets

Distribution

• 63 Companies

• 465 TWh of billed energy2

• Top 5: ~45% of the market

Competitive Power Supply

Generation

• 142 GW of installed capacity1

• 80.02% Renewable energy1

• Eletrobrás: ~32.4% of total assets

18

Brazilian electricity matrix

1) Source: 10-year Energy Plan 2024; 2) Others: considers coal, oil, diesel and process gas; 3) Abeeólica.

Brazil’s electricity matrix is predominantly renewable, with hydro installed capacity totaling 68% of the

total supply, while biomass, wind, SHPPs and solar account for 16%. In the next years, it is expected that

other sources will grow, mainly wind and solar, reaching 12% and 3% respectively of total installed

capacity in 2024.

Brazilian Electricity Matrix

133 GW 206 GW

2014 2024

19

Wind Potential: 350GW3

Installed capacity: 3.8GW1%

SHPP Potential: 17.5GW Installed capacity: 5.0GW

29%

Biomass Potential: 17.2GW Installed capacity: 9.3GW

54%

Potential Realized

Potential to be Explored in Brazil

Evolution of Installed Capacity (GW) 2014-20241

20

Smart distribution was a key theme addressed by the Project

"Energy in the City of the Future"

• The smart grid technology will provide increased network monitoring capabilities and greater quality and commercial opportunities

• Smart Grids will boost the amount of information available, which will be used in innovative ways to optimize operations and services

Smart Grid | The Future of Distribution

Vision of the Future of Distribution is directly associated with Smart Grids:

21

Emergency Dispatch

The past:

The future:

System interventionor self-healing

Automatic failure detection Real-time informationfor customers

Intelligent meter

• Reduced unnecessary travel;

• Shorter average service;

• Reduced SAIDI (optimization of possibilities of network maneuvering);

• Greater customer satisfaction (real-time information);

• Optimization of service to nearly 600,000 tickets every year.

Gains

22

Reading and Delivery

Reading Energy bill Delivering the bill Payment

Making the paymentSmart Metering Center and/or automatized

software

Data networkIntelligent meters

Bill via e-mailand/or app

(cons. manag.)

The past:

The future:

• Greater employee safety (reduced travel and exposure to risk)

• Data gathering from load curve and customer consumption profile;

• More sustainable process (reduced use of paper).

Gains

Sustainability at CPFL: Incorporation of strategic guidelines

23

Energy is essential for

the welfare of people

and the development

of society.

We believe that

producing and using

energy in a

sustainable manner

is vital for the future of

humanity.

Vision

To provide

sustainable energy

solutions with

competitiveness and

excellence, acting in a

manner that is

integrated with the

community.

Mission

• Value Creation

Commitment

• Safety and Quality of

Life

• Austerity

• Sustainability

• Trust and Respect

• Overcoming

• Entrepreneurship

Principles

CPFL Energia is the

largest private group in

the Brazilian electricity

sector which, through

innovative strategies

and talented

professionals, offers

sustainable energy

solutions.

Positioning

CPFL Energia built its Sustainability Platform in 2013 in order to define the issues material to its growth strategy and the development of goals and indicators related to each of these issues at each business unit. The Platform consolidation process covered the company as a whole, meaning that sustainability is not just

an element of our principles and values but included in strategic planning.

Sustainability Platform

24

Actions

Raising awarenessabout the strategic relevance of the

Sustainability Platform

Establishing formal sustainability

targets for internal leaderships

Results - 2015

Integrated platform based on the

strategic plan, with 6 themes, 17 leverages, 91 indicators and short

and medium-term goals

Sustainability goals published on CPFL's

website

Officers and managers have

sustainability goals

Recognition

WelfareUntil 1999

Social Responsibility2000 to 2006

Corporate SustainabilityAdded to business from 2007

Level of incorporationof the theme Sustainability

Increasingly more comprehensive concept of responsibility

CPFL Energia | Sustainability

• Component of ISE since its first edition, in 2005

• 35 companies of 16 industries - Market cap of R$ 967 billion

• Component of DJSI Emerging Markets for the fourth consecutive year

• 86 companies achieved the Dow Jones requirements (17 Brazilian, of which 3 are in the power industry)

• Component of MSCI for the second consecutive year

• Formed by companies with the highest ESG standards in their industries

• Transparent reporting of greenhouse gas emissions since 2006

• Best company in Management of Water Resources in Latin America - 2015