1

2

2004 Highlights Business Highlights

Business OutlookCPFL Energia 2004 Results

CPFL Energia

Distribution

Commercialization

Generation

Distribution

Commercialization

Generation

CPFL Energia - Non Deal Road Show4th quarter and full year 2004 ResultsJosé Antonio Filippo – CFOPaulo Cezar Tavares – VP for Energy Management Vitor Fagá de Almeida – Investor Relation

April, 2005

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CPFL Energia – 2004 Highlights

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CPFL Energia’s Initial Public Offering (IPO), in September 2004, listed on Novo Mercado (Bovespa) and NYSE (Level 3 ADR);

Net income of R$ 279 million in 2004 against net losses of R$ 297 million in 2003;

Energy consumption increase of 4.9% in CPFL’s Group concession area above Brazilian average;

Reduction of 8.9% in the total financial debt and improvement in the Group’s debt profile, seeking an optimum capital structure;

Monte Claro Hydroelectric Plant starts it's commercial operations and indeed 14 de Julho and Castro Alves Hydroelectric Plants started the construction;

Commercialization company confirmation as market leader (19% market share) and efficiency in retaining free customers in CPFL´s Group.

CPFL Energia was consolidated as a market leader

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Highlights CPFL Energia

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R$ 9.5 billion gross revenues and R$ 1.7 billion EBITDA in 2004

Well-established operations leading the distribution and commercialization markets

Successful history of acquisitions, restructuring and consolidation

High Corporate Governance Standards

Private Company Leader in Energy Sector

Market leader, with a 19% 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 above 90%

Strong Growth in the Generation Business

The largest distribution platform, with a 12.2% market share

Operating in a high consumption regions

Benchmark in operating efficiency

Efficient Distribution Operation in a High Growth Area

Commercialization GenerationDistribution

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Best Corporate Governance Practices

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37.69% 13.62%33.04% 5.09% 10.56%

MarketShareholders

Free-Float

Common shares with 100% tag along rights – equal rights to shareholders

One Class of Shares

Current Free Float of 15.65%, to be increased to 25% by 2007 Commitment to increase Free Float

Sarbanes-Oxley Act Compliance – NYSE (Level III ADR)

Commitment to Novo Mercado – BOVESPA Rules (Level III)

Annual Report in compliance with the Global Reporting Initiative

Alignment with the Best Market Practices

Minimum dividend payout of 50% adjusted net profit, paid in semiannual basis

Benchmark in Dividend Policy

Best Equity Deal 2004

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Investor relations

ri.cpfl.com.br MENU

Periodic meetings with equity research analysts

• - ABAMEC Meeting (Rio de Janeiro) – April, 06

• - APIMEC Meeting (São Paulo) – April, 07

Presence in the main local and international conferences

Financial Results Conference Calls and Webcasts

Presentations available on the IR web site

Disclosure of material facts and press releases

Newsletter – “CPFL Investor”

Commitment to Consistent Information Disclosure

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Commitment to liquidity and stock performance

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Since December 2004, the Market Maker contributed to increase CPFL’s shares liquidity, targeting future participations in the main Bovespa´s indexes,

- IBX – 100 – Sept/05; IBX – 50 and Ibovespa – from Jan/06;- Currently 56º major trading index.

Currently, 9 banks covers CPFL stocks - 7 of them with “buy”recommendation

4 institutions are under research process.

Research analysts

CPFL’s shares exceeds the variation of the main indexes Share price evolution

Market Makerand liquidity

Included in the index Dow Jones Brazil Titans 20 ADRADR Liquidity

Common share price evolution 1 ADR price evolution ¹

CPFE3 9.8%

Ibovespa 14.6%IEE 4.9%

CPL 15.6%

S&P 500 5.7%Dow Jones 3.9%

¹ - From 09/29/04 (IPO) to 03/22/05

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CPFL ENERGIA

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9

Business Structure

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94.94% 100% 97.01%

Distribution GenerationCommercialization

97.41%

67.07%

40.00% (1)

100%

100%

25.01%

65.00%

48.72%

Plants under construction(6 Hydroelectric Power Plants)

(1) 66.67% stake in Foz do Chapecó Energia S.A., which has a 60% interest in the Foz do Chapecó Energy Consortium

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R$ 9.5 billion Gross Revenues in 2004 an 18% increase compare to 2003

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Sales (GWh) Gross Revenues (R$ million)

9158 9500

3494536647

4Q03 4Q04 2003 2004

95498082

25532235

4Q03 4Q04 2003 2004

2.2%, 3.9% and 5.8% consumption increase rate in the residential, commercial and industrial segments, respectively

Increase in energy sold by CPFL Brazil

Increase number of costumers in 2.4%

4.9%

3.7%

18%

14%

4.9% increase in energy sold

Increase in energy tariff of Paulista, RGE e Piratininga

TUSD revenue increase in 495%

Readjustment in generation contracts (SHP’s and Semesa)

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R$ 6.7 billion Net Revenue in 2004 an increase of 11% compare to 2003.

Net Revenue Pro-forma (R$ million)

6.7366057

1543

1648

4Q03 4Q04 2003 2004

11.2%

7241

-6.4%

24% 2048

19.5%

Comparing the Net Revenue in 2004, excluding the adjustment effects of PIS and Cofins the Net Revenue would present an increase of 19.5%

Before the change

Change in the accounting criteria of PIS/Cofins credits

Gross Revenue

Deductions credits

Total deductions

Net Revenue

R$ (million)

9,548

505

(2,307)

7,241

After the change

9,548

-

(2,812)

6,736

Change in the criteria of PIS / Cofins credits account do not affect net income

Accounting effected of PIS / Cofins credit were fully recognized on the 4th quarter

Credit on operation costs and expenses - 472

EBITDA 1.714 1.681

279 279

0 12

0 21

Net Income

Credit on deprec./amort.

Credit on financial results

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Net income of R$ 279 million in 2004

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16811541

484429

4Q03 4Q04 2003 2004

Net Income (R$ million)EBITDA (R$ million)

11.2% increase in net revenues

6.6% reduction in operating costs and expenses

Positive effect of the change in the goodwill amortization criteria

9% EBITDA increase

27% financial expenses reduction

Group results were affected by non-current items :

• IPO expenses (R$ 44 million)

• RTE provision (R$ 32 million)

279

-297

16093

4T03 4T04 2003 2004

194%9%

13%

72%

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R e p o r t e dE b i t d a

R T EE f f e c t e d

IP O o p e r .E x p .

A d j u s t e dE b i t d a

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279

279

31132

44 355

ReportedNet Income

RTEEffected

IPO totalexpenses

AdjustedNet Income

Net Income Proforma(R$ million)

EBITDA Proforma(R$ million)

Excluding the non-recurring events

EBITDA would present a 12% growth when compared with 2003

Net Income would present an increase of 220% when compared with 2003

Non-recurring events impacted the EBITDA and the net income of the Company in 2004

1.681

3211 1.724

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All business units have positively contributed to the consolidated net income

1 2 3 51 2 9 5

- 4 1

3 2 3

5 7 7 5 6 3 1 3

Net Revenue

R$ Million

EBITDA

NetIncome

2003 2004

+11%

DistributionCommercializationGeneration

2 7 6 3 1 3 3 1 3

7 8 3

7 1 1 5 22 5 1 2 8 2

5 1 1 0 23 7 1

6 0 5 7 6 7 3 6

- 2 9 7

2 7 9

1 5 4 11 6 8 1

+9%

+194%

+9%

+5%

+888%

+150%

+114%

+100%

+13%

+12%

+2267%

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279

154125

1ºS 04 2ºS 04 2004

Net Income R$ million265

140125

1ºS 04 2ºS 04 2004

Dividends R$ million

Dividend per share

1ºS04¹ – R$ 0.30

2ºS04 – R$ 0.31

2004 – R$ 0.61

Dividend payment higher than the minimum payment of 50% as established by the company policy

Dividend Yield

2004E² - 3.2%

¹ - Consider the dividend paid, divided by the number of shares before the IPO issued

² - Dividend paid in the 1ºS plus the dividend of the 2ºS divided by the share price on 03/21/05

Dividend payout of 95% of 2004 net income

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Debt profile

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Financial debt restructuring resulted in reduction of cost and maturity

2003 2004

2003 2004

Debt Cost

-10%

AverageMaturity(years)

Increased average maturity:

Amortization of short-term debt and new longer-than-average terms funding:

Payment of CPFL Energia Debentures – STCPFL Geração Funding - LT IFC Funding – LTR$ 775¹ million will over due in the next 12 months (17% of the total)

9%

Reduction in nominal Debt Cost:

Higher cost debt repayment and lower costs borrowing;

IGPM + 5.3%

102% CDI

¹ Adjusted debt = total debt + Pension funds – regulatory assets / CVA

19.63%17.75%

5.5% 6.0%

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Debt Profile

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CPFL Energia reduced its CDI debt exposure replacing it by IGP and TJLP, thus reducing the interest rate volatility risk

Main amortizationsCPFL Energia Debentures - R$ 787 million (CDI);FRN’s - R$ 350 million (CDI);Short Term Financing - R$ 100 million (CDI)

CDI46%

Dólar4% TJLP

19%

IGP31%

Debt Breakdown by Index Type

2003

C D I3 1 %

D ó la r5 % T J L P

2 3 %

Debt Breakdown by Index Type

2004

IGP41%

Main BorrowingsCPFL Paulista DebenturesR$ 255 million (IGP and CDI);FIDC - R$ 200 million (CDI);IFC - R$ 115 million (CDI);BNDES - R$ 150 million (TJLP).

Significant indebtedness reduction in Parent Company

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Capital structure

2002 2003 2004

Adjusted Net Debt *Net Debt/EBITDA

6.3

4.43.8

4.9

2.9

2.3

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CPFL Energia seeks optimum capital structure in order to minimize WACC and maximize shareholder value

Significant debt reduction(R$ billion)

Ideal leverage parameters:

Net Debt / EBITDA = 2.5

Debt / Equity ratio - 65% / 35%

• Respecting the minimum limit on distribution business - 50% / 50%

2004 Year-end Capital Structure

Equity 44% Debt 56%

Net Debt / EBITDA = 2.3

* Adjusted net debt = total debt + Pension funds – regulatory assets / CVA – cash and cash equivalents

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Capex is aligned with the financial reality of the Group

Until 2008, CPFL Energia will invest approximately R$ 2.6 billion inmaintenance and business expansion

5 0 6 5 4 4 5 2 3 4 6 7 3 9 8

1 6 6 1 5 91 5 81 7 9

1 6 1

2 0 0 4 2 0 0 5 E 2 0 0 6 E 2 0 0 7 E 2 0 0 8 E

E x p a n s i o n M a i n t e n a n c e

723681

626559

TOTAL CAPEX (R$ million)

In 2004, CPFL Energia generated R$ 1.7 billion of EBITDA

672

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CAPEX – MAINTENANCE (R$ million)

1 5 2 1 6 41 4 3 1 5 0 1 5 1

1 4 91 51 5

1 0

2 0 0 4 2 0 0 5 E 2 0 0 6 E 2 0 0 7 E 2 0 0 8 E

D i s t r i b u t i o n G e n e r a t i o n

166158 159 161

179

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Small CAPEX needs to maintain Distribution and Generation businesses

CPFL Energia will invest approximately R$ 657 million until 2008 in businessmaintenance

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Capex generation - DebtCapex distribution

Capex generation - Equity

1 5 9 1 7 1 1 4 9 1 5 6 1 5 8

5 3 1 0 4 6 0

3 2 0 2 7 02 1 8

1 8 0

9 34 9

2 9 8

2 0 0 4 2 0 0 5 E 2 0 0 6 E 2 0 0 7 E 2 0 0 8 E

373 374 311 240

544 523467

398

506

347

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Funding needs for the new projects are already dully provided – Current business plan

CAPEX – NEW PROJECTS GENERATION AND DISTRIBUTION (R$ million) Additional funds provided through

financings:

•Generation – BNDES

•Distribution – Finem BNDES

Equity guaranteed by IPO

(R$ 310 million) plus operating cash generation

* - December 2004

Generation investments will add 1,177 MW to the Group's

capacity (R$ 2.03 million per MW)

Investments to distribution will attend to nearly 600 thousand of new customers to the Group in the next 4 years (R$ 1.05 thousand per customers)

By 2008 R$ 1.9 billion will be invested in expansion of Generation and Distribution businesses

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4 7 7

1 5

2 7 12 0 6

1 H 0 4 2 H 0 4 2 0 0 3 2 0 0 4

32% 3149

%

1 7 83 0 7

6 7

1 1 1

1 H 0 4 2 H 0 4 2 0 0 3 2 0 0 4

-39%

-42%

3 5 5

- 2 9 7

2 0 7

1 0 4

1 H 0 4 2 H 0 4 2 0 0 3 2 0 0 4

100%

220%

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Expectation of growth of controlling companies results and financial expenses reduction forecast strong net income increase

Equity pickup in results of investees (R$ million)

Increase in expected profits of Parent Company results

Financial Expenses Pró-Forma¹(R$ million)

Growth in controlling companies results due to:

Net Income Pró-Forma²(R$ million)

Start up of new generation projects

Growth in energy volume sold by distribution Co.

Increase in revenues from generation projects with EBITDA margin over 90%.

Financial expenses reduction:

Reduction in net debt;

Improvement in the average debt cost.

¹ - Exclude non current expenses incurred with the IPO as well as the proportional adjustment of the goodwill amortization which was fully booked on the 4ºQ 04² - Include the adjustment in the financial expenses plus the RTE effect

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Business Highlights

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CPFL Energia – Business Highlights in 2004

CPFL Energia’s business units’ excellent performance in 2004 is the consequence of management actions targeting value creation

Commercialization

CPFL Brasil consolidation as the largest energy commercialization company in the country, reaching 19% market share

Success in the free customer retention strategy

Increase sales of value added services

Beginning of construction of Castro Alves and 14 de Julhohydroelectric plants

Startup of operations of Monte Claro hydroelectric plant

R$ 300 million additional financing by BNDES for BarraGrande

Issuance of installation license for Foz do Chapecó

Foz do Chapecó project Acceptance by BNDES

Generation

Consolidation as the industry’s operating indicators benchmark

Transmission operation centralization and operating unification consolidation

100% automation of CPFL Piratininga’s substations

Distribution

25

3 3 0 3 93 1 5 7 2

2 0 0 3 A D J 2 0 0 4

3 3 0 3 93 3 6 4 4

8 4 5 28 8 8 3

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

Distribution - Sales

Sales (GWh)

Adjusted Sales Evolution(GWh)

4.6%

C e n t r o d e O p e r a ç õ e s - S a n t o sOperation Center - Santos

MENUADJ¹ = excludes from 2003 basis the effect of the free customers migration in 2004

CPFL serve 5.5 million customers (2004) a 2.4% growth compared to 2003

The amount of energy sold was virtually flat in the power supply market, however the increase in charges for the usage of the energy distribution system (TUSD) presented a strong growth

26MENU

3722

7863

2003 2004

Reducing the risk of captive customers migration on distribution business

Annual Captive Market of distributors

base 100

Captive market Potentially free market

Energy sold to potential free customers reduced from 37% in 2003 to 22% in 2004;

Of those potential free customers in 2004, 80% requested a negotiation with CPFL;

Of those 80%, 78% renew in the captive market;

19% have migrated to the free market and were retained by CPFL Brasil;

Only 3% of those who migrated to free market were not retained by CPFL Brasil;

The potential free market represented 13,111 GWh/year in 2003 and in 2004 it represents 7,714 GWh/year (41% reduction)

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1 2 9 51 2 3 5

3 9 73 7 2

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

9 0 6 77 7 6 3

2 4 1 12 1 5 3

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

3 2 3

( 4 1 )

2 2 01 3 9

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

Distribution –Business results

Gross Revenue (R$ million)

EBITDA (R$ million)

Net Income (R$ million)

5%888%

7%

58%

12%

17%

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Increase in the residential, commercial and industrial sector’s consumption

8.7% reduction of operating costs and expenses

Change in the goodwill amortization curve

17% increase in the gross revenue in 2004 compare to 2003

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Operating center - Campinas

2 1 7

3 66 7

1 3

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

495%

552%

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Distribution – TUSD and migration of captive customers

Revenues from the system utilization presented 495% increase in 2004 compared to 2003;

In 2004, 38 captive customers have left the captive market and became free customers.

Charges for the system utilization (TUSD) presented growth in 2004

Revenues for the System Utilization (TUSD) (R$ million)

The 38 customers which have become free, represent 2,060 GWh/year:

30 customers were retained in the Group through the commercialization unit, represent 1,764 GWh/year (86%)

Only 8 customers have left the Group, representing 296 GWh/year (14%)

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1 5 %

5 %9 %

4 6 %

2 5 %Residential

Industrial

Commercial

Rural

Others

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Distribution –Consumption by customer class

Consumption Mix by Customer Class2004 (GWh)

The major driver for residential class growth was the customers base increase in the concession area;

The commercial class performance was driven by the economy’s warming up;

The reduction in the industrial segment was mainly motivated by the migration of captive customers to free customers.

Excluding the effect of captive customer migration, all classes experienced an increase in the period

Excluding the effect of the captive customers migration, the industrial consumption presented an increase of 7.1%

Residential

Industrial

Commercial

Rural

ConsumptionVar.(%) 03-04Classes

2.2%

-6.6%

3.9%

4.5%

Consumption Var.(%) ADJ¹

2.1%

7.1%

4.6%

4.3%

ADJ¹ = excludes from 2003 basis the effect of the free customers migration in 2004

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1 0 2

5 1

1 96

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

1 5 2

7 1

3 9

8

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

EBITDA (R$ million)Gross revenue (R$ million)

Net income (R$ million)

114%

100%

388%

217%

8 9 3

3 3 62 4 3

8 7

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

166%

180%

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Commercialization – Business Result

Retention of customers in CPFL Group

Capture of new free customers

Energy sales to other market agents, including distribution companies

Solution based on value added services sales, such as the construction of substations for major customers

Highlights

CPFL Brasil: Commercialization business presented strong revenues, EBITDA and net profit growth

31

2 8 8 9

7 8 09 2 5

2 4 5

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

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Commercialization – Free Customers

Energy sold to Free Customers (GWh)

CPFL Brasil maintains its focus on the free market

Free Customer Flow 2004 (GWh)

Migration of distributors’ captive customers is more than offset by the capture of free customers in the commercialization company

50 free customers in 2004, 13 of them being customers outside the distribution companies’ concession area

Remarkable growth in the amount of energy sold to free customers;

Customers in different industries, such as automobiles, beverage and food, chemical, steel, retail and many others, mitigate the demand oscillation risks.

- 2 0 6 0

1 7 6 4

5 8 3

2 8 7

Outside the concession area

Migration at Distributors

28%

Retained by the Commercialization

Company Balance

2,347

86% 14%

270%

278%

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3 3 12 9 1

8 77 4

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

7 1

3

1 96

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

2 8 22 5 1

7 46 2

4 Q 0 3 4 Q 0 4 2 0 0 3 2 0 0 4

Generation – Business Results

Gross Revenue (R$ million) EBITDA (R$ million)

Net Income (R$ million)

2267%

12%

19%

217%

14%

18%

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Energy supply contracts are related to IGP-M

Total generated energy are contracted

Monte Claro plant has begun its operation

EBITDA margin above 90%

Gross Revenues of the Generation business increased 14% in 2004 compare to 2003

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Generation – Business Highlights

Monte Claro Hydroelectric plant start its commercial operations in December 2004;

14 de Julho Hydroelectric Plant started its construction in October 2004;

Foz do Chapecó Installation License Obtained

Acceptance of Foz do Chapecó by BNDES, considering it eligible for financing.

Generation projects

Barra Grande – Current Stage

Monte Claro – Plan Concluded

Campos Novos – Current Stage

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34MENU

CPFL Energia launched Monte ClaroHydroelectric Plant in RS State

Built in less than 3 years;

High technology employed;

- Turbine and generator;

- Digital Control and Supervision System

Excellent installed power output by flooded area ratio – with low environmental impact level - 93 MW/Km²

5.1 MW/KM² average of the new energy projects¹

14 MW/Km² average of the public projects bided between 2000 and 2002²

Construction concluded 14 months ahead of Aneel´s concession agreement timetable;

Proving the planning and administrative experience on generating projects implementation

Inauguration of Monte Claro:

¹ New generation projects to be auctioned by Aneel

35

Business Outlook

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36

Business Outlook – Generation

BarraGrande

CamposNovos

Castro Alves Foz doChapecó

Monte Claro 14 de Julho

1 9 9 0

1 6 4 71 4 9 8

9 5 48 9 7

2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

CAGR (03-08): 22.0%

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To add value through the continuous increase in operating efficiency and the conclusion of ongoing generation projects

20054%13%87%92%ConcludedCurrent Stage

Terms released by

BNDESOKOKOKOKOKFinancing

OKOKOKOKOKOKEnvironmentalLicenses

OKOKOKOKOKOKPPA’s

New projects will increase the Group installed power capacity by 2.5x

Power capacity addition of 1,177 MW – 56% to be delivered by January, 2006

• Barra Grande: 173 MW (Oct/05)

• Campos Novos: 429 MW (Jan/06)

• Group will present a 22% CAGR in installed power capacity from 2004 to 2008

Installed capacity (MW Average)

37

Business Outlook – Generation Projects

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2 3 8 1 2 0 7 1

4 8 6

2 9 5

2 3 0 8 5 53 3

1 3 4 0

2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8

O t h e r P la n s C P F L P la n s

* - Energy to be generated by power plants whose construction has already been initiated

Plants in which CPFL is involved, will account for 35% of all new energy added to Brazilian

electric sector until 2008

energy added to Brazilian electric sector (MW)*

Investment in construction, acquisition,

and repotentiation of SHPs

Bid in the “new energy” auction,

investment in generation Greenfields

(sale in ACR);

Purchase existing assets

Source: Aneel Jan/05

2676

3411

716888

CPFL seeks to be the 3° biggest private player in generation until 2010

Experience in planning, management and

implementation of generation projects

Operational efficiency benchmark with an

EBITDA margin above 90%

Competitive Advantages

Leverage competitive advantages to grow the generation business

38

SHP’s CPFL – Repowering

PCH Gavião Peixoto PCH Chibarro PCH Capão Preto

Business Outlook - Generation

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SHP - Gavião Peixoto:

‒ Feasibility study approved by ANEEL;

‒ Beginning of construction forecast by June, 2005.

SHP - Capão Preto:

‒ Under feasibility study;

‒ Beginning of construction forecast to August, 2005

SHP - Chibarro:

‒ Under feasibility study;

‒ Beginning of construction forecast to August, 2005

39

Business Outlook - Commercialization

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Operating in buying and selling energy to distributors (including the Group distributors) through long term regulated contracts

The free customer market reached 12% of the Brazilian market in 2004. Forecasting a growth of 50% in 2005

Strong growth on sales of value added services with adequate margins (CPFL Brasil has the biggest portfolio of energy substation under construction)

CPFL Brasil has competitive prices due to the purchase of big energy volume:

― Among the commercialization companies, CPFL Brasil is the largest buyer from Biomass projects, Petrobrás thermoelectric plan and Tractebel

CPFL Brasil is a strong and reliable brand making the difference for free customers decisions to buy energy

Offices established on the main Brazilians cities to identify new business opportunities which include the development of value added services and support the free market

Commercialization keep working successfully on free customer retention/capturing strategy in CPFL Group and growing on free customer market

40

Business Outlook – Distribution

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Technical and commercial indicators are reference in the

sector

1,5% reduction loss is the CPFL target for the next 2 years

Losses reduction add more than R$ 100 million

EBITDA/year to CPFL results

Reduction of manageable costs by 9.5% per year

Costs into the limits of the model company established by ANEEL

Low investment required by the universalization program

Adding value through maximizing the distribution business operational efficiency

Benchmark in Technical and CommercialLosses

Continuous Reduction of the Manageable Costs

41MENU

Business Outlook –CPFL universalization program requires low investments

5,46%

0,22%

1,23%

1,99%

Brazil CPFL Southeast South

Low investment needed to meet the universalization target

There are only 5 thousand residential customers not served in CPFL’s concession area, against 2.4 million residential customers in Brazil

The high population density in CPFL’s concession area does not demand large investments to meet the universalization targets

Source: Aneel

2.443.028

5.074

248.098142.041

Brazil CPFL Southeast South

Residential customers level without access to electric energy in CPFL’s area is lower if compared to the average of the main regions of the country

Percentage of non-served residential customers

Total non-served residential customers

42

Business Outlook – Distribution

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Adequate capital structure – (Debt/Equity ratio of 56%/44% by 2004 year-end)

Debt Cost compatible with the parameters of the model company established by ANEEL

Minimum WACC achievement , maximizing value to the shareholders

Growing focus linked to low cost of capital

Proven experience in acquisition, restructuring and integration

― Piratininga acquisition

Search for opportunities in the industry’s consolidation

― Players seeking to leave the industry;

― Players with high operational synergies.

Adequate Capital Structure presenting minimum WACC

Distribution expansion

43

Business Outlook –CPFL in high-growth rate market

Annual Market CPFL Energia(GWh)¹

The consumption growth of CPFLEnergia distributors concession area in the 1Q05 was higher than in southeast region and in Brazil

Power Consumption 1Q05 (Concession Area)

CPFL2 vs Brazil vs. Southeast

1 8 . 3 7 1 1 8 . 1 9 9 1 9 . 1 5 3

1 0 . 2 3 5 1 0 . 4 6 41 0 . 6 6 7

1 0 . 1 6 1 1 0 . 0 1 31 0 . 3 1 5 9 . 8 4 0

5 . 6 8 85 . 7 6 6 5 . 8 8 6

6 . 0 8 6

1 8 . 5 5 9 1 9 . 0 5 8 2 0 . 0 4 2 1 8 . 9 1 7

6 . 4 1 8

4 1 98 9 5 3 . 2 0 9

1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4

P a u lis t a P ir a t in in g a R G E C P F L B r a s il

28.794 29.522

36.39734.298

34.51736.449 38.384

5,3%

7 , 2 %

6 , 1 %

7 , 0 %

C P F L B r a z i l S o u t h e a s t

Source: ONS MENU

CPFL Energia’s energy demand has already reached a higher level than the pre-rationing period (2000)

CPFL Brasil had a key role in market increase, preventing free customers from leaving CPFL Group

1 Consider 100% of RGE2 CPFL Paulista + Piratininga + RGE

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CPFL Energia - Non Deal Road Show4th quarter and full year 2004 ResultsJosé Antonio Filippo – CFOPaulo Cezar Tavares – VP for Energy Management Vitor Fagá de Almeida – Investor Relation

April, 2005