During the month of December 2011, CPFL Renováveis concluded two important deals. On December 19, the acquisition of the entire capital stock of SIIF Énergies do Brasil Ltda. and SIIF Desenvolvimento de Projeto de Energia Eólica Ltda., which had been announced to the market on April 7, 2011, was finalized.

As a result, four new wind farms in operation in the state of Ceará were brought into the CPFL Renováveis portfolio: Formosa, Icaraizinho, Foz

do Rio Choró and Paracuru, totaling 210 MW of installed capacity. And a further 412 MW in certified projects that are eligible for participation in the next energy auctions along with 320 MW in non-certified projects were incorporated, as well. On December 29, the transaction to purchase all of the capital stock of Santa Luzia Energética S.A. also was concluded.

The company owns the Santa Luzia SHPP located in the municipalities of São Domingos and

Iguaçu (SC), with 28.5 MW of installed energy and assured energy of 18.4 MWaverage, which now is part of CPFL Renováveis’ asset portfolio.

This is the CPFL Renováveis’ 34th operational plant, with the company now having reached a total of 306.7 MW of installed power from this source alone. The company also has four wind farms currently in operation and three biomass-fueled TPPs that are up and running.

INVESTOR RELATIONS 41 | YEAR 8 | NOVEMBER/DECEMBER 2011

CPFL Renováveis acquires new Wind Complex

Acquisitions expand portfolio

CPFL Renováveis signed a share purchase-sales contract with Spanish company Cobra Instalaciones Y Servicios S.A. for the acquisition of the Atlântica Wind Complex, to be built in Palmares do Sul (RS). The startup of the project is scheduled for 2013 and the complex is made up of four wind farms: Atlântica I, II, IV and V. Together, they total 120MW of installed power with a physical guarantee of 52.7 MWaverage. All of the certified energy from the wind farms was sold at the Alternative Sources Auction held in August 2010, at a price of R$ 135/MWh, April 2010 base (R$ 143.79/MWh April 2011 base).

Through the purchase, CPFL Renováveis

now will have a portfolio of 29 wind farms, of which four of the projects are already in commercial operation in Ceará, with 210MW, and 25 farms are under construction in Rio Grande do Norte and Rio Grande do Sul, with a combined installed capacity of 670 MW and startups scheduled by 2014. The farms in operation and construction total 880 MW of installed capacity.

It should be remembered that the transfer of the shares of the Wind Farm are conditioned to prior approval of the deal on the part of the National Electric Energy Agency (Aneel).

In this edition

3Positive balance sheet, challenges and prospects for 2012

4 COP 17: business opportunities

2CPFL participates in INI event

CPFL Energia made significant advances in 2011. Among these initiatives, we established CPFL Renováveis – a company that from its inception is the leader in its segment in Latin America. And its work during the year was intense: we concluded the operation of Jantus, we put the Bio Buriti and Bio Formosa TPPs online, and we closed three deals: the acquisition of the Santa Luzia SHPP and the startup of construction of the Coopcana and Alvorada TPPs, both fueled by sugarcane bagasse. We also announced the construction of nine wind farms whose power will be sold on the free market.

In Distribution, the year was notable for the

continuity of the strong growth of the residential and commercial classes, the result of the expansion of job creation, income and credit. The industrial segment’s performance was more modest, affected by the appreciation of the exchange rate and high interest rates. One important event for the sector was the conclusion of the methodology for the third tariff revision cycle of the distribution companies, in November 2011. In CPFL’s case, the main impact of the third cycle will be felt as of the second half of 2013, because two of its largest distribution companies — which together represent approximately 70% of the Distribution EBITDA — will undergo the process only

in April and June of that year. In 2011, we kicked off an important smart grid investment program, which should total R$ 215 million through 2013.

Brazil expects that the electricity industry will be capable of offering efficient energy solutions with prices and quality that are accessible to everybody. And, mainly, that it is sustainable over the long term. CPFL Energia is preparing itself to participate in this process, always based on the responsibility of generating shareholder value.

Wilson Ferreira Jr.President of CPFL Energia

The President’s Word

Analysts’ RecommendationsA total of 22 financial institutions were providing coverage of CPFL Energia’s

shares at the end of December 2011, with 50% having either a Buy or a Hold recommendation.

You can see the performance of CPFL Energia’s shares for the 12 months ending December 2011 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.

STOCK MARKET MOVEMENTIn 2011, the average daily

trading volume of the

company’s shares was R$

32.8 million, including trades

through the Bovespa (R$13.5

million) and the NYSE (R$19.3

million). This result was similar

to what was seen in 2010. The

average number of daily trades

on the Bovespa was 2,045, up

45.4% over 2010 (1,406/day).

CHANGE IN RECOMMENDATIONS The research teams at Itaú

and Citi banks changed their

recommendations regarding

investments in the company’s

shares (ON) from Hold to

Buy in November/2011 and

September/2011, respectively.

UBS AND GOLDMAN SACHS ON THE AGENDA The Investor Relations

Department was present at

two international conferences

in the last two month-period

of 2011: UBS and Goldman

Sachs, held in New York in the

United States in November.

Participating in the events

were Investor Relations

Director Eduardo Atsushi

Takeiti and Thiago Pi!er, IR

specialist. During 2011, the

department attended eight

international conferences, as

well as eight domestic and

group meetings.

Capital Market - Our Market Performance

CPFL participates in INI event

Source: Economática Variations adjusted per dividends

CPL DJBr20 DJIA

Share Performance - NYSE – 12 months

-20.3%

12/30/10 22.44 36,722 11,57012/30/11 28.21 29,277 12,218Var. 25.7% -20.3% 5.6%

25.7% 5.6%20.4%

CPFE3 IEE IBOV12/29/10 19.47 27,088 68,95212/29/11 26.02 32,613 56,754Var. 33.6% 20.4% -17.7%

33.6% -17.7%

Share Performance - Bovespa – 12 months

2

CPFL Energia participated in the Conscientious Investor Formation event organized by the National Investors Institute (INI). Alessandra Andretta, Investor Relations manager, made a presentation about the CPFL Group and its results to the 300 participants. The event was held in November at the PUC-Campinas auditorium.

Alessandra Andretta presents the company’s results

Capital Market - Our Market Performance

In the ISE, for the seventh consecutive year

CPL DJBr20 DJIA

Share Performance - NYSE – 12 months

-20.3%

12/30/10 22.44 36,722 11,57012/30/11 28.21 29,277 12,218Var. 25.7% -20.3% 5.6%

25.7% 5.6%20.4%

CPFE3 IEE IBOV12/29/10 19.47 27,088 68,95212/29/11 26.02 32,613 56,754Var. 33.6% 20.4% -17.7%

33.6% -17.7%

Share Performance - Bovespa – 12 months

3

Positive balance sheet, challenges and prospects for 2012

Eduardo Takeiti, Investor Relations director

Interview

How did the CPFL Energia Group do in 2011?Without any doubt, since we’re talking about the stock

market, it was an extraordinary year. Mainly because of the increase in value of our shares, which rose on average 34%, whereas the Ibovespa declined by 18%, approximately. We reached a significant milestone in market cap, of R$ 25 billion, representing an increase of approximately R$ 6 billion compared to the year of 2010! This was a result of CPFL Energia’s excellent growth prospects, whose operations presented consistent profitability, one of the best efficiency indexes in the industry and high levels of corporate governance. And, of course, we cannot forget the more defensive profile of the electricity industry, which generally presents a good history of dividend payments, and therefore was a safe haven in the midst of the international turbulence seen in the second half of last year.

Also during 2011, we conducted a reverse split and simultaneous split of our stock. As a result, we boosted the liquidity of our securities and facilitated access of individual investors to CPFL Energia’s shares in view of the fact that the standard lot became less expensive after the operation.

What are the prospects for 2012?The objectives of CPFL Energia’s Investor Relations

Department are based on some main points. First, there is the strengthening of relations with the investment community through active participation in conferences, non-deal road shows and events. We’ve already been doing this, but the idea is to intensify these relationship activities even more.

Another point is to exploit and emphasize our renewable energy business as a major driver of growth for the Group, something that is a worldwide trend now. CPFL Renováveis already owns a large portfolio of projects under construction, as well as many in a developmental phase.

The continuous improvement in the quality of the information that we disclose to the market is also on our To-Do list for 2012, as well as the dissemination of market information within the organization itself. Through this, we will be able to provide a basis for strategic planning,

contribute to the decision-making process and the consolidation of the Group’s leadership position.

Furthermore, we see prospects for helping the investor market correctly understand the 3rd Tariff Review Cycle. We want to offer a very clear and assertive approach to this matter in view of the fact it is a very complex topic. And, in the midst of all of this, it is our mission to optimize costs and contribute to expense reductions, because companywide efficiencies are being implemented on a wide scale.

What are the major challenges in 2012?This will be a very volatile year, mainly because of the

European crisis and the presidential elections in the United States, which are making a lot of noise in the market. However, in general, we have a solid base to confront the international crisis. Therefore, our challenges will be to maintain CPFL Energia’s leadership in the electricity sector and post consistent profitability in our operations in a constantly more demanding and competitive environment.

How is CPFL preparing itself to confront the impacts of international instability?

The Group as a whole already began to prepare itself last year through the adoption of some programs, such as the Zero Base Budget, the Incentivated Retirement Program and the implementation of the Shared Services Center. Moreover, again in 2011, we rolled over our debts until the end of 2012 under very favorable conditions. We will remain focused on the efficiency of our operations, exploiting alternatives that improve our quality indicators in our concession area. Through a leaner and more efficient operation, it is possible to generate even higher cash flows. And this certainly it will be reflected in our financial indicators and in the pricing of our shares.

National conferences and group meetings

8

International conferences

8

APIMEC meetings (SP, RJ, MG, DF, RS)

6

Webcast 5One-on- One Meetings

180

OTHER EVENTS

Expo Money São Paulo

Events in partnership with INI – Campinas

TV Ágora Recording

V Investors Meeting

Investors Visits (operations center,

plants etc.)

CHECKED

For the seventh consecutive year, CPFL Energia was part of the BM&FBOVESPA’s Corporate Sustainability Index (ISE), which is made up of the companies with the most outstanding corporate sustainability results, evaluating their general aspects, environmental policies, corporate governance, economic-financial characteristics, social responsibility and climate change attitudes.

The new ISE makeup, which will be in effect from January 2, 2012 until December 31, 2012 includes 51 shares from 38 companies. They represent 18 industries with a total market cap of R$ 961 billion, the equivalent

of 43.72% of the total market capitalization of the companies currently trading on the BM&FBOVESPA (as at November 23, 2011). CPFL Energia is one of the 13 companies that have been included in the ISE since its creation in 2005. “This strengthens our distinguishing characteristics in terms of management, sustainability and corporate governance. I would like to emphasize the importance of this achievement in view of the fact that this process each year is increasingly more demanding and competitive,” said Alessandra Munhoz Andretta, investor Relations manager.

“Our challenge will be

to maintain the group’s

leadership position,”

affirms Takeiti

44

CPFL INVESTOR is a publication of the Investor Relations Department of CPFL Energia, published by the Corporate Communication and Institutional A!airs Department, Rodovia Campinas Mogi Mirim, Km 2.5 - Jd. Santana - Campinas/SP, Zipcode 13.088-900. Phone: 55 (19) 3756-8197 Fax: 55 (19) 3756-8040 – Vice President for Finance and Investor Relations O"cer: Lorival Nogueira Luz Jr., IR Director: Eduardo Atsushi TakeitI, IR Manager: Alessandra Maria Mazia Munhoz Andretta, Corporate Communications O"cer: Augusto Rodrigues, Journalism Manager: Carlos Henrique Matos Ramos (MTb 19.163). Content, Editing and Design: Produção Coletiva - website: Investor Relations: www.cp#.com.br/ir - e-mail:ri@cp#.com.br.

Transparency and Relationship

It was an entire day of information, exchange of knowledge and lots of learning. During the morning, a virtual exposition of the main scenarios and trends of the electricity sector, presented by the CPFL Group’s top executives at the company’s installations in Campinas. In the afternoon, a technical visit to Sorocaba (SP) to get to know the Brazilian facilities of Wobben, the German-based supplier of equipment for the seven wind farms that make up the Santa Clara Complex, currently under

construction by CPFL Renováveis in Rio Grande do Norte.

The V Annual Investors Meeting brought together some 130 participants, including analysts and investors, transforming the event into a forum for reflection. The public learned about the company’s strategic plan for the upcoming years and had the opportunity to debate CPFL Energia’s positioning as one of the main players in the electricity sector. The investors were shown the big picture regarding the Group’s financial results, the

potential of renewable energy in Brazil, novelties in the field of power distribution (smart grid) and sales prospects.

“Each year, the event has attracted more and more people and the evaluations about it that we have received are excellent, which has encouraged us to continue to seek to improve it in the coming years,” said Lorival Luz, vice president for Finance of CPFL Energia. “It has become a company tradition to put on this annual event, facilitating access of investors and analysts to our main executives.”

The UN organized the 17th Climate Change Conference (COP 17), in Durban, South Africa, and CPFL Energia participated in this event, the most im-portant of the year aimed

at debating the global warm-ing issue. Augusto Rodrigues, director

of Corporate Communications and Institutional Affairs and Rodolfo Nardez Sirol, Environmental director, at-tended on behalf of the company.

Held in December, the event attracted over 200 countries and 10,000 participants. CPFL Energia’s two representatives reported that besides touching on climate issues, COP 17 made it possible to exchange information regarding technological innovations

and business models. In Rodrigues’ opinion, COP 17’s results were bigger and better than expected. For the electricity industry, the main finding was how much China and some other countries are advancing in discovering and implementing new renewable source energy solutions, particularly related to solar power. “China is investing in new technologies to make solar energy less expensive. I’m certain that within three years, there will be very few houses without solar panels installed capturing energy for each residence,” he said.

CPFL continues accompanying global trends in renewable energy and sustainability and, to this purpose, participated in On Sustainability, a forum held January 10-12 in Vancouver, Canada. Sustainability manager Luiz Eduardo Rielli represented the company at the event.

COP 17: business opportunities

Some 130 people participated in the event Visit to Wobben, in Sorocaba

In line with its commitment to move closer to the market, on November 24 the IR Department organized the V Annual Investors Meeting