Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

.

São Paulo, March 27, 2014 – CPFL Energia S.A. (BM&FBOVESPA: CPFE3 and NYSE: CPL), announces its 4Q13/2013 results. The financial and operational information herein, unless otherwise indicated, is presented on a consolidated basis and is in accordance with the applicable legislation. Comparisons are relative to 4Q12/2012, unless otherwise stated.

CPFL ENERGIA ANNOUNCES 4Q13 NET INCOME

OF R$ 323 MILLION

Notes:

(1)     Disregard construction revenues;

(2)     EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result, depreciation/amortization and result of pension fund contributions, as CVM Instruction no. 527/12;

(3)     EBITDA (IFRS + Proportional Consolidation for Generation) considers, besides the items mentioned on note (1) above,  the proportional consolidation of assets that  are now accounted by the equity method, due to changes in accounting standards (IFRS 11/CPC 19 (R2));

(4)     Adjusted EBITDA considers, besides the items mentioned on note (2) above, the regulatory assets and liabilities and excludes the non-recurring effects;

(5)     Adjusted Net Income considers the regulatory assets and liabilities and excludes the non-recurring effects.

4Q13 HIGHLIGHTS

•  Energy sales were up 3.3% (1.8% reported) in the concession area – residential (+6.7%), commercial (+5.0%) and industrial (+1.1%)

•  Reduction in the adjusted PMSO in 4Q13 of 13.3% (R$ 50 million)

•  Tauron Program (smart grid) generated EBITDA  of R$ 52 million in 2013

•  CPFL Renováveis expansion: (i) A-5 Auction (Dec/13), (ii) joint venture with DESA  (Feb/14) and (iii) start-up of Atlântica wind complex (Mar/14) 

•  Investments  of R$ 374 million in 4Q13 and of R$ 1,735 million in 2013

•  Distribution of R$ 931 million in dividends, related to 2013, with dividend yield of 4.8% (LTM); payment of R$ 568 million in complementary dividends, related to 2H13

•  Maintenance of the AA+(bra) rating by Fitch Ratings to CPFL Energia and subsidiaries

•  CPFL Energia’s shares were maintained in the ISE  (the BM&FBOVESPA’s Corporate Sustainability Index), for the 9^th consecutive year

•  CPFL Energia was classified as a member in Sustainability Yearbook 2014, prepared by RobecoSAM, responsible for review of the DJSI

•  CPFL Piratininga and RGE won the 2013 IASC Award in the Southeast and South categories, respectively (distributors best evaluated by the consumers)

INDEX

 

 

1) MESSAGE FROM THE CEO

We ended 2013, once again with solid results: in the fourth quarter, energy sales within CPFL Energia’s concession area, adjusted for calendar, temperature and other impacts, increased 3.3%. The residential and commercial segments once again played a prominent role, growing 6.7% and 5.0%, respectively. This performance is strongly based on sound economic fundamentals that drive consumption in our concession area, notably the increase in the real wage bill, low unemployment rates, robust retail sales led by home appliances, and expansion of the real estate market.

In the year, sales in our concession area increased 3.1%, driven by growth of 5.9% in the residential, 3.6% in the commercial and 2.0% in the industrial segments. Note that the latter outgrew the 1.2% increase in Brazil’s industrial production, mainly due to the solid performance of industry in Rio Grande do Sul state and the stiffness in energy consumption in certain sectors despite the economic slowdown. I would like to provide more details on our South operation, where we had a surprising increase of 7.5% in sales in the residential segment and 5.5% in the industrial segment. Here, I wish to highlight the extraordinary performance of Rio Grande do Sul, strongly linked to Brazil’s record agricultural crop in 2013. Rio Grande do Sul is Brazil’s 3^rd largest agricultural producer and its industry, strongly linked to the production of agricultural machinery and tools, posted growth of 6.9% in 2013. Driven by the strong industry performance, unemployment rates remained lower than the national average, while resulting in a higher real income growth than across the rest of Brazil.

I would like to underline our cost reduction initiatives, particularly the Zero Base Budget (ZBB). Since 2011, in nominal terms, we were able to reduce our personnel, materials, outsourced services and other (PMSO) expenses by R$ 53 million, or 3.8%, compared to an average inflation of 12.2% in the period, as measured by the IGP-M index. In real terms, we reduced our costs by 14.9%, or R$ 236 million - an unparalleled advance in our pursuit of operational excellence.

I would also like to comment on the progress we made in our Tauron Program, our smart grid project. We already have over 15,000 meters installed, and have equipped more than 35% of our operational fleet with GPS systems and tablets, which should enable more accurate monitoring of our distribution network while reducing costs through savings in the  transport costs of the teams. This initiative should further improve the quality of our customer service and reduce operating costs. An example of the result obtained on this front is the EBITDA of R$ 52 million generated by this project in 2013.

Our subsidiary CPFL Renováveis continues to grow at full steam: in 2013, we added 130 MW of installed capacity to end the year at 1,283 MW from projects in operation, the highest in Brazil from renewable sources. In December 2013, we sold over 51 MW from the wind farms in the A-5 auction, with Pedra Cheirosa Complex. In February 2014, we concluded the acquisition of the wind farms of Rosa dos Ventos, adding another 13 MW to our installed capacity and, in March, we concluded the construction of Atlântica Wind Complex, which has 120 MW of installed capacity. In 2018, we should reach a total of 1,800 MW, of which 1,417 MW now operating and the remaining 384 MW under construction. In terms of economic and financial performance, CPFL Renováveis generated EBITDA of R$ 563 million in 2013, up 11.6% from 2012.

In February, this subsidiary also announced its association with Dobrevê Energia S.A. (DESA). The operation, which will involve the merger of the shares issued by DESA, is subject to compliance with certain conditions precedent, such as approvals by regulatory agencies and DESA’s creditors, as well as the satisfactory outcome of due diligence currently being conducted by both the parties. With this association, we are continuing on the path of sustainable growth at our subsidiary CPFL Renováveis, strengthening its leadership in Brazil’s renewable energy segment.

Fourth quarter consolidated financial results were equally significant: analyzing the managerial figures, adjusted for the impact of regulatory assets and liabilities, the proportional consolidation of generation assets and non-recurring effects, our EBITDA reached R$ 1,135 million, already considering the effects of the 3^rd tariff review cycle at our distributors. Net income was R$ 425 million. In the year, we reported recurring EBITDA of R$ 4,225 million and net income of R$ 1,358 million. Thus, we announced the distribution of complementary dividends in the amount of R$ 568 million related to the results of the second half of 2013. During the year, dividends totaled R$ 931 million. 

 

 

In terms of financial leverage, we ended 2013 with a net debt/EBITDA ratio of 3.59 times, virtually stable in relation to the third quarter. With the startup of CPFL Renováveis’ new assets, we envision a turning point for our leverage as a result of the natural maturation of our projects in it.

Lastly, I wish to point out that 2014 began with several challenges for the electricity sector, especially with regard to water levels and the need for increased power dispatch from thermal power plants. Brazil’s electricity system currently has a more diversified energy matrix than in 2001, when it endured its first and only energy rationing to date. Today we have some 20 GW generated by conventional thermal plants, nearly four times more than in 2001. Moreover, we now have a much more comprehensive and robust transmission grid, which allows for the exchange of energy between different production and consumption regions. These factors give us greater confidence to face one of the worst years in history in terms of water supply.

The regulatory requirements and challenges posed by an adverse scenario do impose major obstacles for the entire sector. However, CPFL Energia’s results in recent years underscore the group’s growth strategy, which is mainly anchored on solid and conservative financial discipline, excellence in services provided to all its consumers, focus on financial and operating results, and creation of value for shareholders and investors.

Wilson Ferreira Jr.

CEO of CPFL Energia

 

 

2) MACROECONOMIC CONTEXT

The pace of global economic recovery in 2013 was moderate, due to certain factors that prevailed since the end of 2012. The possibility of a new financial crisis in Europe, a possible sharp slowdown in China, or even the strong doubts about the impacts of the fiscal cliff in the U.S. economy were the main issues. These events were avoided, but brought uncertainty that led to a more subdued recovery in 2013.

Thus, in 2013 the world experienced moments of uncertainty with implications for confidence, investment and trade. Regarding the latter, the global demand slowed down and a large portion of productive capacity remained idle, which stimulated the competition between countries.

The expectation for 2014 is another year of moderate growth. For the global economy, we expect a growth rate of 3.7% in 2014, compared to 3.0% in 2013. Europe must reverse the scenario of recession and grow 1.0% this year, while the U.S. economy is expected to grow 2.8% in 2014 and 3.0% in 2015.

2013 GDP and forecasts for 2014 and 2015 (%) | selected economies

Source and forecasts: IMF

In Brazil, despite the fact that the industry have turned to grow slightly in 2013 (1.2% in 2013 compared to -2.6% in 2012), this sector is still suffering the effects of the global economic slowdown, the overvalued exchange rate, problems of logistics and uncertainties on how to conduct the economic policy.

In order to reverse this scenario, the government maintained the stimulus measures launched in 2012. Moreover, the recent devaluation of the real  began to contribute to exports. However, the country still recorded a decrease in confidence and higher inflation (especially coming from food and currency devaluation). On the other hand, unemployment rate continued to fall, explaining the rise in total income and the positive outcome of retail sales.

For the coming years, it is estimated that the Brazilian GDP will reach 1.7% in 2014 and 2.0% in 2015¹, compared to 2.3% in 2013, according to market expectations, driven by increased confidence and exports. Meanwhile, the industry will remain in a moderate growth. For the domestic market, the outlook remains good, given the low unemployment rate.

 

 

Evolution of Brazilian GDP | Annual growth (%)

Source: IBGE

Energy sales in the concession area of CPFL Energia are growing above Brazilian GDP for three years

Energy consumption in the areas served by CPFL Energia is growing at a faster pace than the expansion of the Brazilian economy in recent years.

Brazilian GDP x CPFL Energia energy sales | Annual growth (%)

Source: IBGE and CPFL Energia

Some factors indicate that GDP may not be a good indicator to explain, solely, the trend of CPFL Energia energy sales for the next few years. That is because the income elasticity of energy consumption in developing countries is relatively higher.

Unlike developed countries, in Brazil the energy intensity still has an uptrend, mainly due to two characteristics:

(i)            Brazil has a high potential expansion of energy consumption to be explored due to the relatively low GDP per capita, the high income inequality and the pursuance of a pattern of consumption similar to the richest countries (pent-up demand for durable goods); and

(ii)           Brazil is an industrial society, with physical production still concentrated in energy-intensive industries (as opposed to a post-industrial society where the prevailing industry is based on high technology and low power consumption, while the advanced services sector commands economic activity).

The GDP does not capture, for example, the changes we are observing in the consumption pattern of Brazilian citizens, favored by the improvement in income distribution, and the increase of household appliances in residences.

 

 

Another important feature, which is also not covered by an indicator such as GDP, is the demographic profile; although the population growth rates are lower every year, there is a trend to the formation of smaller families than those observed a few decades ago, resulting in less residents per household and therefore higher energy consumption per capita in the residential segment.

The chart below shows the "decoupling" observed between the performance of residential consumption and household consumption, a component of GDP that would have a higher correlation with that segment.

Household consumption x CPFL Energia residential segment | Annual growth (%)

Source: IBGE and CPFL Energia

And although economic activity is more easily associated with the performance of the industry, one should remember that the energy consumption in the industrial segment also has its nuances and varies not only with the evolution of industrial GDP. The energy consumption of electro-intensive industries has higher stiffness to the economic downturn, either because of technical² or economic³ issues.

Industrial GDP x CPFL Energia industrial segment | Annual growth (%)

Source: IBGE and CPFL Energia

Other variables have been ensuring the good performance of the energy consumption. Despite moderate economic growth, the expansion in the number of residential customers remains over time (3.0% p.a. from 2003 to 2013), reflecting population growth. The expansion of housing credit, less inhabitants/residence and social programs also contributed to above-average growth in recent years.

The consumption per residential customer is favored by the combination of economic variables such as total income (resulting from higher average income and the expansion of employment levels) and loans to individuals, which stimulates sales of household appliances.

Such variables had significant growth in the period between 2003 and 2013: total income increased by 4.9% p.a. and sales of furniture and appliances, 13.6% p.a.. Loans to individuals, in turn, increased 18.9% p.a. from 2008 to 2013 while mortgages grew 42.8% p.a. in the same period.⁴

Thus, ownership of household equipment increased in a significant way in recent years, as shown in the chart below.

Household appliances ownership | % residences

Source: PNAD/IBGE

The number of residences that used to own a computer tripled and those with washing machines grew over 60% from 2003 to 2012. Even televisions and refrigerators, which had great penetration in 2003, grew in 10 years. The exception is the use of freezer, which after the rationing period 2001-2002, ceased to be a key item in Brazilian households; the presence of these devices in residences has been stable since then. Regarding the ownership of household appliances, the social programs, such as "Minha Casa Melhor" also played an important role to increase the number of equipment in residences in recent years.

The commercial segment follows the same trend observed in the residential segment, favored by total income and credit to individuals, already mentioned, but also with close correlation with retail sales, which grew 7.5% p.a. between 2003 and 2013.

Evolution of main economic variables for residential and commercial segments seasonally adjusted | Jan-03 = 100

Source: IBGE

The industrial segment follows the path of physical production, already taking into account the safeguards made above regarding the higher influence of electro-intensive industrial activities and the stiffness in energy consumption decrease. Unlike the variables related to employment, income and credit, industrial production stopped its growth trend in late 2008, with the coming global financial crisis. After a sharp drop in late 2008, followed by a rapid recovery to previous levels in 1H09, the Brazilian industry keeps the same level until the present day. The difficulty to resume growth, despite high government incentives, lies mainly in the maintenance of overvalued exchange rate, deficiencies in infrastructure and world economy’s low growth rate, which affects the performance of exports and entrepreneurs expectations.

Evolution of industrial production – seasonally adjusted | Jan-03 = 100

Source: IBGE

Finally, the rural segment is highly influenced by rainfall levels, which determines the need for irrigation, and by grain harvest, which determines not only the expansion of agricultural production, but also contributes to the expansion of income and employment, generating a spillover effect over the other segments.

This effect was observed in the concession area of RGE in 2013. Despite the low growth rates for GDP and industrial production in Brazil, the energy consumption in the region served by the RGE grew 4.2%, highlighting residential (7.5%) and industrial (5.5%) segments. It is estimated that the GDP growth of Rio Grande do Sul has been three times higher than Brazil in 2013, given the

 

 

contribution of the agro-industrial sector to the local economy.

The positive performance was ensured by the grain harvest, which reached record levels in 2013. According to the IBGE, the "super-harvest" was 16.2% (or 26 million tons) higher than in 2012, especially for corn (13%) and soybean (24%). The economic activity of Rio Grande do Sul, the 3^rd largest agricultural producer state in Brazil, is closely related to the expansion of this segment. The agribusiness, some related activities and even the total income reflect the good performance of the grain harvest.

Take as an example the industry of agricultural machinery, which has 46% of its production concentrated in the state of Rio Grande do Sul. In 2013, there was a 19% increase in the production of these machines, according to Anfavea, which, in turn, favored the state's economy.

Production of agricultural machinery | thousands

Source: Anfavea

According to the IBGE, the production of machinery and equipment in Rio Grande do Sul, which includes agricultural machinery and equipment, grew 9.4%. This expansion also generated positive effects in other industries: vehicles (mainly trucks) grew by 17.2% and rubber and plastic (tires and components) industry grew 9.8%. This contributed to the recovery of state´s industry (up 6.9%, the highest increase among Brazilian states in 2013, compared to a decline of 5.3% in 2012), while the industry in the rest of the country remained virtually stagnant (+ 1.2% in 2013 compared to 2012).

Industrial production in Rio Grande do Sul | annual growth %

Source: IBGE

Finally, the dynamism generated by the good performance in grain harvest resulted in an

 

 

unemployment rate even lower than the one observed in the rest of the country (3.5% in Rio Grande do Sul, compared to 5.4% on average for the whole country) and an increase of total income which was higher than in Brazil, as shown in the chart below.

Total income - Porto Alegre x All metropolitan regions* | quarterly moving average (Jan-07 = 100)

Source: IBGE

*All 6 metropolitan regions surveyed by IBGE.

 

 

3) ENERGY SALES

3.1) Sales within the Distributors’ Concession Area

In 4Q13, sales within the concession area, achieved by the distribution segment, totaled 14,996 GWh, an increase of 1.8%.

Note: Take into account changes in billing calendar in RGE in 2012.

In 4Q13, sales to the captive market totaled 10,559 GWh, an increase of 0.5%. The energy volume, in GWh, consumed by free customers in the distributors’ concession areas, billed through the Distribution System Usage Tariff (TUSD), reached 4,437 GWh in 4Q13, an increase of 5.1%, reflecting the migration of customers from captive market to the free market.

Note: The tables of sales within the concession area by distributor are attached to this report in item 13.10. Take into account changes in billing calendar in RGE in 2012.

Noteworthy in 4Q13, in the concession area:

·           Residential and commercial segments (26.3% and 16.2% of sales, respectively): up by 3.6% and 1.2%, respectively, favored (i) by the good performance of total income observed throughout the year, due to the remaining good results in the labor market; and (ii) by the consequent increase in retail sales and, especially, in sales of household appliances; (iii) partially offset by less billing days (less 1.0 day, if compared to 4Q12). Adjusting growth rate by billing calendar, temperature and other effects, residential segment grew 6.7% and commercial segment, 5.0%.

·           Industrial segment (43.1% of sales): expansion of 1.3%, confirming the slower pace of recovery of the world economy and, consequently, the industrial production. It is worthy highlighting RGE’s concession area, where industrial consumption grew 6.3%, favored by government incentives (vehicles, including buses and trucks) and by the record grain harvest, especially of corn and soybeans (machinery and equipment, mainly agricultural machinery).

 

 

3.1.1) Sales by Class – Concession Area

3.1.2) Sales to the Captive Market

Note: The tables with captive market sales by distributor are attached to this report in item 13.11. Take into account changes in billing calendar in RGE in 2012.

The modest increase in sales to captive market is mainly due to the migration of industrial and commercial customers to the free market, in addition to trends in sales already mentioned in section 3.1 above.

3.1.3) TUSD

Note: Take into account changes in billing calendar in RGE in 2012.

 

 

Note: Take into account changes in billing calendar in RGE in 2012.

3.2) Commercialization and Generation Sales – Excluding Related Parties

Based on pro forma amounts, in which the proportional consolidation of generation assets is reconsidered for management analysis, sales in commercialization and generation segments grew 2.0% to 4,887 GWh in 4Q13.

Note: Excludes sales to related parties and in the CCEE. Take into account proportional consolidation of jointly-controlled companies: Foz do Chapecó, Baesa, Enercan and Epasa. Take into account the provision adjustment of -90 GWh in 4Q12 and -2 GWh in 2012.

This variation reflects the increase in sales of CPFL Renováveis, mainly due to: (i) the commercial start-up of SHPP Salto Góes and Campo dos Ventos II wind farm; (ii) the availability agreement´s billing of Atlantica wind farm; and (iii) the higher volume of energy sold by the other wind complexes. The commercialization and conventional generation sales were influenced by the lower volume billed through bilateral agreements, mainly short-term agreements, and partially offset by the increase in the number of customers in portfolio (from 231 in 4Q12 to 284 in 4Q13), reflecting the strategy of national activity in the commercialization segment.

 

 

4) INFORMATION ON INTEREST IN COMPANIES AND CRITERIA OF FINANCIAL STATEMENTS CONSOLIDATION

The interests directly or indirectly held by CPFL Energia in its subsidiaries and jointly-owned entities are described bellow. Except for: (i) the jointly-owned entities ENERCAN, BAESA, Foz do Chapecó and EPASA, that, as from January 1, 2013 (and for comparative purpose for the balances of 2012) are no longer proportionally consolidated in the Company’s financial statements, being their assets, liabilities and results accounted for using the equity method of accounting, and (ii) the investment in Investco S.A. recorded at cost by the subsidiary Paulista Lajeado, the other units are fully consolidated.

As of December 31, 2013 and 2012, the participation of non-controlling interests stated in the consolidated statements refers to the third-party interests in the subsidiaries Ceran, Paulista Lajeado and CPFL Renováveis.

Notes:

(1)     Due to changes in the accounting standards, these companies are treated as joint arrangements and as from January 1, 2013 (and for comparative purpose for the balances of 2012) are no longer proportionally consolidated in the Company’s financial statements. Their assets, liabilities and results are accounted for using the equity method of accounting;

(2)       Paulista Lajeado has a 7% stake in the installed capacity of Investco S.A..

 

 

Notes:

(1)     Former Chumpitaz Serviços S.A.;

(2)     Former CPFL Bio Anicuns S.A.;

(3)     Former CPFL Bio Itapaci S.A..

4.1) Consolidation of CPFL Renováveis Financial Statements

On December 31, 2013, CPFL Energia indirectly held 58.84% of CPFL Renováveis, through its subsidiary CPFL Geração.

CPFL Renováveis has been fully consolidated (100%, line by line), in CPFL Energia’s financial statements since August 1, 2011, and the interest held by the non-controlling shareholders has been mentioned bellow the net income line (in the Financial Statements), as “Non-Controlling Shareholders’ Interest”, and in the Shareholders Equity (in the Balance Sheet) in the line with the same name.

 

 

5) ECONOMIC-FINANCIAL PERFORMANCE

Notes:

(1)    Disregard construction revenues;

(2)    EBITDA (IFRS) is calculated from the sum of net income, taxes, financial result and depreciation/amortization, as CVM Instruction no. 527/12;

(3)    Adjusted EBITDA  considers, besides the items mentioned above, the regulatory assets and liabilities and excludes the non-recurring effects;

(4)    Adjusted Net Income  considers the regulatory assets and liabilities and excludes the non-recurring effects.

5.1) Operating Revenue

Disregarding the revenue from building the infrastructure of the concession (which does not affect the results because of the related cost, in the same amount), gross operating revenue (IFRS) reached R$ 4,627 million in 4Q13, a reduction of 15.1% (R$ 824 million). The gross Operating Revenue (IFRS + Conventional Generation Proportional Consolidation) was of 4,723 million, a reduction of 14.8% (R$ 822 million).

Net Operating revenue (IFRS disregarding the revenue from building the infrastructure of the concession) reached R$ 3,467 million in 4Q13, a reduction of 8.8% (R$ 333 million). The net Operating Revenue (IFRS + Conventional Generation Proportional Consolidation) amounted to R$ 3,556 million, a reduction of 8.5% (R$ 330 million).

The fall in net operating revenue, already considering revenue eliminations, was mainly caused by the following factors:

·        Reduction of R$ 345 million in the revenues from the Distribution segment (for more details, see item 12.1.1);

·        Reduction in the revenue from the Commercialization and Services segment, in the amount of R$ 69 million;

Partially offset by:

·        Additional revenue from CPFL Renováveis, in the amount of R$ 57 million;

·        Increase in the revenue from the Conventional Generation segment, in the amount of R$ 27 million;

 

 

 

5.2) Cost of Electric Energy

The cost of electric energy (IFRS + Conventional Generation Proportional Consolidation), comprising the purchase of electricity for resale and charges for the use of the distribution and transmission system, amounted to R$ 2,040 million in 4Q13, representing a reduction of 9.7% (R$ 218 million).

·      The cost of electric power purchased for resale in 4Q13 was R$ 1,791 million, representing an increase of 1.1% (R$ 20 million), due to the following effects:

         (i)   Increase in the cost of short-term energy purchase (R$ 83 million) due to the increase of 210.9% in the average purchase price, partially offset by the reduction of 46.0% (591 GWh) in the quantity of the energy purchased. In part, this increase is caused by the purchase energy for Alvorada and Coopcana biomass TPPs and Atlantica Wind Complex, from CPFL Renováveis, to meet their contractual obligations in the power purchase agreements (R$ 73 million) – Non-recurring; 

        (ii)   Increase in the cost of energy from Itaipu (R$ 43 million), mainly due to the 23.4% increase in the average purchase price;

       (iii)   Increase in the PROINFA cost (R$ 6 million), due to the 50.8% in the average purchase price, partially offset by the reduction of 26.5% (96 GWh) in the volume of purchased energy;

Partially offset by:

      (iv)   Resources from the CDE in the amount of R$ 107 million, according to the Decree no. 7,945;

       (v)   Reduction in the cost of energy purchased through auction in the regulated environment and bilateral contracts (R$ 4 million), mainly caused by the reduction of 38.1% (7,211 GWh) in the volume of purchased energy;

      (vi)   Increase in PIS and Cofins tax credits, generated from the energy purchase (R$ 1 million).

·         Charges for the use of the transmission and distribution system reached R$ 249 million in 4Q13, a 48.9% reduction (R$ 238 million), due to the following factors:

          (i)        Reduction of 47.5% in the basic network charges (R$ 144 million), mainly due to the decreases of 52.2%  in CPFL Paulista (R$ 73 million), of 48.8% in CPFL Piratininga (R$ 33 million) and 49.2% in RGE (R$ 25 million) due to the MP 579/2012 (converted into Law no. 12,783 in January 2013), which caused a reduction in the transmission costs;

         (ii)        Reduction 51.3% in the system service usage charges – ESS (R$ 86 million), mainly due to the reductions of 50.9% in CPFL Paulista (R$ 46 million), of 54.3% in CPFL Piratininga (R$ 21 million) and of 59.4% in RGE (R$ 16 million);

        (iii)        Reduction of 65.2% in Itaipu charges (R$ 16 million);

       (iv)        Reduction of 47.7% in the conection charges (R$ 10 million);

        (v)        Reduction  in the energy reserve charges (R$ 7 million);

Partially offset by:

       (vi)        Reduction in PIS and Cofins tax credits, generated from the tax charges (R$ 24 million);

      (vii)        Increase of 1.1% in the charges of use of the distribution system (R$ 1 million);

 

 

5.3) Operating Costs and Expenses

Operating costs and expenses (IFRS + Conventional Generation Proportional Consolidation + Construction Cost) were R$ 1,051 million in 4Q13, registering a reduction of 29.0% (R$ 430 million), due to the following factors:

·      Reduction of 32.1% (R$ 119 million) in the cost of building the infrastructure of the concession (which does not affect the results because of the related revenue, in the same amount). This item, which reached R$ 251 million in 4Q12, has its counterpart in the “operating revenue”;

·      Depreciation and Amortization, which represented a reduction of 0.6% (R$ 2 million);

·      The PMSO item, that reached R$ 492 million in 4Q13, compared to R$ 803 million in 4Q12, registering a decrease of 38.7% (R$ 311 million). The table below lists the main variations in PMSO:

 

 

Thus, the Adjusted PMSO in 4Q13 would reached R$ 324 million, compared to R$ 374 million in 4Q12, a reduction of 13.3% (R$ 50 million). This PMSO variation is explained below:

       (i)        Personnel expenses, that recorded a reduction of 16.5% (R$ 27 million),mainly due to the reduction of overtime and lower provisions; 

      (ii)        Out-sourced services expenses, which registered a decrease of 19.3% (R$ 21 million), substantially in CPFL Paulista (R$ 11 million) and in CPFL Piratininga (R$ 4 million), mainly due to the reduction in the expenses with warning notices, disconnection and reconnection, hardware/software maintenance and call center and in RGE (R$ 1 million), mainly due to the reduction in the expenses with call center;

     (iii)        Other operational costs/expenses, that registered a reduction of 1.3% (R$ 1 million);

Partially offset by:

    (iv)        Increase of 23.7% in the Private Pension Fund expenses (R$ 2 million).

5.4) Regulatory Assets and Liabilities

The regulatory assets and liabilities, which are no longer registered, in accordance with the pronouncements issued by the Accounting Pronouncements Committee (CPC) and the international practices (IFRS), represented a receivablie of R$ 75 million in 4Q13 and of R$ 286 million in 4Q12 (impact in EBITDA). The amounts related to the deferral of the regulatory assets and liabilities will be passed through the tariffs in the next tariff readjustment, through the financial components. The amounts related to the amortization are reflected in the tariffs of each period.

5.5) EBITDA

4Q13 IFRS EBITDA reached R$ 912 million, registering an increase of 25.5% (R$ 197 million). The adjusted EBITDA in 4Q13 registered R$ 1,135 million, compared to R$ 1,317 million in 4Q12, a reduction of 13.8%. This impact reflects the implementation of the 3^rd Cycle of Tariff Review for all our distribution companies, in particular, CPFL Paulista, in April, and RGE, in June.

5.6) Financial Result

The 4Q13 net financial expense (IFRS + Conventional Generation Proportional Consolidation) was of R$ 219 million, an increase of 19.7% (R$ 36 million) compared to the net financial expense of R$ 183 million reported in 4Q12.

The items explaining these changes are as follows:

·         Financial Revenues: increase of R$ 85 million, from R$ 188 million in 4Q12 to R$ 272 million in 4Q13, mainly due to the following factors:

            (i)        Increase in update of escrow deposits (R$ 81 million), due to the increase in the CDI Interbank rate;

           (ii)        Increase in the income from financial investments (R$ 60 million), due to the higher cash balance and the increase in the CDI Interbank rate;

          (iii)        CPFL Renovaveis consolidation (R$ 6 million);

Partially offset by:

         (iv)        Financial Revenue in the Distribution Companies due to the adjustment for distributors’

 

 

financial asset  (CPFL Paulista, CPFL Piratininga, RGE, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari and CPFL Mococa) in 4Q12 (R$ 55 million – positive variation);

          (v)        Reduction in other financial revenues (R$ 4 million);

         (vi)        Reduction in arrears of interest and fines, restatement of tax credits and monetary and exchange restatement (R$ 3 million).

·         Financial Expenses: increase of 32.6% (R$ 121 million), from R$ 370 million in 4Q12 to R$ 491 million in 4Q13, mainly due to the following factors:

            (i)        Increase of debt of charge (R$ 88 million), mainly due to the increase in the CDI Interbank rate;

           (ii)        Increase in monetary and exchange variations (R$ 64 million), mainly due to exchange rate appreciation;

          (iii)        Increase in Other financial expenses (R$ 5 million);

         (iv)        Increase in the financial expense with the Use of Public Asset (UBP) (R$ 3 million), mainly due to financial update, that is, due to the effect of the indexes (IGP-M and IPCA) used to update the UBP balance;

Partially offset by:

          (v)        Reduction of R$ 46 million in Financial Expenses in the Distribution Companies due to the adjustment for distributors’ financial asset  (CPFL Paulista, CPFL Piratininga, RGE, CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari and CPFL Mococa);

         (vi)        Non-recurring  financial expense at CPFL Paulista regarding the interests and penalties on payments related to the incorporation of networks (R$ 7 million);

        (vii)        Non-recurring  financial expense regarding the assets write-off related to the implementation of the Manual for the Equity Control in the Power Sector (MCPSE) in the distribution companies CPFL Paulista and RGE (R$ 4 million);

       (viii)        CPFL Renováveis consolidation (R$ 3 million).

5.7) Net Income

Net income (IFRS) in 4Q13 was R$ 323 million. This result reflects mainly: (i) full implementation of the 3^rd cycle of tariff review in the distribution companies and (ii) higher financial expenses due to the increase in the CDI Interbank rate, partially offset by lower operating costs and expenses. Adjusted Net Income in 4Q13 registered R$ 425 million, compared to R$ 497 million in 4Q12, a reduction of 14.4%.

 

 

6) DEBT

6.1) Financial Debt (Including Hedge)

CPFL Energia’s financial debt (including hedge) reached R$ 16,706 million in 4Q13, increase of R$ 1,720 million, or 11.5%, compared to 4Q12. This increase in net debt is mainly a reflection of:

·         the consolidation of 100% of the debt of CPFL Renováveis (principal + charges), which has added around R$ 360 million to the consolidated indebtedness of CPFL Energia. This amount was assumed through funding of resources for the payment of acquisitions, as well as for the construction of several greenfield projects;

·         the increase in indebtedness due to the funding, net of amortizations, in the amount of R$ 724 million, in CPFL Energia (Holding) and the other Group companies (conventional generation, distribution and commercialization segments);

·         the increase in the other charges, fundings and monetary and exchange rate updates (net of hedge) in the period, in the amount of R$ 636 million.

The main contributing funding and amortizations to the variation in the balance of financial debt described above were:

·         CPFL Renováveis: funding (BNDES and other financial institutions), net of amortizations, in the amount of R$ 360 million:

+      Promissory notes issuances by Atlântica Wind Complex (R$ 368 million) and CPFL Renováveis (R$ 150 million);

+      Funding in CPFL Renováveis, in the amount of R$ 4 million, of which R$ 1 million is BNDES financing and R$ 3 million are FINEP financing;

+      Funding of BNDES financing for Salto Góes Small Hydroelectric Power Plant, in the amount of R$ 2 million;

+      Funding of BNDES financing for Ester Thermoelectric Power Plants, in the amount of R$ 4 million;

+      Funding of BNDES financing for Coopcana and Alvorada Thermoelectric Power Plants, in the amount of R$ 74 million;

+      Funding of BNDES financing for Macacos I Wind Complex (Macacos, Pedra Preta, Costa Branca e Juremas), in the amount of R$ 413 million;

 

 

+      Funding of BNDES financing for Atlântica Wind Complex, in the amount of R$ 264 million;

+      Funding for Campo dos Ventos II Wind Farm, in the amount of R$ 130 million, of which R$ 95 million are BNDES financing and R$ 35 million are bank note issuance;

-      Promissory notes amortization by Atlântica Wind Complex, in the amount of R$ 460 million;

-      Promissory notes amortization by Coopcana and Alvorada Thermoelectric Power Plants, in the amount of R$ 90 million;

-      Amortization related to the operation with redeemable shares (Alto Irani and Plano Alto Small Hydro Power Plants), in the amount of R$ 25 million;

-      Amortizations of BNDES financing for CPFL Renováveis (source ERSA), in the amount of R$ 32 million;

-      Amortization of bank note issuance for Campo dos Ventos II Wind Farm, in the amount of R$ 35 million;

-      Amortizations of BNDES financing for CPFL Renováveis (source CPFL), in the amount of R$ 73 million;

-      Amortizations of BNDES financing for Gavião Peixoto e Capão Preto Small Hydroelectric Power Plant, in the amount of R$ 4 million;

-      Amortization of BNDES financing for Macacos I Wind Complex (Macacos, Pedra Preta, Costa Branca e Juremas), in the amount of R$ 189 million;

-      Amortizations for Jantus, in the amount of R$ 32 million, related to BNB financing;

-      Amortizations of BNDES financing for Santa Luzia, in the amount of R$ 11 million;

-      Amortizations of BNDES financing for Ester Thermoelectric Power Plant, in the amount of R$ 7 million;

-      Amortization related to the operation with redeemable preferred shares of T-15 Energia (CPFL Renováveis’ controlled company) to the acquisition of Bons Ventos, in the amount of R$ 56 million;

-      Amortizations for Bons Ventos, in the amount of R$ 34 million, of which R$ 21 million are related to BNDES financing, R$ 7 million are related to BNB financing and R$ 7 million are related to NIB (Nordic Investment Bank) financing;

·         Group’s Distributors: amortizations (BNDES and other financial institutions), net of funding, totaling R$ 663 million:

+      Debentures issuances by CPFL Paulista (7^th Issue of R$ 505 million), CPFL Piratininga (7^th Issue of R$ 235 million) and RGE (7^th Issue of R$ 170 million);

+      Funding of financing, through Law No. 4131/62, for CPFL Paulista (R$ 340 million), CPFL Piratininga (R$ 100 million), RGE (R$ 205 million), CPFL Santa Cruz (R$ 20 million), CPFL Sul Paulista (R$ 22 million) and CPFL Jaguari (R$ 31 million);

+      Funding of working capital by CPFL Paulista (R$ 250 million), CPFL Piratininga (R$ 44 million), CPFL Santa Cruz (R$ 33 million), CPFL Sul Paulista (R$ 21 million) e CPFL Mococa (R$ 19 million) and CPFL Jaguari (R$ 3 million);

-      Amortizations, net of funding, of BNDES financing for Group’s Distributors, totaling R$ 47 million;

-      Amortizations of the debentures principal of CPFL Paulista’s (3rd Issue of R$ 484 million), CPFL Piratininga’s (5rd Issue of R$ 160 million) and RGE (3rd Issue of R$ 197 million);

 

 

-      Amortization of financing, through Law No. 4131/62, for CPFL Paulista (R$ 915 million) and CPFL Piratininga (R$ 473 million);

-      Amortizations of financing for CPFL Paulista (R$ 174 million), CPFL Piratininga (R$ 14 million), RGE (R$ 123 million), CPFL Santa Cruz (R$ 11 million), CPFL Leste Paulista (R$ 19 million), CPFL Sul Paulista (R$ 10 million), CPFL Mococa (R$ 7 million) and CPFL Jaguari (R$ 8 million);

-      Other amortizations, net of funding, in the amount of R$ 19 million.

·         CPFL Geração and CERAN: funding, net of amortizations, totaling R$ 1,483 million:

+      Debentures issuance by CPFL Geração (5^th Issue of R$ 1,092 million), due to corporate restructuring in CPFL Geração and CPFL Brasil; 

+      Debentures issuance by CPFL Geração (6^th Issue of R$ 460 million);

-      Amortizations of BNDES financing for CPFL Geração (R$ 14 million) and CERAN (R$ 55 million).

·         CPFL Brasil and CPFL Serviços: amortizations, net of funding, totaling R$ 1,086 million:

+      Funding of BNDES financing for CPFL Serviços (R$ 21 million);

-      Amortization of the principal of CPFL Brasil’s debentures (2^nd Issue of R$ 1,092 million), due to corporate restructuring in CPFL Brasil and CPFL Geração; 

-      Amortizations of BNDES financing for CPFL Brasil (R$ 10 million) and CPFL Serviços (R$ 2 million);

-      Amortizations of working capital by CPFL Brasil (R$ 1 million) and CPFL Serviços (R$ 2 million).

·         CPFL Energia (Holding): funding, net of amortizations, totaling R$ 990 million:

+      Debentures issuance by CPFL Energia (4^th Issue of R$ 1,290 million);

-      Amortization of the principal of CPFL Energia’s debentures (3^rd Issue of R$ 300 million).

Bellow, as follows, is the debt amortization schedule. Disregard financial charges (ST = R$ 288 million; LT = R$ 76 million), hedge (net positive effect of R$ 316 million) and MTM (R$ 44 million). Furthermore, the average amortization term is 4.01 years.

 

 

Of the total indebtedness of R$ 16,705 million in 4Q13, R$ 14,870 million (89.0%) are considered long term and R$ 1,836 million (11.0%) are considered short term. In 4Q12, of the total of R$ 16,639 million, R$ 14,507 million (87.2%) are considered long term and R$ 2,132 million (12.8%) are considered short term.

The cash position at the end of 4Q13 has coverage ratio of 2.7x the amortizations of the next 12 months, enough to honor all amortization commitments until around de middle of 2015.

6.2) Total Debt (Financial Debt + Hedge + Debt with the Private Pension Fund)

 

 

Note: (*) Considering proportional consolidation of BAESA, ENERCAN, Foz do Chapecó and EPASA.

Total debt, comprising financial debt, hedge (asset/liability) and debt with the private pension fund, amounted to R$ 17,133 million in 4Q13, growth of 8.0%. The nominal average cost of debt fell from 9.0% p.a. in 4Q12 to 8.4% p.a. in 4Q13, due to the decrease in the CDI interbank rate (from 8.4% to 8.1%), among other reasons. (accrued rates in the last 12 months)

Debt Profile – IFRS – 4Q12

 

 

As a result of the funding operations and amortizations, considering the indexation after hedge, there was an increase in the BNDES-TJLP-indexed portion (from 22.7%, in 4Q12, to 23.6%, in 4Q13) and prefixed-PSI (from 7.3%, in 4Q12, to 7.4%, in 4Q13), and a decrease in the portion tied to the CDI-pegged portion (from 63.7%, in 4Q12, to 66.1%, in 4Q13) and in the portion tied to the IGP-M/IGP-DI (from 6.0%, in 4Q12, to 2.9%, in 4Q13).

The foreign-currency debt would have come to 11.8% of the total, if banking hedge operations had been excluded. Considering the contracted swap operations, which convert the indexation of debt in foreign-currency to the CDI, the effective foreign-currency debt is 0.01% (which has natural hedge).

The portion of the debt tied to the IGP-M/IGP-DI is related mostly to the debt with the private pension fund.

Debt Profile – Pro-forma (*) – Indexation After Hedge – 4Q12 vs. 4Q13

Note: (*) Considering proportional consolidation of BAESA, ENERCAN, Foz do Chapecó and EPASA.

6.3) Net Debt and Leverage

Note: (*) Considering proportional consolidation of BAESA, ENERCAN, Foz do Chapecó and EPASA.

In 4Q13, net debt totaled R$ 12,499 million, a reduction of 0.4% or R$ 52 million, compared to net debt position at the end of 4Q12 in the amount of R$ 12,551 million. This increase is explained on the following factors:

 

 

·         Increase of R$ 1,720 million in the gross indebtedness, as described in the item 6.1;

·         Increase of R$ 1,771 million in the balance of the cash, from R$ 2,435 million in 4Q12 to R$ 4,206 million in 4Q13, mainly explained by:

          (i)        Cash generation of operating activities in the period: +R$ 2,518 million;

         (ii)        Investments in the period: -R$ 1,735 million;

        (iii)        Net funding in the period: +R$ 1,459 million;

        (iv)        Payment of dividends: -R$ 839 million;

         (v)        Public Offering of Shares of Subsidiary (CPFL Renováveis): +R$ 329 million;

        (vi)        Other movements: -R$ 40 million.

In line with the criteria for calculation of financial covenants of loan agreements with financial institutions, net debt is adjusted according to the equivalent participation of CPFL Energia in each of the projects. Also, include in the calculation of adjusted EBITDA the effects of the CVA – "Account for the Compensation of the Variations of Parcel A" and the historic EBITDA of newly acquired projects, as Ester. As a result, adjusted net debt totaled R$ 12,195 million and adjusted EBITDA reached R$ 3,399 million, and the adjusted Net Debt / adjusted EBITDA at the end of 4Q13 reached 3.59x (still under review by the independent auditors on the date of this report).

 

 

7) INVESTMENTS

In 4Q13, R$ 374 million were invested in business maintenance and expansion, of which R$ 218 million in distribution, R$ 124 million in generation (R$ 120 million of CPFL Renováveis and R$ 4 million of conventional generation) and R$ 32 million in commercialization and services. As result, CPFL Energia’s investments totaled R$ 1,735 million in 2013, of which R$ 845 million in distribution, R$ 838 million in generation (R$ 828 million of CPFL Renováveis and R$ 10 million of conventional generation) and R$ 52 million in commercialization and services.

Listed below are some of the main investments made by CPFL Energia in each segment:

         (i)   Distribution: strengthening and expanding the electricity system to keep pace with market growth, both in terms of energy sales and numbers of customers. Other allocations included electricity system maintenance and improvements, operational infrastructure, the upgrading of management and operational support systems, customer help services and research and development programs, among others. CPFL Energia through its eight distributors, serves 561 [5] municipalities, in the States of São Paulo, Rio Grande do Sul, Paraná and Minas Gerais. On December 31, 2013, our distribution companies had 7.4 million customers and our distribution network consisted of 239,835 km of distribution lines, including 342,336 distribution transformers. Our eight distribution subsidiaries had 9,753 km of high tension distribution lines between 34.5 kV and 138 kV. On that date, we had 454 high tension to medium tension transformer substations for subsequent distribution, with total transforming capacity of 14,535 MVA; 

        (ii)   Generation: chiefly focused on Alvorada Thermoelectric Power Plant and Atlântica Wind Complex, projects that went into operation, respectively, on November 11, 2013 and March 24, 2014, and Macacos I, Campo dos Ventos and São Benedito Wind Complexes, projects still under construction.

Investments Projected by the Group for the Next 5 Years

IFRS – 100% CPFL Renováveis and CERAN (R$ million)

Note: (*) Considers 100% of CPFL Renováveis and CERAN.

 

 

Investments Projected by the Group for the Next 5 Years

Pro-forma – Proportional Stake in the Generation Projects (R$ million)

Note: (*) Considers the proportional stake in the generation projects.

8) DIVIDENDS

The Board of Directors propose the payment of R$ 931 million in dividends to holders of common shares traded on the BM&FBovespa – Bolsa de Valores, Mercadorias e Futuros S.A. (BM&FBOVESPA). This proposed amount corresponds to R$ 0.967344326 per share, related to the year 2013. Excluding R$ 363 million, related to the 1H13 (paid in October 2013), the balance due is R$ 568 million, equivalent to R$ 0.590062200 per share.

The 2H13 dividend yield, calculated on the average of the closing quotations in the period (R$19.80 per share) is 3.0% (4.8% in the last 12 months).

 

 

Dividend Distribution – R$ Million

(*) Note: considering share price adjusted for reverse stock split and simultaneous stock split on June 29, 2011. Without dividends.

The declared amounts are in line with the Company’s dividend policy, which states that shareholders will receive at least 50% of adjusted half-yearly net income as dividends and/or interest on equity (IOE). CPFL Energia has presented a payout ratio close to 95% since its IPO, respecting the constitution of the legal reserve of 5%.

9) STOCK MARKET

9.1) Share Performance

CPFL Energia, which has a current free float of 30.5% (up to December 31, 2013), is listed on both the BM&FBOVESPA (Novo Mercado) and the NYSE (ADR Level III), segments with the highest levels of corporate governace.

The shares closed the period priced at R$ 19.09 per share and US$ 16.01 per ADR, respectively (closing price on 12/31/2013).

Shares Performance – 4Q13 (with adjustment by dividends)

 

 

In 4Q13, the shares depreciated 1.5% on the BM&FBOVESPA and 7.2% on the NYSE.

Shares Performance – 2013 (with adjustment by dividends)

In 2013, the shares depreciated 7.0% on the BM&FBOVESPA and 20.3% on the NYSE.

9.2) Average Daily Volume

The daily trading volume in 2013 averaged R$ 36.3 million, of which R$ 20.7 million on the BM&FBOVESPA and R$ 15.6 million on the NYSE, 15.1% down on 2012. The number of trades on the BM&FBOVESPA increased by 36.6%, rising from a daily average of 3,081, in 2012, to 4,208, in 2013.

Note: Considers the sum of the average daily volume on the BM&FBOVESPA and the NYSE.

 

 

9.3) Ratings

In March 2014, Fitch issued a report reaffirming its credit rating for CPFL Energia. Thus, the Company maintains AA + national scale rating with a stable outlook.

The following table shows the evolution of CPFL Energia’s corporate ratings:

       Note: Close-of-period positions.

10) CORPORATE GOVERNANCE

CPFL Energia’s corporate governance model is based on four basic principles: transparency, equity, accountability and corporate responsibility, applied by all the companies in the group.

CPFL Energia is listed on the segments of the highest governance level - the Novo Mercado of the BM&FBovespa and Level III ADRs on the New York Stock Exchange (NYSE). CPFL Energia’s capital stock is composed exclusively of common shares, and ensures 100% tag-along rights in the case of disposal of control.

The Board of Directors’ duties include defining the overall business guidelines and electing the Board of Executive Officers, among other responsibilities determined by the law and the Company’s Bylaws. Its rules were defined in the Board of Directors’ internal rules document. The Board is composed of one independent member and six members nominated by the controlling shareholders and all of them carry a one-year term of office reelection being admitted. It normally meets once a month but may be convened whenever necessary. The Chairman and the Vice-Chairman are elected among the Board of Directors’ members and no member may serve on the Board of Executive Officers.

The Board of Directors constituted three committees and defined their competences in a sole Internal Rules. They are: the Human Resources Committee, Related Parties Committee and Management Processes Committee. Whenever necessary, ad hoc commissions are installed to advise the Board on such specific issues as: corporate governance, strategy, budgets, energy purchase, new operations and financial policies.

CPFL Energia maintains a permanent Fiscal Council comprising five members who also carry out the attributes of the Audit Committee foreseen in the Sarbanes Oxley Act and pursuant to the rules of the Securities and Exchange Commission (SEC). The Fiscal Council rules were defined in its Internal Rules document and in the Fiscal Council Guide.

The Board of Executive Officers is comprised of six Executive Officers, all with a two-year term of office, with reelection admitted. The Executive Officers represent the Company and manage its business in accordance with the lines of direction defined by the Board of Directors. The Chief Executive Officer is responsible for nominating the other statutory Executive Officers.

The guidelines and set of documents related to Corporate Governance are available at the Investor Relations website www.cpfl.com.br/ir.

 

 

11) CURRENT SHAREHOLDERS STRUCTURE – 12/31/2013

CPFL Energia is a holding company, whose results depend directly on those of its subsidiaries.

Notes:

(1) Controlling shareholders;

(2) Includes the 0.1% stake of Camargo Corrêa S.A.;

(3) Includes the 0.2% stake of Petros and Sistel pension funds;

(4) Termoparaíba and Termonordeste Thermoelectric Facilities;

(5) CPFL Energia owns a 58.8% indirect interest in CPFL Renováveis through CPFL Geração.

 

 

12) PERFORMANCE OF THE BUSINESS SEGMENTS

12.1) Distribution Segment

12.1.1) Economic-Financial Performance