CPFL Energy INC Form 20-F Filed 2018-04-24
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SECURITIES AND EXCHANGE COMMISSION FORM 20-F Annual and transition report of foreign private issuers pursuant to sections 13 or 15(d) Filing Date: 2018-04-24 | Period of Report: 2017-12-31 SEC Accession No. 0001292814-18-001293 (HTML Version on secdatabase.com) FILER CPFL Energy INC Mailing Address Business Address ROD. ENG. MIGUEL NOEL ROD. ENG. MIGUEL NOEL CIK:1300482| IRS No.: 000000000 | State of Incorp.:D5 | Fiscal Year End: 1231 NASCENTES BURNIER NASCENTES BURNIER Type: 20-F | Act: 34 | File No.: 001-32297 | Film No.: 18769643 CAMPINAS D5 13088-140 CAMPINAS D5 13088-140 SIC: 4911 Electric services (55-19) 3756-8704 Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20‑F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2017 Commission File Number 1‑32297 CPFL ENERGIA S.A. (Exact name of registrant as specified in its charter) CPFL ENERGY INCORPORATED The Federative Republic of Brazil (Translation of registrant’s name into English) (Jurisdiction of incorporation or organization) Rodovia Engenheiro Miguel Noel Nascentes Burnier, 1,755, km 2,5 Parque São Quirino Campinas São Paulo ‑ 13088 140 (Address of principal executive offices) Gustavo Estrella +55 19 3756 8704 – [email protected] Federative Republic of Brazil (Name, telephone, e‑mail and/or facsimile number and address of company contact person) Securities registered or to be registered pursuant to Section 12(b) of the Act: Name of each exchange on which Title of each class: registered: Common Shares, without par value* American Depositary Shares (as evidenced by American New York Stock Exchange Depositary Receipts), each representing 2 Common Shares *Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission. Securities registered or to be registered pursuant to Section 12(g) of the Act: None Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document As of December 31, 2017, there were 1,017,914,746 common shares, without par value, outstanding Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Indicate by check mark if the registrant is a well‑known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes T No £ If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934. Yes £ No T Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes T No £ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S‑T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes £ No £ N/A T Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non‑accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b‑2 of the Exchange Act (Check one): Large Accelerated Filer T Accelerated Filer £ Non‑accelerated Filer £ If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. £ † The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: U.S. GAAP £ IFRS T Other £ If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. Item 17 £ Item 18 £ If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes £ No T Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents Page Contents FORWARD-LOOKING STATEMENTS 1 CERTAIN TERMS AND CONVENTIONS 1 PRESENTATION OF FINANCIAL AND OTHER INFORMATION 2 ITEM IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 2 1. ITEM OFFER STATISTICS AND EXPECTED TIMETABLE 2 2. ITEM KEY INFORMATION 2 3. ITEM INFORMATION ON THE COMPANY 17 4. ITEM UNRESOLVED STAFF COMMENTS 64 4A. ITEM OPERATING AND FINANCIAL REVIEW AND PROSPECTS 64 5. ITEM DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 101 6. ITEM MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 111 7. ITEM FINANCIAL INFORMATION 111 8. ITEM THE OFFER AND LISTING 114 9. ITEM ADDITIONAL INFORMATION 116 10. ITEM QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 133 11. ITEM DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 134 12. ITEM DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 135 13. ITEM MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 135 14. Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document ITEM CONTROLS AND PROCEDURES 135 15. ITEM AUDIT COMMITTEE FINANCIAL EXPERT 136 16A. ITEM CODE OF ETHICS 136 16B. ITEM PRINCIPAL ACCOUNTANT FEES AND SERVICES 137 16C. ITEM EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 137 16D. ITEM PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 137 16E. ITEM CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT 138 16F. ITEM CORPORATE GOVERNANCE 138 16G. Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document ITEM 16H. MINE SAFETY DISCLOSURE 139 ITEM 17. FINANCIAL STATEMENTS 139 ITEM 18. FINANCIAL STATEMENTS 139 ITEM 19. EXHIBITS 139 GLOSSARY OF TERMS 141 SIGNATURES 145 Copyright © 2018 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Table of Contents FORWARD‑LOOKING STATEMENTS This annual report contains information that constitutes forward‑looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Many of the forward‑looking statements contained in this annual report can be identified by the use of forward‑looking words, such as “believe”, “may”, “aim”, “estimate”, “continue”, “anticipate”, “will”, “intend”, “plan”, “expect” and “potential,” among others. Forward‑looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition. Those statements appear in a number of places in this annual report, principally under the captions “Item 3. Key Information—Risk Factors”, “Item 4. Information on the Company” and “Item 5. Operating and Financial Review and Prospects”. We have based these forward‑looking statements largely on our current beliefs, expectations and projections about future events and financial trends affecting our business. Many important factors, in addition to those discussed elsewhere in this annual report, could cause our actual results to differ substantially from those anticipated in our forward‑looking statements. These factors include: · general economic, political, demographic and business conditions in Brazil and particularly in the markets we serve; · changes in applicable laws and regulations, as well as the enactment of new laws and regulations, including those relating to regulatory, corporate, environmental, tax and employment matters; · electricity shortages; · changes in tariffs; · our inability to generate electricity due to water shortages, transmission outages, operational or technical problems or physical damages to our facilities; · potential disruption or interruption of our services; · interest rate fluctuation, inflation and exchange rate variation; · actions taken by our major shareholders; · the early termination of our concessions to operate our facilities; · increased competition in the power industry markets in which we operate; · our inability to implement our capital expenditure plan, including our inability to arrange financing when required and on reasonable terms; · changes in consumer demand; · existing and future governmental regulations relating to the power industry; and · the risk factors discussed under “Item 3. Key Information—Risk Factors,” beginning on page 6. Forward‑looking statements speak only as of the date they were made, and we