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According to this template, most of the risks to which we are exposed would be classified within the medium-low to medium-high range.

The application of continuous improve- ment in our model and our risk control systems facilitates progress in all

areas, highlighting the improvement in strategic planning processes.

In addition, the current situation of uncertainty compels us to seek new opportunities both outside Cepsa and in our own activities and characteris- tics, as an integrated energy Company.

Considering the need to seek alterna- tives to traditional activities, we are searching for new business opportuni- ties that will help us offset the nega- tive impacts of the current business climate. These new opportunities are

mainly focused on Exploration and Production, Petrochemicals and Distri- bution and Marketing.

Ensures our involvement in all stages of the petroleum chain, offering ma- jor opportunities to optimize our pro- cesses and activities. This enables us to address the volatility in the market, committing ourselves to the business areas with the greatest growth oppor- tunities and in turn mitigating the sce- nario s negative impact on the Com- pany s business. It also allows us to create synergies between the different business areas that increase efficiency and reduce operating costs.

In addition, our international presence allows us to mitigate the impact asso- ciated with the local economic and po- litical context in the locations in which we operate.

Furthermore, our membership of the IPIC group gives us access to other companies in the same group, allowing us to establish strategic alliances that improve efficiency, generating econo- mies of scale.

In the current context, innovation is a necessary alternative for increasing the efficiency of processes and antici-

pating future regulatory changes that will impact the development of our activity.

NEW BUSINESS OPPORTUNITIES

LEVERAGING OF OUR INTEGRATED STRUCTURE AND INTERNATIONAL PRESENCE

COMMITMENT TO INNOVATION

For more information on risk management click here.

ANNUAL AND CORPORATE RESPONSIBILITY REPORT 2015