CHAPTER 2 A future-proof company

22

The Trading business is key to bringing value to the company, including feedtock sourcing for our production facilities, storage management and the product channel placement, in coordination with all company business units.

Volatile and interconnected energy markets require value chain optimisation driven by market signals and information to maximise the value of the Trading business. Our Crude and Products Trading business line coordinates product supply activities with the Refining and Commercial businesses, including biofuels. It also manages maritime transport by ensuring compliance with safety procedures, which must follow the guidelines put in place by the Vetting unit responsible for assessing and approving the vessels required in this business.

Gas, Energy and Environmental Product Trading is the Cepsa business line that has access to the wholesale energy, gas and CO2 markets. This connectivity along the value chain is essential to maximise the flexibility of Cepsa's energy and emissions portfolio.

This year we have focused on recruiting new talent and skills in the different teams to strengthen the transformation process and drive growth in Trading at all levels.

2021 was marked by high volatility and unstable demand for products due to the health crisis, although a global recovery trend was observed. Gas and electricity markets also saw unprecedented volatility in the second half of 2021.

Under these circumstances, and whilst Cepsa has preven its resilience , we were able to take advantage of market opportunities, which contributed to the sound performance of the Trading business in 2021 in the Crude Oil & Products business line while the management of the exposure in te Gas and Power line also allowed us to achieve the company's targets.

MILESTONES 2021

New biofuel trading business line. As part of our new global approach to biofuels, with the aim of further optimising flows and improving market alternatives, in 2021 we launched a biofuel business line which, through optionality, will help us to roll out our strategy.

We strengthened the Gas, Energy and Environmental Product Trading business line by setting up a specific division integrated with the Gas & Power operations team.

Growth of our Singapore office. In 2021, the Singapore subsidiary, Cepsa Trading Asia PTE LTD, emerged as a key lever for the management of our crude oil portfolio in this area, as well as for the marketing of naphtha from our refineries, opening up alternative flow options in this market.

2.2.2.2 Trading