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2021 INTEGRATED MANAGEMENT REPORT

LOCAL CONTRACTING

We promote contracting with local suppliers, as we are aware of our positive impact on the local business network, which brings a number of advantages, such as facilitating supplies, providing flexibility and guaranteeing response times. In addition, precise loca- lisation of suppliers allows us to control aspects such as country-risk.

In line with our pledge to promote local procurement, we undertake processes to identify and evaluate contracts that can be mana- ged locally, detecting action areas with local suppliers such as:

· Identifying new areas in which to contract high-performing suppliers. · Communicating improvement areas and providing follow-up and training. · Studying locally manageable contracts and orders. · Including the local component in the assessment. · Sharing services that Cepsa contracts on advantageous terms.

Globally, for the company's locations with significant operations3, we sourced around 90% of our purchases from domestic suppliers in 2021. Specifically, 38% of this amount was contracted with locally-based suppliers.

In the case of Spain, our main market, 99% of the suppliers were Spanish and accounted for 99% of the total spending managed by our purchasing unit. We also promote the contracting of suppliers close to our facilities to help develop the areas in which we operate. Around 40% of our contracts are with local suppliers or locally-based suppliers in the areas where our activities are located (Palos de la Frontera, Gibraltar San Roque and Tenerife).

We only contract with non-domestic suppliers for highly specialised or multinational technology-dependent goods, equipment or services such as catalysts, industrial chemicals, specialised control equipment and systems, and licences.

3 Locations with significant operations are understood to be the main sites where Cepsa has its industrial plants and the assets where it has exploration and produc- tion operations. The following locations have been considered for the purposes of this report: Spain, Portugal, Colombia, Peru, Brazil, SEA (Thailand, Singapore and Malaysia), China and Canada.