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CHAPTER 3 Our Environment Strategy

In the 2016-2020 timeframe, we remain strongly committed to our main objec- tives and strategic commitments: shareholder return, financial strength and long term growth. We will be supported by the following areas: Exploration and Production, Petrochemicals and Downstream, adapting to external factors that shape the present and future development of the business.

Short-term decline in oil prices.

Long-term recovery in oil prices.

Divestment of non-strategic assets .

Refining overcapacity in Europe.

Phenol production overcapacity .

Recovery of demand for petroleum products in the short term and stag- nation in the long term.

Increased demand for alcohol-de- rived surfactants against the de- mand for LAB.

Key role of innovation and technologi- cal development in the sector .

Increase in biofuel regulation in Spain.

Deficit of petroleum products in Africa.

Increased growth in demand for gas compared to petroleum products.

Global geopolitical situation .

STRATEGIC PLAN 2016 · 2020

EXTERNAL FACTORS

PRIORITY OBJECTIVES

STRATEGIC ACTIONS

PRIORITY FOR CEPSA

Following our vision and supported by our sole shareholder, IPIC, we continue to progress in our transformation from a Spanish company with strong pre-

sence in the downstream area into a benchmark global integrated energy company.

STRATEGY