127

2021 INTEGRATED MANAGEMENT REPORT

2021 2020

Adjusted EBITDA 1,815 1,187

CCS adjustment 470 (491)

Non recurring items (92) (74)

EBITDA IFRS 2,194 622

Adjusted NIAT attributable to parent company 310 1

CCS adjustment 351 (369)

Non recurring items 1 (551)

IFRS NIAT attributable to parent company 661 (919)

B) REPLACEMENT COST ADJUSTMENTS AND NON-RECURRING ITEMS

The adjustments made to the IFRS financial figures are as follows:

a) Replacement cost adjustment (RCA): the difference between the value of inventories owned by the Group at replacement cost (RC), this being the approach employed to obtain the segment information and management information for the company's administrative bodies, and at average cost (AC), the method used to prepare the financial statements under international standards (see note 6 'Segment reporting' of the December 2021 Consolidated Financial Statements).

b) In 2021, the RCA adjustment was positive in the amount of 470 million before tax ( 351 million net of tax) and is explained by the lower consumption cost of inventories valued at AUC (average for the last twelve months) compared to the value at replacement cost, which has been impacted by the current scenario of high crude oil prices. IFRS EBITDA also includes the 2021 reversal of the impairment of closing inventories of finished goods recognised in 2020.

c) Other non-recurring items: this adjustment was immaterial in 2021. In 2020, impairment losses were recognised on Exploration & Production and Refining assets (in 2020). There were also several non-recurring transactions, notably the voluntary Departure plan VDP in past exercise.

Million