CHAPTER 5 Solid economic and operational performance

134

D) CONSOLIDATED GROUP ROACE The Group's return on average capital employed is reflected in the following Adjusted ROACE:

Adjusted ROACE = =

Adjusted Net Operating Profit

Average Adjusted Capital Employed =

453 5.9%

7,616

12.31.2021

= 96

1.2% 8,064

12.31.2020

This metric is used by Group management to assess the capacity of operating assets to generate profits and is therefore a measure of the efficiency of invested capital (equity and debt).

E) WORKING CAPITAL

Set out below is a breakdown of working capital at 31 December:

For the second consecutive year, the Chemicals business posted record figures, improving in all its business lines and reaching adjusted EBITDA of 461 million, 29% above 2020.

This EBITDA improvement is mainly thanks to margin increases in the LAB business and high margins in the phenol-acetone business, partly due to the shortage of raw materials and strong demand for this product throughout the year. The efficiency measures implemented also brought fixed cost savings of 12 million.

The Solvents business remained in line with previous years, although it was sensitive to the availability of raw materials as a result of reduced refinery throughput.

The growth of the alcohol business is worth highlighting, as it contributed a result at December 2021 six times higher than in the same period of 2020, although it is not yet significant within the segment.

The Chemicals area's Adjusted Net Profit totalled 309 million, 51% up against the previous year.

With regard to investment projects in the Chemicals segment, the transformation of the Puente Mayorga chemicals plant, where the new DETAL technology has been implemented, was successfully completed. This project has increased LAB production by making the process safer, more efficient and sustainable.

2021 2020

Inventories 3,025 1,419

Trade and other receivables 2,374 1,388

Other current assets 325 97

Working capital assets 5,724 2,903

Other finance liabilities 4,449 2,380

Other current liabilities 54 41

Working capital liabilities 4,503 2,421

Working Capital 1,221 483

1 Included inventories, trade and other receivables, other current financial assets, and other current assets. 2 Included trade and other payables, other current liabilities without the dividend pending pay.

Million

Million