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It is my pleasure to present you with this Annual and Corporate Responsibility Report where we have tried to sum- marize Cepsa s business operations and milestones for 2017.

As Cepsa s sole shareholder, Mubadala Investment Company has continued to support a transformative process that the company began a few years ago. This process will turn Cepsa into a global energy company of choice based on the skills that set it apart and that it has developed over the 90 years of its history in the world of oil.

I must also commend Cepsa s important work in the production of the Cepsa Energy Outlook 2030, a broad research piece focused on the energy market of today and its perspectives going forward, helping us to create a forecast of what the energy map of the future will look like. The analysis has allowed us to draw up an ambitious future plan to 2030 to strengthen our current business model and consolidate Cepsa as an internation- al, integrated energy company.

Cepsa s team has carried out intense work over the past year with an eye on this future across all of its areas and businesses, which I will aim to look over here.

In the upstream business we celebrated 30 years working in Algeria, where we have robust operations in oil and gas, and where we reached 1 billion barrels of crude produced at our ORD oilfield, the second largest in the country. We also started up a new offshore field in Abu Dhabi, and we signed a new concession agreement for the Timimoun gas field along with Sonatrach and Total.

Meanwhile, the Refining area continued with projects at its production facilities to maximize margins and tighten integration with its chemicals business, a key com- pany strength. The business remains one of Cepsa s core areas and its operational excellence, safe processes and high ef- ficiency, means it competes with the best refineries in the world.

Our marketing business operations were varied and intense over the past year. We launched new products and signed agree- ments with strategic partners to increase our range of services and launch some of our products in international markets, such as bottled gas and lubricants.

The chemicals business maintained pace with its expansion plans. The business retains its global leadership in the pro- duction of LAB and phenol and operates across four continents. Over the past year the area increased its production capacity in LAB, and opened a path into the fatty alcohols market, broadening our range of surfactants.

Cepsa also has a Gas and Electricity business, w¡th an important asset being its Medgaz pipeline. This gas pipeline has a capacity of 8 billion m3 and is capable of transporting 25% of the natural gas imported into the Spanish network.

All of this work in 2017 would not have been possible without Cepsa s corporate support areas which provide the busi- nesses with the resources they need to develop their projects and meet their targets. These support teams are also key in assuring special care is taken with the communities where we operate and in meeting the highest safety, quality and environmental standards.

Cepsa also renewed its commitment to the Principles of the United Nations Global Compact, which it has been part of since 2005, and the Company also continues to rigorously apply its Code of Ethics and Conduct.

With the big challenges facing society in the coming years, we have also com- mitted to helping to meet the United Nation s Sustainable Development Goals for 2030.

I would like to end by thanking all of Cepsa s professionals for the excellent results achieved in 2017 and encourage them to stay on this path. I have no doubt that a great future lies ahead for Cepsa and that its skills will enable it to meet its strategic objectives to be a solid, interna- tional, and agile leader that creates value for its shareholder.

2017 ANNUAL AND CORPORATE RESPONSIBILITY REPORT