1132019 ANNUAL AND CORPORATE RESPONSIBILITY REPORT

Our procurement management rests upon three fundamental axes:

These three areas are set out in the Pro- curement Standard and the Operating Manual, two internal procedures that govern procurement management, and which define the procurement process and supplier management, detailing all aspects and responsibilities within the process. Excellence in the performance of this function was recognised in 2019 with certification under UNE 15896 Standard on Value Added Purchasing Manage- ment, making us the first company in the energy sector with this certification.

Currently, and as part of the company's digitalisation process, the procurement area is working on its digital transforma- tion, in order to promote the optimisa- tion, efficiency, agility and simplification of processes. Among the projects initia- ted are the homologation of suppliers through block chain technology, the au- tomation of the procurement process to reduce time and facilitate management, or the use of market intelligence tools, among others.

PROCESS SIMPLIFICATION

By means of a unified and centralised procurement system, establishing a single con- tracting system, standardised contracts and supplier management as well as clear policies that govern the function.

QUEST FOR EFFICIENCY Procurement planning, early involvement in the budgeting of new projects, sustaina- ble savings, the use of unified processes and the pursuit of added value.

SATISFACTION OF THE PARTIES INVOLVED Those requesting units, procurement function staff and our suppliers; by means of continuous improvement, fulfilment of our commitments, communication and perfor- mance assessment.