compañía logística de hidrocarburos clh, sa and subsidiaries ...

COMPAÑÍA LOGÍSTICA DE HIDROCARBUROS CLH, S.A. AND SUBSIDIARIES (EXOLUM GROUP) Audit Report, Consolidated Financial Statements and Consolidated Management Report for the year ended 31 December 2020

COMPAÑÍA LOGÍSTICA DE HIDROCARBUROS CLH, S.A. AND SUBSIDIARIES (EXOLUM GROUP) CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2020 (in thousands of euros)

1

ASSETS Note 2020 2019

Property, plant and equipment 5 1,509,633 1,043,115 · Land and buildings 508,849 475,679 · Plant and machinery 2,678,825 2,043,736 · Other assets 146,480 141,793 · PP&E under construction 157,145 90,007 · Depreciation (1,981,666) (1,708,100) Investment properties 6 15,469 12,881 Intangible assets 7 303,112 188,844 Investments accounted for using the equity method 8 59,642 59,119 Non-current financial investments 9 958 193 Deferred tax assets 22 39,638 38,688 NON-CURRENT ASSETS 1,928,452 1,342,840 Non-current assets held for sale 13 2,809 9,494 Inventories 10 41,409 46,349

Trade and other receivables 9 & 11

803,792 920,858

Current financial investments 9 2,183 3,215 Prepayments and accrued income 7,947 2,788 Current tax assets 22 6,057 527 Other accounts receivable from public authorities 22 7,583 12,649

Cash and cash equivalents 9 & 12

141,031 7,406

CURRENT ASSETS 1,012,811 1,003,286 TOTAL ASSETS 2,941,263 2,346,126

The accompanying notes 1 to 34 are an integral part of the consolidated balance sheet at 31 December 2020.

COMPAÑÍA LOGÍSTICA DE HIDROCARBUROS CLH, S.A. AND SUBSIDIARIES (EXOLUM GROUP) CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2020 (in thousands of euros)

2

EQUITY AND LIABILITIES Note 2020 2019

Share capital 14 84,629 84,629 Retained earnings 14 328,489 430,302 · Profit for the year 169,544 285,629 · Share premium and reserves 158,945 144,673 Reserve for valuation adjustments (16,218) (5,810) · Translation differences (4,117) 3,565 · Other valuation adjustments (12,101) (9,375) Interim dividend 15 (134,325) (218,418) Non-controlling interests 1,124 2,501 EQUITY 263,699 293,204 Non-current financial liabilities 14, 16 1,247,861 639,717 Bank borrowings 1,107,019 542,219 Lease liabilities 140,842 97,498 Provisions 18 108,211 58,060 Other non-current liabilities 20 7,997 4,540 Derivative financial instruments 17 10,877 12,500 Deferred tax liabilities 22 47,711 17,037 NON-CURRENT LIABILITIES 1,422,657 731,854 Disposal group liabilities held for sale 13 - 1,810 Current financial liabilities 14, 16 251,244 269,377 Bank borrowings 231,735 257,395 Lease liabilities 19,509 11,982 Trade and other payables 21 999,179 1,049,478 Accruals and deferred income 4,484 403 CURRENT LIABILITIES

1,254,907 1,321,068

TOTAL LIABILITIES

2,677,564 2,052,922

TOTAL EQUITY AND LIABILITIES

2,941,263 2,346,126

The accompanying notes 1 to 34 are an integral part of the consolidated balance sheet at 31 December 2020.

COMPAÑÍA LOGÍSTICA DE HIDROCARBUROS CLH, S.A. AND SUBSIDIARIES (EXOLUM GROUP) CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR YEAR-END 2020 (in thousands of euros)

3

2020 2019

Note

Revenue 23, 30 614,873 741,123

Changes in inventories of finished products (11,715) 8,701 Own work capitalised 5,529 2,773 Cost of sales (17,909) (11,717) Other operating income 23 14,654 17,185 Employee benefits expense 23 (121,846) (132,691) Other operating expenses 23 (161,163) (173,110) Depreciation and amortisation charges 23 (89,891) (85,355) Capital grants and other grants taken to income 20 254 521 Surplus provisions

- 216

Impairment of and gains/(losses) on disposal of PP&E 5, 6 &

13 (5,223) 253

OPERATING PROFIT

227,563 367,899

Finance income 23 4,502 12,961

Finance costs 16, 23 (15,195) (13,522)

Exchange differences (net)

(1,177) (531)

NET FINANCE INCOME/(COST)

(11,870) (1,092)

Gain (loss) from equity-accounted investments 23 6,507 6,818 PROFIT BEFORE TAX

222,200 373,625

Corporate income tax expense 22 (54,531) (88,279)

PROFIT FOR THE YEAR 14 167,669 285,346 Attributable to the Parent Company

169,544 285,629

Attributable to non-controlling interests (1,875) (283) BASIC AND DILUTED EARNINGS PER SHARE (euros) 32 2.40 4.06

The accompanying notes 1 to 34 are an integral part of the consolidated statement of profit or loss for the year ended 31 December 2020.

COMPAÑÍA LOGÍSTICA DE HIDROCARBUROS CLH, S.A. AND SUBSIDIARIES (EXOLUM GROUP) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR YEAR-END 2020 (in thousands of euros)

4

Note 2020 2019

Profit for the year 14 167,669 285,346

Other comprehensive income:

Items that may be reclassified to profit or loss: (10,408) 6,076 Cash flow hedges 1,623 410 Income tax relating to items that may be reclassified (406) (102) Actuarial reserves (3,946) - Translation differences (7,679) 5,768

Total comprehensive income for the year 157,261 291,422

Total comprehensive income for the year attributable to: 157,261 291,422 Owners of the parent 159,136 291,705 Non-controlling interests (1,875) (283)

The accompanying notes 1 to 34 are an integral part of the consolidated statement of comprehensive income for the year ended 31 December 2020.

COMPAÑÍA LOGÍSTICA DE HIDROCARBUROS CLH, S.A. AND SUBSIDIARIES (EXOLUM GROUP) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR YEAR-END 2020 (in thousands of euros)

5

Share capital

Share premium

and reserves

Profit or loss

Interim dividend

Reserve for valuation

adjustments

Non-controlling interests

Total

Balance at 1/1/2020 84,629 144,673 285,629 (218,418) (5,810) 2,501 293,204 Total comprehensive income for the year - - 169,544 - (10,408) (1,875) 157,261

Transactions with shareholders and owners (note 15) - 15,467 (285,629) 84,093 - - (186,069) Distribution of 2019 dividend - 15,467 (285,629) 218,418 - - (51,744) Distribution of 2020 dividend - - - (134,325) - - (134,325) Other changes - (1,195) - - - 498 697 Change in own equity instruments (net) - (1,195) - - - - (1,195) Other changes - - - - - 498 498

Balance at 31/12/2020 84,629 158,945 169,544 (134,325) (16,218) 1,124 263,699

Share capital

Share premium

and reserves

Profit or loss

Interim dividend

Reserve for valuation

adjustments

Non-controlling interests

Total

Balance at 1/1/2019 84,070 147,906 238,280 (185,760) (11,886) - 272,610 Total comprehensive income for the year - - 285,629 - 6,076 (283) 291,422

Transactions with shareholders and owners (note 15) - (1,966) (238,280) (32,658) - - (272,904) Distribution of 2018 dividend - (1,966) (238,280) 185,760 - - (54,486) Distribution of 2019 dividend - - - (218,418) - - (218,418) Other changes 559 (1,267) - - - 2,784 2,076 Change in own equity instruments (net) - (693) - - - - (693) Other changes 559 (574) - - - 2,784 2,769

Balance at 31/12/2019 84,629 144,673 285,629 (218,418) (5,810) 2,501 293,204

The accompanying notes 1 to 34 are an integral part of the consolidated statement of changes in equity for the year ended 31 December 2020.

COMPAÑÍA LOGÍSTICA DE HIDROCARBUROS CLH, S.A. AND SUBSIDIARIES (EXOLUM GROUP) CONSOLIDATED STATEMENT OF CASH FLOWS FOR YEAR-END 2020 (in thousands of euros)

6

2020 2019 A) Cash flows from operating activities 326,459 359,463 Profit before tax 222,200 373,625 Adjustments for: 101,176 78,819 - Depreciation and amortisation 89,891 85,355 - Other net adjustments to profit/loss 11,285 (6,536) Increase/(decrease) in working capital 53,892 (14,342) Other cash flows from operating activities: (50,809) (78,639) - Interest paid (15,194) (13,537) - Dividends received 2,000 1,500 - Interest received 1,212 32 - Income tax received/(paid) (38,827) (66,634) B) Cash flows from investing activities (201,292) (84,152) Investments paid: (201,852) (85,417) - PP&E, intangible assets and investment properties (101,339) (84,430) - Group companies, associates and business units (100,513) (987) Proceeds on disposals: 560 1,265 - PP&E, intangible assets and investment properties 560 1,265 C) Cash flows from financing activities 5,352 (265,438) Proceeds/(payments) on financial debt instruments: 193,320 7,517 - Drawdowns and repayments 193,320 7,517 Dividends and returns on other equity instruments paid (187,968) (272,955) D) Effect of exchange rate changes 3,106 (5,462) E) Net increase/(decrease) in cash and cash equivalents (A + B + C + D) 133,625 4,411 F) Cash and cash equivalents at beginning of year 7,406 2,995 G) Cash and cash equivalents at end of year (E + F) 141,031 7,406

The accompanying notes 1 to 34 are an integral part of the consolidated statement of cash flows for the year ended 31 December 2020.

COMPAÑÍA LOGÍSTICA DE HIDROCARBUROS CLH, S.A. AND SUBSIDIARIES (EXOLUM GROUP) NOTES TO THE 2020 CONSOLIDATED FINANCIAL STATEMENTS (in thousands of euros)

7

1. BUSINESS OF THE CONSOLIDATED GROUP The background information and characteristics of the companies comprising the consolidated group made up of Compañía Logística de Hidrocarburos CLH, S.A., CLH Aviación, S.A., Exolum International UK Ltd., CLH México Logística S.A. de C.V., CLH France, CLH America Inc. and Exolum Solutions, S.L. (hereinafter, the “Group” or the “Exolum Group”) are provided below: a) Compañía Logística de Hidrocarburos CLH, S.A. – Parent Compañía Logística de Hidrocarburos CLH, S.A. was incorporated under the name of Compañía Arrendataria del Monopolio de Petróleos, S.A. on 24 October 1927 in order to administer the Spanish state’s oil monopoly. Spanish Act 34/1992 (22 December), on the structuring of the oil sector, had the effect of extinguishing the oil monopoly, thus deregulating business activities in that sector. That same piece of legislation authorised the Company to transport and store liquid hydrocarbons on the same terms it had already been doing so. On 14 January 1993, the Company’s registered name and corporate purpose were changed, as resolved at the Extraordinary General Meeting held on 10 December 1992. The current name is Compañía Logística de Hidrocarburos CLH, S.A. and its core business is the performance of the logistics services of storing, transporting and distributing all manner of hydrocarbons and chemical products, their derivatives and waste, and the provision of advice and technical assistance in the course of providing such services. Its registered office is located in Madrid, at calle Titán, No. 13. b) CLH Aviación, S.A., Exolum Aviation Ireland Ltd., CLH Panamá, S.A., CLH México Combustibles de

Aviación, S.A. de C.V. and CLH Aviación Ecuador CLHECUADOR, S.A. – Subsidiaries CLH Aviación, S.A. was formed on 1 August 1997 when the business line consisting of the storage and supply of fuels and lubricants to aircraft in airport facilities was segregated from Compañía Logística de Hidrocarburos CLH, S.A. The segregation was completed by transferring en bloc the assets and liabilities forming the business unit that performed the aircraft supply services. Its corporate purpose is the provision of logistics services consisting of the storage, distribution and into-plane supply of all manner of aviation fuels and lubricants at airports. Its registered office is located in Madrid, at calle Titán No. 13. On 22 February 2016, CLH Aviación, S.A. was awarded the tender for the design, financing, building, operation and transfer (DFBOT), under a 20-year concession, of the aviation fuel terminal at Dublin airport. As a result, on 11 December 2015, the CLH Group incorporated a subsidiary in Ireland, Exolum Aviation Ireland Ltd., which is 100%-owned by CLH Aviación, S.A.; that subsidiary will be responsible for executing that project and operating the facility under an exclusive concession regime. CLH Aviación, S.A. was awarded a tender organised by the government of Panama, under which it will supply fuel at six airports in that country as well as handling the operation and maintenance of their respective airport facilities. On 20 October 2017, the Group incorporated a subsidiary in Panama, CLH Panamá, S.A., which is 100% owned by CLH Aviación, S.A.; that subsidiary began to provide operating, maintenance and into-plane fuelling services at the Tocumen international airport in September 2018. On 21 February 2019, CLH México Combustibles de Aviación, S.A. de C.V. was incorporated as a subsidiary, of which CLH Aviación, S.A. owns 99.99 %. Its registered office is in Mexico City. On 3 July 2019, the CLH Group incorporated a subsidiary, Operadora de Hidrocarburos Acolman, S.A. de C.V., owned by CLH México Combustibles de Aviación (60 %) and GR O&M, S.A. de C.V. (40 %).

8

CLH Aviación Ecuador CLHECUADOR, S.A., a company based in Guayaquil which is 99.99% owned by CLH AVIACIÓN, S.A., was incorporated on 25 September 2019. The company has been providing into-plane fuelling and fixed fuelling system services at Guayaquil Airport since 4 November 2019 and the concession ends on the earlier of two dates: 27 July 2029 or else when operations start at the Guayaquil New International Airport. All the aforementioned companies are accounted for by the Group using the full consolidation method.

Name and registered office % direct shareholding

% indirect shareholding

Business activity Cost

2020 CLH Aviación, S.A.

C/Titán, 13 28045 Madrid 100 - Airport storage and

supplies 61,702

Exolum Aviation Ireland Ltd.

Corballis Road South (Dublin Airport) - 100 Airport storage and

supplies -

CLH Panamá, S.A.

Oficina 6/739-b edificio Omega. Calle 53 con Avenida Samuel Lewis. Panama City

- 100 Airport supplies -

CLH México de Combustibles de Aviación, S.A.

de C.V. Avenida Ejército Nacional 769, Piso 2, Colonia Ampliación Granada, Alcaldía Miguel Hidalgo

Mexico City, 11520

0.01 99.99 Airport supplies -

CLH Aviación Ecuador CLHECUADOR, S.A.

Avenida Francisco de Orellana solar número 1, Manzana 507, Edificio Las Cámaras, Piso 9,

Oficina 904 - 99.99 Airport supplies -

Cantón de Guayaquil, Provincia Guayas (Ecuador)

Operadora de Hidrocarburos Acolman, S.A. de

C.V. - 60 Service provision -

Mexico City

9

Name and registered office % direct

shareholding % indirect

shareholding Business activity Cost

2019 CLH Aviación, S.A.

C/Titán, 13 28045 Madrid 100 -

Airport storage and supplies

61,702

Exolum Aviation Ireland Ltd.

Corballis Road South (Dublin Airport) - 100 Airport storage and

supplies -

CLH Panamá, S.A.

Oficina 6/739-b edificio Omega. Calle 53 con Avenida Samuel Lewis. Panama City

- 100 Airport supplies -

CLH México de Combustibles de Aviación, S.A.

de C.V. Avenida Ejército Nacional 769, Piso 2, Colonia Ampliación Granada, Alcaldía Miguel Hidalgo

Mexico City, 11520

0.01 99.99 Airport supplies -

CLH Aviación Ecuador CLHECUADOR, S.A.

Avenida Francisco de Orellana solar número 1, Manzana 507, Edificio Las Cámaras, Piso 9,

Oficina 904 - 99.99 Airport supplies -

Cantón de Guayaquil, Provincia Guayas (Ecuador)

Operadora de Hidrocarburos Acolman, S.A. de

C.V. - 60 Service provision -

Mexico City

c) Exolum International UK Ltd., Exolum Pipeline System Ltd. and Exolum Terminals UK – Subsidiaries As of the 12th of November 2020, via the British Subsidiary, Exolum International UK, Ltd., 100% of the participation in Inter pipeline Europe, Ltd as well as the financial debt these had with the previous shareholders, was bought from Inter Pipeline Ltd. for a total amount of 395 million pounds (now Exolum Terminals Ltd.) who own, via its subsidiaries, 15 liquid bulk and storage terminals located in Great Britain, Ireland, Germany and Netherlands. On 30 April 2015, the Parent closed the purchase of GPSS (Government Pipeline and Storage System) through its British subsidiary, Exolum International UK Ltd., which took 99.99% of the shares of the newly incorporated, also British, company, CLH Pipeline System Ltd. (hereinafter, “Exolum-PS”), which is the entity that ultimately acquired GPSS. Exolum-PS currently services several military facilities and some of the UK's largest airports and constitutes that country’s main network of oil pipelines and fuel terminals. Exolum International UK Ltd., Exolum-PS, Exolum Terminals UK and their subsidiaries are accounted for by the Group using the full consolidation method.

10

Name and registered office % direct

shareholding % indirect

shareholding Business activity Cost

2020

Exolum International UK Ltd. 20-22 Bedford Row, London 100 - Holdco 75,881

Exolum Pipeline System Ltd.

69 Wilson Street, London - 99.99 Storage and

transport -

Exolum TS Limited

Priory House, 60 Station Road, Redhill, Surrey, RH1 1PE - 100 Holdco -

Exolum Terminals UK Ltd.

Priory House 60 Station Road, Redhill, Surrey, RH1 1PE - 100 Holdco -

Exolum Terminals Germany GmbH Essener Str.64, D-68219 Mannheim - 100 Holdco -

Exolum Storage Ltd

Priory House, 60 Station Road, Redhill, Surrey, RH1 1PE - 100 Storage -

Exolum Eastham Ltd


Exolum Grangemouth Ltd

Grange Dock, Grangemouth, FK3 8UD - 100 Storage -

Exolum Terminals Netherlands BV

Strawinskylaan 3127, 8e verdieping, 1077ZX Amsterdam - 100 Holdco -

Exolum Amsterdam BV

Strawinskylaan 3127, 8e verdieping, 1077ZX Amsterdam - 100 Storage -

Exolum Riverside Limited


Exolum Seal Sands Limited


Exolum Terminals UK Limited

Priory House, 60 Station Road, Redhill, Surrey, RH1 1PE - 100 Dormant -

Chemicals and Oil Storage Management Limited

Priory House, 60 Station Road, Redhill, Surrey, RH1 1PE - 100 Holdco -

Exolum Immingham Limited


Exolum Tyneside Limited


Exolum Shannon Limited

Foynes Harbour, Foynes, Co. Limerick, 564410 - 100 Storage -

2019

Exolum International UK Ltd. 20-22 Bedford Row, London 100 - Holdco 78,056

Exolum Pipeline System Ltd.

69 Wilson Street, London - 99.99 Storage and transport -

11

d) CLH México Logística S.A. de C.V. – Subsidiary In 2018, CLH México Logística S.A. de C.V. entered into an agreement with the Mexican firm, Hydrocarbon Storage Terminal, S.A.P.I. de C.V. (HST) for the acquisition of 60% of that company, for the purpose of building and operating a new oil product terminal in the metropolitan area of Valley of Mexico. CLH México Logística S.A. de C.V. was incorporated as a Group subsidiary on 3 April 2018; its shareholders are CLH (99.99%) and CLH Aviación, S.A. (0.01%). CLH México Logística S.A. de C.V. took over control of HST in the first half of 2019, and both companies are consolidated into the Group using the full consolidation method.




2020

CLH México Logística, S.A. de C.V.

Av. Ejército Nacional 769 Piso 2 Col. Ampliación Granada

11520 Mexico City

100 - Holdco -

Hydrocarbon Storage Terminal,

S.A.P.I. de C.V. (HST) Carr. Lechería-Texcoco km 32.5

Col. San Miguel Totolcingo Acolman, Mexico State

- 60 Storage -

2019

CLH México Logística, S.A. de C.V.

Av. Ejército Nacional 769 Piso 2 Col. Ampliación Granada

11520 Mexico City

100 - Holdco 5,955

Hydrocarbon Storage Terminal,

S.A.P.I. de C.V. (HST) Carr. Lechería-Texcoco km 32.5

Col. San Miguel Totolcingo Acolman, Mexico State

- 60 Storage -

e) CLH France, Société par Actions Simplifiée and CLH Rubis Société par Actions Simplifiée –

Subsidiaries On 6 December 2018, CLH FRANCE, Société par Actions Simplifiée, a wholly-owned subsidiary of CLH, was incorporated. On 30 January 2019, CLH RUBIS, Société par Actions Simplifiée, was incorporated, in which CLH FRANCE and RUBIS each have a 50% stake.

12




2020

CLH France, S.A.U.

102 Avenue des Champs Élysées 75008 Paris (France)

100 - Holdco 180

CLH RUBIS

33 Avenue de Wagram 75017 Paris (France)

- 50 Storage -

2019

CLH France, S.A.U.

102 Avenue des Champs Élysées 75008 Paris (France)

100 - Holdco 130

CLH RUBIS

33 Avenue de Wagram 75017 Paris (France)

- 50 Storage -

f) CLH America Inc. – Subsidiary On 19 November 2018, CLH AVIATION USA INC., a wholly-owned subsidiary of CLH, was incorporated. Its registered office is located in Delaware (USA) and its registered name was changed to CLH AMERICA INC. on 24 May 2019. g) Exolum Solutions, S.L. – Subsidiary On 12 November 2019, CLH acquired 100% of the shares in Rivadesar, S.L. This company’s name was changed to EXOLUM SOLUTIONS, S.L. on 14 January 2020 and its registered address was moved to calle Titán, No 8, Instalaciones de Méndez Álvaro First, Despacho 316, post code 28045, Madrid (Spain). The corporate purpose of EXOLUM SOLUTIONS, S.L. is to identify and develop new business opportunities in industries or sectors other than those in which CLH traditionally operates. On 20 December 2019, it acquired 100% of the shares of Garbium Circular Initiatives, S.L., with EXOLUM SOLUTIONS, S.L. acting as sole director. h) Terminales Químicos, S.A. – Associate Terminales Químicos, S.A., was incorporated in Barcelona on 2 November 1970. It has terminals in Barcelona and Tarragona and its business consists of the construction of land-based and/or sea-based terminals for receiving, storing and distributing chemical and petrochemical products, their transportation by land and the sale and marketing of such products. The Group consolidates its interest in Terminales Químicos, S.A. using the equity method.

13

Name and registered office % direct shareholding Business activity Cost

2020

Terminales Químicos, S.A. Muelle de Inflamables s/n

43004 Tarragona 50

Storage and dispatch of chemical and petrochemical

products 6,016

2019

Terminales Químicos, S.A. Muelle de Inflamables s/n

43004 Tarragona 50

Storage and dispatch of chemical and petrochemical

products 6,016

i) OQ Logistics L.L.C – Associate In February 2020 Oman Oil Refineries Petroleum Industries Logistics Company, LLC (OLC) changed its name to OQ Logistics L.L.C. This is a joint venture and a related party via a shareholder of the Parent, in which CLH owns 40% and ORPIC the other 60%. Its corporate purpose is to build and operate certain logistics infrastructures in Oman. The Parent company has not contributed any equity in the last two financial years. There is an agreement between the shareholders of OLC granting ORPIC a call option over the shares held by Group and granting Group a put option over its own shares. Those options take effect once construction of the infrastructure is complete. The related exercise periods are certain dates occurring during the operating phase and the strike prices are defined to guarantee Group a minimum return on its invested capital. That return varies depending on which of the parties exercises the option. The above-mentioned options have been measured at fair value which matches the guaranteed return. At year-end 2020 and 2019, these options were valued at zero (note 17). The Group consolidates its interest in Oman Oil Refineries Petroleum Industries Logistics Company, LLC (OLC) using the equity method.

Name and registered office % direct shareholding Business activity Cost

2020

Oman Oil Refineries Petroleum Industries Logistics Company, LLC (OLC) PO Box 2457, Postal code 112, Sultanate

of Oman

40 Storage and transport 36,141

2019

Oman Oil Refineries Petroleum Industries Logistics Company, LLC (OLC) PO Box 2457, Postal code 112, Sultanate

of Oman

40 Storage and transport 36,141

14

2. BASIS OF PRESENTATION a) Statement of compliance The Group’s consolidated financial statements for 2020 were prepared on the basis of the accounting records kept by Compañía Logística de Hidrocarburos, S.A. and the rest of the group companies, in accordance with the provisions of the International Financial Reporting Standards adopted by the European Union (hereinafter “IFRS-EU”), in compliance with (EC) Regulation No 1606/2002 of the European Parliament and of the Council. b) Measurement basis The consolidated financial statements were prepared on a historical cost basis, except for the Group’s derivative financial instruments, which were measured at fair value. The amounts recognised for assets and liabilities that are covered by fair value hedges are adjusted to reflect changes in their fair value as a result of the hedged risk. c) New IFRS-EU standards and IFRIC interpretations The accounting policies used in the preparation of these consolidated financial statements are the same as those applied to the consolidated financial statements for the year ended 31 December 2019 Standards, amended standards and interpretations effective for periods beginning on 1 January 2020 As a result of their approval, publication and entry into force on 1 January 2020, the following standards, interpretations and amendments adopted by the EU have been applied:

Standards endorsed by the European Union

Coming into force

for the years

beginning Amendments and/or interpretations

Amendments to IAS 1 and IAS 8 Definition of “material” (published in October 2018)

Amendments to IAS 1 and IAS 8 to align the definition of “material” with that contained in the conceptual framework.

1 January 2020

Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform – Phase 1 (published in September 2019)

Amendments to IFRS 9, IAS 39 and IFRS 7 related to the interest rate benchmark reform (phase one).

1 January 2020

Amendment to IFRS 3 Definition of a business (published in October 2018) Clarification of the definition of a ‘business’.

1 January 2020

Amendment to IFRS 16 Leases Rent concessions (published in May 2020)

Amendment to help lessees account for rent concessions related to COVID-19.

1 June 2020

15

New standards

Coming into force for the

years beginning

IFRS 17 Insurance contracts and amendments thereto. Modifications to the NIIF 4. Insurance Contracts. NIIF 9 Deferral

Supersedes IFRS 4 and addresses recognition, measurement, presentation and disclosure requirements for insurance contracts to ensure that entities provide reliable, relevant information that enables financial reporting users to determine the effect that insurance contracts have on financial statements.

1 January 2023

None of these standards have had a material impact on the Group’s financial statements. d) Fair presentation

These consolidated financial statements of the Group present fairly, in all material respects, the consolidated equity and financial position of the Group at 31 December 2020 and its consolidated financial performance, consolidated changes in equity and consolidated cash flows for the year then ended. These consolidated financial statements are expressed in thousands of euros, unless specifically indicated otherwise. These consolidated financial statements were authorised for issue by the directors of the parent, Compañía Logística de Hidrocarburos CLH, S.A., and are pending approval at the corresponding Annual General Meeting; they are expected to be ratified without modification. The consolidated financial statements for 2019 were approved at the Annual General Meeting held on 28 May 2020. At 31 December 2020 the Group reported negative working capital for the amount of €242,096 thousand (€320,618 thousand in 2019) mainly due to the difference between the average collection and payment periods of the Hydrocarbon duties with the public administration. However, based on the opening cash balance plus the amounts the Company expects to collect over the next twelve months and the non-disposed credit lines (Note 16), the group considers that it will be able to meet its payment obligations, thereby ensuring the continuity of the Group’s operations. e) Use of estimates

Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable. In preparing these consolidated financial statements, in compliance with IFRS-EU, the Group’s directors made certain estimates that affect the measurement of certain assets, liabilities, income and expenses. The most significant estimates used relate to:

The assessment of assets for impairment testing purposes (note 4.e).

The useful lives of property, plant and equipment, intangible assets and investment property (notes 4.a, b & c).

The estimated future costs of dismantling and closing certain facilities and restoring the surrounding

terrain (note 4.a).

The probability of occurrence and quantification of liabilities of uncertain amount and/or contingent liabilities (Note 4.k).

16

The recoverability of deferred tax assets (note 4.o).

Fair value estimations of derivative financial instruments (note 26.b).

f) Basis of consolidation The Group's consolidated financial statements were prepared from the separate financial statements of Compañía Logística de Hidrocarburos CLH, S.A. and its subsidiaries.

Sociedad País Actividad Método de

consolidación

CLH Aviación, S.A. Spain Airport storage and supplies I.G.

Exolum Aviation Ireland Ltd. Ireland Airport storage and supplies I.G.

CLH Panamá, S.A. Panama Airport supplies I.G.

CLH México de Combustibles de Aviación, S.A. de C.V. Mexico Airport supplies I.G.

CLH Aviación Ecuador CLHECUADOR, S.A. Ecuador Airport supplies I.G.

Operadora de Hidrocarburos Acolman, S.A. de C.V. Mexico Service provision I.G.

Exolum International UK Ltd. United Kingdom Holdco I.G.

Exolum Pipeline System Ltd. United Kingdom Storage and

transport I.G.

CLH México Logística S.A. de C.V. Mexico Holdco I.G.

Hydrocarbon Storage Terminal, S.A.P.I. de C.V. (HST) Mexico Storage I.G.

CLH France, S.a.u. France Holdco I.G.

CLH RUBIS France Storage M.P.

CLH America Inc. United Stated Holdco I.G.

Exolum Solutions, S.L. Spain Service provision I.G.

Terminales Químicos, S.A. Spain Storage and dispatch of chemical and

petrochemical products M.P.

Oman Oil Refineries Petroleum Industries Logistics Company, LLC (OLC)

Oman Storage and transport

M.P.

Garbium Circular Initiatives S.L. Spain I.G.

Exolum TS Limited United Kingdom Holdco I.G.

Exolum Terminals Ltd United Kingdom Holdco I.G.

Exolum Eastham Ltd United Kingdom Storage I.G.

Exolum Grangemouth Ltd United Kingdom Storage I.G.

Exolum Riverside Limited United Kingdom Storage I.G.

Exolum Seal Sands Limited United Kingdom Storage I.G.

Exolum Storage Limited United Kingdom Holdco I.G.

Chemicals and Oil Storage Management Limited United Kingdom Holdco I.G.

Exolum Immingham Limited United Kingdom Storage I.G.

Exolum Tyneside Limited United Kingdom Storage I.G.

Simon Management Ltd. United Kingdom Storage (inactive) I.G.

Simon Storage Ltd. United Kingdom Storage (inactive) I.G.

Exolum Terminals UK Ltd. United Kingdom Holdco I.G.

Exolum Terminals Netherlands BV Holland Holdco I.G.

Exolum Amsterdam BV Holland Storage I.G.

Exolum Shannon Limited Ireland Storage I.G.

Irish Bulk Liquid Traspor Ltd. Ireland Storage (inactive) I.G.

Consolidation method: F.C. Full Consolidation and E.M. Equity Method.

17

Subsidiaries are fully consolidated when these ownership interests give the Parent the ability to govern their financial and operating policies so as to obtain benefits from their activities. Material intra-group balances and transactions are eliminated upon consolidation. Profits and losses resulting from intra-group transactions are deferred until they are realised with third parties. The Parent and its subsidiaries (the Group) have the same year-end, namely 31 December. g) Comparative information As required under IFRS-EU, the accompanying 2020 consolidated financial statements include, for comparative purposes, the corresponding figures for the prior reporting period. h) Aggregation Certain of the items presented on the consolidated balance sheet, consolidated statement of profit or loss, consolidated statement of changes in equity and consolidated statement of cash flows are aggregated to facilitate reader comprehension. However, where material, these items are disclosed separately in the accompanying notes. 3. BUSINESS COMBINATION Note 1 of the consolidated financial statements provides salient information about the CLH Group entities. As of the 12th of November 2020, via the British Subsidiary, Exolum International UK, Ltd., 100% of the participation in Inter pipeline Europe, Ltd as well as the financial debt these had with the previous shareholders, was bought from Inter Pipeline Ltd. for a total amount of 395 million pounds (now Exolum Terminals Ltd.) who own, via its subsidiaries, 15 liquid bulk and storage terminals located in Great Britain, Ireland, Germany and Netherlands. . The table below summarises the consideration paid by the Group and the book values of the assets acquired and the liabilities assumed on the acquisition date. Consideration paid £ thousand € thousand

Acquisition amount 86,918 97,041

Amount paid 86,918 97,041 Amounts recognised for identifiable assets acquired and liabilities assumed £ thousand € thousand

Property, plant and equipment (note 5) 412,767 460,148 Goodwill (note 7) 41,799 46,678 IFRS 16 (ROU) 48,528 54,154 Intangible assets (note 7) 6,545 7,305 Working capital (37,363) (41,653) Deferred income (3,386) (3,710) Provisions (note 18) (43,834) (48,915) Tax liabilities (note 22) (30,718) (34,245) Debt (307,420) (342,720) Acquisition amount 86,918 97,041

18

At the date of authorising the consolidated financial statements for issue, the purchase price allocation process is deemed provisional. This analysis is expected to be completed in the coming months, within the twelve-month deadline after the acquisition date established in the standard. The details of the effect of the business combination upon the movements have been detailed below 4. MEASUREMENT STANDARDS The main measurement standards used by the Group in drawing up its consolidated financial statements, in accordance with IFRS-EU, are summarised below: a) Property, plant and equipment Items of property, plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment losses. The acquisition cost of items acquired prior to 1 January 2004, the date of first-time application of IFRS-EU, includes the asset revaluations permitted by law and availed of by the Group. The Group’s property, plant and equipment mainly comprises oil pipelines, terminals forming part of the ground logistics network and tanker and aircraft refuelling facilities. A portion of those assets was acquired in December 1984 from the Spanish Oil Monopoly pursuant to Act 45/1984 (17 December) on Oil Sector Restructuring. Extension, upgrade or improvement costs that represent an increase in productivity, capacity or efficiency or an extension in the useful life of existing assets are capitalised as an increase in the carrying amount of the corresponding assets, while the carrying amount of any substituted or renovated assets is derecognised. Upkeep and maintenance costs are expensed in the year they are incurred. Items of property, plant and equipment, net of any terminal value, are depreciated from when they are available for use on a straight-line basis over their estimated useful lives. During the financial year ended 31 December 2019, the company performed a detailed analysis of the useful life of certain items of property, plant and equipment, based on internal sources and reports produced by independent experts. This analysis, which took into account the development of the SCADA system, the reorganisation of the Asset Management system and the consolidation of the Asset Integrity Plan using Risk-Based Inspection (RBI), prompted the companies to apply prospective adjustments to extend the useful lives of the following assets from 1 January 2019:

Assets Current

useful life New useful

life Water drainage manifolds 25 30 Internal pipelines for product 25 40 Pipeline infrastructure 14 40 Pipeline piping and accessories 25 40 High voltage equipment 13 25

The effect of this change on the consolidated statement of profit or loss for the year ended 31 December 2019 was to reduce the depreciation charge by €22.6 million compared with the previous financial year.

19

The Group operates facilities at ports and airports under service concession arrangements and lease agreements for a specific number of years, at the end of which the fixed assets built under those arrangements revert to the grantor. Those facilities are depreciated over the terms of the concession arrangements or lease agreements. CLH Aviación, S.A. leases all of its airport facilities from AENA SME, S.A. under leases with a range of maturities which run until 2045. In the case of the Parent, the concession end dates range from 2021 until 2042. The estimated useful lives of the Group’s property, plant and equipment are:

Assets

Years of useful life

New assets Second-hand

assets

Assets acquired through business

combinations Buildings and other structures 4 to 51 2 to 25 5 to 40 Plant and machinery - Terminals 8 to 30 4 to 15 3 to 40 - Oil pipelines 25 to 40 13 to 20 3 to 40 Transport equipment 6 to 10 3 to 5 3 to 10 Other PP&E 4 to 10 2 to 5 3 to 10

Assets acquired in business combinations are depreciated over the remaining useful lives of each item. The stock of oil products included under “Other PP&E”, which constantly feeds the pipeline network and hydrants, is measured at the average acquisition cost and is not depreciated. Useful lives are reviewed at each financial year-end and are adjusted prospectively as necessary. b) Investment properties The Group classifies the properties it does not currently use for business purposes as investment properties, holding them instead for lease and/or sale. Those properties are carried at cost less accumulated depreciation and any accumulated impairment losses. Investment properties are depreciated on a straight-line basis over their useful lives, estimated at between 10 and 50 years. Useful lives are reviewed at each financial year-end and are adjusted prospectively as necessary. Investment properties are derecognised when they are disposed of. The difference between the net disposal proceeds and the carrying amount of an investment property is recognised in consolidated profit or loss in the period of disposal. The Group periodically determines the fair value of its investment properties, this being the price at which the property could be exchanged between knowledgeable, willing parties. The Group estimates that fair value on the basis of price comparables for equivalent properties and objective estimates or by using appraisals performed by independent experts. c) Intangible assets Intangible assets are carried at historical cost less accumulated amortisation and any accumulated impairment losses. Rights-of-use assets correspond to the use by the Group of equipment located in facilities it does not own.

20

Research expenditure is recognised as an expense as incurred. Costs incurred in development projects (relating to the design and testing of new or upgraded products) are recognised as intangible assets where the following requirements are met: It is technically feasible to complete the production of the intangible asset so that it will be

available for use or sale; Management intends to complete the intangible asset in question for use or sale; There is an ability to use or sell the intangible asset; It can be demonstrated that the intangible asset will generate probable future economic

benefits; Adequate technical, financial and other resources to complete the development and to use or

sell the intangible asset are available; and The expenditure attributable to the intangible asset during its development can be reliably

measured. Service concession arrangements and lease agreements are carried at cost less amortisation and impairment losses and are amortised over the term of the concession arrangement or lease. IFRIC 12 defines service concession arrangements as public-private arrangements where the public sector controls or regulates what services the operator must provide using the infrastructure, to whom, and at what price and also controls any significant residual interest in the infrastructure at the end of the term of the arrangement. The infrastructure used under a concession can be classified as an intangible asset or a financial asset, depending on the nature of the right to receive payment stipulated in the agreement. Other development expenditures are expensed as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. Any internally-generated intangible assets are subject to annual impairment testing under IAS 36. Amortisation charges are calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Assets

Years of useful life Assets acquired

through business combinations

Concession arrangements/lease agreements Concession/agreement

term Concession/agreement

term Right-of-use assets Concession term Concession term Patents 10 years - Research and development 3 years - Software 6 to 10 years 6 to 10 years

Amortisation charges are recognised in the consolidated statement of profit or loss together with property, plant and equipment and investment property depreciation charges under “Depreciation and amortisation”. Useful lives are reviewed at each financial year-end and are adjusted prospectively as necessary. d) Exchanges of assets Whenever an item of property, plant and equipment, an intangible asset or an investment property is acquired by means of an exchange having a commercial substance, the asset received is measured at the fair value of the asset delivered, plus any monetary consideration awarded, barring better evidence supporting the value of the asset received and up to the limit of the latter. The Group considers that an exchange is commercial in substance when the structure of the cash flows from the asset received differs from the structure of the cash flows of the asset delivered, or the present value of the after-tax cash flows of the

21

activities affected by the swap is modified. Both of the above differences must also be material in respect of the fair value of the assets exchanged. If the swap is not deemed commercial in substance, or the fair value of the transaction assets cannot be reliably determined, the asset received is measured at the carrying amount of the asset delivered, including any monetary consideration, up to the limit of the fair value of the asset received, if lower, and so long as this value can be reliably measured. e) Impairment of non-financial assets Assets are tested for impairment whenever an event or changes in circumstances indicate that their carrying amount may not be recoverable. To this end, the aspects factored in by management include delivery of the business plans established by the governing bodies. The excess of the carrying amount of an asset over its recoverable amount, deemed the higher of fair value less costs to sell or value in use, is recognised as an impairment loss. The assumptions used to calculate value in use include estimated discount rates, growth rates and forecast changes in selling prices and direct costs. The pre-tax discount rates used reflect the time value of money and the risks specific to the cash-generating unit. The growth rates and the changes in selling prices and direct costs modelled are based on industry forecasts and experience and expectations, respectively. For the purposes of measuring impairment, assets are allocated to the smallest identifiable group of assets that generates separate cash flows (cash-generating units). For these purposes, the Group’s specific cash-generating units are:

The storage and transportation logistics services provided by CLH (Spanish activity). The aviation fuel storage and into-plane fuelling services provided by CLH Aviación (Spanish

activity). The storage and transportation logistics services provided by Exolum PS (international activity). The storage logistics services provided by Exolum Terminal by terminal (international activity). The aviation fuel storage and into-plane fuelling services provided by Exolum Aviation Ireland

(international activity). The into-plane fuelling services provided by CLH Panama (international activity). The into-plane fuelling services provided by CLH Ecuador (international activity). The into-plane fuelling services provided by CLH México Combustibles de Aviación (international

activity).

Impaired non-financial assets other than goodwill are reviewed for possible reversal of the impairment at each reporting date. f) Financial assets and liabilities Financial assets CLH classifies its financial assets according to their valuation category, which is determined according to the business model and the contractual cash flow characteristics, and it only reclassifies financial assets when it changes its business model for managing said assets. Purchases and sales of financial assets are recognised on the trade date, which is the date on which CLH agrees to purchase or sell the asset, classifying the acquisition in the categories shown below:

22

a) Financial assets carried at amortised cost These are financial assets that are not derivatives, held for the collection of contractual cash flows when these cash flows only represent principal and interest payments. They are included under current assets, except when they mature in more than twelve months as from the balance sheet date, in which case the item is recorded under non-current assets. They are initially recognised at fair value and subsequently at amortised cost using the effective interest method. Interest income on these financial assets is included in finance income, any profit or loss on de-recognition is recognised directly in consolidated profit or loss and impairment losses are reported as a separate item in the consolidated statement of profit or loss for the year. b) Financial assets at fair value through profit and losses These are assets acquired for the purpose of selling them in the short term. Derivatives are included in this category unless they are designated as hedges. These financial assets are recognised initially and in subsequent valuations at fair value, any changes in this value being recycled to the consolidated statement of profit or loss for the year. In the case of equity instruments included in this category, these are carried at their fair value and any profit or loss arising from changes in their fair value, or from their disposal, is included in the consolidated statement of profit or loss. The fair value of interests in non-listed companies is measured using valuation techniques that include the use of recent transactions between interested and duly informed parties, references to other substantially identical instruments and an analysis of discounted future cash flows. If the recent available information is insufficient to determine the fair value, or there is a whole series of possible valuations of the fair value and cost is the best estimate in this series, these investments are carried at acquisition cost less any impairment losses. c) Equity instruments at fair value through other comprehensive income These are equity instruments that CLH irrevocably chose to include in this category on initial recognition. They are carried at fair value and any changes in this are recycled through other comprehensive income, except for dividend income on these investments, which is recognised in profit for the year. Accordingly, no impairment losses are recognised in profit or loss and no profit or loss is recycled through the consolidated statement of profit or loss on disposal. Financial assets are derecognised when the contractual rights to receive cash flows from the asset have expired or have been transferred and the risks and rewards of ownership have been substantially transferred. The financial assets are not derecognised, but a financial liability in an amount equal to the payment received is recognised, in transfers of financial assets for which the risks and rewards of ownership have been retained. Contracts assigning receivables to third parties are considered non-recourse factoring provided they entail the transfer of the risks and rewards of ownership of the financial assets assigned. Impairment of financial assets is based on a model of expected loss. Exolum records the expected loss and any changes in this amount at each reporting date, to reflect changes in the credit risk subsequent to the date of initial recognition, without waiting for an impairment event to occur. For trade and other receivables without a significant financial component Exolum uses the simplified expected loss model.

23

Under the simplified model, credit losses expected over the term of the contract are recognised from the start based on available information about previous events (such as customers’ payment records) that could impact the credit risk of CLH’s debtors. The effect of application of this model upon the Group’s financial statements is not relevant. Financial liabilities a) Financial liabilities carried at amortised cost Borrowings are initially recognised at fair value, less any transaction costs incurred. Any difference between the amount received and the redemption value is recognised in the consolidated statement of profit or loss over the term for repayment of the borrowings using the effective interest method, the financial liabilities being classified subsequently as carried at amortised cost. In the case of contractual changes in a liability carried at amortised cost that do not lead to derecognition from the balance sheet, the contractual flows of the refinanced debt must be calculated maintaining the original effective interest rate, and the difference that arises is recorded in the statement of profit or loss on the amendment date. Borrowings are classified as current liabilities unless they fall due more than twelve months from the balance sheet date. In addition, current trade and other payables are short-term financial liabilities that are initially valued at fair value, do not explicitly accrue interest and are carried at their nominal value. Borrowings falling due in more than twelve months are considered non-current. b) Financial liabilities at fair value through profit and losses These are liabilities acquired for the purpose of selling them in the short term. Derivatives are included in this category unless they are designated as hedges. These financial liabilities are recognised initially and in subsequent valuations at fair value, any changes in this value being recycled to the consolidated statement of profit or loss for the year. c) Derivatives and hedging transactions The Group’s activities expose it mainly to interest rate variability. To hedge this exposure, the Group arranges interest-rate swaps. It does not use derivatives for speculative purposes. Derivatives are recognised at fair value at the contract date, with this fair value being recalculated successively. The methodology for recognition of profit or loss depends on whether the derivative is classified as a hedge, and in this case, the nature of the asset covered by the hedge. Exolum aligns its accounting with its financial risk management. The risk management goals and hedging strategy are reviewed regularly, with a description being made of the risk management objective being pursued. In order for each hedging transaction to be deemed effective, CLH documents how the economic relationship between the hedging instrument and the item hedged is in line with its risk management objectives. The fair value of the various derivative financial instruments is calculated using the following procedure:

• Interest-rate swaps are valued by discounting future payments in respect of the differences between the fixed and floating legs using implied interest rates gleaned from long-term swap rate curves. Implied volatility is used to calculate, by means of option valuation methods, the fair values of caps and floors.

24

• Cash flow hedges are measured using valuation methods that rely on a mix of variables, some of which are directly observable in the market and some of which are not.

For accounting purposes, derivatives that qualify for hedge accounting are classified as follows:

i) Cash flow hedges The cash part of changes in the fair value of derivatives designated and qualified as cash flow hedges is carried in equity. Profit or loss on the non-cash part is recognised immediately in the consolidated statement of profit or loss. The amounts accumulated in equity are recycled to the consolidated statement of profit or loss in the year in which the hedged item affects profit or loss. The amounts accumulated in equity are recycled to the consolidated statement of profit or loss in the year in which the hedged item affects profit or loss, as follows: - If the hedged item subsequently results in the recognition of an asset, the amount accumulated in equity will be recognised in the initial cost of the asset. - Profit or loss on the effective part of interest rate swaps is recognised in finance costs at the

same time as the interest expenses on the hedged loans. ii) Hedges of foreign net investments Their accounting treatment is similar to that for cash flow hedges. Fluctuations in the value of the cash part of the hedging instrument are recognised in the consolidated balance sheet item “Translation differences”. Profit or loss on the non-cash part is recognised immediately in the consolidated statement of profit or loss heading “Exchange differences”. The accumulated amount of the valuation recorded in “Translation differences” is recycled to the consolidated statement of profit or loss as the foreign investment that generated this amount is sold.

Derecognition of financial assets and liabilities A financial asset is derecognised when:

- The contractual rights to receive cash flows from the asset have expired. - The Group retains the right to receive those cash flows but has agreed to pay them in full to a

third party and has transferred substantially all the risks and rewards of the asset or does not substantially retain them.

- The Group has transferred the right to receive the cash flows from the asset and has transferred substantially all of the risks and rewards of the asset or has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Financial liabilities are derecognised where they are extinguished, i.e., when the obligation specified in the contract has been discharged or cancelled or has expired. g) Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Dividends on ordinary shares are recognised as a decrease in the value of equity when approved.

25

If any of the entities in the Group buys the Company’s shares (own shares), the consideration paid, including any directly attributable incremental costs (net of income tax), is deducted from the equity attributable to the Company’s equity holders until the shares are cancelled, reissued or disposed of. When these shares are subsequently reissued, the consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity. h) Inventories Inventories are measured at cost, at the lower of their weighted average cost or their net realisable value. The net realisable value is the amount that could be obtained by selling the inventories in the ordinary course of business less costs to sell. i) Non-current assets held for sale The Group registers as assets held for sale all those assets for which it has commenced active arrangements for their sale and estimates that the sale shall be made in the following twelve months. These assets are measured at the lower of their carrying amount and fair value less costs to sell and are not subject to depreciation from the moment at which they are classified as non-current assets held for sale. In the event of delays caused by events or circumstances beyond CLH’s control and provided sufficient evidence exists that the commitment to sell the assets classified as held for sale has been maintained, this classification is maintained even if the period for completing the sale extends beyond a year. Non-current assets held for sale are presented on the consolidated balance sheet under the heading “Non-current assets held for sale”. j) Government grants Grants are recognised at their fair value, which is the amount received, when there is reasonable certainty that the Group will comply with all attached conditions. Grants related to assets are recognised as non-current liabilities in the consolidated balance sheet when they are effectively awarded. They are recognised in profit or loss so as to match the grant income with the depreciation charges corresponding to the subsidised assets. k) Provisions In drawing up the annual consolidated financial statements, the Group’s directors distinguish between: - Provisions: liabilities recognised to cover a present obligation arising from past events of uncertain

timing and/or amount, the settlement of which is expected to result in an outflow of resources. - Contingent liabilities: possible obligations that arise from past events whose existence will be

confirmed only by the occurrence or non-occurrence of one or more future events that are not wholly within the Company’s control.

The financial statements recognise all provisions in respect of which it is considered more likely than not that a present obligation exists. Unless the possibility of an outflow of funds is deemed remote, contingent liabilities are not recognised in the financial statements but rather are disclosed in the accompanying notes. Provisions are measured at the present value of the best estimate of the expenditure required to settle or transfer the present obligation based on information available concerning the obligating event and its consequences; changes in the provision’s carrying amount arising from discounting are recognised as finance costs as accrued.

26

The compensation to be received from a third party when an obligation is settled is recognised as a separate asset so long as it is virtually certain that the reimbursement will be received, unless the risk has been contractually externalised so that the Company is legally exempt from having to settle, in which case the reimbursement is taken into consideration in estimating the amount of the provision, if any. l) Employee commitments Defined contribution commitments to employees Pension plans: the Group has a pension plan for all its employees. It is a mixed-format plan: it is a defined contribution plan in respect of the retirement contingency and a defined benefit plan in respect of the contingencies of disability or death during the term of employment. The benefits are underwritten via insurance contracts. Contributions to the plans are recognised as employee benefits expenses in the consolidated statement of profit or loss. Defined contribution commitments with guaranteed returns Pension plan for executives: until 2009, the compensation policy in place for executives included a deferred remuneration concept dubbed the “long-service bonus”. The Group used to make contributions to a securities fund to this end. On 1 September 2009, the Group set up a new plan for executives that superseded and replaced that bonus scheme. The Group arranged “insurance to cover pension commitments" to cover its commitments under that pension plan (retirement and death or disability during active service). The contribution is calculated as a percentage of each executive's base salary. In the event of retirement or disability, the executive is entitled to the balance of that policy. In the event of death, the payout would be 102% of that amount. In addition, the pension plan guarantees a return equivalent to 125% of the prior year's CPI. Defined benefit commitments to employees Retirement bonus for executives: in addition to the above-mentioned long-service bonus, some executives are entitled upon retirement to a sum equal to a multiple (capped at two times) of their last basic pay. The Group has arranged a deferred capital insurance policy to cover its defined benefit obligations to these executives at retirement. The cost is determined using the projected unit credit (PUC) method. The liability or asset recognised in the consolidated balance sheet in connection with defined benefit plans is the present value of defined benefit obligations at the reporting date less the fair value of the plan assets. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligations. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in the consolidated statement of comprehensive income in the period in which they arise. Past-service costs are recognised in profit and loss immediately. Since November 2020, date as of which the Group acquired the assets of the United Kingdom, Ireland, Germany and the Netherlands from Inter Terminals, the Group also has employment pension funds with fixed benefits for some Inter Terminals employees and former employees in the United Kingdom and Germany. The UK plan features equity, fixed income, financial instruments and fixed assets. Market variations may involve additional cash contributions from the company. The plan was closed and does not accept additional

27

beneficiaries since April 2017. Liabilities related to this plan are supported by exolum Terminals Ltd Group company, which receives advice from external experts to assess risk related to this plan. In Germany, to date there is a fixed benefit plan that has been closed to new additions since 1994. This pension fund operates in such a way that the company pays employees directly the benefits set out in the plan on the agreed dates. m) Termination benefits Termination benefits are paid to employees as a result of the CLH Group’s decision to terminate employment contracts before the normal retirement age or when employees voluntarily agree to resign in return for such benefits. The Group provides for such benefits on the earliest of the following dates: (a) when the Group can no longer withdraw its offer of termination benefits; or (b) when it recognises the costs of a restructuring exercise under the scope of IAS 37 and doing so entails the payment of termination benefits. n) Bonuses The Group recognises its best estimate of bonuses payable within twelve months of the end of the annual reporting period as a current expense. o) Current and deferred income tax Corporate income tax expense for the year comprises current and deferred tax. It is determined using the liability balance sheet method. That method contemplates differences in recognition criteria for items of income and expense for accounting and tax purposes and differences between the carrying amounts of assets and liabilities and their tax bases. Thus, deferred tax assets and liabilities are recognised for temporary differences at the reporting date between the carrying amount and the tax value of the assets and liabilities. Current tax assets and liabilities are measured at the amounts expected to be recoverable from or payable to the tax authorities on the basis of the tax legislation in force or approved and pending publication at the end of the reporting period. Deferred tax assets are only recognised when it is probable that future taxable profit will be available against which the deductible temporary difference can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the application of said tax assets. Similarly, the Company reassesses unrecognised deferred tax assets, recognising them to the extent that it has become probable that they can be applied. Deferred tax assets and liabilities are determined using tax rates and laws that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets and liabilities are offset if the right to offset assets and liabilities against taxes is recognised by law and the deferred taxes relate to the same tax authority. Deferred tax assets and liabilities are not discounted and are classified as non-current, regardless of the estimated realisation or settlement date. Corporate income tax related to items recognised directly in equity is also recognised in equity and not in the consolidated statement of profit or loss.

28

p) Current and non-current classification The consolidated balance sheet headings are classified according to their maturity with respect to the reporting date. Items maturing or due within less than 12 months from the reporting date are classified as current and those maturing or due more than twelve months after the reporting date are classified as non-current. q) Foreign currency transactions The items included in the consolidated financial statements of each of Exolum’s entities are measured using the currency of the main economic area in which the entity operates. The consolidated financial statements are presented in euros, which is Exolum’s presentation currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the dates of the transactions. Foreign currency gains and losses resulting from the settlement of transactions and translation of monetary assets and liabilities denominated in foreign currency at the year-end exchange rates are recognised in the consolidated statement of profit or loss, unless they are deferred in equity, such as eligible cash flow hedges. The profit or loss and financial situation of all Exolum’s entities with a functional currency different to the presentation currency are translated into the presentation currency as follows:

- The assets and liabilities from each balance sheet are translated at the rates prevailing at the end of the reporting period.

- Income and expenses from each statement of profit or loss are translated at monthly average exchange rates unless this is not a reasonable approximation of the cumulative effect of the rates existing on the transaction dates, in which case the income and expenses are translated on the transaction date.

- All foreign exchange gains and losses are recognised in the consolidated statement of comprehensive income and the cumulative amount is carried under “Translation differences” in equity.

The exchange rates with respect to the euro (EUR) of the main currencies of Exolum Group companies at 31 December 2020 and 2019 were as follows: 31 December 2020 31 December 2019

Year-end rate

Cumulative average rate

Year-end rate Cumulative

average rate

US dollars 1.2271 1.1416 1.1234 1.1196

Sterling 0.8990 0.8891 0.8508 0.8777

Mexican pesos 24.4160 24.5225 21.2202 21.5565

r) Leases The Group as lessee: The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-of-use asset and the corresponding lease liability with respect to all lease arrangements in which it acts as the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

29

The lease liability is initially measured at the present value of the outstanding lease payments at the commencement date, discounted by using the interest rate implicit in the lease. If this rate cannot be reliably determined, the Group uses its average borrowing rate. The liability arising from the application of IFRS 16 is presented as a separate line in note 16. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever: - The lease term has changed, in which case the lease liability is remeasured by discounting the revised

future lease payments using a revised discount rate. - The lease payments are modified due to changes in the discount index or rate, in which case the lease

liability is remeasured by discounting the revised future lease payments using the initial discount rate. - The lease contract is amended and the lease amendment is not accounted for as separate lease, in

which case the lease liability is remeasured by discounting the revised future lease payments using a revised discount rate.

The initial value of right-of-use assets comprises the initial measurement of the corresponding lease liability, lease payments made at or before the contract commencement day and any additional indirect costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the lease term or the useful life of the underlying asset, whichever is shorter. Depreciation starts at the commencement date of the lease. The Group as lessor: Leases in which the Group acts as lessor are classified as finance leases when, based on the economic terms of the arrangement, substantially all the risks and rewards inherent to ownership of the leased item are transferred to the lessee. All other leases are classified as operating leases. Leases under which the lessor retains substantially all the risks and rewards inherent to ownership of the leased asset are classified as operating leases. Lease income is recognised in the consolidated statement of profit or loss on a straight-line basis. s) Income and expenses Income from customer contracts must be recognised as the performance obligations with customers are met. Ordinary income represents the transfer of the promised goods or services to customers for an amount that reflects the consideration to which CLH expects to be entitled in exchange for those goods or services. Income is recognised in five steps:

1. Identify the contract(s) with the customer. 2. Identify the performance obligations. 3. Determine the transaction price. 4. Allocate the transaction price to the various performance obligations. 5. Recognise income as each obligation is met.

According to this recognition model, sales of goods are recognised when the products have been delivered to the customer and the customer has accepted them, even if they have not been billed, or, where appropriate, when the services have been rendered and the corresponding accounts receivable are reasonably certain to be collected.

30

Sales are valued net of taxes and discounts, and transactions between CLH companies are eliminated on consolidation. Lease income on investment properties is credited to "Other income" in the consolidated statement of profit or loss on a straight-line basis over the term of the lease agreements. Dividend income is recognised as revenue in the consolidated statement of profit or loss when the right to receive payment is established. Notwithstanding the foregoing, dividend payouts from profits generated prior to the acquisition date are not recognised as revenue but are rather deducted from the carrying amount of the investment. Expenses are recognised immediately, according to their accrual, when a disbursement does not give rise to future economic benefits or when the requirements for recognition as an asset are not met. t) Earnings per share The Group calculates its basic and diluted earnings per share numbers based on the weighted average number of shares outstanding during the reporting period. Basic and diluted earnings per share coincided in both reporting periods. u) Distribution of dividends The payment of dividends to the Parent’s shareholders is recognised as a liability in the Group’s consolidated financial statements in the year in which the dividend payments are approved by the Parent’s shareholders. v) Environmental disclosures The Group capitalises assets acquired or produced for long-lasting use in its business operations for the purpose of preventing, mitigating or repairing damage caused to the environment. Provisions for environmental liabilities, specifically for land decontamination, are calculated on the basis of the best estimate, using available information, of the cost to be incurred and the timing of the necessary work; that estimate is then discounted to present value. Quantifying the cost of future land restoration work is complex, given the difficulty of determining the existence or scope of environmental damage and the wide range of available restoration methods. Provisions are recognised for this work when there is a present obligation, legal or contractual, explicit or implicit, or on account of the foreseeable direction of environmental regulations. The Group entities have assessed their environmental liabilities on a case by case basis and recognised provisions corresponding to the estimated obligations at 31 December 2020 and 2019. Those obligations relate to service concession arrangements and lease agreements over land for which the decision to sell has been taken and to other land for which there are remediation plans. In 2007, the Group met its obligation to produce an environmental classification of all of its sites with a view to obtaining better and more updated knowledge of their level of contamination. Those classifications are updated regularly and whenever the environmental circumstances so dictate. w) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, which is the Management Committee.

31

The Group has defined its reportable segments as follows: - Ground supplies – Compañía Logística de Hidrocarburos CLH, S.A., Exolum Solutions, S.L. - Aviation supplies – CLH Aviación, S.A.

- International ground supplies – Exolum Pipeline System Ltd., CLH México Logística S.A. de CV, HST, CLH France, Exolum Terminals UK and subsidiaries.

- International aviation supplies – Exolum Aviation Ireland Ltd., CLH Panamá, S.A., CLH Ecuador, CLH México Combustibles de Aviación and CLH America.

x) Consolidated statements of cash flows The Group discloses its activities in the statement of cash flows using the indirect method. The following terms are used in the statement of cash flows with the meanings indicated below:

Operating activities: activities giving rise to ordinary revenues and other activities that cannot be classified as either investing or financing activities. Investment activities: the acquisition and disposal of non-current assets and other investments not included in cash and cash equivalents. Financing activities: activities that result in changes in the size and composition of equity and borrowings that are not operating activities.

Cash flows in foreign currencies are translated at the monthly average exchange rate, so long as exchange rates have not fluctuated significantly. y) Related-party transactions As a general rule, intragroup transactions are initially recognised at fair value. If the price agreed differs from fair value, the difference is recognised based on the economic substance of the transaction. Subsequent measurement follows prevailing accounting standards. z) Business combinations Intragroup mergers, demergers and non-monetary contributions of a business are recognised in accordance with the rules for related-party transactions. Mergers and demergers other than those mentioned above and business combinations arising from the acquisition of all the assets of one company or of a part that constitutes one or more businesses are recognised in accordance with the acquisition method. 5. PROPERTY, PLANT AND EQUIPMENT The reconciliation of the carrying amounts stated under this heading at the beginning and end of the 2020 and 2019 reporting periods is provided below (in thousands of euros):

32

2020 Opening balance

Business combination

(Note 3)

Additions and

provisions Derecognitions Transfers

Translation differences

Closing balance

Cost

Land and buildings 475,679 37,051 145 (541) (1,575) (1,910) 508,849 Plant and machinery

2,043,736 619,557 2,272 (1,215) 25,033 (10,558) 2,678,825

Other PP&E: Transport equipment 29,367 - 464 (90) 2,853 (24) 32,570

Other 112,909 - 339 (372) 1,057 (23) 113,910 PP&E under construction

90,007 23,177 82,466 - (35,555) (2,950) 157,145

Total cost 2,751,698 679,785 85,686 (2,218) (8,187) (15,465) 3,491,299 Impairment

Transport equipment and other PP&E

(483) - 483 - - - -

Total impairment (483) - 483 - - - - Accumulated depreciation

Buildings (187,815) (3,732) (8,280) 291 284 - (199,252) Plant and machinery

(1,457,450) (215,905) (48,190) 1,410 (282) 3,804 (1,716,613)

Other PP&E:

Transport equipment

(29,700) - (1,449) 86 - 124 (30,939)

Other (33,135) - (1,796) 73 - (4) (34,862) Total accumulated depreciation

(1,708,100) (219,637) (59,715) 1,860 2 3,924 (1,981,666)

Carrying amount of PP&E

1,043,115 460,148 26,454 (358) (8,185) (11,541) 1,509,633

33


Additions and



Closing balance

Cost

Land and buildings 469,190 1,181 (1,598) 5,183 1,723 475,679 Plant and machinery 1,972,892 17,733 (4,623) 50,202 7,532 2,043,736 Other PP&E: Transport equipment 29,060 520 (138) (74) (1) 29,367 Other 115,566 341 (4,246) 1,244 4 112,909 PP&E under construction 85,905 55,702 - (53,015) 1,415 90,007 Total cost 2,672,613 75,477 (10,605) 3,540 10,673 2,751,698 Impairment

Transport equipment and other PP&E (1,028) 545 - - - (483)

Total impairment (1,028) 545 - - - (483) Accumulated depreciation

Buildings (180,610) (8,242) 1,063 2 (28) (187,815) Plant and machinery (1,411,826) (48,760) 5,170 - (2,034) (1,457,450) Other PP&E:

Transport equipment (28,688) (1,149) 137 - - (29,700) Other (34,815) (1,800) 3,480 - 1 (33,135) Total accumulated depreciation

(1,655,939) (59,951) 9,850 2 (2,061) (1,708,100)

Carrying amount of PP&E 1,015,646 16,071 (755) 3,542 8,612 1,043,115 The additions from the “Business Combination” of Inter Terminals corresponds to the fixed assets incorporated within the Group as of the acquisition date (See Note 3) incorporating additions, disposals o transfers from the acquisition date onwards throughout the movement of the table. The main additions in 2020 correspond to investments in infrastructure integrity and automation (efficiency improvements), in environmental and safety projects and in commercial assets (related to the renewal and contracting of new services and products). At 31 December 2020 and 2019, the estimated gross cost of dismantling obligations, added to the carrying amount of the assets, was €38,064 and €3,051 thousand, respectively. The amounts capitalised correspond to the estimated cost of dismantling the facilities in question and are depreciated over the corresponding estimated useful lives. “Other PP&E” includes the stock of oil products which constantly feeds the pipeline network and hydrants. The carrying amount of these assets stood at €74,691 thousand at 31 December 2020 (€74,988 thousand at 31 December 2019). There was no impairment to this item at 31 December 2020, compared to € 483 thousand at 31 December 2019. The Group availed of the one-time fixed asset revaluation option provided for under Royal Decree-Act 7/1996 (7 June). The effect of that revaluation exercise on depreciation charges was not material in 2020 or 2019. The Group has arranged insurance policies to cover the possible risks to which the various items of its property, plant and equipment are exposed and potential claims that may arise in the ordinary course of its business operations, and believes that these policies are sufficient to cover the risks to which these assets are exposed. At year-end 2020, the Group had contractual commitments for the acquisition of items of property, plant and equipment in the amount of €40,148 thousand (year-end 2019: €46,311 thousand). None of the Group’s assets were pledged as collateral under loan agreements with financial institutions at either year-end.

34

At year-end 2020, assets with a carrying amount of €131,340 thousand (€138,627 thousand in 2019) were subject to reversion to the authorities, specifically CLH facilities at ports used under concession arrangements and lease agreements entered into by CLH Aviación. 6. INVESTMENT PROPERTIES The reconciliation of the carrying amounts shown in “Investment properties” in 2020 and 2019 is provided below (in thousands of euros):


Additions and


Closing balance

Cost

Land and buildings, completed and under development

14,053 - (39) 2,619 16,633

Total cost 14,053 - (39) 2,619 16,633

Impairment Land and buildings, completed and under development

(877) - - - (877)

Total impairment (877) - - - (877)

Accumulated depreciation

Completed buildings (295) (4) 14 (2) (287)

Total accumulated depreciation (295) (4) 14 (2) (287)

Carrying amount of investment properties 12,881 (4) (25) 2,617 15,469


Additions and


Closing balance

Cost

Land and buildings, completed and under development

14,079 - (56) 30 14,053

Total cost 14,079 - (56) 30 14,053

Impairment Land and buildings, completed and under development

(877) - - - (877)

Total impairment (877) - - - (877)

Accumulated depreciation

Completed buildings (331) (4) 56 (16) (295)

Total accumulated depreciation (331) (4) 56 (16) (295)

Carrying amount of investment properties 12,871 (4) - 14 12,881

The Group has leased out some of its investment properties under operating leases. The income under those lease agreements is updated by annual CPI. In the last two years, the consolidated statement of profit or loss included the following items of income in respect of investment properties (in thousands of euros):

35

Description 2020 2019 Rental income 127 158 Gains on disposals 135 227 Total 262 385

At 31 December 2020, the cost of the plots of land recognised within “Investment properties” in the assets of the consolidated balance sheet stood at €13,378 thousand (2019: €13,698 thousand). The gross amount of investment properties stood at €16,633 thousand at year-end 2020 (€14,053 thousand in 2019). The Group periodically reviews the recoverable amounts of the items included under "Investment properties" in the consolidated balance sheet, applying the criteria outlined in note 4.b. The fair value of the Group’s investment properties approximates their carrying amount. Investment properties had been written down for impairment by €877 thousand at both year-ends. The Group was not contractually committed to the purchase of any investment properties at either year-end. It is Group policy to take out the insurance policies necessary to cover the potential risks to which the various items classified within "Investment properties" are exposed. That coverage was deemed sufficient at both year-ends. 7. INTANGIBLE ASSETS The reconciliation of the carrying amounts stated under this heading at the beginning and end of the 2020 and 2019 reporting periods is provided below (in thousands of euros):



Additions and



Closing balance

Cost

Right-of-use assets 23,123 - 9 - 18,975 - 42,107 Concession arrangements 7,128 - 4,764 (993) 394 - 11,293 R&D finished products 254 - - - - - 254 Software 73,412 6,219 1,921 - 4,668 (203) 86,017 Customer contracts - 3,502 - - - (13) 3,489 Goodwill - 46,678 - - - - 46,678 Work in progress 33,576 - 9,374 - (18,464) - 24,486 Rights-of-use under IFRS 16 142,575 60,929 16,271 (8,478) - (664) 210,633 Total cost 280,068 117,328 32,339 (9,471) 5,573 (880) 424,957 Accumulated amortisation Right-of-use assets (4,028) - (2,292) - - - (6,320) Concession arrangements (3,721) - (734) - - - (4,455) R&D finished products (254) - - - - - (254) Software (49,340) (331) (7,157) - - 103 (56,725) Customer contracts (2,085) (29) 6 (2,108) Rights-of-use under IFRS 16 (33,881) (6,775) (19,960) 8,374 - 259 (51,983) Total accumulated amortisation (91,224) (9,191) (30,172) 8,374 - 368 (121,845) Carrying amount of intangible assets 188,844 108,137 2,167 (1,097) 5,573 (512) 303,112

36


First-time application

Additions and



Closing balance

Cost

Right-of-use assets 23,123 - - (1) 1 - 23,123 Concession arrangements 6,962 - - (106) 272 - 7,128 R&D finished products 254 - - - - - 254 Software 64,640 - 2,961 (87) 5,723 175 73,412 Work in progress 31,910 - 11,205 - (9,539) - 33,576 Rights-of-use under IFRS 16 82,636 59,583 - - - 356 142,575 Total cost 209,525 59,583 14,166 (194) (3,543) 531 280,068 Accumulated amortisation Right-of-use assets (2,871) - (1,157) - - - (4,028) Concession arrangements (3,073) - (648) - - - (3,721) R&D finished products (254) - - - - - (254) Software (43,051) - (6,300) 87 1 (77) (49,340) Rights-of-use under IFRS 16 (16,496) - (17,291) - - (94) (33,881) Total accumulated amortisation (65,745) - (25,396) 87 1 (171) (91,224) Carrying amount of intangible assets 143,780 59,583 (11,230) (107) (3,542) 360 188,844

The additions from the “Business Combination” of Inter Terminals corresponds to the Intangible assets incorporated within the Group as of the acquisition date (See Note 3) incorporating additions, disposals o transfers from the acquisition date onwards throughout the movement of the table. The main additions in 2020 correspond to software and to extensions on concession arrangements in Spain. As a result of the application of IFRS 16, “Leases”, the Group recognised its lease commitments under “Rights-of-use under IFRS 16”. These obligations are detailed in note 25. 8. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD The reconciliation of the carrying amounts stated under this heading at the beginning and end of the 2020 and 2019 reporting periods is provided below (in thousands of euros):

Terminales Químicos,

S.A. OLC HST

CLH Rubis TOTAL

Balance at 01/01/2019 13,561 39,387 1,294 - 54,242 Additions - - - 125 125 Profit or loss 2,212 4,611 - (8) 6,815 Dividends (1,500) - - - (1,500) Translation differences - 731 - - 731 Transfers - - (1,294) - (1,294) Balance at 31/12/2019 14,273 44,729 - 117 59,119 Additions - - - - - Profit or loss 2,680 3,849 - (22) 6,507 Dividends (2,000) - - - (2,000) Translation differences - (3,984) - - (3,984) Transfers - - - - - Balance at 31/12/2020 14,953 44,594 - 95 59,642

The main figures for capital, reserves and profit for the year and other relevant information, as taken from the separate financial statements of the respective associates, are as follows (in thousands of euros):

37

(1) Provisional figures

Terminales Químicos, S.A., OQ Logistics L.L.C. and CLH Rubis are all unlisted, private entities. The auditors of their financial statements are KPMG Auditores, S.L., EY Omán and Pricewaterhousecoopers Audit, respectively. There are no contingent liabilities related to the Group’s investments in the associates. 9. FINANCIAL ASSETS Financial assets at 31 December 2020 and 2019, classified by nature and category, break down as follows:

2020 FV through

profit and loss Amortised

cost Total

Equity instruments - 958 958

Non-current financial assets - 958 958

Trade and other receivables (1) - 88,660 88,660 Other financial assets - 2,183 2,183

Cash and cash equivalents - 141,031 141,031

Current financial assets - 231,874 231,874 (1) The amounts corresponding to excise duties on hydrocarbons, totalling €715,132 thousand, have been excluded from the balance

of “Trade and other receivables”.

Company Functional currency

Equity

Operating profit

Carrying amount

in the parent

Dividends received

Share capital Reserves

Profit for

the year

Deferred

income Translation differences

2020 (1) Terminales Químicos, S.A.

Euro 1,112 25,864 5,280 (632) - 8,268 6,016 2,000

OQ Logistics L.L.C. Dollar 90,348 23,867 7,405 - (9,960) 30,898 36,141 -

CLH Rubis Euro 250 (15) (47) - - (47) - -

Company Functional currency

Equity

Operating profit

Carrying amount

in the parent

Dividends received

Share capital Reserves

Profit for

the year

Deferred

income Translation differences

2019 Terminales Químicos, S.A.

Euro 1,112 25,579 4,285 (406) - 6,276 6,016 1,500

OQ Logistics L.L.C. Dollar 90,348 9,280 14,603 - (4,167) 26,654 36,141 -

CLH Rubis Euro 250 - (15) - - (15) - -

38

2019 FV through

profit and loss Amortised

cost Total

Equity instruments - 193 193

Non-current financial assets - 193 193

Trade and other receivables (1) - 80,782 80,782 Other financial assets - 3,215 3,215

Cash and cash equivalents - 7,406 7,406

Current financial assets - 91,403 91,403 (1) The amounts corresponding to excise duties on hydrocarbons, totalling €840,076 thousand, have been excluded from the balance

of “Trade and other receivables”. In July and September 2019, the Parent set up two new investments in Economic Interest Groupings (EIGs), in addition to the two created in 2018. The business activity of these four groupings is to lease assets managed by another entity not related to the Group, which retains substantially all rewards and risk inherent to that activity, with the Group merely availing of the tax incentives provided for in Spanish legislation. The Group recognises the finance income generated as the difference between the receivable recognised as due from the Spanish tax authorities for the tax losses generated by the economic interest groupings and the investments made in them (notes 22 and 23.g). 10. INVENTORIES The breakdown of “Inventories” at year-end 2020 and 2019 is as follows (in thousands of euros): Description 2020 2019

Oil products 35,358 40,595

Additives, dyes and tracers 2,452 2,346

Materials for consumption and other inventories 3,599 3,408

Total 41,409 46,349 The sub-heading “Oil products” was written down for impairment by €6,420 thousand in 2020 (no impairment losses were recognised at year-end 2019). The Company had no contractual commitments for purchase of items of inventory at either reporting date. 11. TRADE AND OTHER RECEIVABLES The breakdown of “Trade and other receivables” at year-end 2020 and 2019 (in thousands of euros) is as follows: Description 2020 2019

Trade receivables (1) 793,724 914,236 Trade receivables, Group companies, related parties and associates (note 28) 476 166 Sundry receivables 8,440 4,788 Receivable from employees 2,426 2,584 Provision for bad debts (1,274) (916)

Total 803,792 920,858 (1) Includes excise duty The average collection period in 2020 (excluding excise duties) was approximately 17 days (16 days in 2019).

39

The Group analyses the balances pending collection from each customer individually, recording the corresponding provisions where it considers it doubtful that they will be collected. The reconciliation of the provision for bad debts at the beginning and end of 2020 and 2019 (in thousands of euros) is as follows: Description 2020 2019 Opening balance (916) (1,157) Provision for impaired receivables (827) (235) Unused amounts reversed 31 500 Receivables written off during the year as non-collectable 414 - Translation differences 24 (24) Closing balance (1,274) (916)

The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivable mentioned above. At 31 December 2020 and 2019, the fair value of the Group’s receivables is not significantly different from their carrying amount. The Group does not have any credit insurance. The impact of the provision resulting from the application of the expected loss model is not material for the Group. 12. CASH AND CASH EQUIVALENTS The breakdown of “Cash and cash equivalents” at year-end 2020 and 2019 (in thousands of euros) is as follows: Description 2020 2019

Cash on hand and at banks 141,031 7,406 Total 141,031 7,406

At 31 December 2020 and 2019 there were no restrictions on the availability of cash. 13. NON-CURRENT ASSETS HELD FOR SALE The breakdown of “Non-current assets held for sale” at 31 December 2020 and 2019 (in thousands of euros) is as follows:


Additions and


Closing balance

Cost

Land and buildings - - - - - Disposal group 9,494 - - - 9,494 Total cost 9,494 - - - 9,494 Impairment

Land and buildings - - (6,614) - (6,614) Disposal group - - - - - Total impairment - - (6,614) - (6,614) Carrying amount of PP&E 9,494 - (6,614) - 2,809

40


Additions and


Closing balance

Cost

Land and buildings 4,094 - (4,094) - - Disposal group - 9,494 - - 9,494 Total cost 4,094 9,494 (4,094) - 9,494 Impairment

Land and buildings (3,278) - 3,278 - - Disposal group - - - - - Total impairment (3,278) - - - - Carrying amount of PP&E 816 9,494 (816) - 9,494

The closing balance for 2019 includes the assets under the Group’s investment in the Mexican company Hydrocarbon Storage Terminal (HST), which was in the process of being sold at year-end 2020. As of the date has formally agreed the sale of the participation in HST to the minority shareholders. For this reason, the assets and liabilities of HST have been adjusted according to the agreed value, registering the non-current held for sale for 2,809 thousands of euros. 14. EQUITY Group equity stood at €263,699 thousand at year-end 2020 (€293,204 thousand at year-end 2019). The breakdown of equity and the reconciliation of the opening and closing balances are provided in the consolidated statement of changes in equity. a) Capital The share capital of Compañía Logística de Hidrocarburos CLH, S.A. amounts to €84,629,155.20, represented by 70,524,296 shares with a nominal value of €1.20 each, comprised of three classes: 68,279,401 Class C registered shares, 465,846 Class B bearer shares and 1,779,049 Class D bearer shares. All the shares are fully subscribed and paid in. The Class C and D shares are ordinary shares, while the Class B shares do not carry voting rights. The most recent change to the Company’s share capital was a capital increase approved at the Annual General Meeting held on 17 June 2019, creating the Class B shares without voting rights. The breakdown of the Company's shareholding structure at 31 December 2020 and 2019 is as follows:

2020 2019

Shareholders % share

capital % voting

rights % share

capital % voting

rights Servet Investments, S.à.r.l. 24.84 25.00 24.84 25.00 Borealis Spain Parent, B.V. 24.61 24.77 24.61 24.77 MEIF 5 Rey Holdings, S.L. 19.87 20.00 19.87 20.00 Vaugirard Infra S.L. 9.93 10.00 9.93 10.00 Stichting Depositary APG Infrastructure Pool 2017 II 9.93 10.00 9.93 10.00 Castillo Spanish Holdings LP 9.93 10.00 9.93 10.00 Others 0.89 0.23 0.89 0.23 Total 100.00 100.00 100.00 100.00

41

Section 1 of Spanish Royal Decree-Act 6/2000 (23 June), on urgent measures for the intensification of competition in the goods and services markets, paved the way for the opening up of the Parent’s shareholder ranks, limiting direct and indirect shareholdings to 25% of its capital or voting rights and stipulating that the sum of direct or indirect shareholdings that could be held by entities with refining capacity in Spain could not exceed 45%. On 2 October 2019, Servet Investments, S.à.r.l. acquired shares in CLH by means of a cross-border merger by absorption with Servet Investments, S.à.r.l. as the absorbing company and Servet Shareholdings, S.L. as the absorbed company. b) Profit for the year The contribution to earnings by each of the companies included in the consolidation scope is as follows (in thousands of euros): Description 2020 2019 Parent 149,933 225,260 Share of profit/(loss) of associates 6,507 6,815 CLH Aviación (1,197) 22,399 Exolum Aviation Ireland (314) 5,048 CLH-PS 23,802 26,890 Exolum International UK (736) - CLH Panamá 313 962 CLH México (295) (549) Hydrocarbon Storage Terminal (4,784) (425) CLH México de Combustibles (22) (9) CLH Aviación Ecuador (251) (107) CLH France (42) (22) CLH America (465) (633) EXOLUM SOLUTIONS (437) - Exolum Terminals UK Ltd. (6,890) - IPL Group 4,422 -

Total 169,544 285,629 c) Share premium and reserves The breakdown of the “Share premium and reserves” headings (in thousands of euros) is as follows: Description 2020 2019

Legal reserve, Parent 16,842 16,842 Other Parent company reserves 59,176 52,262

Consolidation reserves 82,927 75,569

Total 158,945 144,673 The restrictions on those reserves are as follows: In accordance with the consolidated text of the Spanish Companies Act, until the legal reserve exceeds the limit of 20% of the share capital, it cannot be distributed to shareholders. If it is used to offset losses - if there are no other reserves available for this purpose - it must be replenished from future profits.

42

The balance of the ‘Royal Decree-Act 7/1996 (7 June) revaluation reserve’ can be used, without accruing taxes, to offset losses accumulated in prior, current and future tax periods and for the purpose of increasing share capital. From 1 January 2007 (10 years after the end of the year in which the revaluation exercise was carried out), this balance can be reclassified to unrestricted reserves to the extent that the monetary gain has been realised. The monetary gain is deemed realised when the corresponding depreciation charges are recognised, or when the restated asset items have been sold or derecognised for accounting purposes. If this balance were used in a manner other than that provided for in Royal Decree-Act 7/1996, it would be taxable. At 31 December 2020, there is scope to transfer €3,379 thousand to unrestricted reserves in this respect (€3,227 thousand in 2019). d) Capital management The Group’s capital management objective is to safeguard its ability to continue as a going concern in order to continue generating returns for its shareholders and benefits for all its stakeholders. The Group monitors its capital management by tracking its leverage ratio. It defines leverage as the ratio of net debt to net debt plus equity. In turn, net debt is the sum of all its short- and long-term borrowings less its cash and cash equivalents. Financing 2020 2019 Net debt (1)

Long-term borrowings (note 16) (1,107,019) (542,219) Short-term borrowings (note 16) (231,735) (257,395) Cash and cash equivalents (note 12) 141,031 7,406 Total net debt (1,197,723) (792,208) Equity

Attributable to the Group (263,699) (293,204)

Net debt / (net debt + equity) 82.0% 73.0% (1) The effects of IFRS 16 were not taken into account in calculating debt 15. DIVIDENDS The Parent of the Group paid out the following dividends in 2020 and 2019:

2020 Total payout Dividend per

ordinary share (€/share)

Final dividend from 2019 profits 51,744 0.7337 Interim dividend from 2020 profits 134,325 1.9046 Total 186,069 2.6383

43

2019 Total payout Dividend per

ordinary share (€/share)

Final dividend from 2018 profits 54,484 0.7777 Interim dividend from 2019 profits 218,418 3.0971 Total 272,902 3.8748

The appropriation of the Parent’s 2020 profit, a motion ratified by its directors, to be submitted for approval at the Annual General Meeting, along with the already-approved appropriation of 2019 profit, is as follows (thousands of euros): Basis of appropriation 2020 2019 Profit or loss 179,021 270,162 Total 179,021 270,162

Appropriation 2020 2019 Interim dividend 134,325 218,418 Final dividend 44,607 51,744 Legal reserve 83 - Other reserves 6 - Total 179,021 270,162

The 2020 dividend amounts to €2,5371 per share, including a final dividend of €0.6325 per share. The Board of Directors approved the payment of the interim dividend from 2020 profits at a meeting held on 3 December 2020. That resolution was underpinned by confirmation that the proposed dividend did not exceed the legal threshold stipulated in article 277.b) of the consolidated text of the Spanish Companies Act in respect of the profit accrued for the year at the time of the decision, as shown in the liquidity statement at 31 October 2020, and the forecast liquidity position at 15 December 2020 (in thousands of euros):

44

I. Liquidity statement at 31/10/2020 I.1. Cash and cash equivalents 71,593

I.2. Undrawn loans and credit facilities 455,922 I.2.1. Limit 1,123,563 I.2.2. Drawn down (667,641)

I.3. Liquidity (= I.1 + I.2) 527,515

II. Forecast liquidity statement at 15/12/2020 II.A. Forecast cash inflows between 1/11/2020 and 15/12/2020 1,097,828

A.1. From ordinary operations 60,726 A.2. From excise duty 1,037,102

II.B. Forecast cash outflows between 1/11/2020 and 15/12/2020 (894,237) B.1. From ordinary operations (43,367) B.2. From excise duty (844,402) B.3. Loan repayments (6,468)

II.C. Net inflows/(outflows) (= II.A + II.B) 203,591

II.D. Forecast liquidity before dividend payment (= I.3 + II.C) 731,106

II.E. Interim dividend from 2020 profits (134,325)

II.F. Forecast liquidity after dividend payment (= II.D + II.E) 596,781 Based on the above liquidity statements, coupled with the undrawn credit facilities, the Company established it had sufficient liquidity at the time of the above-mentioned dividend resolution to cover its payment. The interim dividend was paid out on 15 December 2020. 16. FINANCIAL LIABILITIES On 12 June 2020 the Parent increased the amount of one of the long-term multi-currency credit facilities from €50 million to €75 million and extended its maturity date to 12 June 2022. On 16 July 2020 the Parent arranged a loan of €70,000 thousand, which matures on 16 July 2022. On 11 November 2020 Exolum International UK Limited arranged a loan of £250,000 thousand, which matures on 11 November 2025. On 12 November 2020 Exolum Terminals UK Limited arranged a loan of £200,000 thousand, which matures on 12 November 2025. The breakdown of current and non-current financial liabilities at both year-ends (in thousands of euros) is as follows:

45

Non-current 2020 2019 Bank borrowings 1,117,624 555,575 Impact of IFRS 9 (10,605) (13,356)

Lease liabilities (impact of IFRS 16) 140,842 97,498

Total 1,247,861 639,717 Current 2020 2019 Bank borrowings 234,529 260,189 Impact of IFRS 9 (2,794) (2,794)

Lease liabilities (impact of IFRS 16) 19,509 11,982

Total 251,244 269,377 The recognised amounts of bank borrowings are stated net of the loan arrangement fees for outstanding loans, plus interest accrued and not paid. At 31 December 2020 loan arrangement fees amounted to €14,646 thousand (€2,847 thousand in 2019), and the interest pending payment totalled €1,049 thousand (€745 thousand in 2019). The carrying amounts of non-current bank borrowings approximate their fair value. The maturity schedules of the bank borrowings for the years to come (not including the impact of IFRS 9 and 16) are as follows (in thousands of euros): Year 2020 2019 2020 - 260,156 2021 234,529 10,436 2022 138,248 57,644 2023 38,100 42,309 Later years 941,276 445,219 Total 1,352,153 815,764

Some of the Group’s bank borrowings entail commitments to meeting certain financial ratios. At the date of authorising the accompanying consolidated financial statements for issue, the Group was in compliance with all of these ratios. Description 2020 2019 EBITDA (1) 337,481 459,852 Net debt (2) 1,358,074 901,688 Net debt / EBITDA 4.02 1.96 Finance costs 15,195 13,523 EBITDA / finance costs 22.21 34.01

(1) EBITDA: Operating profit plus depreciation and amortisation charges plus impairments on disposal of PP&E plus Gains from equity-accounted investments plus Non recurring expenses plus Other operating expenses.

(2) Net debt: Current and non-current bank borrowings (including the impact of IFRS 9 and IFRS 16 first application) less cash and cash equivalents, plus outstanding interest accrued, net of loan arrangement fees for outstanding loans.

Virtually all of the Company’s loans carry interest at market rates benchmarked to Euribor or Libor, so that their carrying amounts approximate their fair values. The average effective interest rate on bank borrowings was 1.02% in 2020 (1.21% in 2019).

46

At year-end 2020, the Group had been extended bank loans and credit facilities totalling €1,691,461 thousand (year-end 2019: €1,097,031 thousand), of which €325,707 thousand was undrawn (year-end 2019: €279,166 thousand). The credit facilities carry interest at floating rates benchmarked against Euribor and Libor. The Group has arranged certain interest-rate hedges, the details of which are disclosed in note 17. 17. DERIVATIVE FINANCIAL INSTRUMENTS At both year-ends, the Group was party to two interest-rate swaps arranged to hedge exposure to variability in interest payments on two floating-rate loans. In addition, as disclosed in note 1.i, the Group has certain cash-flow hedges. The derivatives arranged and outstanding at both year-ends, the notional and market values of which are recognised in the consolidated balance sheet, are itemised below (in thousands of euros):

The settlement date of the hedge instruments matches the year in which it is expected that the cashflows take place and effect the profit and loss account. The interest-rate swaps are designated as, and are, effective cash flow hedges for hedge accounting purposes; changes in their fair value are accordingly deferred in equity. Changes in the fair value of these instruments, net of the tax effect, are recognised directly in equity and are recycled to “Finance income/costs” in the consolidated statement of profit or loss on an ongoing basis as the hedged bank loans are repaid. The methods and criteria used by the Group to determine the fair value of these derivatives are based on discounting the future cash flows to present value using a discount rate derived from the Euribor term curve; counterparty credit risk is not deemed material.

18. NON-CURRENT PROVISIONS The reconciliation of the opening and closing balances for 2020 and 2019 (in thousands of euros) is as follows:

Derivative Financial Instruments

2020

2019

Notional Amount

Financial assets

Financial liabilities

Notional amount

Financial assets

Financial liabilities

Interest rate 63,813 - 10,877 73,138 - 12,500 Total 63,813 - 10,877 73,138 - 12,500

Interest Rate Swaps Clasificación Type Notional Settlement Fair Value

Hedge 1 IRS Variable to fixed 52,385 14/12/2028 10,678 Hedge 2 IRS Variable to fixed 11,428 17/12/2024 199 Total 63,813 10,877

47

2020 Provisions for liability

Opening balance 58,060 Additions 7,184 Allocations 3,541 Amounts used (8,099) Unused amounts reversed (981) Business combination 48,915 Translation differences (409)

Closing balance 108,211

2019 Provisions for liability

Opening balance 50,852 Additions 8,969 Allocations 12,798 Amounts used (13,040) Unused amounts reversed (1,785) Translation differences 266

Closing balance 58,060 The additions from the “Business Combination” of Inter Terminals corresponds to the provisions incorporated within the Group as of the acquisition date (See Note 3) incorporating additions, disposals o transfers from the acquisition date onwards throughout the movement of the table. At 31 December 2020, the provisions for liability balance includes €42,171 thousand corresponding to environmental obligations (see note 31) and €14,537 thousand in obligations relating to employees. The remaining €50,701 thousand corresponds to sundry provisions. At 31 December 2019, “Provisions for liability” in the table above includes €35,131 thousand corresponding to environmental obligations (see note 31); €3,139 thousand in respect of dismantling obligations; €9,825 thousand for obligations, mainly, to employees under mutually agreed terminations; €2,900 thousand corresponding to litigation undertaken in the acquisition of Exolum-PS, which, in turn, will be offset by the the vendor, with the same amount recognised under receivables. The remaining €7,065 thousand corresponds to sundry provisions. At both year-ends, the entities in the consolidated Group were party to a number of legal proceedings and claims arising in the ordinary course of their business activities. In the opinion of the Group’s directors, after taking appropriate legal advice, the outcome of these legal claims will not have a significant impact on these consolidated financial statements. Contingent liabilities are not recognised in the financial statements. They are, however, reviewed continuously and if a possible liability formerly treated as a contingent liability is later deemed likely to result in an outflow of funds, the corresponding provision is recognised in the year in which the change in the probability of occurrence arises.

48

19. PENSIONS AND SIMILAR COMMITMENTS a) Defined contribution commitments to employees Pension plans The Group has awarded defined contribution post-employment benefits to all of its employees. The key terms of its pension plans are described in note 4.l. The annual cost of those plans is charged to the consolidated statement of profit or loss in the year of the contribution. In 2020, that cost was €3,759 thousand (€4,155 thousand in 2019). Long-service bonuses for executives In 2008, this commitment (note 4.l) was financed via an investment plan, use of which by the Group, given its purpose, was restricted. In 2009, that commitment was externalised by converting it into a new pension plan and arranging a pension commitment insurance policy. At 31 December 2020, the total commitment to executives in this respect amounted to €3,845 thousand (€3,425 thousand in 2019). In 2009, the Group transferred the fund built up to the insurance policy. The Group’s contribution was €659 thousand in 2020 (€698 thousand in 2019). b) Defined benefit commitments to employees The actuarial assumptions underpinning the deferred capital insurance policy arranged to cover the defined benefit obligations to certain executives at retirement (note 4.l) are the following:

Table: PERM/F-2000P Initial policy: Technical interest rate: 4.56% for 40 years and 3% thereafter Supplement: Technical interest rate: 3.85% (maximum duration: 30 years)

At both year-ends, this obligation was equal to the present value of the defined benefit obligation less the fair value of the plan assets. At the time of arranging the insurance policy, the Company externalised the entire commitment (and not just the accrued obligations) so that there were no sums pending recognition in profit or loss at either year-end 2020 or 2019. In the UK, the pension fund is managed by fund representatives in isolation from the company's financial department. Exolum Terminals Ltd makes contributions to the fund according to schedules established together with the actuarial experts advising the fund. An actuarial review is carried out every three years by an independent expert. The objective of the endowment of the fund is established in such a way that the value of the assets is the same as the obligations acquired with the participants. If a deficit is determined with respect to the target value, a schedule of contributions is established to ensure compliance with the obligations established within a specified period. Possible adverse situations could lead to inputs to cover potential additional deficits. This fund was closed to additional beneficiaries in April 2017.

49

20. OTHER NON-CURRENT LIABILITIES The breakdown of “Other non-current liabilities” at 31 December 2020 and 2019 (in thousands of euros) is as follows: Description 2020 2019 Grants 4,287 4,540 Unearned revenue 3,710 - Total 7,997 4,540

a) Grants The Group recognised €254 thousand in profit and loss in relation to grants related to assets in 2020 (€521 thousand in 2019). The breakdown of the grants related to assets recognised in the consolidated balance sheet at both year-ends (in thousands of euros) is as follows: Grantor 2020 2019 European Union 2,934 3,050 Provincial Council of Vizcaya 1,111 1,128 IDAE (Energy Savings and Diversification Institute) 242 362 Total 4,287 4,540

The grants from the European Union are related to the construction of oil pipelines and terminals; the grants from the authorities in Vizcaya are related to the construction of the new terminal known as El Calero; and the grants from the IDAE correspond to the project known as “CLH Group's strategic energy savings and efficiency plan”. There are no unfulfilled conditions or other contingencies attached to these grants. b) Unearned revenue This amount corresponds to contracts with customers arranged by the ITL Group. 21. TRADE PAYABLES, OTHER ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES The breakdown of these liability headings at 31 December 2020 and 2019 (in thousands of euros) is as follows:

Trade and other payables 2020 2019

Trade payables 80,141 56,912 Trade payables, related parties and associates (note 28) 39,400 23,145 Employee benefits payable 14,347 14,384 Other liabilities 16,060 17,666 Taxes other than corporate income tax (note 22) 834,615 927,545 Customer prepayments 14,616 9,826 Total 999,179 1,049,478

“Other liabilities” in the table above mainly includes balances owed to fixed-asset suppliers.

50

a) Disclosures regarding average supplier payment period. Additional provision three. “Disclosure requirements” of Spanish Act 15/2010 (5 July)

In relation to the legally-permitted payment terms stipulated in Spanish Act 15/2010, the breakdown of the trade payables settled by the Group companies located in Spain during the year and those pending payment at year-end (in thousands of euros) is as follows:

Description 2020 2019 Days Days

Average supplier payment period 38 46 Paid transactions ratio 37 46 Outstanding transactions ratio 55 39

€

thousand €

thousand Total payments made 240,580 226,333 Total payments outstanding 15,316 23,305

22. TAX ASSETS AND LIABILITIES a) Recognition of deferred tax liabilities The CLH Group recognises deferred tax liabilities for all taxable temporary differences, except when the deferred tax liabilities arise from the initial recognition of goodwill, or the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred tax liabilities at 31 December 2020 and 2019 are broken down as follows (in thousands of euros):

Description 2019 Business

combination Additions Derecognitions Translation differences

2020 To

profit or loss

Accelerated tax depreciation of assets 17,037 34,245 17 (3,671) 83 47,711 (3,571)

Deferred tax liabilities 17,037 34,245 17 (3,671) 83 47,711 (3,571)

Description 2018 Additions Derecognitions Translation differences 2019 To profit

or loss

Accelerated tax depreciation of assets 15,237 1,653 (181) 328 17,037 1,472

Deferred tax liabilities 15,237 1,653 (181) 328 17,037 1,472 The additions from the “Business Combination” of Inter Terminals corresponds to the deferred tax liabilities incorporated within the Group as of the acquisition date (See Note 3) incorporating additions, disposals o transfers from the acquisition date onwards throughout the movement of the table. b) Recognition of deferred tax assets The companies in the Group recognise deferred tax assets when it is probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilised and when tax legislation provides the possibility of converting deferred tax assets into enforceable credit claims vis-a-vis the tax authorities. However, deferred tax assets arising from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting profit nor taxable profit (tax loss) are not recognised.

51

It is considered probable that the companies in the Group will have sufficient taxable profit to allow the realisation of its deferred tax assets so long as there are sufficient taxable temporary differences related to the same tax authority and the same taxable entity, in the same period as the expected reversal of the deductible temporary difference, or in the periods into which a tax loss arising from a deductible temporary difference can be carried back or forward. Deferred tax assets at 31 December 2020 and 2019 are broken down as follows (in thousands of euros):

Description 2019 Additions Derecognitions Translation differences

2020 To profit or loss

To equity

Reimbursement of tax inspection expenses 217 - (20) - 197 (20) - Provisions for staff liability 2,144 2,227 (1,999) - 2,372 228 - Environmental provisions 5,853 219 (514) - 5,558 (295) - Other provisions 4,573 1,530 (401) (44) 5,658 1,085 - Differing depreciation and amortisation criteria 8,512 72 (1,315) - 7,269 (1,243) - Tax credit for deductibility of depreciation in 2013 & 2014

801 - (321) - 480 (321) -

Derivatives 3,125 - (406) - 2,719 - (406) Restatement of balances 9,156 - (663) - 8,493 (663) - IFRS 9 4,308 - (688) - 3,620 (688) - Negative Tax Bases - 3,272 - 3,272 3,272 Deferred tax assets 38,689 7,320 (6,327) (44) 39,638 1,355 (406)

Description 2018 Additions Derecognitions Translation differences

2019 To profit

or loss To equity

Reimbursement of tax inspection expenses 227 - (10) - 217 (10) - Provisions for staff liability 2,273 1,702 (1,831) - 2,144 (129) - Environmental provisions 5,795 456 (398) - 5,853 58 - Other provisions 4,681 2,704 (2,839) 27 4,573 (135) - Differing depreciation and amortisation criteria 9,574 149 (1,211) - 8,512 (1,062) - Tax credit for deductibility of depreciation in 2013 & 2014 976 70 (245) - 801 (175) -

Derivatives 3,228 - (103) - 3,125 - (103) Restatement of balances 9,544 - (388) - 9,156 (388) - IFRS 9 2,374 1,934 - - 4,308 1,934 - Deferred tax assets 38,672 7,015 (7,025) 27 38,689 93 (103)

c) Deferred tax measurement Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the periods in which the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period and factoring in the tax consequences that would follow from the manner in which the CLH Aviación expects to recover or settle the carrying amount of its assets and liabilities. To this end, the Company has treated the deduction related to the reversal of the temporary measures introduced via transitional provision 37 of Act 27/2014 (27 November), on corporate income tax, as an adjustment in the tax rate applicable to the deductible temporary difference associated with the non-deductibility of depreciation charges recognised in 2013 and 2014. The Group reviews the carrying amounts of its deferred tax assets at the end of each reporting period with a view to reducing these carrying amounts to the extent that it is no longer probable that sufficient taxable profit will be available to allow part or all of the assets to be utilised. Deferred tax assets that do not satisfy the above conditions are not recognised in the consolidated balance sheet. At the end of each reporting period, the Group reassesses unrecognised deferred tax assets to determine whether the recognition criteria have been met.

52

d) Classification of assets and liabilities as current and non-current The Group classifies the assets and liabilities recognised on its consolidated balance sheet as current when it expects to realise or settle them within its normal operating cycle, which means within 12 months from the end of the reporting date; other assets and liabilities are classified as non-current. The analysis of deferred tax assets and liabilities by estimated year of reversal (in thousands of euros) is as follows: Description 2020 2019 Deferred tax assets 39,638 38,689 More than twelve months 37,738 37,079 Less than twelve months 1,900 1,610

Deferred tax liabilities 47,711 17,037 More than twelve months 46,789 16,735 Less than twelve months 922 302

CLH and CLH Aviación revalued their property, plant and equipment and investment properties with effect from 1 January 2013 pursuant to section 9 of Spanish Act 16/2012. The deferred tax balances recognised at 31 December 2020 and 2019 include the effects of those restatements on the consolidated financial reporting. At 31 December 2020, the Group had its books open to inspection in respect of the following taxes and periods: - Compañía Logística de Hidrocarburos CLH, S.A.:

Corporate income tax 2016 to 2019. Value Added Tax: 2017 to 2020. Excise Duty on Hydrocarbons: 2017 to 2020. Personal and corporate income tax withholdings: 2017 to 2020. Non-resident income tax: June 2017 to 2020. Tariffs and other customs duties: 2015 to 2020.

- CLH Aviación, S.A.:

Corporate income tax 2016 to 2019. Value Added Tax: 2017 to 2020. Excise Duty on Hydrocarbons: 2017 to 2020. Personal and corporate income tax withholdings: 2017 to 2020.

- Companies in the UK, Ireland, Germany and the Netherlands:

All applicable taxes in respect of the last four financial years. - CLH México Logística and HST:

All applicable taxes in respect of 2018 to 2020.

53

- CLH Panamá:

All applicable taxes in respect of 2018 to 2020.

- CLH Ecuador:

All applicable taxes in respect of 2019 and 2020. At the date on which these consolidated annual financial statements were prepared, the Parent had inspection proceedings of a partial nature open in respect of Excise Duty on Hydrocarbons for 2017. Given the various possible interpretations of the tax regulations applicable to the companies’ operations, it is feasible that contingent fiscal liabilities could materialise which cannot be objectively quantified at present. However, the Group’s directors believe that the consequences of any such liabilities, in light of the amounts already provided for, would not have a significant impact on its equity. The balances receivable from and payable to the tax authorities recognised in the consolidated balance sheet (in thousands of euros) at both year-ends are as follows:

Description 2020 2019

Receivable Payable Receivable Payable Deferred tax assets 39,638 - 38,689 - Deferred tax liabilities - 47,711 - 17,037

Total current tax assets and liabilities 39,638 47,711 38,689 17,037

Corporate income tax

- Payments on account 35,533 - 64,134 - - Withholdings 395 - 288 - - Income tax payable - 32,437 - 65,226 - Prior-year balance 2,566 - 1,331 -

Total current tax assets and liabilities 38,494 32,437 65,753 65,226

Total net current tax assets and liabilities 6,057 527

The breakdown of other tax assets and liabilities recognised in the consolidated balance sheet under “Other accounts receivable from public authorities” and “Taxes other than corporate income tax” (note 21) is shown as follows (in thousands of euros):

54


Receivable Payable Receivable Payable Excise duty - 827,302 - 921,458 Value added tax 7,583 - 12,649 - Personal income tax: - Withholdings - 2,671 - 1,514 Capital gains tax: - Withholdings - 756 - 2,790 Social Security - 3,886 - 1,783 Total 7,583 834,615 12,649 927,545

e) Corporate income tax The breakdown of Corporate income tax for the years ended 31 December 2020 and 2019 (in thousands of euros) is as follows: Consolidated statement of profit or loss 2020 2019

Corporate income tax payable 32,437 65,226 Adjustments in current tax from prior periods (819) (4,006) Difference in tax rates 236 244 Expense/(income) in respect of deferred/(prepaid) taxes originating in temporary differences and the reversal thereof (117) 6,157

Allocations of the EIGs 22,794 20,658

Total corporate income tax expense 54,531 88,279 In 2020, taxable income was adjusted in respect of the Company's economic interest groupings in the amount of €22,794 thousand (€20,658 thousand in 2019) (note 9). The reconciliation of corporate income tax expense and the product of applying the tax rate to accounting profit is as follows (in thousands of euros): Description 2020 2019 Profit before tax 222,200 373,625 Tax calculated at the tax rate applicable to profit 61,287 101,752 Non-taxable income and non-deductible expenses (5,207) (12,693) Tax credits and tax relief (1,549) (780) Total Corporate Income Tax expense 54,531 88,279

The tax credit and relief applied, in terms of payable tax, breaks down as follows (in thousands of euros): Description 2020 2019 Tax relief on R&D&i investments - 500 Tax losses, prior years - - Non-deductible depreciation 922 244 Other deductions 627 36 Total 1,549 780

The Company had no unused tax credits due to insufficient tax expenses against which to offset them at 31 December 2020 and 2019.

55

f) Excise Duty on Hydrocarbons As tax payers, the Spanish companies of the Group (CLH and CLH Aviación) act as tax bearers in respect of the outflows of the products subject to Spain’s excise duty on fuel from the tax warehouses it owns. However, pursuant to section 14 of the Spanish Excise Duty Act, these companies are required to charge the owners of the products or the parties on behalf of which the logistics operations are conducted, depending on the case, for the tax amounts that accrue. The tax payable in respect of this tax stood at €827,302 thousand at 31 December 2020 (€921,458 thousand the previous year), corresponding mostly to transactions performed in the month of December. This amount is recognised within “Other current liabilities” with a balancing entry under “Trade receivables from third parties” and “Trade receivables from related parties” on the consolidated balance sheet. 23. INCOME AND EXPENSE a) Foreign currency transactions The breakdown of the transactions performed by the Group in foreign currencies is provided below (in thousands of euros):

Description 2020 2019 Purchases (1,381) (2,696) Services received (7,760) (4,886) Services provided 7,192 740

All of these transactions were performed either in dollars, sterling or Mexican pesos. b) Revenue The breakdown of revenues by item is as follows (in thousands of euros): Description 2020 2019

Revenue from logistics services 595,087 717,551 - Ground supplies 386,992 392,858 - Aviation sector. Supplies to airports 126,359 184,742 - Aviation sector. Supplies to aircraft 35,461 92,247 - Product additivation 29,731 33,001 - Marine supplies 11,006 12,712 - Chartering 5,538 1,991 Sales of oil products 19,786 23,572

Total 614,873 741,123 c) Other operating income The breakdown of the items included under “Other operating income” is as follows (in thousands of euros):

56


Expenses reimbursed 4,930 6,806 Provision of other services 900 507 Vapour recovery 3,238 4,180 Reimbursement of prior-year insurance expenses 1,825 2,313 Government grants 681 114 Other operating income 3,080 3,265

Total 14,654 17,185 d) Other operating expenses “Other operating expenses” breaks down as follows (in thousands of euros): Description 2020 2019 External services 135,415 156,561 Taxes other than income tax 17,454 16,541 Non-recurring expense 7,849 - Other operating expenses 445 8 Total 161,163 173,110

The non-recurring expense corresponds mainly to the expenses incurred in the acquisition of the InterTerminal Group (€7,081 thousand). The remaining €768 thousand corresponds to a donation of medical supplies, including masks, gloves and protective clothing, for distribution to the Spanish national security forces, hospitals and various nursing homes. e) Employee benefits expense “Employee benefits expense” breaks down as follows (in thousands of euros): Description 2020 2019 Wages and salaries 88,089 91,664 Termination benefits 2,525 5,666 Post-retirement employee commitments (note 19.a) 3,759 4,155 Other employee benefits 27,473 31,206 Total 121,846 132,691

f) Depreciation and amortisation charges The breakdown of depreciation and amortisation charges (in thousands of euros) is as follows: Description 2020 2019 Property, plant and equipment (note 5) 59,715 59,951 Intangible assets (note 7) 30,172 25,400 - Depreciation of rights of use under IFRS 16 19,960 17,291 - Other intangible assets 10,212 8,109 Investment properties (note 6) 4 4 Total 89,891 85,355

g) Finance income The breakdown of the items included under “Finance income” is as follows (in thousands of euros):

57

Description 2020 2019 Finance income from investments in economic interest groupings 3,051 2,998 Finance income (IFRS 9) - 9,695 Other finance income 1,451 268 Total 4,502 12,961

h) Finance costs The breakdown of “Finance costs” is as follows (in thousands of euros): Description 2020 2019 Interest expense on bank borrowings 9,399 8,716 Other finance costs 1,513 874 Finance costs (IFRS 9) 2,751 2,885 Finance costs (IFRS 16) 1,532 1,047 Total 15,195 13,522

i) Gain (loss) from equity-accounted investments This heading breaks down as follows (in thousands of euros): Description 2020 2019 Terminales Químicos, S.A. 2,680 2,212 Oman Oil Refineries Petroleum Industries Logistics Company, LLC (OLC) 3,849 4,611 Hydrocarbon Storage Terminal, S.A.P.I. de C.V. (HST) - - CLH Rubis (22) (8) Total 6,507 6,815

24. CONTINGENT LIABILITIES AND GUARANTEES EXTENDED TO THIRD PARTIES a) Guarantees At year-end, the Group had extended guarantees totalling €98,641 thousand (year-end 2019: €98,519 thousand). The breakdown of said guarantees (in thousands of euros) is as follows: Description 2020 2019

Financial guarantees posted before courts and public authorities 2,989 2,538 Airport managers 27,733 28,900 Tax and customs warehouses 45,371 45,407 Counter-guarantees on loans 11,765 12,941 Performance bonds for projects and works 10,783 8,733

Total 98,641 98,519 In addition, the Group has recognised amounts under “Provisions” (note 18) deemed sufficient to cover the exposure deriving from the lawsuits for which bonds have been posted with courts. b) Litigation At both year-ends, Group entities were party to a number of legal proceedings and claims arising in the ordinary course of its business activities. In the opinion of the Group’s directors, after taking appropriate legal

58

advice, the outcome of these legal claims will not have a significant impact on these consolidated financial statements. 25. COMMITMENTS a) Purchase commitments At the balance sheet date, the Group had entered into purchase commitments for the following items and amounts (in thousands of euros): Description 2020 2019 Property, plant and equipment 40,148 46,311 Total 40,148 46,311

b) Operating lease commitments – the Group as lessee Operating leases over tankers: The Group leases two tankers under operating leases. The lease over the first tanker was renegotiated in 2020 and extended until 20 March 2023. The lease over the second tanker began on 15 November 2019 and ends on 15 November 2027. The lease payments are established in each contract for the entire duration thereof. The future payments due under non-cancellable operating leases over tankers at 31 December 2020 and 2019 are as follows (in thousands of euros): Term 2020 2019 One year 10,914 7,856 Between one and five years 32,597 28,490 More than five years 9,204 16,322 Total 52,715 52,688

The tanker lease expense recognised in 2020 totalled €11,622 thousand (€12,258 thousand in 2019). Operating leases over storage capacity in Spain: The Parent also has operating leases over storage capacity with a range of maturities until 2031. The annual rents are restated at a percentage of official CPI. The future payments due under non-cancellable operating leases over storage capacity at 31 December 2020 and 2019 are as follows (in thousands of euros): Term 2020 2019 One year 4,777 4,777 Between one and five years 15,322 17,101 More than five years 14,368 17,366 Total 34,467 39,244

Operating leases over buildings in Spain: In addition, the Parent has operating leases over buildings that terminate in 2024.

59

The future payments due under non-cancellable operating leases over buildings at both year-ends (in thousands of euros) are as follows: Term 2020 2019 One year 2,328 2,328 Between one and five years 4,303 6,631 More than five years - - Total 6,631 8,959

Operating leases over facilities in the UK: The future payments due under non-cancellable operating leases over facilities at both year-ends (in thousands of euros) are as follows: Term 2020 2019 One year 577 831 Between one and five years 1,214 1,446 More than five years 2,190 2,563 Total 3,981 4,840

c) Operating lease commitments – the Group as lessor The Group has leased out some of its investment properties. Those leases can be rolled over annually. The Group collected €121 thousand in lease income in 2020 (€158 thousand in 2019). 26. FINANCIAL RISK MANAGEMENT TARGETS AND POLICIES The Group’s principal financial instruments comprise bank loans and credit facilities whose main purpose is to finance the its operations, as well as cash. It also has other financial instruments that stem directly from its operations, such as trade accounts receivable and payable. The main risks arising from the Group’s financial instruments are the interest-rate risk, credit risk and liquidity risk. a) Financial risk factors: Interest-rate risk Variations in interest rates modify the fair value of those assets and liabilities that accrue interest at a fixed rate, and the amount of future flows deriving from assets and liabilities linked to a floating interest rate. The objective of interest-rate risk management is to minimise finance costs and to keep earnings volatility at a low level. Most of the Group’s financing facilities are benchmarked to floating rates of interest. At 31 December 2020, the Group had two “effective” hedging derivatives and three fixed-rate loans which covered 40% of total borrowings at the year-end (note 17). At 31 December 2019, the Group had two “effective” hedging derivatives and two fixed-rate loans, which covered 59% of total borrowings at the year-end.

60

In light of all of the above, and performing a sensitivity analysis modelling hypothetical changes in interest rates, the Group estimates that a 0.1% movement in rates would have an impact on its consolidated statement of profit or loss of approximately €536 thousand (€41 thousand in 2019). Foreign currency risk Management of this risk factor encompasses two classes of risk: transaction risk and translation risk. The first arises from having to collect or pay cash in a currency other than the euro; the second relates to the risk borne by having to consolidate subsidiaries and/or assets located in countries whose functional currency is not the euro. Fluctuations in the exchange rates of the currencies in which borrowings are denominated and transactions carried out (pound sterling, US dollar and Omani rial) can affect the Group’s finance costs, profit for the year and equity. At present, 56% of the Group’s borrowings are in euros, while the remaining 44% is in sterling. The Group’s exposure to movements in the rate of exchange between the pound sterling and the euro mainly stems from the translation of the financial statements of the Group companies located in the UK from sterling into euros. Credit risk The Group only carries out transactions with recognised and solvent third parties. The Group’s policy is to determine a customer’s capacity to make payments before starting transactions. The customer portfolio is primarily made up of first-class oil product operators and airlines; they operate in the Iberian Peninsula and the Balearic Islands, as well as the rest of the countries where the Group has operated since May 2015. The Group, in terms of its business in Spain, and in its capacity as tax bearer in respect of the excise duty on hydrocarbons, requires all its ‘trader customers’ to present guarantees to cover the risk of non-payment. In parallel, it continually monitors accounts receivable in respect of both the services invoiced and the above-mentioned duty. This all means that exposure to insolvency risk is not significant (note 11). As for the credit risk derived from other financial assets such as cash and cash equivalents, the Group’s exposure to credit risk relates to the risk that one or more of its counterparties will not meet their obligations, the maximum exposure being the sum of such instruments arranged. Credit risk with unrelated parties was not significantly concentrated at either year-end. Below is an analysis of the ageing of the financial assets past due but not written down for impairment at 31 December 2020 and 2019 (in thousands of euros): Item (1) 2020 2019 Less than 90 days 309 532 Between 90 and 180 days 55 229 More than 180 days 15 - Total 379 761 (1) Only the Group’s Spanish companies (CLH and CLH Aviación) are included in this analysis.

61

Liquidity risk The Group’s objective is to strike a balance between the continuity and flexibility of its financing by using bank financing lines and loans, arranging long-term paper for most of its financing but short-term facilities to fund its working capital. At year-end 2020, the Group had been extended bank loans and credit facilities totalling €1,677,523 thousand (year-end 2019: €1,097,031 thousand), of which €325,707 thousand was undrawn (year-end 2019: €279,166 thousand) (note 16). Risk in relation to the UK’s exit from the European Union (Brexit) As regards the UK’s exit from the European Union on 31 January 2020 and the potential impact this could have on the Group’s UK subsidiaries, the Group continues to feel that this impact has not been very significant, given that the subsidiaries were incorporated in the UK in accordance with the regulations of that country, and they provide services exclusively within the UK, without carrying out significant transactions involving products or services with other countries. Most of the employees at these subsidiaries are British citizens; there are few Spanish citizens working in the company and once the final mechanisms have been put in place we do not believe it will be difficult to regularise their situation, as occurs at present with CLH employees working in other non-EU countries. From the financial perspective, a transition period began on 1 February 2020, lasting until 31 December 2020. During this transition period, no changes occurred in terms of customs, taxation or regulations, so bilateral trade with the UK continued to take place under the same conditions as before. The United Kingdom continues to be a member of the EU Customs Union and the Single Market, and the free movement of goods continued. Starting 1 January 2021, the UK’s exit from the European Union will affect the following areas:

Customs and Excise Duty: All transactions previously classified as intra-community as regards trade with the UK will henceforth be treated as transactions with a non-EU country and so all the customs provisions of the EU will be applicable to these transactions, which will have to be documented through the corresponding import or export clearance procedures as appropriate.

In summary, within the sphere of operations of CLH, CLH AVIACIÓN and EXOLUM AVIATION IRELAND, Brexit will imply that:

• Intra-community shipments and acquisitions with the UK will become exports and imports, with the need to present the corresponding customs declarations with all the associated requirements (SAD, licences, technical inspection service controls, etc.)

• The importing of goods from the UK will require the payment of non-EU country import duties • Customs authorisations granted in the UK will no longer be valid in the EU (for example, the

EORI), and vice-versa • Goods registers and certificates granted in the UK will no longer be valid in the EU and vice-

versa • Goods subject to excise duty will have to be processed by a registered consignor after being

imported into the EU.

Dividends:

At present, the payment of dividends by these subsidiaries is tax-exempt at source (the UK) due to the application of Council Directive 2011/96/EU, of 30 November 2011, on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States.

62

After Brexit, this Directive will no longer apply so the provisions of the international agreement for the prevention of double taxation between Spain and the UK will be applicable.

In this respect, article 10 of this agreement stipulates that dividend payments will be tax-exempt in the UK when the effective beneficiary is a company resident in Spain that directly or indirectly controls at least 10% of the share capital of the company paying the dividends.

Accordingly, the payment of dividends by these subsidiaries will continue to be tax-exempt at source after Brexit.

As regards the tax treatment applicable in Spain, the dividends received by CLH from the companies in the United Kingdom are currently tax-exempt as a result of the application of section 21.1, letter b) of Spanish Corporate Income Tax Act 27/2014, of 27 November (hereinafter referred to by its Spanish acronym, LIS). This rule makes no distinction as to whether the company paying the dividends is resident in a member state of the EU or a non-EU country, so the tax treatment will remain identical after Brexit. In conclusion, after the UK leaves the EU, the tax treatment of the dividends paid by the subsidiaries in the United Kingdom to CLH will remain unchanged, so Brexit will have no impact on the Exolum Group in this respect. However, section 21 LIS mentioned above was amended by section 65.2 of Act 11/2020, of 30 December, approving General National Budgets for years starting on or after 1 January 2021, so that the exemption will only apply to 95% of the dividends received by CLH, the remaining 5% being subject to corporate income tax at a general rate of 25%.

b) Fair value estimation: The table below analyses the financial instruments carried at fair value by valuation method. Levels are defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: inputs based on the Group’s estimates.

The tables below disclose the Group’s financial assets and liabilities measured at fair value at both year-ends in accordance with this hierarchy (in thousands of euros).

2020 Level 1 Level 2 Level 3 Total Liabilities Derivative financial instruments - 10,877 - 10,877 Total liabilities - 10,877 - 10,877

2019 Level 1 Level 2 Level 3 Total

Liabilities Derivative financial instruments - 12,500 - 12,500 Total liabilities - 12,500 - 12,500

There were no transfers between Level 1 and Level 2 valuations in either 2020 or 2019.

63

Valuation techniques used to obtained Level 2 fair values The hedging derivatives comprise interest-rate swaps. Those interest-rate swaps are measured at fair value using implied market interest rates. The credit risk with respect to the Level 2 derivatives is not material.

The Group’s Finance Department, which reports directly to the CFO, obtains valuations from financial institutions for the financial assets for which it needs market values for financial disclosure purposes. It reviews the procedures used and the results of those third-party valuations.

Valuation techniques used to obtained Level 3 fair values

The derivative listed in this level is described in note 1.i It is measured using a valuation model that relies on a mix of variables, some of which are directly observable in the market and some of which are not. The credit risk with respect to the Level 3 derivatives is not material. The Group, based on the data included in the investment projections described in note 1.i and the data directly observable in the market, updates the valuation model, which is then reviewed by an independent area.

Although these estimates are made on the basis of the best information available at the date of authorising these consolidated financial statements for issue, it is possible that subsequent events could make it necessary to revise these estimates in future periods. Any changes in accounting estimates would be applied prospectively in the related consolidated financial statements. c) Offset of financial assets and financial liabilities: The Group does not have any financial assets or liabilities subject to enforceable master netting arrangements or similar agreements. 27. DIRECTOR AND KEY MANAGEMENT COMPENSATION The members of the Parent’s Board of Directors, including the executive directors, accrued the following remuneration in 2020 and 2019 (in thousands of euros): Description 2020 2019 Fixed remuneration 664 620 Variable remuneration 358 481 Meeting attendance fees 87 84 Total 1,109 1,185 The table below provides additional disclosures regarding the other benefits received by the members of the Company's Board of Directors in 2020 and 2019 (in thousands of euros): Other benefits 2020 2019 Pension plans and funds: obligations contracted 133 124 Life insurance premiums 20 11 Other benefits - - Total 153 135 The total sum of €1,262 thousand accrued in 2020 (€1,320 thousand in 2019) corresponds entirely to executive directors. Moreover,the Group has not extended any loans or advances to the members of its Board of Directors.

64

The remuneration accrued by the key management personnel of the Group who were not directors in 2020 and 2019 (in thousands of euros): Description 2020 2019 Total remuneration, KMP Group 2,042 3,028 Total remuneration, KMP investees 640 1,429 Total 2,682 4,457 No advances have been granted to these executives in either year. In addition, these executives accrued €686 thousand in 2020 under a long-term deferred bonus scheme (€700 thousand in 2019). To complete the long-term incentive plan valid until 2019, €1,000 thousand were paid out that year. There are currently eight members of the executive committee that have guarantees or golden parachute clauses authorised by the Board of Directors for key management personnel (including the CEO) of the Company and its Group in the event of employment termination or change of control. The Group has a framework contract for its executives which includes termination benefits. Those termination benefits are calculated as a function of their age, years of service and salaries. In addition, section 229 of the Spanish Companies Act, as worded in Act 31/2014 (3 December), obliges the Company’s directors to report to their fellow directors and to the Board of Directors as necessary (or, if they are sole directors, to the General Meeting), on any potential direct or indirect conflicts between their interests or those of their related parties and the interests of the Group. As prescribed in section 228.c) of that same piece of legislation, the affected directors must abstain from participating in debates and votes on resolutions or decisions with respect to which they or one of their related parties has a direct or indirect conflict of interest. None of the members of the Board of Directors has breached of any of the legally-mandated or bylaw-stipulated conflicts of duty or interest, nor has any found themselves permanently conflicted with respect to the Company’s interests. 28. RELATED-PARTY TRANSACTIONS AND BALANCES Related-party transactions are made on terms equivalent to those that prevail in arm’s length transactions. The consolidated balance sheets and consolidated statements of profit or loss for 2020 and 2019 include balances and transactions with other related parties, as detailed in the following tables:

65

RELATED-PARTY TRANSACTIONS AND BALANCES 2020 (in thousands of euros)

COMPANY ASSETS LIABILITIES EXPENSES INCOME

Trade and other receivables (note 11)

Trade and other payables (note 21)

Services Other income

TERMINALES QUÍMICOS, S.A. - 748 6,471 10

OMAN OIL REFINERIES PETROLEUM I.L.C 101 - - 42

OMAN OIL REFINERIES AND PETROLEUM I.C. 375 - - 246

Economic interest groupings - 38,322 - -

OTHER RELATED PARTIES (BALANCES OF < €100 THOUSAND) - 330 - -

TOTAL 476 39,400 6,471 298

66

RELATED-PARTY TRANSACTIONS AND BALANCES 2019 (in thousands of euros)

COMPANY ASSETS LIABILITIES EXPENSES INCOME

Trade and other receivables (note 11)

Trade and other payables (note 21)

Services Other income

TERMINALES QUÍMICOS, S.A. - 476 4,554 4

OMAN OIL REFINERIES PETROLEUM I.L.C 72 - - 79

OMAN OIL REFINERIES AND PETROLEUM I.C. 94 - - 382

Economic interest groupings - 22,288 - -

OTHER RELATED PARTIES (BALANCES OF < €100 THOUSAND) - 381 97 -

TOTAL 166 23,145 4,651 465

67

29. WORKFORCE The Group’s average headcount, by job category, is as follows: 2020 2019 Men Women Men Women Executives 13 1 15 1 Graduates and qualified technicians 438 183 394 158 Administrative staff 30 45 39 46 Specialists and qualified operators 998 14 1,082 17 Total 1,479 243 1,530 222

At 31 December 2020 and 2019, the Group’s workforce is as follows, by category: 2020 2019 Men Women Men Women Executives 10 1 14 1 Graduates and qualified technicians 542 208 395 167 Administrative staff 89 86 40 45 Specialists and qualified operators 1,185 18 1,045 14 Total 1,826 313 1,494 227

The average number of people employed by the Group in 2020 and 2019 with disabilities categorised as being equal to or greater than 33%, by category, is as follows: 2020 2019 Graduates and qualified technicians 5 5 Administrative staff 1 - Specialists and qualified operators 6 7 Total 12 12

30. SEGMENT REPORTING The operating segments are organised and managed separately based on the nature of the products and services provided; each segment represents a strategic business unit that sells different products and services. The ground supplies segment consists of logistics services entailing the storage, transportation and distribution of all manner of hydrocarbons and chemical products, their derivatives and waste, and the provision of advice and technical assistance in the course of providing such services. The aviation supplies segment, on the other hand, consists of logistics services entailing the storage, distribution and into-plane supply of all manner of aviation fuels and lubricants at airports. Both businesses are carried out in Spain and internationally. Inter-segment transactions are carried out on an arm’s length basis in a manner similar to transactions with third parties. The breakdown of consolidated Group ordinary revenue by segment at year-end 2020 and 2019 is shown below (in thousands of euros):

68

Revenue from external customers

Inter-segment revenue

Total revenue

SEGMENTS:

2020 2019 2020 2019 2020 2019

Business activity in Spain

494,428 624,789 4,468 19,196 498,896 643,985

Ground supplies

465,806 548,434 4,430 8,541 470,236 556,975

Aviation supplies

28,622 76,355 38 10,655 28,660 87,010

International business activity

120,445 116,334 - - 120,445 116,334

Ground supplies 112,676 99,341 - - 112,676 99,341

Aviation supplies 7,769 16,993 - - 7,769 16,993

(-) Adjustment and eliminations

for inter-segment revenue

- - - - (4,468) (19,196)

TOTAL

614,873 741,123 4,468 19,196 614,873 741,123

The breakdown of Group profit before tax, by segment, at year-end 2020 and 2019 is shown below (in thousands of euros): SEGMENTS 2020 2019

Ground supplies 176,827 270,162

Aviation supplies (7,073) 27,071

Business activity in Spain 169,754 297,233

Ground supplies 11,439 25,611

Aviation supplies (1,991) 5,246

International business activity 9,448 30,857

Total earnings of the reportable segments 179,202 328,090

(+/-) Elimination of inter-segment earnings (4,875) (49,769) (+/-) Other profit/(loss) (6,658) 7,025

(+/-) Income tax and/or profit/(loss) from discontinued operations 54,531 88,279

PROFIT BEFORE TAX 222,200 373,625

69

SEGMENTS 2020 2019

EBITDA (ground supplies) 286,653 371,931

EBITDA (aviation supplies) (422) 32,349

EBITDA – Spanish business 286,231 404,280

EBITDA (ground supplies) 48,809 47,179

EBITDA (aviation supplies) 2,441 8,393

EBITDA - International business 51,250 55,572

EBITDA 337,481 459,852

ASSETS AND LIABILITIES (ground supplies) 1,916,177 1,992,514

ASSETS AND LIABILITIES (aviation supplies) 52,498 54,766

ASSETS AND LIABILITIES - Spanish business 1,968,675 2,047,280

ASSETS AND LIABILITIES (ground supplies) 911,911 240,691

ASSETS AND LIABILITIES (aviation supplies) 60,677 62,152

ASSETS AND LIABILITIES - International business 972,588 302,843 The Group conducts virtually all of its business in Spain and the UK, which is why it does not present disclosures by geographical segment. The international activities described in note 1.e are not significant enough to warrant additional disclosures. The Group calculates EBITDA as recurring operating profit plus depreciation and amortisation, impairments and the Group’s share of associate earnings. 31. ENVIRONMENTAL DISCLOSURES

In line with their commitment to protect the environment, the Group companies continue making investments aimed at minimising the environmental impacts associated with their processes, facilities and services and at adapting to society’s needs. In Spain, investments in the environment amounted to €9.8 million in 2020 (€8.4 million in 2019). The key investments included:

• Improved treatment of effluent discharges • Oil pipeline protection • Improved tank integrity • Pipeline cathodic protection • Improvements to secondary containment systems in facilities

Expenses related to soil and groundwater remediation measures in Spain amounted to €3.3 million (€1.7 million in 2019). In order to cover future environmental risks, the Group has recognised €42,171 thousand for environmental risks within "Provisions" at year-end 2020 (€35,131 thousand at year-end 2019) (note 18).

70

This provision breaks down as follows (in thousands of euros):



Allocations Amounts used


Closing balance

Land clean-up and remediation

35,131 3,646 5,074 (1,452) (228) 42,171

Total 35,131 3,646 5,074 (1,452) (228) 42,171


Additions (1) Allocations Amounts used Closing balance

Land clean-up and remediation 25,933 8,969 1,681 (1,452) 35,131 Total 25,933 8,969 1,681 (1,452) 35,131

(1) Amounts recognised as increases in the carrying amount of installations held under concession, depreciated on a straight-line basis over the life of said concessions.

32. EARNINGS PER SHARE The Group has not issued any equity instruments convertible into ordinary shares in the future, so the calculations of basic and diluted earnings per share coincide. Basic earnings per share are calculated by dividing the net profit for the year attributable to ordinary equity holders of the Parent (excluding external shareholders) by the average number of ordinary shares outstanding during the year. The following table reflects the earnings and number of shares used to calculate the basic and diluted earnings per share: 2020 2019 Net profit attributable to equity holders of the parent (excluding external shareholders) (thousands of euros)

169,544 285,629

Weighted average number of ordinary shares for calculating basic and diluted earnings per share

70,524,296 70,309,879

Earnings per share (€) 2.40 4.06 There have been no transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of authorising the consolidated financial statements for issue. 33. OTHER DISCLOSURES a) Audit fees The main auditor fees of the Group corresponding to the audit of the Fiscal Year 2020 Consolidated Annual Accounts arise to 348 thousand of euros (242 thousand of euros in 2019). Additionally, the audit fees for 2020 of the companies that comprise the subgroup Inter Pipeline Europe Ltd, amount to 336 thousand of euros (404 thousand of euros in 2019 by EY). In addition, Deloitte, S.L. and entities related to it by means of control, joint ownership or joint management, received fees of €58 thousand and €699 thousand, respectively, for the provision of other auditing services and non-audit services in 2020 (€41 thousand and €412 thousand, respectively, in 2019).

71

b) COVID-19. The appearance of the COVID-19 coronavirus in China in January 2020 and its subsequent spread to many more countries resulted in the World Health Organisation classifying the outbreak as a global pandemic from 11 March 2020. In general, the coronavirus crisis had a major impact on the automobile and aviation sectors, with sales falling steeply in the final three quarters of the year. Management monitored the impact of the pandemic throughout 2020 and assessed its potential impacts on the financial statements, as detailed below:

1. Impairment of non-financial assets: In the light of the effects of the pandemic on all sectors of the economy, new signs of impairment to the Group’s CGUs could emerge. Having analysed all these factors, the Group concluded they did not have a material impact on its strategic plan, and they have, in any case, been taken into account in the flows used in the impairment tests performed.

2. Financial instruments: The analysis performed led to the conclusion that the Group’s credit risk had not materially increased, nor was there any significant increase in the number of days to collect income or in the age of the Group’s receivables.

3. Leases: Most of the lease agreements were not amended in response to the pandemic and there was, therefore, no effect on the financial statements, the expense having been reduced by a non-material amount.

4. Income tax: the hypotheses and assumptions used to test the recoverability of tax assets are consistent with those used to test all other assets for impairment, in all cases taking into account the impact of the pandemic on the economy.

5. Provisions: no onerous contracts have been identified and no restructuring provisions have been recognised.

6. Profit or loss: efforts were made to reduce fixed costs in the year. With respect to the Group’s revenue, the main downfall is due to the decrease of the total outputs of kerosene at the airport facilities and into-plane operations as consequence of the confinements and restrictions of the movements which have been put in place in different countries due to the pandemic. The expected recovery of the sector allows the recoverability of the assets linked to the aviation sector of the group.

7. The Group’s liquidity was not affected. 8. The Group’s Management carried out a review to confirm that application of the going concern

principle remained valid. At the date on which these financial statements were prepared, the uncertainty derived from the pandemic continues, and Management will, therefore, continue monitoring the situation to prevent and reduce any potential impacts on the financial statements. 34. SUBSEQUENT EVENTS In January 2021, the Group arranged an interest rate cap at a 0.5% interest rate for the next 3 years on the £200 million loan at Exolum Terminals UK Ltd with the objective of hedging the volatility of the interest rate. Reflecting its strategy and goals for the future, based on innovation, diversification and sustainability, the Company has changed its brand from 1 March, and is now using the Group’s sole brand, EXOLUM. No other significant events have taken place after the end of the reporting date.

72

MANAGEMENT REPORT

73

1. POSITION OF THE ORGANISATION

a) Organisational structure: The Exolum Group is the leading company in the transport and storage of oil products in Spain and one of the largest private companies in the industry worldwide. The Exolum Group mainly carries out its activities in Spain, through CLH S.A., CLH Aviación, TERQUIMSA (Terminales Químicos, S.A.) and Exolum, the subsidiary dedicated to establishing and developing alternative business interests, different from those traditionally pursued by CLH, seeking diversification and the creation of new business opportunities. The company operates internationally through subsidiaries or joint ventures in the United Kingdom, Ireland, Panama, Ecuador and Oman. With the recent acquisition of the Inter Terminals Group, the company has become the European leader in bulk liquid logistics. CLH has acquired one of the largest independent bulk liquid storage providers in northern Europe, and the largest in the United Kingdom, with more than 2.8 million cubic metres of storage capacity in 15 terminals. The operation enables the company to access highly developed transport links and transhipment services, as well as connections to pipelines in local regions. The terminals in the United Kingdom and Ireland handle a wide range of storage services for oil and petrochemical activities. The terminals are strategically located on the east and west coasts of England, in Grangemouth and Clydebank in Scotland, in Belfast in Northern Ireland and in the Shannon Estuary in Ireland. The Netherlands terminal, situated in the largest gasoline blending centre in Europe, offers six jetties for barges and vessels and has first class blending and handling capabilities. The German terminal, in Mannheim, is strategically located on the river Rhine. This terminal offers storage and handling solutions for oil and petrochemical activities in the region and also provides efficient access to the main deep-water seaports of Rotterdam, Amsterdam and Antwerp. Altogether, this is one of the largest acquisitions of storage terminal networks by the Exolum Group in Europe. Based on the stake held by CLH and its control over the different companies, Vopak Terquimsa, CLH Rubis and OLC are accounted for using the equity method of accounting and the rest are fully consolidated. b) Governance structure General Shareholders’ Meeting The General Shareholders’ Meeting is the main governing body of Exolum and has the power to resolve on matters that affect the company that, by law or under the Articles of Association, are not assigned to other company bodies. Ordinary General Shareholders’ Meetings are held within the first six months of each calendar year in order to assess company management, approve the financial statements and decide on the allocation of the results.

74

Board of Directors The Board of Directors is the top decision-making body of CLH, except in matters that are reserved for the General Meeting, and it holds authority over matters related to the management of the organisation. The Board acts at all times with the principle of maximisation of the company's value, both in the long and the short term, supervising the performance of business and securing its present and future viability. The composition, powers and functioning of the Board are regulated through the Articles of Association and the Board of Directors' Regulations. Within the Board of Directors, complementary administrative bodies, such as the Audit Committee and the Appointments and Remuneration Committee, optimise corporate governance. In 2020 the Board comprised 21 directors: a chairman, a chief executive officer and 19 external proprietary directors. The term of office of its members is five years. Board Committees Audit Committee

The role of the Audit Committee is to establish the relevant relationships with external auditors and supervise the company’s internal control and risk management systems, as well as conducting internal audits and regulated financial reporting. This body consists of five non-executive external directors, all of whom are proprietary directors with knowledge and experience in accounting and auditing.

Appointments and Remuneration Committee

The Appointments and Remuneration Committee is responsible for reporting or making proposals regarding the appointment and remuneration of directors, members of the Board committees and company executives. This body consists of four non-executive external directors, all of whom are proprietary directors.

Board of Directors' Regulations

The Board of Directors’ Regulations follow the recommendations of the Unified Good Governance Code of Listed Companies as regards the need for the Board to devote at least one meeting per year to assessing its functioning and the quality of the work it has performed. The result of this assessment for 2020 is that the functioning and the performance of duties by the Board and its committees, chairman, chief executive officer and secretary have been satisfactory.

Management Committee

The Management Committee is an internal governance and oversight body in charge of reporting to the top governing body on the most relevant issues of company management. The mission of the Management Committee is to define Exolum's strategic guidelines, to align the operational strategies of all the business units and to coordinate corporate management departments with the company's general strategy and the needs of the business units.

75

Duties of the Management Committee: • Approval of annual budgets and management plans, which are submitted to the Board of

Directors for final approval. • Follow-up on the CLH Group’s income statement. • Planning of the company’s operational needs in the short and medium term. • Analysis of new market trends and identification of new strategic projects. • Approval of strategic and investment projects according to current regulations and their

follow-up. • Analysis and follow-up of operational and commercial activities and new business projects. • Analysis and follow-up of process safety and quality indicators. • Progress on the design of a single scorecard that identifies criteria, information resources

and the person responsible for updates to serve as a basis for monitoring the business. In 2020 the Exolum Group adapted the organisational structure of the Management Committee to the new challenges that have arisen as the company progresses with the internationalisation and diversification process. These changes were intended to simplify the structure and to organise the Exolum Group’s different businesses by geographic region, thus making it easier for them to share good practices and exploit the synergies between the different activities. Accordingly, two regional Performance Units have been created:

• Spain Region: comprising the current network and aviation businesses in Spain, and the aviation activities the Exolum Group is currently carrying out in Ireland, Panama and Ecuador.

• North West Europe (NWE) Region: encompassing the activities the Exolum Group is

currently carrying out in the UK, Ireland, Germany and the Netherlands. In addition, to ensure that uniform policies and standards are implemented across all the Group’s business areas, and to more clearly separate the global and corporate functions providing support to all business units, four broad support areas have been created:

• Global Strategy & Innovation: encompasses the activities previously carried out by the Corporate Strategy and Business Development areas. It focuses on developing the strategy of the businesses in Spain, NWE and Exolum, the business unit responsible for promoting the diversification of our business model and innovation within the Group.

• Global Finance: comprises the same economic and financial functions with an overall vision, and provides support to the different regions and companies.

• Global People: encompasses human resources management and other company management support units with the goal of continuing to promote talent within the Exolum Group in a more integrated and coordinated manner.

• Global HSSE & Technology: includes the activities carried out by the technical area in addition to HSSE activities. Its objective is to facilitate the uniform development of technology throughout the organisation from all perspectives (IT, cybersecurity, Transformation Office, Digital Agenda, Asset Management and Global Engineering).

76

2. CORPORATE CULTURE AND IDENTITY The Exolum Group promotes behaviour based on ethical criteria of transparency and good corporate governance. This commitment is set out in the Code of Conduct, which includes guidelines for conduct applicable to all persons in the Group, including senior management and directors, and compliance is also encouraged among suppliers, contractors and partners. CLH also has an Ethics Committee that ensures compliance with the Code of Conduct and is responsible for promoting awareness of the Code. In addition, an Internal Communication Channel (Code of Conduct Mailbox) is included on the company website and the Corporate Portal for all stakeholders. This is the platform established for the confidential and anonymous submission of questions and clarification of doubts in relation to suspected misconduct, including, due to their serious nature, potential criminal risks. The Ethics Committee is also responsible for assessing these communications and deciding what action to take, depending on the nature of the case. In 2020 no communications were received in relation to bribery or corruption. Another responsibility of the Ethics Committee is to supervise the performance of the criminal risk prevention model, which entails a strict, independent, autonomous, objective and confidential analysis of alleged criminal incidents reported through the Internal Communication Channel (Code of Conduct Mailbox). Moreover, the Exolum Group guarantees equal opportunities in job recruitment and promotion. This commitment is materialised in the Equal Opportunities Plan and the Protocol for the prevention of and response to harassment at work. In compliance with section 7.3 of the Exolum Group’s Protocol for the prevention of and response to harassment at work, which provides that statistical information on incidents of harassment at work shall be reported to the Ethics Committee, no investigations were opened in 2020. In addition, the investigation initiated in 2019 was concluded and the mandatory final report drawn up, which concluded that no evidence of harassment had been found, and the case was therefore closed. The CLH policy on ethics, integrity and criminal risk prevention was extended to the company’s international subsidiaries in early 2020. Therefore, in 2020, CLH reviewed and simplified the regulations on ethics, integrity and criminal risk prevention in order to streamline them and enable their application in all companies of the Exolum Group and in every jurisdiction in which it operates. 3. HIGHLIGHTS FROM 2020 FUTURE We are growing internationally We have added 15 Inter Terminals facilities in the UK, Ireland, the Netherlands and Germany to our logistics network, thus strengthening our international expansion and bringing on board a team with a wealth of experience in managing chemical products.

77

“Avikor” takes flight We launched Avikor, a new platform that gives individuals and businesses the opportunity to fly more sustainably by replacing a proportion of traditional kerosene used in their flight with sustainable aviation fuel (SAF). Avikor successfully participated in Spain’s first transoceanic flight with sustainable aviation fuel covering the Zaragoza to Miami route. We launched Yubick We created a new parking service and rest area for cargo truck drivers at our facility in Barcelona, where drivers can rest and prepare for the next leg of their journey. Agreement to promote eco-fuels We signed an agreement with the Spanish Association of Oil Product Operators (AOP) to jointly promote the development of low-carbon liquid fuels, eco-fuels, in Spain. We are researching alternative fuel sources In conjunction with the company Urbaser, we managed to develop diesel fuel from plastic waste and successfully tested it in an urban waste collection truck. We achieved the highest rating in the GRESB benchmark We garnered a five-star rating in the GRESB 2020 sustainability benchmark, with a score of 89 points out of 100, and were the industry leader in the maintenance and operation categories. SAFETY First CLH Safety Day held simultaneously with CLH-PS To celebrate Safety Day, we held lectures, talks and various safety and prevention initiatives simultaneously with our colleagues in the UK. New Safety Foundations We approved new basic safety standards for all our activities in conjunction with a cross-disciplinary team and the support of CLH-PS, which launched the project in the UK last year. We strengthened individual safety in plants We launched a new cutting-edge personal safety device in the plants, which enables rapid identification and immediate assistance in the event of an incident during work shifts. New smart mailboxes We tested a new smart mailbox system at the facilities in Villaverde and Rivabellosa whereby staff members do not have to interrupt their work to deal with courier deliveries.

78

EFFICIENCY We rolled out Formula ONE We improved our systems with new IT developments that have allowed us to streamline recruitment processes, strengthen the budgeting and consolidation of our accounts and add a new corporate portal. Digitalisation of delivery notes We developed a new digital delivery note system, which allows road tanker drivers to download loading operation documentation to a mobile device, thus providing a more efficient and sustainable service. Predictive maintenance of assets We implemented predictive maintenance for the day-to-day management of our logistics network, and rolled out digital systems to gather information, which allows us to compile operational data and monitor our equipment. We are harnessing artificial intelligence We have begun to use artificial intelligence to improve our output forecasts, strengthen our leak detection systems and monitor our pipelines, supported in the latter case by satellite technology. We upgraded the Zaragoza Airport facility We have commenced the construction of a new pipeline in the facilities we manage at Zaragoza Airport in order to provide a better service and to be able to meet increased demand over the coming years with greater flexibility. We joined the Spanish tax authorities’ new SILICIE accounting system We have joined the new SILICIE accounting system introduced by the tax authorities for products subject to excise duties. The SILICIE project is a new bookkeeping system for all products subject to excise duties, in accordance with the provisions of section 50 of the Excise Duty Regulations. Our Quality, Environmental, Health and Safety and Information Security certifications have been renewed We successfully passed the audits performed by AENOR for the renewal of the company’s ISO 9001 certification for the Quality Management System, ISO 14001 certification for the Environmental Management System, and ISO 45001 and ISO 27001 certification for Health & Safety and Information Security, respectively. ENVIRONMENT First water footprint report We published our first Water Footprint report, where we analyse our water consumption to identify opportunities for improvement and initiatives to help us reduce consumption. Purchase agreement for renewable energy We signed a power purchase agreement whereby part of our facilities’ electricity needs will be met by 100% renewable energy, thus reducing emissions to the atmosphere.

79

We improved the lighting in the facilities We approved a project to upgrade the lighting system in our facilities to make it more sustainable by replacing the old lights with highly efficient LED lights. New motor pump unit in Loeches We installed a new electric motor pump unit at the Loeches plant to replace the diesel pumps used to supply the pipeline, thus enhancing the safety and efficiency of operations. PEOPLE We signed the 2016-2019 Collective Bargaining Agreement for CLH Company management and the UGT, CCOO and CGT trade unions signed the CLH 2016-2019 Collective Bargaining Agreement and agreed to its automatic renewal until a new agreement is signed. We foster diversity Aware of the importance of diversity, we have created the Women in Movement (WIM) group with the aim of contributing value to the company from an inclusive, collaborative and pluralistic perspective. COMMUNITY ENGAGEMENT We donated medical supplies during the pandemic... We donated almost one million euros’ worth of medical supplies, including masks, gloves and protective clothing, for distribution to the national security forces, hospitals and various nursing homes. ...and non-medical supplies to hospitals and nursing homes We also donated non-medical but essential supplies, such as hygiene kits, thermometers and reusable water bottles, to hospitals and nursing homes with whom we have close links. We launched Energía Positiva+ We developed Energía Positiva+ together with other energy companies to support small businesses in the development of innovative projects that will contribute to economic and social recovery in the aftermath of the COVID-19 crisis. Spreading our charitable energy We collaborated on different initiatives and activities organised by various NGOs, such as the Red Cross, Action Against Hunger and Aviation Without Borders, to address the needs arising from the pandemic. We supported the social integration school of San Fernando We visited the social values and football sports school which the Real Madrid Foundation is running in San Fernando de Henares (Madrid) with the sponsorship of our company.

80

4. ACTIVITIES AND RESULTS The main activity of CLH is the storage and transport of oil products from port facilities or refineries to the place where they are consumed. For its part, CLH Aviación is an international reference is airport logistics, guaranteeing the efficient and safe supply of aviation fuel at airports in Spain and elsewhere. In this regard, Exolum Aviation Ireland offers fuel receipt, storage and dispatch logistics services at Dublin Airport, CLH Panamá operates fuel terminals and performs into-plane fuelling services at six airports in Panama, and CLH Aviación Ecuador carries out operational, maintenance and into-plane fuelling activities at José Joaquín de Olmedo International Airport in Guayaquil city. In addition, CLH Pipeline System (CLH-PS) provides fuel storage and transport logistics services to various military facilities and airports in the UK.

Exolum Interterminals provides chemical and hydrocarbon storage and handling services at different locations. The terminals in the United Kingdom and Ireland handle a wide range of hazardous and non-hazardous liquid products. The terminal in the Netherlands offers six jetties for barges and vessels with product blending and handling capacity. The German terminal, in Mannheim, is strategically located on the river Rhine. This terminal offers storage and handling solutions for oil and petrochemical activities in the region and also provides efficient access to the main deep-water seaports of Rotterdam, Amsterdam and Antwerp.

Oil product deliveries from CLH facilities in Spain in 2020 amounted to 36 million cubic metres, which represents a decrease of 24.3% over the previous year. This decline is due to the reduction in mobility as a result of the COVID-19 pandemic and continues to affect demand for automotive and particularly aviation products, which have been severely affected by the dramatic slump in air traffic in 2020. Through its subsidiary CLH Panamá, CLH Aviación is responsible for operating and maintaining six airport facilities in Panama. Tocumen International Airport is notable due to its size. It provides service to the capital and is considered to be one of the most important on the American continent. This airport is among the five largest airports operated by CLH Aviación in terms of supply volume. The other airports operated in Panama are regional (Scarlett Martínez, Enrique Jiménez in Colón, Panamá Pacífico, Enrique Malek and Marcos A. Gelabert, also known as Albrook Airport). CLH Aviación, through its subsidiary CLH Aviación Ecuador, performs operation, maintenance and into-plane services at José Joaquín de Olmedo International Airport in the city of Guayaquil (Ecuador), after being awarded the contract tendered by the airport management company, Terminal Aeropuerto Guayaquil S.A. (TAGSA). In 2020, CLH PS renewed the agreement with the UK Ministry of Defence and laid the foundation for a long-term contract. Furthermore, it made significant progress on the terminal upgrade plan, particularly the improvement of the electrical installations in classified areas, and reviewed the maintenance strategy to improve maintenance management. In addition, in a year dominated by the pandemic, the company continued to provide its services without significant incidents.

81

With regard to activity at Dublin Airport, in 2020 construction of the terminal and the hydrant system at Pier 1 and all civil works at the facility were completed, and the new loading areas and the CCTV and fire-fighting systems were commissioned. The commissioning of the hydrant system at Pier 1 is merely awaiting the approval of Dublin Airport Authority (DAA).

Consolidated statement of profit or loss

Thousand euros

2020 2019 %

Operating income 635,354 761,608 (16.6)

Operating expenses (excl. depreciation/amortisation) (312,231) (308,572) 1.2

Gross operating profit 323,123 453,036 (28.7)

Depreciation/amortisation (95,192) (84,761) 12.3

Net operating profit 227,931 368,275 (38.1)

Profit/(loss) on disposal of non-current assets 74 (341) N/A

Other net income/(loss) (446) (35) N/A

Non-recurring operating profit (372) (376) (1.1)

Net profit/(loss) on financial operations (5,359) 5,726 N/A

Profit before tax 222,200 373,625 (40.5)

Corporate income tax (54,531) (88,279) (38.2)

Profit after tax 167,669 285,346 (41.2)

Exolum Group operating profit in 2020 reached a total of €227.9 million, which represents a decrease of €129.9 million, 28.7% less than the figure from 2019, for the following reasons:

Operating income decreased by €126.3 million (16.6%) compared with the preceding year. Of this decrease, €110.1 million was related to commercial logistics in Spain (€99.9 million) and at the UK subsidiary CLH-PS (€10.2 million). As a result of the contango situation, increased revenues from storage in Spain represented €21.5 million more than the same period the previous year. In turn, income in the Aviation sector in Spain amounted to €47.7 million less than the figure earned the previous year, whereas in Ireland the drop came to a total of €6.6 million. Third-party charters generated €3.5 million more than in the previous year. Sales of oil products were €4.0 million lower than the preceding year. Other income in Spain was €3.0 million lower, whereas at CLH-PS it was €3.5 million higher than in 2019. Moreover, the acquisition of InterTerminals in November 2020 increased the Exolum Group’s income by €20.9 million. Compared with the figures from 2019, the other subsidiaries have earned €4.3 million less in income.

82

Operating expenses, which amounted to €312.2 million overall, rose by €3.7 million, or 1.2%, compared to 2019. Non-recurring expenses linked to COVID-19 amounted to €7.8 million. The increase in demand for oil product storage prompted leasing expenses to increase by €3 million as compared to 2019. On the other hand, the decline in activity led to a drop in energy spending, additive consumption and oil product transport amounting to €20.2 million overall compared to the previous year, which, to a great extent, offset the €28.1 million in losses generated by the effects that the drop in listed prices for products had on product inventories. Employee benefits expenses were €10.8 million lower than in the previous year, mainly due to savings on travel expenditure prompted by COVID-19, as well as the reduction in variable remuneration for employees. The increase in depreciation and amortisation is linked to the acquisition of InterTerminals and to assets impaired in 2020.

The turnover generated by the Exolum Group in 2020 amounted to €614.8 million, which is €126.3 million less than in 2019, representing a 17.0% decrease. The difference in net profit/(loss) on financial operations, amounting to €5.4 million in losses, compared to €5.7 million in profit the previous year, was mainly due to application of IFRS 19 to finance income in 2019 and to the lower net differences in exchange rates in 2020. In 2020, the average financial debt of the Exolum Group totalled €849.5 million with an average cost rate of 1.02%. Non-recurring operating profit in 2020 remained similar to that from the previous year. The corporate income tax expense in 2020 amounted to €54.5 million, which means that the Exolum Group’s profit after tax was €167.7 million. 5. STAFF The Group’s average headcount, by job category, is as follows: 2020 2019 Men Women Men Women Executives 13 1 15 1 Graduates and qualified technicians 438 183 394 158 Administrative staff 30 45 39 46 Specialists and qualified operators 998 14 1,082 17 Total 1,479 243 1,530 222

At 31 December 2020 and 2019, the Group’s workforce is as follows, by category: 2020 2019 Men Women Men Women Executives 10 1 14 1 Graduates and qualified technicians 542 208 395 167 Administrative staff 89 86 40 45 Specialists and qualified operators 1,185 18 1,045 14 Total 1,826 313 1,494 227

The average number of people employed by the Group in 2020 and 2019 with disabilities categorised as being equal to or greater than 33%, by category, is as follows:

83

2020 2019 Graduates and qualified technicians 5 5 Administrative staff 1 - Specialists and qualified operators 6 7 Total 12 12

6. EQUITY AND FINANCIAL POSITION At the end of 2020, property, plant and equipment and intangible assets after depreciation and amortisation recorded by the Exolum Group totalled €1,812.7 million, which is €580.8 million (47.1%) more than in 2019. This change is due to:

Investments made in 2020: €101.3 million, of which €47.1 million relates to assets contributed by international subsidiaries.

Depreciation/amortisation and impairment of assets: €89.4 million. The application of IFRS 16 has led to an increase in assets totalling €16.3 million. Translation differences in the balance sheet at 31 December 2020 amounted to -€12.9 million Disposals and transfers of assets for a net negative amount of €3.7 million The business combination generated in the acquisition of InterTerminals prompted an increase

in net assets amounting to €568.3 million The accumulated depreciation/amortisation and asset impairment at the end of 2020 represented 53.7% of the value of assets. Allocations during the year for depreciation/amortisation and impairment totalled €95.2 million. Regarding the financial position, at 31 December 2020 net financial debt, including the effects of IFRS 16, amounted to €1,358.1 million, while in 2019 the final position was €901.7 million. The financial cost of the loans drawn down by the Group totalled €10.3 million in 2020, with net debt totalling €849.5 million and accruing interest at a rate of 1.02%. In 2019 the average net debt totalled €677.2 million and finance charges amounted to €9.2 million at a rate of 1.21%. At the end of 2020 available liquidity in unused loans and credit facilities totalled €279.2 million. Some of the Group’s bank borrowings entail commitments to meeting certain financial ratios. At the date of authorising the accompanying consolidated financial statements for issue, the Group was in compliance with all of these ratios. Shown below are the ratios for 2020.

84

Item 2020 EBITDA (1) 337,481 Net debt (2) 1,358,074 Net debt / EBITDA 4.02 Finance costs 15,195 EBITDA / finance costs 22.21

(1) EBITDA: Operating profit of €227.6M, plus €89.9M in Depreciation and amortisation charges, plus €5.2M in Asset impairment, plus €6.5M in Gains (losses) from equity-accounted investments, plus €7.8M of Other non-recurring expenses, plus €0.5M from Other operating expenses. 2020 EBITDA excluding non-recurring expenses and Interterminals EBITDA full year would be € 395.4M.

(2) Net debt: Current and non-current bank borrowings (including the impact of IFRS 9 and IFRS 16 first application) less cash and cash equivalents, plus outstanding interest accrued, net of loan arrangement fees for outstanding loans.

7. AVERAGE PAYMENT PERIOD In relation to the legally-permitted payment terms stipulated in Spanish Act 15/2010, the breakdown of the trade payables settled by the Group companies located in Spain and those pending payment at year-end is as follows (thousand euros):

Description 2020 2019 Days Days

Average supplier payment period 38 46 Paid transactions ratio 37 46 Outstanding transactions ratio 55 39

€

thousand €

thousand Total payments made 240,580 226,333 Total payments outstanding 15,316 23,305

8. INVESTMENTS The Exolum Group invested 105.1 million euros in 2020 in the continued improvement of its infrastructure and services, both in Spain and in the other countries where it is present. During 2020, Exolum Group made investments in assets directly associated with its activities in Spain totalling €54.2 million, which represents a 28% increase compared with the preceding year. Internationally, the Group consolidated its presence in the United Kingdom, Ireland, Panama and Ecuador and began to operate in Germany and the Netherlands with the acquisition of the InterTerminals Group. The most important investment projects completed in Spain in 2020 were as follows:

- Deepening of pipelines to comply with the applicable regulations - Reinforcement, protection and coating of pipelines - Improvements to fire-fighting systems - Modification of the facility monitoring centre - Electrical improvements and modifications, including relevant projects in Malaga and Santovenia - Updating of logistics systems - SAP integration - LIMS (Line Inspection Management System)

85

- Projects relating to the renewal of the concession in Barcelona - New electric pump in Loeches - Installation of LED lighting in several facilities - Projects at Zaragoza Airport associated with the connection of pipelines and preparation of new

tanks

In the UK, the Group invested €37.6 million to improve and adapt infrastructure to meet regulatory requirements and increase storage capacity. Throughout the year, important investment efforts were made in order to comply with the commitments acquired with the MoD, which have resulted in the improvement of infrastructures. The major investment made at the Inverness facility should be highlighted, consisting of the construction of new storage capacity. At Dublin Airport, through the subsidiary Exolum Aviation Ireland, €2.6 million was invested in a new storage terminal and the construction of a hydrant network. Specifically, 2020 saw the completion of all the remaining building work on the hydrant network and the facility, and the commissioning of Pier 1. In Panama, €0.4 million was invested for the acquisition of new vehicles for the provision of the service. Investments made by the Exolum Group

ITEMS Thousand euros Change %

2020-2019 2019 2020 CLH NETWORK 37,388 49,517 32.4% CLH AVIACIÓN 5,116 4,708 (8.0%) SPAIN 42,505 54,225 27.6% IRELAND 6,425 2,600 (59.5%) CLH-PS 28,938 37,618 30.0% MEXICO 3,757 (12) (100.3%) PANAMA 2,606 403 (84.5%) ECUADOR 201 21 (89.5%) EXOLUM - 404 N/A ITL - 6,082 N/A

EXOLUM GROUP 84,431 101,340 20.0%

86

Additionally, the Exolum Group made financial investments that have allowed optimisation of taxes and consolidation and expansion of its international presence.

ITEMS Thousand euros Change %

2020-2019 2019 2020 Financial investments

Tax lease 987 3,775 282.5% Capital Contribution - 3,059 N/A Consolidation adjustments - (3,059) N/A Financial investments 987 3,775 282.5% TOTAL GROUP 85,418 105,116 23.1%

9. FINANCIAL INSTRUMENTS The Group’s principal financial instruments comprise bank loans and credit facilities, the main purpose of which is to finance the Group’s operations, as well as cash. It also has other financial instruments that stem directly from its operations, such as trade accounts receivable and payable. The main risks arising from the Group’s financial instruments are interest-rate risk, credit risk and liquidity risk. a) Financial risk factors: Interest-rate risk Variations in interest rates modify the fair value of those assets and liabilities that accrue interest at a fixed rate, and the amount of future flows deriving from assets and liabilities linked to a variable interest rate. The objective of interest-rate risk management is to minimise finance costs and to keep earnings volatility at a low level. Most of the Group's financing facilities are benchmarked to floating rates of interest. At 31 December 2020, the Group had two “effective” hedging derivatives and three fixed-rate loans, which covered 40% of its total borrowings at year end (note 17). At 31 December 2019, the Group had two “effective” hedging derivatives and two fixed-rate loans, which covered 59% of total borrowings at year end. In the light of all of the above, and performing a sensitivity analysis modelling hypothetical changes in interest rates, the Company estimates that a 0.1% movement in rates would have a gross impact on its consolidated income statement of approximately €536 thousand (2019: €41 thousand). Foreign currency risk Management of this risk factor encompasses two classes of risk: transaction risk and translation risk. The first arises from having to collect or pay cash in a currency other than the euro; the second relates to the risk borne by having to consolidate subsidiaries and/or assets located in countries whose functional currency is not the euro.

87

Movements in the exchange rates of the currencies in which borrowings are denominated and transactions carried out (pound sterling, US dollar and Omani rial) can affect the Group's finance costs, profit for the year and equity. At present, 56% of the financing of the Group is in euros, whilst the remaining 44% is in sterling. The Group’s exposure to movements in the rate of exchange between the pound sterling and the euro mainly stems from the translation of the financial statements of the Group companies located in the UK from sterling into euros. Credit risk The Group only carries out transactions with recognised and solvent third parties. As for customers, the Group's policy is to corroborate their payment wherewithal before transacting with them. The customer portfolio is primarily made up of first-class oil product operators and airlines that operate in the Iberian Peninsula and the Balearic Islands, as well as the rest of the countries where the Group has operated since May 2015. In relation to the business in Spain, and in its capacity as taxpayer in respect of excise duty on fuel, the Group requires all its “customers-operators” to present guarantees to cover the risk of non-payment. In parallel, it continually monitors accounts receivable in respect of both the services invoiced and the above-mentioned duty. This all means that exposure to insolvency risk is not significant (note 11). As for the credit risk deriving from other financial assets such as cash and cash equivalents, the Group's exposure to credit risk relates to the risk that one or more of its counterparties will not meet their obligations, the maximum exposure being the sum of such instruments arranged. Credit risk with unrelated parties was not significantly concentrated at either year-end. Below is an analysis of the ageing of the financial assets past due but not written down for impairment at 31 December 2020 and 2019 (thousand euros): Item (1) 2020 2019 Less than 90 days 309 532 Between 90 and 180 days 55 229 More than 180 days 15 - Total 379 761

(2) Only the Group’s Spanish companies (CLH and CLH Aviación) are included in this analysis. Liquidity risk The Group's objective is to strike a balance between the continuity and the flexibility of its financing by using bank credit facilities and loans, arranging long-term paper for most of its financing but short-term facilities to fund its working capital. At year-end 2020, the Group had been extended bank loans and credit facilities totalling €1,677,523 thousand (year-end 2019: €1,097,031 thousand), of which €325,707 thousand was undrawn (year-end 2019: €279,166 thousand) (Note 16).

88

Risk in relation to the UK’s exit from the European Union (Brexit) In relationship with the UK’s exit from the European Union on 31 January 2020 and its possible impact on the Group’s subsidiaries in the UK, we still consider that it has not been very relevant since these companies are incorporated in the UK, according to the regulations of that country, and they provide services exclusively within the UK with no relevant transactions of products or services with other countries. 10. RISK MAP The Exolum Group has an integrated Risk Control and Management System, which makes it possible to appropriately deal with any risks to which the company’s activities are exposed. The company has structured risks into four main groups: strategic risks, operational risks, reporting/financial risks and compliance risks.

The bodies responsible for the supervision, maintenance and implementation of the Risk Management System are as follows:

- Audit Committee - Management Committee - Corporate Responsibility Committee - Ethics Committee - Risk Map Technical Secretary’s Office

One of the key elements of the system is the Risk Map, a document in which Exolum identifies the main risks that impact the achievement of its strategic objectives. The Risk Map is subject to the approval of the Audit Committee and monitored regularly.

In 2020, the Group updated the Risk Map for CLH, CLH Aviación and CLH PS, and estimated the financial impact on the income statement should the risks identified for CLH, CLH Aviación and CLH PS occur. 11. ENVIRONMENTAL DISCLOSURES Applying the precautionary principle contained in the Rio Declaration adopted at the 1992 United Nations Conference on Environment and Development, the Exolum Group performs a regular and systematic environmental assessment via its Environmental Management System, which is subject to audits to identify points for improvement. Furthermore, initiatives based on the principles of sustainable development of all the company’s activities are regularly monitored. The Exolum Group has an Integrated Management System (IMS) that includes the Environmental Management System. This covers all aspects of the organisation from storage, transport via the pipeline network, unloading of tanker vessels at ports, despatch of fuel by road tanker and pipeline, supply of fuels to vessels at ports, as well as aviation fuel logistics, and its aim is to guarantee that all the activities are performed in a sustainable manner. In the setting of the social responsibility commitment assumed by CLH, the company continuously performs a series of actions, initiatives and projects that are coordinated and structured to ensure the continuous improvement of its environmental performance. In order to articulate, regulate and apply environmental management in the company, an environmental management system has been developed

89

and implemented, which is structured and documented pursuant to the UNE-EN-ISO 14001 standard “Environmental Management Systems. Requirements with guidance for use”. As an example of the company’s environmental commitment, during 2020 the standards of good management and environmental practices have been successfully renewed with the Port Authorities of: Barcelona, Gijón, Palma, Mahón, Ibiza, Algeciras, Motril, Santurce and Ziérbana. In 2020, CLH-PS began to design a project to install a pilot 650 kW solar photovoltaic power plant located in Hallen. The self-generated energy will cover the electricity demands of the Berwick Wood and Hallen facilities and will enable a reduction in CO2 emissions of 170 tonnes per annum. Furthermore, Exolum Aviation Ireland replaced 75% of its light vehicle fleet with plug-in hybrids in line with the CLH Group’s commitment to be carbon neutral by 2050. 12. RDI The Exolum Group is undertaking the digitalisation and automation of its facilities and improving operational processes, while promoting the optimisation of resources and enhancing the security and sustainability of operations. The company’s ongoing commitment to RDI also allows it to maximise operational efficiency, and to maintain or even reduce the price of the services it provides every year. In 2020 the Exolum Group continued to make progress on its ONE programme, an ambitious initiative aimed at renewing its IT systems and simplifying the main processes of the group companies, to increase their efficiency. One of the main aims of this technological renewal is to implement the same computer programs in all companies of the group and create a standardised and simplified working methodology that facilitates cooperation and furthers process automation. Another benefit will be the storage of the main data of all the companies in a single platform. This new system will improve information analysis since it will make it possible to consult the data in real time, thus facilitating the decision-making process. The digital transformation process of the Exolum Group is based on the use of agile methodologies, a cloud-based digitalisation strategy, the promotion of digital initiatives with an impact on business, the implementation of artificial intelligence techniques in all processes, and becoming a data-driven company which makes it possible to obtain competitive advantages and optimise management processes. In this respect, in 2020 the Exolum Group launched the “digital HUB” Programme for the coordination of 18 digital initiatives, including:

• The use of a new pipeline surveillance system based on artificial intelligence and satellite technology that increases the security and reliability of these infrastructures and optimises data analysis, thus making the process more efficient

• The implementation of predictive maintenance in the day-to-day management of the logistics

network with the aim of operating in a more agile, safe and efficient manner, in addition to preventing any malfunctioning of the system

• Improved forecasts of oil product deliveries from facilities using artificial intelligence

90

• Improvement of the tank availability process, to make it more agile and enable the tanks to be

operative for the maximum length of time, thus offering our customers more storage capacity and better satisfaction of their needs and demands.

• Improvement of the hydrocarbon leak detection systems at our plants, to make them more

efficient, accurate and complete CLH is also developing a new LIMS (Laboratory Information Management System) with which to manage product quality, and different projects are being implemented to measure quality in-line via technological solutions that avert the possible risks associated with the taking of samples from storage tanks. CLH encourages everyone in the organisation to identify opportunities for improvement and awards prizes for the best suggestions. These awards not only allow the improvement of operations and processes, but also enhance employee engagement and commitment. In 2020, the CLH Group incorporated a new company under the name of Exolum Solutions, S.L., which focuses on identifying and developing new business opportunities in industries and sectors other than those where it traditionally operates. In this respect, Exolum has launched various initiatives such as “Avikor”, the platform that allows individuals and companies to fly more sustainably by enabling a reduction in the emissions of their flight thanks to sustainable aviation fuel (SAF). Avikor offers any passenger of any airline travelling from the Adolfo Suárez-Madrid Barajas airport, and shortly from Barcelona-El Prat, the possibility of flying while reducing the CO2 emissions caused by their flight, by merely indicating their flight code on www.avikor.com. The model is flexible, adapted to each user or company and it can be acquired to eliminate the desired fraction of CO2 emissions as another extra service, regardless of the airline flown with. Exolum has also inaugurated “Yubick” a parking area for all kinds of lorries located in the port of Barcelona and especially designed and equipped for the comfort of drivers with all the necessary services for their safety and rest. Furthermore, it has launched a strategic line of infrastructures for the production and supply of hydrogen. In this respect, 10 declarations of interest were presented in December 2020 corresponding to projects for the production and/or distribution of renewable hydrogen. Some of these projects have also been presented for the European “Innovation Funds” and “Green deal” investment plans. The company also participates together with other companies of the sector in Energía Positiva+, a programme to identify and give support to startups or scaleups with projects that respond to the economic crisis resulting from the COVID-19 pandemic. 13. CSR POLICY Management of Corporate Social Responsibility in the Exolum Group is structured at three levels:

• The Strategic Plan, which includes the company’s main lines of work, and encompasses: improving the efficiency of its activities, developing new business opportunities, searching for new international projects and creating value in local communities.

91

• The Corporate Social Responsibility Policy, based on the establishment of relations of trust with the company’s stakeholders, in accordance with its mission, vision and values and the ten principles of the United Nations Global Compact.

• The Corporate Social Responsibility Master Plan, included in the Strategic Plan, which defines the actions of the company in this area. The plan provides for the roll-out of the model to the Group’s international businesses, after tailoring it to the conditions and specific features of the countries where these are located.

The Exolum Group presents the Consolidated Report of the Non-Financial Statement which describes the main lines of action the company pursues in relation to its stakeholders (employees, customers, suppliers, society as a whole and the area surrounding its facilities). 14. PLANS FOR THE FUTURE The energy sector is currently undergoing a process of transformation in a bid to meet the triple challenge of reconciling supply safety with sustainability and competitiveness. Furthermore, the logistics sector has always been highly sensitive to economic trends and, therefore, is constantly evolving. However, we are now facing an unclear future with more uncertainty than ever as a result of the unprecedented health crisis we are experiencing. Despite the trend toward the decarbonisation of the energy sector and reducing emissions, society continues to depend on oil products and demand will therefore continue to rise. Oil continues to be the most important primary energy in the world, and most business activities depend on oil as their power source, which accounts for around 31.41% of the world's energy needs. Two issues dominated activity in 2020: the impact of Covid-19 on the energy sector and the prospects of accelerating the energy transition. The immediate effect of the pandemic on total energy demand was, predictably, a fall of 5% in 2020, while demand for oil decreased by 8%. According to the latest report by the International Energy Agency (IEA), in terms of volume, demand for oil will remain below 100 million barrels/day, at a similar level to 2019, which was 97.8 million barrels/day. This is due to the effects of the pandemic, which affects the oil situation in numerous ways. Nevertheless, global consumption of oil products will increase slightly by 0.3% up to 2040, although consumption patterns will change. Therefore, the success of the business largely depends on the company’s ability to develop a sound strategy that will enable it to identify and mitigate the risks posed by the environment, including how society responds to adverse situations such as a pandemic, and exploit opportunities in this new market context. a. Global growth in demand for oil products, with differences between regions As mentioned previously, global energy demand and demand for oil products in particular has fallen, primarily due to the effects of Covid-19. However, the slight growth in demand in China has remained steady compared to previous years and even with respect to forecasts for 2030, while in the United States demand has stagnated compared to last year and has fallen slightly with respect to 2030; in Europe, meanwhile, demand continues to decrease marginally. In Spain, specifically, total demand for oil products had plummeted by 28.5% at 30 November 2020 according to CORES.

92

The latest World Energy Outlook report, published by the International Energy Agency, forecasts moderate global growth in the demand for oil products of 0.6% per year in the lead-up to 2030 and 0.4% per year in the lead-up to 2040. This growth in demand will be asymmetric, with solid growth in non-OECD countries and a slight progressive decline in OECD countries. The Exolum Group’s response to these perspectives is to promote the company’s international expansion in growing markets, boosting the competitive advantages of the Exolum Group, and seizing opportunities to develop new logistics infrastructure in other countries and businesses related to our core activity. Likewise, the Exolum Group is reinforcing its activity, focusing on efficiency and the development of new services in countries with stagnant demand. In the case of Spain, it is increasing the flexibility of the Group’s coastal terminals so that they are capable of accepting all product and blend types. b. Trends in demand for the different oil products during the Covid-19 crisis As mentioned previously, energy demand is expected to fall by approximately 5% per year from 2020 onwards. During the last century, only the two world wars and the Great Depression caused a greater decline in demand than the Covid-19 crisis. At the time, some energy sectors were more affected than others and the same is expected to occur again. Measures to halt the pandemic, such as local lockdowns, ongoing remote working and a currently weak aviation sector will continue to slow down consumption, which means that the shadow of the pandemic still looms over the short-term outlook for oil. In fact, demand for oil will decrease by 8%, and the aviation fuel segment, which currently accounts for more than 7% of total oil consumption, will be the hardest hit, as changes in consumer behaviour will have longer-lasting effects. The 10% decline in business travel will largely be responsible for reducing demand for oil by approximately 0.2 million barrels/day up to 2030. In the aviation sector, consumption for the year as a whole fell by around 3 million barrels/day, which represents a drop of 40% over 2019 levels. Despite this, however, demand for oil in the aviation sector is expected to rise by 1.2 million barrels/day between 2019 and 2030, accounting for a quarter of total growth in demand for oil. The use of sustainable biofuels and low-carbon hydrogen-based fuels will play a key role in long-term efforts to reduce the use of oil derivatives in the aviation industry. However, following the drop in demand for automotive oil in the aftermath of the pandemic, consumption will return to pre-Covid-19 levels in 2021, and remain stable at 2019 levels up to 2030. Demand for petrochemical oil remains robust during the recession. In order to alleviate this situation, the Exolum Group has put a greater focus on products with prospects for greater growth, particularly sustainable aviation fuels and non-oil products. Exolum Solutions, S.L., the Exolum Group subsidiary dedicated to exploiting new business opportunities and committed to the sustainable development of our planet, launched the Avikor platform which offers individuals and businesses the possibility to fly more sustainably by using sustainable aviation fuel (SAF) to reduce emissions. Furthermore, the Exolum Group is adapting its assets to new demands for marine fuels and increasing the flexibility of its coastal terminals in Spain so that they are capable of accepting all product and blend types.

93

c. Transition towards a low-carbon economy The 2015 Paris Agreement, part of the United Nations Framework Convention on Climate Change, marked a milestone with the accession of more than 120 countries. Specifically, the European Union has developed a Climate and Energy Framework for 2030, which sets ambitious targets for the reduction of greenhouse gas emissions, energy efficiency and the development of renewable energies, and is working to establish a reference framework in the lead-up to 2050 in line with the progressive decarbonisation of the economy. Within all this, biofuels play an important role. In this context, the Exolum Group continues to develop new services associated with fuel storage and transportation, progressing towards diversification and expanding its logistics services to cater for other products which allow the Group to take advantage of its capabilities and ensure the sustainability of the business. It is also focusing on RDI projects for the development of alternative energies, thus enabling us to contribute to the sustainability of the planet and gain a foothold in new sectors where the company’s experience brings added value. In this regard, the Exolum Group has identified and is developing business models for the production, distribution and use of energy solutions and fuels made from waste or sustainable raw materials. d. Digital revolution The rapid development of new information technologies and mobile connectivity is quickly transforming a large number of economic sectors, including the oil products logistics sector. In this regard, the Exolum Group is focusing on technology as a source of competitive advantage, enhancing automation and remote management, predictive maintenance through big data techniques, the development of proprietary logistic system optimisation technologies, and advanced expert project engineering. The Exolum Group is laying the groundwork to become a data-driven company, thus allowing it to make informed strategic decisions based on data analysis and interpretation. To this end, it is designing new digital systems by developing cloud infrastructure and platforms in preparation for the implementation of digital initiatives that will allow it to secure efficiencies and even new business opportunities. 15. NON-FINANCIAL INFORMATION “The 2020 Non-Financial Statement has been prepared according to the section 49 of the Commercial Code, and forms part of the Consolidated Report of the Non-Financial Statement, available at www.exolum.com. This report has been prepared in compliance with the Global Reporting Initiative (GRI) standards, in their core version. The Non-Financial Statement included in the Consolidated Report of the Non-Financial Statement is an integral part of the Management Report and has been submitted to the same criteria for approval, filing and publication as the Management Report.” 16. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD In January 2021, the Group arranged an interest rate cap on the £200 million loan at Exolum Terminals UK Ltd. Reflecting its strategy and goals for the future, based on innovation, diversification and sustainability, the Company has changed its brand from 1 March, and is now using the Group’s sole brand, EXOLUM. No other significant events have taken place after the end of the reporting date.

94

DISCLAIMER The information contained herein regarding business results, which has been prepared by COMPAÑÍA LOGISTICA DE HIDROCARBUROS CLH, S.A. in compliance with current legislation, is merely informational in nature. The statements regarding business projections contained herein relate to CLH’s intentions, expectations and forecasts and do not constitute guarantees of future fulfilment. To the extent that the content of these statements may be subject to change or modification, CLH assumes no liability for their accuracy and does not guarantee that the information is complete or fully up-to-date. Furthermore, CLH assumes no liability whatsoever for any damages of any kind that may derive from the use of this document, or any information contained herein, for any purpose other than the purely informational purposes for which it was prepared. Unless applicable legislation so requires, CLH does not assume the obligation to publicly report any possible updates, revisions or modifications to the information or statements contained in this document, even if new data are published or new events take place.

1

CONSOLIDATED REPORT OF THE NON-

FINANCIAL STATEMENT OF COMPAÑÍA

LOGÍSTICA DE HIDROCARBUROS CLH,

S.A. AND SUBSIDIARIES FOR 2020

(EXOLUM GROUP)

2

Contents 2

About this report 3

Letter from the Chairman and the CEO 4

Highlights from 2020 6

1. Our Business 10

1.1 Company profile 10

1.2 Our strategy 11

1.3 Our activity in 2020 14

1.4 Our setting 22

1.5 Corporate governance 25

1.6 What we focus on 31

1.7 Risks and opportunities 31

1.8 How we engage with others 32

2. Value creation among our stakeholders 32

2.1 Creating value through CSR 32

2.2 Creating value for our employees 33

2.3 Creating value for our customers 84

2.4 Creating value for our suppliers 92

2.5 Creating value in society 98

2.6 Creating value in our environment 101

3. Contents required under Act 11/2018 and GRI indicators for the

2020 Non-financial Statement 122

4. Independent review report on the Non-financial Statement 130

3

About this report

This document, which is an integral part of the consolidated management report as at 31

December 2020 for Compañía Logística de Hidrocarburos CLH, S.A (hereinafter, “CLH” or the

“Company”), and its subsidiaries (hereinafter, “Exolum Group” or “Exolum”).

The Exolum Group, within the strategy and its future objectives, based on innovation,

diversification and sustainability, has modified its brand since March 1, using EXOLUM as the

Group's unique brand

This report has been prepared in accordance with the requirements laid down in Act 11/2018

of 28 December, amending the Commercial Code, the consolidated text of the Spanish

Companies Act passed under Royal Legislative Decree 1/2010 of 2 July, and Accounts Auditing

Act 22/2015 of 20 July relating to non-financial information and diversity.

For reporting purposes, Exolum Group has used the Global Reporting Initiative’s standards for

Sustainability reporting (GRI Standards) and the International Integrated Reporting Framework

(IR). In accordance with these standards, the report sets out all matters reflecting the significant

economic, environmental and social impacts of the company. The scope of this Non-Financial

Statement includes information relating to the Exolum Group financial year 2020.

Contact details

Global People

Titán, 13. 28045 Madrid (Spain)

[email protected]

+34 91 774 60 00

4

Letter from the Chairman and the CEO

Dear shareholders,

We are pleased to present the Consolidated Report of the Non-Financial Statement for 2020.

This report is published as part of our commitment to transparency and explains our financial

and non-financial results, as well as our main strategic lines and ESG actions.

It has been a hard year, marked by the health crisis caused by the new coronavirus, but our

company has been able to react quickly and effectively and we have lived up to society’s

expectations by ensuring fuel supply at all times, particularly during the hardest months of the

pandemic, when ensuring the movement of health professionals, law enforcement authorities

or goods transport was essential.

There is no doubt that in 2020 we have been forced to change our routines and to work in a

different way but, even so, we have managed to progress on our main strategic lines and obtain

positive results despite the unprecedented drop in fuel demand, particularly in the aviation

sector.

This achievement has been possible thanks to the efforts, commitment and involvement of

everyone within the company and has helped us to move forward and continue to grow in such

difficult times, as evidenced by one of the most relevant highlights of the year: the acquisition

of 15 storage terminals from InterTerminals Limited located in the United Kingdom, Ireland,

Germany and the Netherlands.

With this operation, we have become the European leader in liquid product logistics and have

incorporated the expertise of a highly valuable team of individuals in different business

segments where we were not present until now, such as chemical products, thus reinforcing

our diversification objectives as well as consolidating our presence in the United Kingdom.

Furthermore, we have reduced the number of safety incidents at our plants and progressed on

our efficiency agenda, thus achieving a reduction of the electricity bill and our carbon footprint

thanks to different initiatives such as the implementation of LED lighting at our facilities, pump

electrification and long-term purchase agreements for more economical and sustainable

electricity.

Our commitment to sustainability has been strengthened and we aim to become a carbon

neutral company by 2050 and successfully embrace the major challenges of the future, such as

climate change or decarbonisation.

The digitalisation of our operations has been another great challenge that we have faced

through different projects that will enable us to use more advanced technologies and

5

equipment in strategic areas such as demand prediction, asset maintenance or pipeline

monitoring. In this regard, one of the most significant developments relating to our internal

customers has been the modernisation of our computer systems as part of our ONE Project

which, coupled with the implementation of new tools and agile methodologies, has enabled us

to prepare the ground for an improvement in our working methods.

All of the above has been achieved in addition to our commitment to society in a particularly

hard year where we have taken action to respond to the social emergency and help those who

are hardest hit by the pandemic.

Among other actions, we donated medical supplies, such as masks, gloves and protective

clothing, to the Spanish government in one of the most critical moments of the pandemic. We

also donated essential supplies to over 20 hospitals and nursing homes. Moreover, we

cooperated in campaigns organised by different NGOs, such as the Red Cross or Action Against

Hunger, in order to mitigate, where possible, the effects of COVID-19.

Apart from these specific actions, we have continued to develop new volunteering projects in

cooperation with our staff and to support entrepreneurship in areas where we have special

links.

All in all, and despite the circumstances, in 2020 we have once again confirmed our

commitment to the principles of the UN Global Compact and our own Code of Conduct in

human rights, labour, environmental and anticorruption matters, not only in the course of our

direct activities but also through the cooperation with our suppliers.

As for the future, we are optimistic and believe that the much-desired recovery will come soon.

So far, 2021 has been special for our company, as we have unfolded a new chapter with Exolum,

a new name with which we will be known around the world.

This new identity is not only a brand change, but also an evolution in order to adapt ourselves

to present and future challenges and to better reflect the transformation we have undergone

in recent years which has led us to expand our logistics services to new liquid products, such as

chemical products, and to innovate in sectors such as renewable energy, hydrogen and eco-

fuels. We are, therefore, setting out on a new path and we are really excited to be able to do it

together.

Hopeful for the future, we bid you farewell, but not before inviting you to peruse this report in

order to discover the progress made by our company in 2020.

Yours sincerely,

6

Highlights from 2020

Future

We are growing internationally

We have added 15 InterTerminals Limited facilities in the UK, Ireland, the Netherlands and

Germany to our logistics network, thus strengthening our international expansion and bringing

on board a team with a wealth of experience in managing chemical products.

“Avikor” takes flight

We launched Avikor, a new platform that gives individuals and businesses the opportunity to

fly more sustainably by substituting the proportion of traditional kerosene used in their flight

with sustainable aviation fuel (SAF), and successfully participated in Spain’s first transoceanic

flight with sustainable aviation fuel covering the Zaragoza to Miami route.

We launched Yubick

We created a new parking service and rest area for cargo truck drivers at our facility in

Barcelona, where drivers can rest and prepare for the next leg of their journey.

Agreement to promote eco-fuels

We signed an agreement with the Spanish Association of Oil Product Operators (AOP) to jointly

promote the development of low-carbon liquid fuels, eco-fuels, in Spain.

We are researching alternative fuel sources

In conjunction with the company Urbaser, we managed to develop diesel fuel from plastic waste

and successfully tested it in an urban waste collection truck.

We achieved the highest rating in the GRESB benchmark

We garnered a five-star rating in the GRESB 2020 sustainability benchmark, with a score of 89

points out of 100, and were the industry leader in the maintenance and operation categories.

Safety

First Spain Safety Day held simultaneously with United Kingdom

To celebrate Safety Day, we held lectures, talks and various safety and prevention initiatives

simultaneously with our colleagues in the UK.

7

New Safety Foundations

We approved new basic safety standards for all our activities in conjunction with a cross-

disciplinary team and the support of EXOLUM-PS, which launched the project in the UK last

year.

We strengthened individual safety in plants

We launched a new cutting-edge personal safety device in the plants, which enables rapid

identification and immediate assistance in the event of an incident during work shifts.

New smart mailboxes

We tested a new smart mailbox system at the facilities in Villaverde and Rivabellosa whereby

staff members do not have to interrupt their work to deal with courier deliveries.

Efficiency

We rolled out Formula ONE

We improved our systems with new IT developments that have allowed us to streamline

recruitment processes, strengthen the budgeting and consolidation of our accounts and add a

new corporate portal.

Digitalisation of delivery notes

We developed a new digital delivery note system, which allows road tanker drivers to download

loading operation documentation to a mobile device, thus providing a more efficient and

sustainable service.

Predictive maintenance of assets

We implemented predictive maintenance for the day-to-day management of our logistics

network, and rolled out digital systems to gather information, which allows us to compile

operational data and monitor our equipment.

We are harnessing artificial intelligence

We have begun to use artificial intelligence to improve our output forecasts, strengthen our

leak detection systems and monitor our pipelines, supported in the latter case by satellite

technology.

We upgraded the Zaragoza Airport facility

We have commenced the construction of a new pipeline in the facilities we manage at Zaragoza

Airport in order to provide a better service and to be able to meet increased demand over the

coming years with greater flexibility.

8

We joined the Spanish tax authorities’ new SILICIE accounting system

We have joined the new SILICIE accounting system introduced by the tax authorities for

products subject to excise duties. The SILICIE project is a new bookkeeping system for all

products subject to excise duties, in accordance with the provisions of section 50 of the Excise

Duty Regulations.

Our Quality, Environmental, Health and Safety and Information Security certifications have

been renewed

We successfully passed the audits performed by AENOR for the renewal of the company’s ISO

9001 certification for the Quality Management System, ISO 14001 certification for the

Environmental Management System, and ISO 45001 and ISO 27001 certification for Health &

Safety and Information Security, respectively.

Environment

First Water Footprint report

We published our first Water Footprint report, where we analyse our water consumption to

identify opportunities for improvement and initiatives to help us reduce consumption.

Purchase agreement for renewable energy

We signed a power purchase agreement whereby part of our facilities’ electricity needs will be

met by 100% renewable energy, thus reducing emissions to the atmosphere.

We improved the lighting in the facilities

We approved a project to upgrade the lighting system in our facilities to make it more

sustainable by replacing the old lights with highly-efficient LED lights.

New motor pump unit in Loeches

We installed a new electric motor pump unit at the Loeches plant to replace the diesel pumps

used to supply the pipeline, thus enhancing the safety and efficiency of operations.

People

We signed the 2016-2019 Collective Bargaining Agreement for CLH

Company management and the UGT, CCOO and CGT trade unions signed the CLH 2016-2019

Collective Bargaining Agreement and agreed to its automatic renewal until a new agreement is

signed.

9

We foster diversity

ware of the importance of diversity, we have created the Women in Movement (WIM) group

with the aim of contributing value to the company from an inclusive, collaborative and

pluralistic perspective.

Community engagement

We donated medical supplies during the pandemic...

We donated almost one million euros worth of medical supplies, including masks, gloves and

protective clothing, for distribution to the national security forces, hospitals and various nursing

homes.

...and non-medical supplies to hospitals and nursing homes

We also donated non-medical but essential supplies, such as hygiene kits, thermometers and

reusable water bottles, to hospitals and nursing homes with whom we have close links.

We launched Energía Positiva+

We developed Energía Positiva+ together with other energy companies to support small

businesses in the development of innovative projects that will contribute to economic and

social recovery in the aftermath of the COVID-19 crisis.

Spreading our charitable energy

We collaborated on different initiatives and activities organised by various NGOs, such as the

Red Cross, Action Against Hunger and Aviation Without Borders, to address the needs arising

from the pandemic.

We supported the social integration school of San Fernando

We visited the social values and football sports school which the Real Madrid Foundation is

running in San Fernando de Henares (Madrid) with the sponsorship of our company.

10

CHAPTER 1. Our Business

1.1 Company profile

Who we are

CLH, in its capacity as parent company of the Exolum Group, is the leading company in the

transport and storage of oil products in Spain and one of the largest private companies in the

industry worldwide.

The Exolum Group operates in Spain directly or indirectly through the companies CLH, CLH

Aviación, TERQUIMSA (Terminales Químicos, S.A.), Exolum Solutions and Garbium Circular

Initiatives.

Globally, the Exolum Group has various subsidiaries and partly owned companies and currently

operates in seven countries through EXOLUM Pipeline System (EXOLUM-PS) in the UK, Exolum

Aviation Ireland in Ireland, CLH Panamá in Panama, CLH Aviación Ecuador in Ecuador, OQ

Logistics L.L.C. (OQL) in Oman and Exolum International UK in the UK, Ireland, Germany and the

Netherlands.

Purpose

The purpose of the Exolum Group can be summarised as follows: “We contribute to the

development of society and the sustainability of the planet, managing essential infrastructure

for the well-being of individuals”.

Our vision

The Exolum Group vision is to contribute to economic, environmental and social progress, to

provide our customers with excellent service, guarantee profitability for our shareholders and

develop the employment prospects and promotion of our employees, as well as helping them

balance their family and professional lives.

We aim to be an international benchmark in energy distribution, contributing to its responsible

use, ensuring the safety of people and protecting the environment, and contributing to the

prosperity of the communities where we have business units.

Furthermore, we also aim for our employees to feel proud of being part of the company, aware

of the importance of their work.

11

Our values

The Exolum Group culture is based on values such as safety, commitment and the ability to

generate trust among stakeholders: Safety, Efficiency, Commitment, Responsibility, Excellence,

Integrity and Trust.

Our shareholders

The shareholding structure of the CLH Group is composed of financial shareholders and

investment funds specialised in infrastructure management.

The shareholding structure with voting rights at 31/12/2020 is as follows:

CVC 25%

OMERS 24.77%

Macquarie 20%

Crédit Agricole 10%

APG 10%

The Workplace Safety and Insurance Board (WSIB) 10%

Other 0.23%

1.2 Our strategy

How do we create long-term value?

Exolum Group’s core activity is the storage and transportation of oil products from port facilities

or refineries to the places where these are consumed, thus guaranteeing easy and safe access

to fuel. CLH Aviación is a benchmark in international airport logistics and guarantees an efficient

and safe supply of aviation fuel at airports in Spain and abroad.

In this regard, Exolum Aviation Ireland offers fuel receipt, storage and dispatch logistics services

at Dublin Airport, CLH Panamá operates fuel terminals and performs into-plane fuelling services

at six airports in Panama, and CLH Aviación Ecuador carries out operational, maintenance and

into-plane fuelling activities at José Joaquín de Olmedo International Airport in Guayaquil city.

In addition, EXOLUM Pipeline System (EXOLUM-PS) provides fuel storage and transport logistics

services to various military facilities and airports in the UK.

Furthermore, in 2020, the Exolum Group purchased 15 liquid product storage terminals in the

UK, Ireland, Germany and the Netherlands from the company InterTerminals. This operation

12

strengthens the company’s international expansion, and makes the Exolum Group the largest

liquid product logistics company in Europe.

As a result, the Exolum Group now operates in eight countries: Spain, the United Kingdom,

Ireland, Germany, the Netherlands, Panama, Ecuador and Oman with a pipeline network of over

6,000 kilometres, 68 storage terminals and 45 airport facilities, with more than 11 million cubic

metres of capacity.

One of the greatest benefits of this acquisition is the addition of a team with a wealth of

expertise in the storage of chemical and biofuel products, which will be a huge asset to EXOLUM

as it continues to expand into new countries and new markets with non-hydrocarbon products

in its endeavour to meet the enormous challenges of climate change.

Eleven of these terminals are in the UK, which significantly strengthens the business in this

country. In addition, the complementary nature of the teams and assets will enable the creation

of synergies and puts us on track to become the leader in the UK market.

In the Netherlands, the acquisition of the terminal in Amsterdam is of strategic importance as

it provides access to the ARA (Amsterdam-Rotterdam-Antwerp) region, and the two state-of-

the-art terminals in Mannheim in Germany in the Rhine-Ruhr-Main region are beside one of the

world’s largest chemical clusters.

This operation represents a unique opportunity for EXOLUM to continue advancing with the

diversification of its activities and geographic expansion, extending its services and influence.

In a changing scenario characterised by the energy transition and the digitisation of the

economy, the strategy of the Exolum Group is to build an ever more competitive and robust

organisation that is capable of weathering the changes taking place in society and ensuring its

continuity.

To this end, the company is promoting the diversification of activities by developing new

business opportunities in industries or sectors where it has not traditionally been present, both

for the supply of energy and the storage of products other than hydrocarbons. In addition, the

Exolum Group has developed a strategy to reduce its carbon footprint by 50% by 2025 and to

completely eliminate it by 2050.

Furthermore, the Exolum Group is continuously adapting to the needs of the market, increasing

the capacity of its systems and adapting the infrastructure to meet ever more stringent

requirements in terms of quality, safety and environmental protection. It has also introduced

new biofuels, product qualities and energy supplies so that it can continue to grow and create

value for society.

13

In Spain, the high level of automation, integration and capillarity of Exolum’s operating model

has earned it an international reputation as one of the most economically efficient supply

schemes in the world, as has been pointed out by the International Energy Agency (Group CLH

has one of the largest and most efficient integrated oil storage and transportation networks in

the world).

Strategic pillars of the Exolum Group Strategic Plan

The current Strategic Plan is structured around five main areas of action:

Strengthening and growing the main business: basic logistics and aviation

Maintaining operational excellence and promoting business growth by carrying out

specific actions that make it possible to adapt infrastructure to market requirements

and enhance company competitiveness.

Development of new services

Continuously analysing customer demands in order to offer new services that are

tailored to their needs, particularly at maritime terminals and facilities adjacent to

refineries, while including diversified logistics activities and services in connection with

new products.

International growth

Consolidating existing international businesses, as well as searching for new

opportunities in other countries.

Efficiency improvement

Continuing to incorporate the latest technology and furthering process automation,

while promoting document digitisation and fostering research and development.

Revitalisation and Cultural Change

Reviewing company processes and implementing new ways of working based on

cooperation, discussion and a focus on the customer in order to have a more united

team and a company that is more modern and flexible.

Within the Strategic Plan, the Exolum Group has a CSR Master Plan which covers priority aspects

such as environmental management and protection; control and safety of facilities,

occupational health and safety, relations with the community, stakeholders, ethics and

integrity, and the attraction and retention of talent.

The Exolum Group also wishes to play an important role in the energy transition process and,

accordingly, is working on three strategic lines: reducing the environmental impact of our

operations, guaranteeing efficient access to energy in those countries where there is currently

none and exploring opportunities for diversification and the possibility of developing logistics

14

systems beyond traditional hydrocarbon systems for the new types of energy that may be

needed in the future.

1.3 Our activity in 2020

Financial results

Profit after tax of the Exolum Group in 2020 amounted to almost 168 million euros, which represents a decrease of 41.2% compared to the previous year.

Operating income totalled 635,3 million euros, 16.6% less than in 2019, mainly owing to commercial logistics both in Spain and the UK, the storage of oil products and the aviation sector.

The contribution of international business continued to grow and reached 120.4 million euros in operating income, which represents 19.4% of the total for the group.

Operating expenses amounted to 407.3 million euros, 3.5% more than in 2019, due to the efficiency and cost reduction plans promoted by the company.

The EBITDA of the Exolum Group amounted to 337.4 million euros, which is 27 % lower than in 2019, due to the impact of the COVID-19 crisis on logistics network activity in all companies of the group.

The impact of the COVID-19 pandemic on economic activity caused the Exolum Group’s recurring operating profit to fall by 38.1% compared to the previous year and stood at 227.9 million euros.

Generation of wealth 2018 2019 2020

Operating profit (million euros) 317.2 368.3 227.9

Net profit (million euros) 238.3 285.3 167.6

Operating income (million euros) 724.4 761.6 635.3

Operating expenses (million euros) 407.2 393.3 407.3

Investments (million euros) 77.6 85.4 101.3

Dividends (million euros) * 240.2 270.2 186

Total assets (million euros) 2,245.3 2,346.8 2,941.2 *The dividend for 2020 came to 186 million euros (€2.6383/share), of which 51.7 million (€0.7337/share) corresponded to an

additional dividend to be proposed to the General Shareholders’ Meeting for approval.

Direct economic value generated and distributed

GRI 201-01 indicator for the company CLH and the company CLH Aviación. This work was

performed using the audited financial statements for 2020.

15

Item S/CLH S/CLH AVI Total

Direct economic value

generated 525.047 31.061 556.108

Sales and other operating

income

493.017 29.936522.953

Financial income 31.762 435 32.197

Results for disposal of

fixed assets 268 690 958

Economic value

distributed (281.566) (34.063) (315.629)

Operating expenses (144.127) (18.506) (162.633)

Employee wages and

benefits (75.392) (18.146) (93.538)

Payments to capital

providers (dividends to

shareholders and interest

payments to capital

providers)

(8.222) - (8.222)

Payments to the

government (53.825) 2.589 (51.236)

Economic value

retained 243.481 (3.002) 240.479

Investments

The Exolum Group invested 101.3 million euros in 2020 in the continued improvement of its infrastructure and services, both in Spain and in the other countries where it is present.

In Spain, the company invested 54.2 million euros in the implementation of various projects. Specifically, 67.6% of this amount was devoted to investments in maintenance and business growth, which was necessary to ensure the optimum condition of the infrastructure and the delivery of value to customers; 18.9% was allocated to the replacement, extension and modernisation of equipment, and 13.5% to environmental and safety projects.

In the UK, EXOLUM-PS earmarked 37.6 million euros for the continued upgrade of its logistics infrastructure in order to improve efficiency and safety.

Exolum Aviation Ireland invested 2.6 million euros in the ongoing extension of the fuel storage facility at Dublin Airport.

16

In November 2020, the facilities owned by the InterTerminals Limited in the UK, Ireland, Germany and the Netherlands were acquired by the Exolum Group, which has invested 6 million euros in the terminals over the past two months.

CLH Panamá invested 0.4 million euros in the acquisition of supply vehicles.

Spanish-based company Exolum Solutions, which is engaged in the diversification of activities and the search for new business opportunities for the Group, invested 0.4 million euros in 2020.

The remaining investment was allocated to CLH Ecuador, a subsidiary of CLH Aviación, which has been providing services at Guayaquil airport since November 2019, and to financial investments.

Activity of the Exolum Group in the world

CLH

CLH is the leading company engaged in the transport and storage of oil products in the Spanish

market. The company has one of the largest and most efficient integrated networks for the

transport and storage of oil products in the world, with more than 4,000 kilometres of pipeline

and 39 terminals with a storage capacity of almost 8 million cubic metres.

CLH is engaged in the following activities:

- Storage, transport and distribution of oil products, primarily gasoline, diesel oil,

kerosene, fuel oil and biofuel, on the Iberian Peninsula and the Balearic Islands.

- Storage of strategic and commercial reserves.

17

- The provision of specialised services tailored to customers’ needs: biofuel blending,

quality analysis and control, metrology and additivation, etc.

The integrated management of storage and transportation activities and the use of the latest

technology allows the company to maintain a high level of efficiency, thus it was able to keep

the average price of its logistics services in 2020 below one euro cent per litre, which represents

less than 1% of the price paid by the end consumer per litre of fuel.

Deliveries of oil products

Oil product deliveries from CLH facilities in Spain in 2020 amounted to 36 million cubic metres, which represents a decrease of 24.3% over the previous year. This decline is due to the reduction in mobility as a result of the COVID-19 pandemic and continues to affect demand for automotive and particularly aviation products, which have been severely affected by the dramatic slump in air traffic in 2020.

Broken down by product, deliveries of gasoline and diesel oil fell by 15.0% compared to 2019, kerosene and aviation fuel decreased by 62.8% and fuel oils and IFOs fell by 47.2%. Furthermore, CLH continues to provide the naphtha dispatch service that started in December 2017, supplying nearly 1.1 million cubic metres in 2020.

The volume of oil products transported by pipeline reached 17.8 million tonnes. The company also transported 1.8 million tonnes by vessel, which represents a decrease of 33.8% compared to the previous year.

With regard to biofuel services, CLH managed 1.48 million cubic metres of biodiesel and HVO (hydrobiodiesel) and 0.16 million cubic metres of bioethanol. The company received biofuels already blended with diesel oil and gasoline and in their pure form or denatured in order to be blended in the loading arm and in-line.

At 31 December 2020, the storage capacity of CLH in Spain was 7.8 million cubic metres, with 7.5 million being for clean products and 0.3 million for fuel oil and other product storage.

Activity data 2018 2019 2020

Deliveries from facilities (thousand cubic metres) 46,880 47,531 35,988

Gasoline and diesel oil (thousand cubic metres) 36,066 36,544 31,068

Gasoline (thousand cubic metres) 5,715 6,089 4,919

Diesel oil (thousand cubic metres) 30,351 30,455 26,149

Aviation fuels (thousand cubic metres) 7,134 7,520 2,797

Kerosene (thousand cubic metres) 7,131 7,517 2,793

Aviation gasoline (thousand cubic metres) 3 3 3

Naphtha (thousand cubic metres) 1,376 1,458 1,064

Fuel oil (thousand cubic metres) 570 355 207

IFOs (thousand cubic metres) 1,734 1,654 853

Modes of transport activity

18

Tankers (thousand tonnes) 2,874 2,782 1,841

Oil pipelines (thousand tonnes) 23,456 24,160 17,795

CLH Aviación

In 2020, CLH Aviación had to adjust operations to the global crisis caused by the COVID-19

pandemic. This resulted in a significant decline in operations at various airports, and the

adoption of the necessary biosecurity measures.

CLH Aviación operates at 36 major airports in Spain and also provides services to the Airbus

plant in Getafe. In addition, it manages the six hydrant networks at the country’s main airports:

Adolfo Suárez Madrid-Barajas, Barcelona-El Prat, Malaga, Palma de Mallorca, Alicante and

Tenerife South, and has an extensive fleet of refuelling units and dispensers.

The company offers storage, distribution and into-plane services for aircraft fuels and

lubricants. It also manages and provides advice and technical assistance for the installation and

maintenance of distribution networks for different types of aviation fuels.

In 2020, CLH Aviación distributed 3 million cubic metres of fuel.

19

EXOLUM-PS

EXOLUM Pipeline System (EXOLUM-PS) provides fuel storage and transport services to various

military facilities and airports in the UK, such as Heathrow, Gatwick, Stansted and Manchester.

To this end, it has a 2,000-kilometre pipeline system and 13 terminals with a capacity of nearly

700,000 million cubic metres.

In 2020, the company renewed the agreement with the UK Ministry of Defence and laid the

foundation for a long-term contract. Furthermore, it made significant progress on the terminal

upgrade plan, particularly the improvement of the electrical installations in classified areas, and

reviewed the maintenance strategy to improve maintenance management. In addition, in a

year dominated by the pandemic, the company continued to provide its services without

significant incidents.

In 2021, the company is facing the important challenge of integrating the 15 new terminals

acquired at the end of 2020 into the system.

These transactions contribute to guaranteeing the company’s financial stability in forthcoming

years and cement EXOLUM-PS’s position as one of the main operators in the UK fuel industry.

20

Exolum Aviation Ireland

Exolum Aviation Ireland offers logistics services for the receipt, storage and dispatch of Jet A1

to all suppliers operating at Dublin Airport, as well as to the different into-plane fuelling agents.

The company is currently undertaking a major renovation of the fuel storage terminal at Dublin

Airport, which includes the expansion of the plant’s capacity and the construction of a new

hydrant system that will enable faster and more efficient operations.

In 2020, construction of the terminal and the hydrant system at Pier 1 and all civil works at

the facility were completed, and the new loading areas and the CCTV and fire-fighting systems

were commissioned. The commissioning of the hydrant system at Pier 1 is merely awaiting the

approval of Dublin Airport Authority (DAA).

Furthermore, Exolum Aviation Ireland replaced 75% of its light vehicle fleet with plug-in

hybrids in line with the Exolum Group’s commitment to be carbon neutral by 2050.

Exolum Aviation Ireland also renewed its ISO 9001 and 14001 certifications and obtained ISO

45001 certification.

CLH Panamá

CLH Panamá operates the fuel terminals and provides into-plane services at four airports in

Panama. The company manages fuel storage and supply at Tocumen International Airport and

at three other regional airports, where it consolidated operations in 2020.

In addition, the company is implementing a major project to modernise the supply system at

Tocumen airport, one of the largest on the American continent. In this regard, in 2020 CLH

Panamá collaborated on the expansion of new tanks, which are now in operation, as well as a

new hydrant network for the new terminal and its integration into the existing system, and

coordinated the necessary works.

CLH Aviación Ecuador

CLH Aviación Ecuador, a wholly owned subsidiary of CLH Aviación, has been performing

operation, maintenance and into-plane services at José Joaquín de Olmedo International

Airport in the city of Guayaquil (Ecuador) since November 2019 after being awarded the

contract tendered by the airport management company, Terminal Aeropuerto Guayaquil S.A.

(TAGSA).

21

The company is operating under a concession scheme for a period of ten years, for which

purpose it has incorporated new supply vehicles and implemented improvements at the facility

and in operations.

In 2020 the company was able to have the red code imposed on the airport as a result of a

nonconformity by the previous operator definitively lifted. This meant that certain airlines did

not refuel in Guayaquil. This year, CLH Aviación Ecuador earned the trust of the various airlines

and successfully passed the inspections and audits performed. In addition, it has received

several compliments from airline companies and aviation bodies for the quality of operations

and into-plane fuelling services.

Furthermore, operations have been consolidated, and procedures, equipment and processes

have been improved to bring them into line with EXOLUM standards.

OQL

The OQL company is jointly owned by EXOLUM (40%) and Omani company OQ, formerly Orpic

(60%). It designed, constructed and manages a storage terminal near Muscat with a capacity of

170,000 cubic metres, and a 300-kilometre pipeline connecting this new plant to two existing

refineries and to Muscat International Airport.

This network makes it possible to offer transportation and storage services for kerosene and

diesel oil, increasing the safety of oil product supply, optimising distribution costs and reducing

road tanker traffic.

In 2020 it began to provide a new strategic storage service for the government of Oman for a

total volume of 75,000 cubic metres comprising diesel, gasoline and Jet A-1. It also commenced

the provision of a new differentiated MOGAS98 additivation service for an estimated volume

of 2,000 cubic metres per year.

In 2020, OQL assets handled a volume of 3.7 million cubic metres. The high degree of flexibility

of OQL’s assets and the experience provided by the Exolum Group have been decisive in

minimising the impact of the Covid-19 crisis on OQL business, while ensuring an uninterrupted

fuel supply in the Sultanate of Oman.

TERQUIMSA

TERQUIMSA, in which Royal Vopak N.V. and CLH each own a 50% interest, is engaged in the

receipt, storage and forwarding of bulk liquid products from its facilities in the ports of

Tarragona and Barcelona.

22

TERQUIMSA has a total capacity of 643,000 cubic metres and stores more than 100 different

oil, biofuel, chemical and petroleum products.

In 2020, the company expanded the facilities in Tarragona by adding four new tanks with a total

capacity of 17,000 cubic metres.

The company handles approximately 2.5 million tonnes of products each year.

Other companies in the Exolum Group

To facilitate the international expansion of the Exolum Group and promote diversification,

EXOLUM has set up various companies in the USA and France, with the initial goal of seeking

out new business opportunities or the development and implementation of these

opportunities. However, these companies are not currently engaged in any industrial activity.

In 2020, the Exolum Group incorporated a new company under the name of Exolum Solutions,

whose primary mission is to promote the diversification of Exolum Group into new businesses,

and entrepreneurship.

1.4 Our setting

The energy sector is currently undergoing a process of transformation in a bid to meet the triple

challenge of reconciling supply safety with sustainability and competitiveness.

Furthermore, the logistics sector has always been highly sensitive to economic trends and,

therefore, is constantly evolving. However, we are now facing an unclear future with more

uncertainty than ever as a result of the unprecedented health crisis we are experiencing.

Despite the trend toward the decarbonisation of the energy sector and reducing emissions,

society continues to depend on oil products and demand will therefore continue to rise.

Oil continues to be the most important primary energy in the world, and most business

activities depend on oil as their power source, which accounts for around 31.41% of the world's

energy needs.

Two issues dominated activity in 2020: the impact of Covid-19 on the energy sector and the

prospects of accelerating the energy transition.

The immediate effects of the pandemic on total energy demand predictably fell by 5% in 2020,

while demand for oil decreased by 8%.

According to the latest report by the International Energy Agency (IEA), in terms of volume,

demand for oil will remain below 100 million barrels/day, at a similar level to 2019, which was

23

97.8 million barrels/day. This is due to the effects of the pandemic, which affects the oil

situation in numerous ways.

Nevertheless, global consumption of oil products will increase slightly by 0.3% up to 2040,

although consumption patterns will change. Therefore, the success of the business largely

depends on the company’s ability to develop a sound strategy that will enable it to identify and

mitigate the risks posed by the environment, including how society responds to adverse

situations such as a pandemic, and exploit opportunities in this new market context.

1. Global growth in demand for oil products, with differences between regions

As mentioned previously, global energy demand and demand for oil products in particular has

fallen, primarily due to the effects of Covid-19. However, the slight growth in demand in China

has remained steady compared to previous years and even with respect to forecasts for 2030,

while in the United States demand has stagnated compared to last year and has fallen slightly

with respect to 2030; in Europe, meanwhile, demand continues to decrease marginally.

In Spain, specifically, total demand for oil products had plummeted by 28.5% at 30 November

2020 according to CORES.

The latest World Energy Outlook report, published by the International Energy Agency,

forecasts moderate global growth in the demand for oil products of 0.6% per year in the lead-

up to 2030 and 0.4% per year in the lead-up to 2040. This growth in demand will be asymmetric,

with solid growth in non-OECD countries and a slight progressive decline in OECD countries.

The Exolum Group’s response to these perspectives is to promote the company’s international

expansion in growing markets, boosting the competitive advantages of the Exolum Group, and

seizing opportunities to develop new logistics infrastructure in other countries and businesses

related to our core activity.

Likewise, the Exolum Group is reinforcing its activity, focusing on efficiency and the

development of new services in countries with stagnant demand. In the case of Spain, it is

increasing the flexibility of the Group’s coastal terminals so that they are capable of accepting

all product and blend types.

2. Trends in demand for the different oil products during the Covid-19 crisis

As mentioned previously, energy demand is expected to fall by approximately 5% per year from

2020 onwards. During the last century, only the two world wars and the Great Depression

caused a greater decline in demand than the Covid-19 crisis. At the time, some energy sectors

were more affected than others and the same is expected to occur again.

Measures to halt the pandemic, such as local lockdowns, ongoing remote working and a

currently weak aviation sector will continue to slow down consumption, which means that the

shadow of the pandemic still looms over the short-term outlook for oil.

24

In fact, demand for oil will decrease by 8%, and the aviation fuel segment, which currently

accounts for more than 7% of total oil consumption, will be the hardest hit, as changes in

consumer behaviour will have longer-lasting effects.

The 10% decline in business travel will largely be responsible for reducing demand for oil by

approximately 0.2 million barrels/day up to 2030. In the aviation sector, consumption stood at

around 3 million barrels/day, which represents a drop of 40% over 2019 levels.

Despite this, however, demand for oil in the aviation sector is expected to rise by 1.2 million

barrels/day between 2019 and 2030, accounting for a quarter of total growth in demand for oil.

The use of sustainable biofuels and low-carbon hydrogen-based fuels will play a key role in long-

term efforts to reduce the use of oil derivatives in the aviation industry.

However, following the drop in demand for automotive oil in the aftermath of the pandemic,

consumption will return to pre-Covid-19 levels in 2021, and remain stable at 2019 levels up to

2030. Demand for petrochemical oil remains robust during the recession.

In order to alleviate this situation, the Exolum Group has put a greater focus on products with

prospects for greater growth, particularly sustainable aviation fuels and non-oil products.

Exolum Solutions, S.L, the Exolum Group subsidiary dedicated to exploiting new business

opportunities and committed to the sustainable development of our planet, launched the

Avikor platform which offers individuals and businesses the possibility to fly more sustainably

by using sustainable aviation fuel (SAF) to reduce emissions.

Furthermore, the Exolum Group is adapting its assets to new demands for marine fuels and

increasing the flexibility of its coastal terminals in Spain so that they are capable of accepting

all product and blend types.

3. Transition towards a low-carbon economy

The 2015 Paris Agreement, part of the United Nations Framework Convention on Climate

Change, marked a milestone with the accession of more than 120 countries.

Specifically, the European Union has developed a Climate and Energy Framework for 2030,

which sets ambitious targets for the reduction of greenhouse gas emissions, energy efficiency

and the development of renewable energies, and is working to establish a reference framework

in the lead-up to 2050 in line with the progressive decarbonisation of the economy. Within all

this, biofuels play an important role.

In this context, the Exolum Group continues to develop new services associated with fuel

storage and transportation, progressing towards diversification and expanding its logistics

services to cater for other products which allow the Group to take advantage of its capabilities

and ensure the sustainability of the business. It is also focusing on RDI projects for the

25

development of alternative energies, thus enabling us to contribute to the sustainability of the

planet and gain a foothold in new sectors where the company’s experience brings added value.

In this regard, the Exolum Group has identified and is developing business models for the

production, distribution and use of energy solutions and fuels made from waste or sustainable

raw materials.

4. Digital revolution

The rapid development of new information technologies and mobile connectivity is quickly

transforming a large number of economic sectors, including the oil products logistics sector.

In this regard, the Exolum Group is focusing on technology as a source of competitive

advantage, enhancing automation and remote management, predictive maintenance through

big data techniques, the development of proprietary logistic system optimisation technologies,

and advanced expert project engineering.

The Exolum Group is laying the groundwork to become a data-driven company, thus allowing it

to make informed strategic decisions based on data analysis and interpretation. To this end, it

is designing new digital systems by developing cloud infrastructure and platforms in preparation

for the implementation of digital initiatives that will allow it to secure efficiencies and even new

business opportunities.

1.5 Corporate governance

1.5.1 Governance structure

General Shareholders’ Meeting

The General Shareholders’ Meeting is the main governing body of CLH and has the power to

resolve on matters that affect the company that, by law or under the Articles of Association,

are not assigned to other company bodies. Ordinary General Shareholders’ Meetings are held

within the first six months of each calendar year in order to assess company management,

approve the financial statements and decide on the allocation of the results.

Board of Directors

The Board of Directors is the top decision-making body of CLH, except in matters that are

reserved to the General Meeting, and holds authority over matters related to the management

of the organisation. The Board acts at all times with the principle of maximisation of the

company's value, both in the long and the short term, supervising the performance of business

and securing its present and future viability. The composition, powers and functioning of the

Board are regulated through the Articles of Association and the Board of Directors' Regulations.

26

Within the Board of Directors, there are complementary bodies to optimise corporate

governance, such as the Audit Committee and the Appointments and Remuneration

Committee.

Composition

In 2020 the Board comprised 21 directors: a chairman, a chief executive officer and 19 external

proprietary directors. The term of office of its members is five years.

The composition of the Board at 31 December is as follows:

Chairman

José Luis López de Silanes Busto

Chief Executive Officer

Jorge Lanza Perea - Executive Director

Members

Borchi Investments Holding B.V., represented by Mr Lee James Crossingham

Borealis Spain Holdings B.V., represented by Mr Marco Pugliese

Borealis Spain Parent, B.V., represented by Mr Philippe Anastase Busslinger

Borealis Spain Parent 2, B.V., represented by Ms Sarah Vartanouche Juliette Obozian

Castillo Spanish Holdings LP, represented by Mr Timothy Gerald Formuziewich

MEIF 5 Co-Invest Rey Investments, S.à.r.l., represented by Ms Irene Otero-Novas

Miranda

MEIF 5 Rey Holdings, S.L., represented by Mr Juan Sebastián Caño Sterck

MEIF 5 Rey Investments, S.à.r.l., represented by Mr Willem Smit

MEIF 5 Rey Ventures, S.à.r.l., represented by Mr Miguel Antoñanzas Alvear

Mr Charles Son Portalier

Mr Jean Baptiste Michel Renard

Mr Juan Rodríguez Inciarte

Simcoe Titán, S.L., represented by Mr Guillermo Briones Godino

Stichting Depositary APG Infrastructure Pool 2017 II, represented by Mr Carlo

Maddalena

Theatre Directorship Services Alpha, S.à.r.l., represented by Mr Juan Arbide Estensoro

Theatre Directorship Services Beta, S.à.r.l., represented by Mr José Antonio Torre de

Silva López de Letona

Theatre Directorship Services Gama, S.à.r.l., represented by Mr Arnau Doria Torra

Vaugirard Infra, S.L., represented by Mr Fréderic Jean Daniel Payet

Mr Jan Reinier Voute

27

Secretary

Luis Valero Quirós

Board Committees

Audit Committee

The role of the Audit Committee is to establish the relevant relationships with external auditors

and supervise the company’s internal control and risk management systems, as well as

conducting internal audits and regulated financial reporting. This body consists of five non-

executive external directors, all of whom are proprietary directors with knowledge and

experience in accounting and auditing.

Chairman

Juan Rodríguez Inciarte

Members

MEIF 5 Co-Invest Rey Investments, S.à.r.l., represented by Ms Irene Otero-Novas

Miranda

Mr Jan Reinier Voute

Vaugirard Infra, S.L., represented by Mr Fréderic Jean Daniel Payet

Stichting Depositary APG Infrastructure Pool 2017 II, represented by Mr Carlo

Maddalena

Secretary

Luis Valero Quirós

Appointments and Remuneration Committee

The Appointments and Remuneration Committee is responsible for reporting or making

proposals regarding the appointment and remuneration of directors, members of the Board

and company executives. This body consists of four non-executive external directors, all of

whom are proprietary directors.

Chairman

MEIF 5 Rey Holdings, S.L., represented by Mr Juan Sebastián Caño Sterck

Members

Borealis Spain Holdings B.V., represented by Mr Marco Pugliese

Castillo Spanish Holdings LP, represented by Mr Timothy Gerald Formuziewich

28

Theatre Directorship Services Beta, S.à.r.l., represented by Mr José Antonio Torre de

Silva López de Letona

Secretary

Luis Valero Quirós

Board of Directors' Regulations

The Board of Directors’ Regulations follow the recommendations of the Unified Good

Governance Code of Listed Companies as regards the need for the Board to devote at least one

meeting per year to assessing its functioning and the quality of the work it has done. The result

of this assessment for 2020 is that the functioning and the performance of duties by the Board

and its committees, chairman, chief executive officer and secretary have been satisfactory.

The information on remuneration accrued in 2020 by the directors and executives of the

companies pertaining to the Exolum Group is contained in the notes to the financial statements.

Management Committee

The Management Committee is an internal governance and oversight body in charge of

reporting to the top governing body on the most relevant issues of company management.

The mission of the Management Committee is to define CLH's strategic guidelines, to align the

operational strategies of all the business units and to coordinate corporate management

departments with the company's general strategy and the needs of the business units.

Duties of the Management Committee:

Approval of annual budgets and management plans, which are submitted to the

Board of Directors for final approval.

Follow-up on the Exolum Group’s income statement.

Planning of the company’s operational needs in the short and medium term.

Analysis of new market trends and identification of new strategic projects.

Approval of strategic and investment projects according to current regulations

and their follow-up.

Analysis and follow-up of operational and commercial activities and new

business projects.

Analysis and follow-up of process safety and quality indicators.

Progress on the design of a single scorecard that identifies criteria, information

resources and the person responsible for updates to serve as a basis for

monitoring the business.

29

In 2020 the Exolum Group adapted the organisational structure of the Management

Committee to the new challenges that have arisen as the company progresses with the

internationalisation and diversification process.

These changes were intended to simplify the structure and to organise the Exolum Group’s

different businesses by geographic region, thus making it easier for them to share good

practices and exploit the synergies between the different activities.

Accordingly, two regional Performance Units have been created:

Spain Region: comprising the current network and aviation businesses in Spain, and

the aviation activities the Exolum Group is currently carrying out in Ireland, Panama

and Ecuador.

North West Europe (NWE) Region: encompassing the activities the Exolum Group is

currently carrying out in the UK, Ireland, Germany and the Netherlands.

In addition, to ensure that uniform policies and standards are implemented across all the

Group’s business areas, and to more clearly separate the global and corporate functions

providing support to all business units, four broad support areas have been created:

Global Strategy & Innovation: encompasses the activities previously carried out by

the Corporate Strategy and Business Development areas. It focuses on developing

the strategy of the businesses in Spain, NWE and Exolum, the business unit

responsible for promoting the diversification of our business model and innovation

within the Group.

Global Finance: comprises the same economic and financial functions with an overall

vision, and provides support to the different regions and companies.

Global People: encompasses human resources management and other company

management support units with the goal of continuing to promote talent within the

Exolum Group in a more integrated and coordinated manner.

Global HSSE & Technology: includes the activities carried out by the technical area

in addition to HSSE activities. Its objective is to facilitate the uniform development

of technology throughout the organisation from all perspectives (IT, cybersecurity,

OT, Digital Agenda, Asset Management and Global Engineering).

Composition of the Management Committee (at 31 December 2020):

Chief Executive Officer: Jorge Lanza Perea

General Secretary and Secretary to the Board: Luis Valero Quirós

30

Global Strategy & Innovation Lead: Andrés Suarez Fernández

Global Finance Lead: David Folgado Delgado

Global People Lead: Cristina Jaraba Delgado

Global HSSE & Technology Lead: Javier Alonso González

Spain Region Lead: Jorge Guillén García

NWE (North West Europe) Lead: Ignacio Casajús López

Corporate culture and identity

The Exolum Group promotes behaviour based on ethical criteria of transparency and good

corporate governance. This commitment is set out in the Code of Conduct, which includes

guidelines for conduct applicable to all persons in the Group, including senior management and

directors, and compliance is also encouraged among suppliers, contractors and partners.

CLH also has an Ethics Committee that ensures compliance with the Code of Conduct and is

responsible for promoting awareness of the Code. In addition, there is an Internal

Communication Channel (Code of Conduct Mailbox) on the company website and the Corporate

Portal for all stakeholders. This is the platform established for the confidential and anonymous

submission of questions and clarification of doubts in relation to suspected misconduct,

including, due to their serious nature, potential criminal risks.

The Ethics Committee is also responsible for assessing these communications and deciding what

action to take, depending on the nature of the case. In 2020 no communications were received

in relation to bribery or corruption.

Another responsibility of the Ethics Committee is to supervise the performance of the criminal

risk prevention model, which entails a strict, independent, autonomous, objective and

confidential analysis of alleged criminal incidents reported through the Internal Communication

Channel (Code of Conduct Mailbox).

Moreover, the Exolum Group guarantees equal opportunities in job recruitment and

promotion. This commitment is materialised in the Equal Opportunities Plan and the Protocol

for the prevention of and response to harassment at work.

In compliance with section 7.3 of the Exolum Group’s Protocol for the prevention of and

response to harassment at work, which provides that statistical information on incidents of

harassment at work shall be reported to the Ethics Committee, no investigations were opened

in 2020. In addition, the investigation initiated in 2019 was concluded and the mandatory final

report drawn up, which concluded that no evidence of harassment had been found, and the

case was therefore closed.

31

CLH policy on ethics, integrity and criminal risk prevention was extended to the company’s

international subsidiaries in early 2020. Therefore, in 2020, CLH reviewed and simplified the

regulations on ethics, integrity and criminal risk prevention in order to streamline them and

enable their application in all companies of the Exolum Group and in every jurisdiction in which

it operates.

1.6 What we focus on

The contents of this report are based on the material issues identified by the Exolum Group,

which cover the expectations and perceptions of the stakeholders with whom the company

engages and creates value in the short, medium and long term. In 2020, the company

conducted an internal materiality review to verify the relevance of material issues.

The process to identify matters that are relevant to the company consists of four stages:

Identification, Prioritisation, Validation and Review.

Once all the data obtained were identified and weighted, the following materiality matrix was

generated and subsequently reviewed and validated by those responsible for the main areas.

1.7 Risks and opportunities

The Exolum Group has an integrated Risk Control and Management System, which makes it

possible to appropriately deal with any risks to which the company’s activities are exposed.

The company has structured risks into four main groups: strategic risks, operational risks,

reporting/financial risks and compliance risks.

32

The bodies responsible for the supervision, maintenance and implementation of the Risk

Management System are as follows:

- Audit Committee

- Management Committee

- Corporate Responsibility Committee

- Ethics Committee

- Risk Map Technical Secretary’s Office

One of the key elements of the system is the Risk Map, a document in which EXOLUM identifies

the main risks that impact the achievement of its strategic objectives. The Risk Map is subject

to the approval of the Audit Committee and monitored regularly.

In 2020, the Group updated the Risk Map for CLH, CLH Aviación and EXOLUM PS, and estimated

the financial impact on the income statement should the risks identified for EXOLUM, CLH

Aviación and EXOLUM PS occur.

1.8 How we engage with others

The Exolum Group has various communication channels in place to allow it to maintain an open,

close and transparent dialogue with its main stakeholders.

The company uses its website and the main social media to report all types of information on

its activities. In addition, it publishes a quarterly corporate magazine that is distributed to

employees of the organisation and its main external contacts.

Moreover, EXOLUM regularly participates in consulting sessions, newsletters, trade

publications and surveys, to name a few.

CHAPTER 2. Creating value among our stakeholders

2.1 Creating value through CSR

Management of Corporate Social Responsibility in the Exolum Group is structured at three

levels:

The Strategic Plan, which includes the company’s main lines of work, and encompasses:

improving the efficiency of its activities, developing new business opportunities,

searching for new international projects and creating value in local communities.

The Corporate Social Responsibility Policy, based on the establishment of relations of

trust with the company’s stakeholders, in accordance with its mission, vision and values

and the ten principles of the United Nations Global Compact.

33

The Corporate Social Responsibility Master Plan, included in the Strategic Plan, which

defines the actions of the company in this area. The plan provides for the roll-out of the

model to the Group’s international businesses, after tailoring it to the conditions and

specific features of the countries where these are located.

The main lines of action the company pursues in relation to its stakeholders (employees,

customers, suppliers, society as a whole or the area surrounding its facilities) are described in

this report.

2.2 Value creation among our stakeholders. Creating value for our employees

One of the priorities of the Exolum Group is to offer company employees a satisfactory working environment and an attractive career through training, career development, work-life balance, diversity, talent attraction and retention, and occupational health and safety policies.

The company also actively promotes responsible management in line with the principles of ethical behaviour enshrined in the Code of Ethics and corporate values.

The workforce of the Exolum Group is made up of a total of 2,137 people, of whom 1,187 work in Spain and the remaining 930 (44%) in the other countries where the Exolum Group operates.

2.2.1 Workforce characteristics

In 2020, the workforce of the Exolum Group in Spain comprised 1,183 professionals, as well as four employees working abroad on international projects (EXOLUM-PS, OLC and Exolum Aviation Ireland). For its part, EXOLUM-PS has 265 employees, Exolum Aviation Ireland, 15, CLH

Panamá, 92, CLH Aviación Ecuador, 29, ITL, 527 and Exolum Solution S.L., 4.

In Spain, the plans for termination of employment by mutual agreement, agreed with the workers’ representatives, have allowed the company to align professional profiles with company needs.

These plans have also promoted the creation of youth employment and the gradual incorporation of women into the workforce. In 2020 in Spain, women accounted for 73% of technical hires and 26% of total hires.

Evolution of the workforce 2018 2019 2020

Number of Exolum Group employees in Spain (CLH + CLH Aviación)

1,319 1,277 1,183

EXOLUM-PS --- 263 265

Exolum Aviation Ireland --- 14 15

CLH Panamá --- 129 92

CLH Aviación Ecuador 33 29

34

ITL UK 411

ITL Germany 69

ITL Netherlands 47

ITL Ireland 20

Other 5 6 6

Total Exolum Group 1,324 1,722 2,137

Percentage distribution of workforce by gender 2018 2019 2020

Exolum Group in Spain Men 87% 87% 86%

Women 13% 13% 14%

EXOLUM-PS Men --- 84% 82%

Women --- 16% 18%

Exolum Aviation Ireland Men --- 86% 80%

Women --- 14% 20%

CLH Panamá Men --- 94% 91%

Women --- 6% 9%

CLH Aviación Ecuador Men --- 94% 86%

Women --- 6% 14%

ITL UK Men --- --- 85%

Women --- --- 15%

ITL Germany Men --- --- 86%

Women --- --- 14%

ITL Netherlands Men --- --- 89%

Women --- --- 11%

ITL Ireland Men --- --- 90%

Women --- --- 10%

Percentage distribution by type of contract, broken down by gender

2018 2019 2020

Men Women Men Women Men Women

Exolum Group in Spain

Permanent 81.6% 93.0% 84.0% 88.9% 88.2% 88.3%

Other 18.4% 7.0% 16.0% 11.1% 11.8% 11.7%

EXOLUM-PS Permanent -- -- 96.8% 97.6% 98.2% 88%

Other -- -- 3.2% 2.4% 1.8% 12%


Permanent -- -- 100% 50% 83.4% 33%

Other -- -- 0% 50% 16.6% 66%

CLH Panamá Permanent -- -- 89.91% 100% 100% 100%

Other -- -- 10.09% 0% 0% 0%


Permanent -- -- 7% 50% 100% 100%

Other -- -- 93% 50% 0% 0%

ITL UK Permanent -- -- -- -- 99% 93%

Other -- -- -- -- 1% 7%

ITL Germany Permanent -- -- -- -- 100% 100%

Other -- -- -- -- 0% 0%

Permanent -- -- -- -- 98% 100%

35

ITL Netherlands

Other -- -- -- --

2% 0%

ITL Ireland Permanent -- -- -- -- 56% 100%

Other -- -- -- -- 44% 0%

Other workforce diversity indicators 2018 2019 2020


% international employees 1.1% 0.7% 0.7%

Average age 42.5 42.6 42.5

% of women hired for technical positions 14% 56% 73%

EXOLUM - PS % international employees -- 8.8% 7.9%

Average age -- 46.8 47.5

% of women hired for technical positions -- 0% 0


% international employees -- 21.4% 26.6%

Average age -- 37 37.8

% of women hired for technical positions -- 50% 33%

CLH Panamá % international employees -- 5.5% 0%

Average age -- 42.1 43.0

% of women hired for technical positions -- 2.3% 3.8%

CLH Aviación Ecuador % international employees -- 3% 3%

Average age -- 38 36

% of women hired for technical positions -- 3% 7%

ITL UK % international employees -- -- 1.7%

Average age -- -- 46

% of women hired for technical positions -- -- ----

ITL Germany % international employees -- -- 8.7%

Average age -- -- 43.4


ITL Netherlands % international employees -- -- 0%


% of women hired for technical positions -- -- ---

ITL Ireland % international employees -- -- 0%



Percentage distribution by professional category

2018 2019 2020



Management Departments/Sections

2.7% 0.3% 2.7% 0.4% 2.5% 0.5%

Supervisors/Middle-managers

7.8% 2.4% 8.1% 2.3% 9.6% 3.0%

Professionals 25.2% 7.2% 23.3% 7.7% 23.1% 8.0% Administrative staff 4.9% 1.9% 5.2% 2.2% 5.2% 2.0% Specialists/Qualified operators

46.5% 1.2% 47.3% 0.9% 45.4% 0.8%

36

Percentage distribution by professional category

2019 2020

Men Women Men Women

EXOLUM-PS


1.9% 0.4% 1.9% 0.4%

Supervisors/Middle-managers

14.1% 1.1% 17.4% 2.7%

Professionals 9.2% 6.1% 9.4% 6.8%

Administrative staff 1.9% 8.0% 1.5% 7.9%

Specialists/Qualified operators

56.9% 0.4% 51.7% 0.4%

Percentage distribution by professional category 2019 2020

Men Women Men Women


Management Departments/Sections --- --- --- ---

Supervisors/Middle-managers 21.4% 7.1% 13.3% 6.6%

Professionals 0.0% 0.0% 0% 0%

Administrative staff 0.0% 7.1% 0% 6.6%

Specialists/Qualified operators 64.3% 0.0% 66.6% 6.6%

Percentage distribution by professional category 2019 2020

Men Women Men Women

CLH Panamá


--- --- --- ---

Supervisors/Middle-managers 1.6% 2.3% 1.6% 2.3%

Professionals 7.0% 3.1% 7.5% 2.5%

Administrative staff 8.6% 1.6% 8.3% 1.6%

Specialists/Qualified operators 72.7% 0.0% 76.2% 0.0%

Percentage distribution by professional category 2020

Men Women


Management Departments/Sections --- ---

Supervisors/Middle-managers 3% 0%

Professionals 10% 7%

Administrative staff --- 3%

Specialists/Qualified operators 77% 0%


Men Women

ITL UK Management Departments/Sections

6.8% 0.7%

Supervisors/Middle-managers 17.0% 1.5%

Professionals 11.4% 3.9%

37

Hours of absenteeism Exolum Group in Spain 2019 % 2020 %

Theoretical hours 2,291,965 2,098,946

Hours of absenteeism common illness + non-work-related accidents

109,598 4.78% 105,309 5.02%

Hours of absenteeism accidents at work 7,947 0.35% 19,037 0.91%

Total hours lost 117,545 5.13% 124,346 5.92%

WOMEN

Theoretical hours 286,375 296,540


13,685 4.78% 8,061 2.72%

Hours of absenteeism accidents at work 16 0.01% 400 0.13%

Administrative staff 0.2% 0.7%


49.4% 8.3%


Men Women

ITL Germany


5.8% 0%

Supervisors/Middle-managers 7.3% 0%

Professionals 17.4% 0%

Administrative staff 0% 8.7%


55.1% 5.8%


Men Women

ITL Netherlands


10.6% 2.1%

Supervisors/Middle-managers 8.5% 0%

Professionals 23.4% 2.1%

Administrative staff 2.1% 4.3%


44.7% 2.1%


Men Women

ITL Ireland


0% 0%

Supervisors/Middle-managers 10% 0%

Professionals 5% 0%

Administrative staff 0% 0%


75% 10%

38

Total hours lost 13,700 4.78% 8,461 2.85%

MEN

Theoretical hours 2,005,590 1,802,406


95,914 4.78% 97,248 5.40%

Hours of absenteeism accidents at work 7,931 0.40% 18,637 1.03%

Total hours lost 103,845 5.18% 115,885 6.43%

Hours of absenteeism EXOLUM - PS 2019 % 2020 %

Theoretical hours 471,934.52 464,423.86


18,968.69 4.02% 10,403.85 2.24%


Total hours lost 18,980.69 4.02% 109,88.85 2.37%

WOMEN %



5,736.82 7.07% 2,529.25 3.23%

Hours of absenteeism accidents at work 0 0.00% 0 0%

Total hours lost 5,736.82 7.07% 2,529.25 3.23%

MEN % 2020 %



13,231.87 3.39% 11,912.5 3.08%


Total hours lost 13,243.87 3.39% 12,497.5 3.24%

Hours of absenteeism Exolum Aviation Ireland 2019 % 2020 %


Hours of absenteeism common illness + non-work-related accidents 190 0.75%

148 0.58%

Hours of absenteeism accidents at work --- --- 12 0.05%

Total hours lost 190 0.75% 172 0.67%

WOMEN %



8 0.21%

Hours of absenteeism accidents at work --- --- --- ---

Total hours lost 26 0.85% 8 0.21%

MEN %



140 0.68%

Hours of absenteeism accidents at work --- --- 12 0.05%

39

Total hours lost 152 0.69% 152 0.74%

Hours of absenteeism CLH Panamá 2020 %

Theoretical hours 161,332


1,672 1.03%

Hours of absenteeism accidents at work 0 0

Total hours lost 1,672 0

WOMEN



0 0


Total hours lost 0 0

MEN

Theoretical hours 14.3537


1672 1.16


Total hours lost 1672 1.16

Hours of absenteeism CLH Ecuador 2020 %



5,822 8.54%

Hours of absenteeism accidents at work --

Total hours lost 5,822 8.54%

WOMEN



Hours of absenteeism accidents at work

Total hours lost

MEN


Hours of absenteeism common illness + non-work-related 5,822 9.24%

Hours of absenteeism accidents at work


40

Hours of absenteeism ITL UK 2020 %



2,226 2.28%

Hours of absenteeism accidents at work 0 0%


WOMEN



210 1.42%


Total hours lost 210 1.42%

MEN



2,016 2.43%



Hours of absenteeism ITL Germany 2020 %



1,063 5.90%



WOMEN



118 5.10%



MEN



945 6.02%



Hours of absenteeism ITL Netherlands 2020 %


41


416 4.16%



WOMEN

Theoretical hours 119


0 0.00%



MEN



416 4.16%

Hours of absenteeism accidents at work 0 0.00%


Hours of absenteeism ITL Ireland 2020 %



17 0.58%



WOMEN

Theoretical hours 285.6


9.6 3.36%


Total hours lost 9.6 3.36%

MEN



7 0.27%



2.2.2 Satisfactory working conditions

The Exolum Group guarantees equal opportunities in job recruitment and promotion. In Spain, this commitment is enshrined in the Equal Opportunities Plan for CLH and CLH Aviación and the Protocol for the prevention of and response to harassment at work.

Throughout 2020, work has been carried out to develop a strategy to promote diversity and inclusion in the company, and a working group, Women in Movement (WIM), was set up to create a forum and space to listen to and identify needs and take concrete actions to further and support this initiative. The main objectives of the group are as follows:

Provide value to the company by fostering diversity through inclusion.

42

Think, work and feel like a diverse team that is open and inclusive in order to contribute to the achievement of the Exolum Group’s strategy, investing in digital transformation, innovation, sustainability and diversity.

Be a part of the companies that are leading the way in diversity.

The group presented its strategic lines to the Board, which are as follows:

Create awareness of the value of diversity: empirical evidence shows that diversity is an asset, as indicated in reports such as Diversity Matters (McKinsey).

Provide value to the Exolum Group: diverse teams are more innovative and creative and increase productivity; our differences complement each other, and it is easier to retain talent.

Transformation of leadership: diverse leadership is complementary, it brings different visions. New forms of leadership are needed to better showcase and promote diverse talent.

Cultural change: internalise the value that diversity brings and the need to embrace it in EXOLUM.

The Exolum Group pays the same base salary to all employees in the same professional category and development level. The entry-level salary in the Exolum Group in Spain for the lowest category is € 20,448 per annum, which is 60% higher than the national minimum wage.

In Spain, any differences in the final wage rate of men and women are not gender-related, but due to differences in the average length of service of employees in the company and in the position, and the gap tends to level out over time. This situation is primarily due to the company’s historical gender composition, which means that men generally have a longer service record than women, in line with the rest of the industry.

2019 2020

Exolum Group in Spain (€) Men Women Men Women

Minimum wage by gender 20,216 23,624 20,448 24,147

National minimum wage 12,600 12,600 13,300 13,300

Ratio 160% 187% 154% 182%

EXOLUM-PS (€) Men Women Men Women

Minimum wage by gender 14,160 24,334 17,767 23,433

National minimum wage 9,066 18,891 10,410 18,704

Ratio 156% 129% 171% 125%

Exolum Aviation Ireland (€) Men Women Men Women

Minimum wage by gender 45,000 33,500 45.000 34.501

Minimum wage 19,872 19,872 20.483 20.483

Ratio 226% 169% 220% 168%

CLH Panamá (€) Men Women Men Women

Minimum wage by gender 6,443.32 5,476.82

Minimum wage 5,868.38 5,868.38

43

Ratio 109.8% 93.3%

CLH Aviación Ecuador (€) Men Women Men Women

Minimum wage by gender 4,800.00 16,200.00 5,616.00 5,400.00

Minimum wage 4,704.00 4,704.00 4,800.00 4,800.00

Ratio 102% 344% 117% 113%

ITL UK (€) Men Women Men Women

Minimum wage by gender -- -- 15,807 (Apprentice) 20,669

Minimum wage -- -- 17,457.44 17,457

Ratio -- -- 91% 118%

ITL Germany (€) Men Women Men Women

Minimum wage by gender -- -- 28,222 28,330

Minimum wage -- -- 19,448 19,448

Ratio -- -- 145% 146%

ITL Netherlands (€) Men Women Men Women


Minimum wage -- -- 20,218 20,218

Ratio -- -- 157% 190%

ITL Ireland (€) Men Women Men Women


Minimum wage -- -- 20,384 20,384

Ratio -- -- 198% 167%

Average remuneration by category

EXOLUM Spain (€)

2019 2020

Management Departments/Sections 196,750 184,623

Supervisors/Middle-managers 81,847 80,653

Professionals 57,521 57,711

Administrative staff 43,168 43,178

Specialists/Qualified operators 40,407 41,600


EXOLUM- PS (€)

2019 2020

Management Departments/Sections 108,615 118,191






Exolum Aviation Ireland (€)

2019 2020

Management Departments/Sections --- ---


44

Professionals --- ---



Average remuneration by category CLH

Panamá (€)

2019 2020

Management Departments/Sections ---





Average remuneration by category CLH

Aviación Ecuador (€)

2019 2020

Management Departments/Sections -- --

Supervisors/Middle-managers -- 65,975

Professionals -- 18,425

Administrative staff -- 10,424

Specialists/Qualified operators --

Average remuneration by category ITL UK

(€)

2019 2020

Management Departments/Sections -- 115,864




Specialists/Qualified operators -- 39,065

Average remuneration by category ITL

Germany (€)

2019 2020







Netherlands (€)

2019 2020






45


Ireland (€)

2019 2020




Administrative staff -- --


Average remuneration by age EXOLUM Spain (€) 2019 2020

>50 75,571 73,986

30-50 50,474 52,664

<30 35,402 36,360

Average remuneration by age EXOLUM-PS (€) 2019 2020

>50 42,653 50,356

30-50 52,781 54,093

<30 31,126 38,801

Average remuneration by age Exolum Aviation Ireland (€) 2019 2020

>50 45,315 45,655

30-50 46,960 48,666

<30 39,250 39,391

Average remuneration by age CLH Panamá (€) 2019 2020

>50 13,029 12,091

30-50 9,464 9,020

<30 9,592 8,642

Average remuneration by age CLH Aviación Ecuador (€) 2019 2020

>50 -- 3,672

30-50 -- 10,139

<30 -- 7,807

Average remuneration by age ITL UK (€)

>50 -- 50,607

30-50 -- 45,450

<30 -- 34,888

Average remuneration by age ITL Germany (€) 2019 2020

>50 -- 76,027

30-50 -- 46,555

<30 -- 32,384

Average remuneration by age ITL Netherlands (€) 2019 2020

>50 -- 57,310

30-50 -- 48,269

<30 -- 34,644

46

Average remuneration by age ITL Ireland (€) 2019 2020

>50 -- 50,168

30-50 -- 35,218

<30 -- 0

Pay gap EXOLUM Spain (€)

Category Men Women Pay gap

Management Departments/Sections*

196,187 128,729 -34.4%

Supervisors/Middle-managers 80,690 80,538 -0.2%

Professionals 57,815 57,414 -0.7%

Administrative staff 43,202 43,117 -0.2%

Specialists/Qualified operators 41,537 45,028 8.4%

*The ratio of women to men is lower as women have less seniority in the job. Additions to the job

category during the year (not including some variable pay items) reduce the average remuneration of

women.

Pay gap EXOLUM-PS (€)



118,971 114,290-3.9%


Professionals 62,867 53,472 -14.9%

Administrative staff 28,791 26,651 -7.4%

Specialists/Qualified operators 36,939 33,328 -9.8%

Pay gap Exolum Aviation Ireland (€)


Management Departments/Sections --- --- ---

Supervisors/Middle-managers 67,479 34,501 -49%

Professionals --- --- ---

Administrative staff --- 32.470 ---

Specialists/Qualified operators 46,143 45.000 -2%

Pay gap CLH Panamá (€)




Professionals 850 1,389 63.5%

Administrative staff 687 695 1.2%


47

Pay gap CLH Ecuador (€)



--- --- ---

Supervisors/Middle-managers 4,152 --- ---

Professionals 19,286 16,071 -16.7%

Administrative staff --- 0 ---

Specialists/Qualified operators 7,071 --- ---

Pay gap ITL UK (€)



117,883 97,026 -18%

Supervisors/Middle-managers 54,400 37,586 -31%

Professionals 59,254 55,843 -6%

Administrative staff 17,076 15,514 -9%

Specialists/Qualified operators 41,261 25,952 -37%

Pay gap ITL Germany (€)



164,034 -- --

Supervisors/Middle-managers 63,559 -- --

Professionals 59,898 -- --

Administrative staff -- 32,797 --

Specialists/Qualified operators 27,007 40,281 49%

Pay gap ITL Netherlands (€)



104,327 74,420 -29%

Supervisors/Middle-managers 56,656 70,307 24%

Professionals 74,154 51,122 -31%

Administrative staff 68,773 56,221 -18%


Pay gap ITL Ireland (€)



-- -- --

Supervisors/Middle-managers 82,014 -- --

Professionals 53,064 -- --

Administrative staff -- -- --

48


Other salary indicators of the Exolum Group in Spain 2018 2019 2020

Ratio between the remuneration of the highest paid

employee and the average received by the rest of the

employees

13 12 13

Ratio between the remuneration of the highest paid

employee and the remuneration of the lowest paid

employee

21 20 22

Ratio between the increase in the remuneration of the

highest paid employee and the average increase in the

remuneration of all employees

0 0.6 4.9

Other salary indicators of EXOLUM - PS 2019 2020

Ratio between the remuneration of the highest paid employee and the

average received by the rest of the employees 3.2 3.1


remuneration of the lowest paid employee 10.3 10.5

Ratio between the increase in the remuneration of the highest paid

employee and the average increase in the remuneration of all employees 1.18 0

Other salary indicators of Exolum Aviation Ireland 2019 2020

Ratio between the remuneration of the highest paid employee and the average

received by the rest of the employees 1.6 1.6


remuneration of the lowest paid employee 2.2 2.2

Ratio between the increase in the remuneration of the highest paid employee

and the average increase in the remuneration of all employees 2.2 2

Other salary indicators of CLH Panamá 2020


received by the rest of the employees

9.7


remuneration of the lowest paid employee

6.5


and the average increase in the remuneration of all employees

0.9

Other salary indicators of CLH Ecuador 2020



9.6



10.3



5.3

49

Other salary indicators of ITL UK 2020



4.5



12.9



Not

available

Other salary indicators of ITL Germany 2020



3.8



6.5



Not

available

Other salary indicators of ITL Netherlands 2020



2.3



3.4



Not

available

Other salary indicators of ITL Ireland 2020



2.0



7.9



Not

available

2.2.3 Attracting talent and career development

The Exolum Group has various policies for attracting and retaining talent, training, career development and work-life balance, all focused on strengthening employee satisfaction, motivation and commitment.

The percentage of permanent contracts in the Exolum Group in Spain was 88% in 2020. The figure was 90% if internship contracts are included. The percentage of undesired resignations was 1.4%. The average length of service for employees in Spain was 14.9 years.

In addition, in 2020, under the partnership agreements concluded with the Prodis Foundation, one person with different abilities was engaged on a scholarship for the Documentation Centre and General Services.

50

In addition, at EXOLUM-PS, gender diversity has increased with new hires.

Staff

recruitment

2018 2019 2020

Total Local % Total Local % Total Local %

CLH 28 16 57.14 53 37 69.81% 64 44 69%

CLH Aviación 46 46 100 65 54 83.07% 6 5 83%

EXOLUM-PS --- --- --- 16 16 100% 17 17 100%

Exolum Aviation

Ireland --- --- --- 4 4 100% 4 4 100%

CLH Panamá --- --- --- --- --- --- 7 7 100%

CLH Aviación

Ecuador --- --- --- --- --- --- 1 1 100%

ITL UK --- --- --- --- --- ---

0 0 0

ITL Germany --- --- --- --- --- ---

0 0 0

ITL Netherlands --- --- --- --- --- ---

0 0 0

ITL Ireland --- --- --- --- --- ---

0 0 0

Collective bargaining in the Exolum Group in Spain 2018 2019 2020

Employees covered by collective agreements 1,088 1,042 943

Percentage 82% 82% 80%

Collective bargaining in EXOLUM - PS 2018 2019 2020

Employees covered by collective agreements --- 114 122

Percentage --- 43% 46%

Collective bargaining in Exolum Aviation Ireland 2018 2019 2020


Percentage --- 100% 100%

Collective bargaining in CLH Panamá 2018 2019 2020


Percentage --- 87.5% 84.8%

Collective bargaining in CLH Aviación Ecuador 2018 2019 2020

Employees covered by collective agreements --- --- ---

Percentage --- --- ---

Collective bargaining in the UK 2018 2019 2020

51

Employees covered by collective agreements --- --- 116

Percentage --- --- 28.22

Collective bargaining in ITL Germany 2018 2019 2020


Percentage --- --- 0%

Collective bargaining in ITL Netherlands 2018 2019 2020


Percentage --- --- 0

Collective bargaining in ITL Ireland 2018 2019 2020


Percentage --- --- 0%

Average length of service of the workforce 2018 2019 2020


Average length of service 14.8 14.7 14.9

Voluntary turnover

(undesired resignations) 1.23% 3.90% 1.41%

EXOLUM-PS

Average length of service --- 8.3 9

Voluntary turnover

(undesired resignations) --- 18 4.1%


Average length of service --- 2.1 2.7

Voluntary turnover

(undesired resignations) --- 21.43% 26.6%

CLH Panamá

Average length of service --- 7.8 1.7

Voluntary turnover

(undesired resignations) --- 9.37% 1.1%

CLH Aviación Ecuador Average length of service 0.2 1.2

Voluntary turnover

(undesired resignations)

0% 15%

ITL UK Average length of service --- --- 12.1

Voluntary turnover


--- --- 1

ITL Germany Average length of service --- --- 11.36

Voluntary turnover


--- --- 0

ITL Netherlands Average length of service --- --- 8.6

Voluntary turnover


--- --- 0

ITL Ireland Average length of service --- --- 6.8

Voluntary turnover


--- --- 0

New hires, broken down by

gender

2018 2019 2020


Exolum Group in

Spain

Total new

hires 69 5 102 16 52 18

EXOLUM-PS Total new

hires -- -- 23 4 9 8

52

Exolum Aviation

Ireland

Total new

hires -- -- 3 1 4 1

CLH Panamá Total new

hires -- -- 27 4 7 0

CLH Aviación

Ecuador

Total new

hires -- -- 31 2 25 4

ITL UK Total new

hires

-- -- -- -- 5 1

ITL Germany Total new

hires

-- -- -- -- 0 0

ITL Netherlands Total new

hires

-- -- -- -- 0 0

ITL Ireland Total new

hires

-- -- -- -- 0 0

Staff reductions, broken

down by gender

2018 2019 2020


Exolum

Group in

Spain

Total turnover 164 20 192 18 205 18

Turnover rate 13.7% 11.1% 16.5% 10.7% 18.5% 10.5%

EXOLUM-PS Total turnover -- -- 22 9 15 2

Turnover rate -- -- 9.95% 21.95% 6.9% 4.2%

Exolum

Aviation

Ireland

Total turnover -- -- 3 0 4 0

Turnover rate -- -- 21% 0% 26.6% 0%

CLH Panamá Total turnover -- -- 34 0 42 0

Turnover rate -- -- 26.6% 0.0% 31.3% 0.0%

CLH

Aviación

Ecuador

Total turnover -- -- -- -- 7 0

Turnover rate -- -- -- -- 22.6% 0.0%

ITL UK


Turnover rate -- -- -- -- 0.6% 0%

ITL

Germany


Turnover rate -- -- -- -- 0% 0%

ITL

Netherlands


Turnover rate -- -- -- -- 0% 0%

ITL Ireland


Turnover rate -- -- -- -- 0% 0%

53

New hires, broken down by age group 2018 2019 2020

<30

year

s

30-50

years

>50

year

s

<30

year

s

30-

50

year

s

>50

year

s

<30

years

30-

50

year

s

>50

years

Exolum Group in

Spain Total new hires 25 47 2 43 73 2 30 40 0

EXOLUM-PS Total new hires -- -- -- 12 8 7 2 13 2

Exolum Aviation

Ireland Total new hires -- -- -- 2 2 1 3 1

CLH Panamá Total new hires -- -- -- 6 22 3 0 6 1

CLH Aviación

Ecuador

Total new hires -- -- -- 7 25 1 6 23 0

ITL UK Total new hires

-- -- -- -- -- -- 3 2 1

ITL Germany Total new hires

-- -- -- -- -- -- 0 0 0

ITL Netherlands Total new hires

-- -- -- -- -- -- 0 0 0

ITL Ireland Total new hires

-- -- -- -- -- -- 0 0 0

Staff reductions, broken

down by age group

2018 2019 2020

<30

years

30-

50

years

>50

years

<30

years

30-50

years

>50

years

<30

years

30-50

years

>50

years

Exolum

Group in

Spain

Total

turnover 20 80 84 31 125 54 30 125 68

Turnover

rate 15.5% 9.2% 26.6% 28.7% 14.3% 18.4% 31.3% 14.9% 27.4%

EXOLUM-PS

Total

turnover -- -- -- 4 11 16 1 7 9

Turnover

rate -- -- -- 13.7% 9.7% 13.3% 4 5.5% 7.9%

Exolum

Aviation

Ireland

Total

turnover -- -- -- 1 2 0 -- 3 1

Turnover

rate -- -- -- 7% 14% 0% 0% 20% 6.6%

CLH Panamá

Total

turnover 2 28 15

Turnover

rate 2.17 30.4 19.5

54

Year 2018 2019 2020

Number of employees with disabilities EXOLUM Spain 14 10 9

Number of employees with disabilities EXOLUM- PS -- 1 1

Number of employees with disabilities Exolum Aviation Ireland -- 0 0

Number of employees with disabilities CLH Panamá -- 0 0

Number of employees with disabilities CLH Aviación Ecuador -- 1 1

Number of employees with disabilities CLH Panamá -- 0 0

Number of employees with disabilities ITL UK -- -- 0

Number of employees with disabilities ITL Germany -- -- 3

Number of employees with disabilities ITL Netherlands -- -- 0

Number of employees with disabilities ITL Ireland -- -- 0

Number of employees with disabilities Exolum Group 14 12 14

Dismissals in the Exolum Group in Spain by gender, age group

and professional category 2018 2019 2020

Men 2 5 9

Women 1 0 1

<30 0 0 0

30-50 2 3 4

>50 1 2 6

Management Departments/Sections 0 0 4

CLH Aviación

Ecuador

Total

turnover -- -- -- -- -- -- 0 5 2

Turnover

rate -- -- -- -- -- -- 0% 16.1% 6.5%

ITL UK

Total

turnover -- -- -- -- -- -- 0 0 2

Turnover

rate -- -- -- -- -- -- 0% 0% 1.1%

ITL Germany

Total

turnover -- -- -- -- -- -- 0 0 0

Turnover

rate

-- -- -- -- -- -- 0% 0% 0%

ITL

Netherlands

Total

turnover

-- -- -- -- -- -- 0 0 0

Turnover

rate

-- -- -- -- -- -- 0% 0% 0%

ITL Ireland

Total

turnover

-- -- -- -- -- -- 0 0 0

Turnover

rate

-- -- -- -- -- -- 0% 0% 0%

55

Supervisors/Middle-managers 1 2 0

Professionals 0 0 2

Administrative staff 1 0 0

Specialists/Qualified operators 1 3 4

Dismissals in EXOLUM – PS by gender, age group and professional

category

2019 2020

Men 7 3

Women 3 0

<30 2 0

30-50 1 2

>50 7 1

Management Departments/Sections 0 0

Supervisors/Middle-managers 1 0

Professionals 0 0

Administrative staff 1 0

Specialists/Qualified operators 8 3

Dismissals in Exolum Aviation Ireland by gender, age group and

professional category

2019 2020

Men 0 0

Women 0 0

<30 0 0

30-50 0 0

>50 0 0



Professionals -- --



Dismissals in CLH Panamá by gender, age group and professional

category

2019 2020

Men 3 41

Women -- --

<30 -- 2

30-50 3 28

>50 -- 11


Supervisors/Middle-managers 2 --

Professionals 1 --

Administrative staff -- --

Specialists/Qualified operators -- 41

56

Dismissals in CLH Aviación Ecuador by gender, age group and

professional category

2019 2020

Men 0 5

Women 0 0

<30 0 0

30-50 0 3

>50 0 2



Professionals 0 0



Dismissals in ITL UK by gender, age group and professional category 2020

Men 1

Women 0

<30 0

30-50 0

>50 1

Management Departments/Sections 1

Supervisors/Middle-managers 0

Professionals 0

Administrative staff 0

Specialists/Qualified operators 0

Dismissals in ITL Germany by gender, age group and professional category 2020

Men 0

Women 0

<30 0

30-50 0

>50 0



Professionals 0



Dismissals in ITL Netherlands by gender, age group and professional category 2020

Men 0

Women 0

<30 0

30-50 0

>50 0


57


Professionals 0



Dismissals in ITL Ireland by gender, age group and professional category 2020

Men 0

Women 0

<30 0

30-50 0

>50 0



Professionals 0



2.2.4 Recruitment of new talent

The Exolum Group’s recruitment processes are based on objective and transparent criteria, promote equal opportunities and seek to attract the best talent to meet the company’s current and future challenges. Furthermore, in order to foster cross-disciplinary learning and retain internal talent, the company promotes actions for horizontal career development, promotions and appointments.

EXOLUM has a scholarship programme that gives university, vocational training and dual vocational training students the opportunity to receive on-the-job training. In 2020, the company took on 46 interns from different education centres and provinces, of whom 13 were eventually hired, accounting for 19% of total external recruits.

At EXOLUM-PS, the hiring of interns was suspended in 2020 due to the global pandemic.

In addition, EXOLUM took part in the third edition of “Compartiendo Talento” (Sharing Talent), a career development programme that promotes networking and the development of new skills through mentoring, and in the “Promociona” and “Progresa” programmes to promote career progression for women.

EXOLUM also participates in different employment forums and fairs, such as Induforum and Induempleo organised by the Polytechnic University of Madrid, to attract new young talent. However, there were no fairs in 2020 on account of the Covid-19 pandemic.

2.2.5 Commitment to a flexible working environment

The Exolum Group includes specific measures in its Human Resources policies and in its collective bargaining agreements to foster a flexible, open and tolerant working environment.

58

These include the Work-Life Balance and Employment Flexibility policies, which aim to promote a balance between the work and personal life of the company's employees.

In Spain, the Exolum Group offers more than 65 employee benefits and work-life balance measures, such as reduced working hours in the summer months, and unpaid or extended leaves of absence to care for family members. The company also offers leaves of absence for longer periods than those established by law for maternity leave, time off for feeding the baby, for the birth of a child, serious illness or hospitalisation of family members, moving house and attending exams.

Other significant initiatives are meal and childcare vouchers, access to health insurance under advantageous conditions, advances and pension plans, in addition to a wide variety of financial assistance measures for family members at school or university, encouraging employees to play sport or for disabled family members, among others.

In 2020, the company launched a number of initiatives and measures to help alleviate some of the effects the pandemic has had on employees’ lives, such as:

Flexible working and work-life balance measures such as remote working for all employees that can do their job remotely.

Emotional support and psychological care service for employees and their families.

The possibility to defer holiday leave until next year.

The possibility to work remotely from other provinces during the holiday period.

Gifts in recognition and appreciation for the commitment shown by the staff working on-site.

Training in managing remote teams.

In addition, the Exolum Group in Spain provides other employee benefits such as the Corporate Benefits platform offering employees a range of discounts, and the Baby Hamper, a personalised gift for workers who had babies during the year.

Furthermore, EXOLUM Spain signed an agreement with a financial institution for membership of a Partner Bank programme that allows employees to contract banking products and financial services under advantageous conditions.

All these measures have helped the Exolum Group to earn the EFR (Family-Responsible Company) certificate in Spain, with a rating of “B+ Proactive”.

59

2018 2019 2020

Number of Exolum

Group Spain

employees, broken

down by working

hours and gender


Full-time 1,136 168 1,093 162 1,002 163

Part-time 11 4 13 9 10 8

2019 2020

Number of EXOLUM-PS

employees, broken down by

working hours and gender

Men Women Men Women

Full-time 213 35 212 40

Part-time 8 7 5 8

2019 2020

Number of Exolum Aviation

Ireland employees, broken

down by working hours and

gender

Men Women Men Women

Full-time 12 1 12 2

Part-time -- 1 -- 1

2019 2020

Number of CLH Panamá employees,

broken down by working hours and

gender

Men Women Men Women

Full-time 119 9 83 9

Part-time

2019 2020

Number of CLH Ecuador employees,


gender

Men Women Men Women

Full-time 31 2 25 4

Part-time 0 0 0 0

60

2019 2020

Number of ITL UK employees, broken

down by working hours and gender

Men Women Men Women

Full-time - - 346 46

Part-time - - 3 16

2019 2020

Number of ITL Germany employees,


gender

Men Women Men Women

Full-time - - 59 7

Part-time - - 0 3

2019 2020

Number of ITL Netherlands

employees, broken down by working

hours and gender

Men Women Men Women

Full-time - - 40 2

Part-time - - 2 3

2019 2020

Number of ITL Ireland employees,


gender

Men Women Men Women

Full-time - - 10 0

Part-time - - 8 2

Parental leave Exolum Group in

Spain

2018 2019 2020


Number of employees entitled to

leave

56 7 56 6 47 15

Number of employees who took

leave

56 7 55 6 47 15

Number of employees who

returned to work at the end of

their leave

53 7 55 6 47 15

Number of employees who

returned to work at the end of

their leave and continued working

twelve months after their return

51 7 54 6 46 15

61

Parental leave EXOLUM - PS 2019 2020

Men Women Men Women

Number of employees entitled to leave 5 1 1 3

Number of employees who took leave 5 1 1 3

Number of employees who returned to work

at the end of their leave

5 1 1 2


at the end of their leave and continued

working twelve months after their return

1 2 1 0

Parental leave Exolum Aviation Ireland 2019 2020

Men Women Men Women



Number of employees who returned to work at

the end of their leave -- -- 2 0

Number of employees who returned to work at

the end of their leave and continued working

twelve months after their return

-- -- 2 0

Parental leave CLH Panamá 2019 2020

Men Women Men Women




at the end of their leave 4 0 1 0



working twelve months after their return 4 0 1 0

62

Parental leave CLH Ecuador 2019 2020

Men Women Men Women

Number of employees entitled to leave 2 0

Number of employees who took leave 2 0



2 0




2 0

Parental leave ITL UK 2019 2020

Men Women Men Women

Number of employees entitled to leave --- ---- 347 72

Number of employees who took leave ---- ---- 2 -



---- ----- 2 -




--- --- Not available Not available

Parental leave ITL Germany 2019 2020

Men Women Men Women

Number of employees entitled to leave - - 0 0

Number of employees who took leave - - Not available Not available



- - Not available Not available




- Not available Not available

63

Parental leave ITL Netherlands 2019 2020

Men Women Men Women


Number of employees who took leave - - 5 0



- - 2 0




- Not available Not available

Parental leave ITL Ireland 2019 2020

Men Women Men Women


Number of employees who took leave - - Not available Not available








Employee well-being

The year 2020 was a particularly difficult one on account of the global pandemic. In order to ascertain the well-being of employees, the company conducted various surveys and actions to learn about their concerns and alleviate their situation as much as possible.

In May 2020, a survey on the management of the Covid-19 crisis by the company was conducted among all employees in the Exolum Group in Spain. They were asked for their opinion on various matters: safety measures, internal communication, management of Covid-19, the relationship with their line manager, recognition within the company and degree of uncertainty regarding the current situation. The results for each item in the survey were positive and an explanatory video with the findings was produced and made available to respondents on the corporate Intranet.

In early July, a second survey, called “Your opinion is the missing piece,” was conducted, this time for all employees of the head office and the facilities working remotely. The questions

64

focused on issues that were a concern for employees at the time, such as the necessary resources for remote working, the difficulties they encountered at work during lockdown and any doubts they might have about returning to work on-site.

In addition, twelve focus groups were held to support the survey and gain a more in-depth insight into some of the results. The feedback from the focus groups was analysed and different actions were carried out throughout the year based on the results.

At the end of November, another follow-up survey was conducted on the actions taken, which explored in more depth topics such as safety measures, internal communication, productivity, work tools and the relationship with their manager.

EXOLUM-PS also conducted a survey, which had a response rate of 71%, and the results showed a 25% increase in employee engagement compared to the survey carried out two years before.

2.2.6 Career development model

The Exolum Group regularly carries out career promotion and development activities based on a merit and effort recognition system. In Spain, a total of 25 people were promoted to positions with greater responsibility in 2020, while 168 others moved up to a higher level of development.

At EXOLUM-PS, a considerably higher number of performance appraisals were carried out in 2020 compared to the previous year.

The Exolum Group in Spain has a performance assessment model, MyMAP, which aims to engage employees in achieving strategic objectives and boost communication and teamwork.

In addition, a talent review was conducted to identify future development opportunities for EXOLUM’s talent map, and EXOLUM-PS drew up its first succession plan.

In 2020, new modules were added to the Success Factors system in the Exolum Group in Spain and in EXOLUM PS, which has now become the company’s corporate Human Capital Management (HCM) tool. The system enables greater integration, better accessibility and the preparation of reports that will provide a more complete analytical overview to improve monitoring and decision-making.

Specifically, the following modules were added in 2020:

Employee Central, as the new Human Resources Information System (HRIS) which includes the new employee self-service portal which, in turn, comprises the application for benefits and employee portals.

Recruiting and Onboarding, along with a new and more modern employment portal.

65

Performance assessment


2018 2019 2020


Active average staff (a) 1,197.85 180.42 1,163.64 168.43 1,107.60 171.34

Number of employees

who received a formal

performance assessment

and review during the

period (b)

684 150 844 139 730 144

Percentage of employees

who received a formal

performance

assessment and review

during the period (b/a)

57.10% 83.13% 72.5% 82.52% 65.90 84.04

Performance assessment EXOLUM - PS 2019 2020

Men Women Men Women

Active average staff (a) 221 42 217 48

Number of employees who received a formal

performance assessment and review during the

period (b) 107 38 146 36

Percentage of employees who received a formal

performance assessment and review during the

period (b/a)

48.42% 90.47 67.28% 75%

Performance assessment Exolum Aviation

Ireland

2019 2020

Men Women Men Women

Active average staff (a) 12.4 0.58 12.17 2.33

Number of employees who received a

formal performance assessment and review

during the period (b) 12 2

7 2

Percentage of employees who received a


during the period (b/a) 100% 100%

58.33% 66.66%

Performance assessment CLH Panamá 2019 2020

Men Women Men Women

Active average staff (a) 118 9 83 9

66

Performance assessment CLH Aviación

Ecuador

2019 2020

Men Women Men Women

Active average staff (a)

31 03 25 04



during the period (b) 23

17



during the period (b/a) 74.19% 68%

Performance assessment ITL UK 2019 2020

Men Women Men Women

Active average staff (a) -- -- 349 62



during the period (b) -- -- Not available Not available




-- -- Not available Not available

Performance assessment ITL Germany 2019 2020

Men Women Men Women


Number of employees who receive a formal

performance assessment and review during

the period (b) -- --

9 0



during the period (b/a) -- --

15.3% 0%


formal performance assessment and

review during the period (b) 5 7 5 8

Percentage of employees who

received a formal

performance assessment and review


4% 77% 6% 88%

67

Performance assessment ITL Netherlands 2019 2020

Men Women Men Women





Not available Not available





Performance assessment ITL Ireland 2019 2020

Men Women Men Women










Performance assessment of the

Exolum Group in Spain, broken

down by professional category and

gender

2019 2020

Men Women Men Women

Management

Departments/Sections33 5

31 5

Supervisors/Middle-managers 113 31 116 33

Professionals 314 99 167 101

Administrative staff 1 2 1 2

Specialists/Qualified operators 383 2 415 3

Performance assessment EXOLUM-

PS, broken down by professional

category and gender

2019 2020

Men Women Men Women

Management

Departments/Sections5 0

4 0



Administrative staff 2 17 4 18


75 1

68

Performance assessment Exolum

Aviation Ireland, broken down by

professional category and gender

2019 2020

Men Women Men Women

Management

Departments/Sections

-- -- -- --


Professionals -- -- -- --

Administrative staff -- 1 -- 1

Specialists/Qualified operators 9 5 --

Performance assessment CLH

Panamá, broken down by


2019 2020

Men Women Men Women

Management Departments/Sections -- -- -- --




Specialists/Qualified operators -- -- -- --

Performance assessment CLH

Aviación Ecuador, broken down by


2019 2020

Men Women Men Women


Supervisors/Middle-managers -- -- -- --


Administrative staff -- -- -- --

Specialists/Qualified operators -- -- 17

Performance assessment ITL UK,

broken down by professional

category

2019 2020

Men Women Men Women

Management Departments/Sections -- -- Not available Not

available

Supervisors/Middle-managers -- -- Not available Not

available

Professionals -- -- Not available Not

available

Administrative staff -- -- Not available Not

available

Specialists/Qualified operators -- -- Not available Not

available

Performance assessment ITL

Germany, broken down by


2019 2020

Men Women Men Women


available


available

69


available


available


available


Netherlands, broken down by


2019 2020

Men Women Men Women


available


available


available


available


available


Ireland, broken down by


2019 2020

Men Women Men Women


available


available


available


available


available

2.2.7 Training

The year 2020 was undeniably a year marked by online training due to the health crisis caused by the pandemic. This forced us to adapt to new ways of learning and embrace new communication and collaboration tools and platforms. Given the circumstances, it was also a year that saw a considerable increase in the creation of elearning content.

Investment in training in the Exolum Group in Spain exceeded 430,000 euros in 2020. The company launched several innovative initiatives, including:

Participation in career development and progression programmes for women. In addition to the “Progresa” programme, in 2020, the company also participated in a new

70

programme called the “Advanced Women and Leadership Programme,” which, now in its 31st edition, is provided by the Chamber of Commerce of Madrid to promote career development for women.

The online training course on “Ethics, integrity and security at EXOLUM” was rolled out to employees that had not yet received the training. Of the staff invited to take the course, 62 people, or 43%, completed it.

Online training was provided on the General Data Protection Regulation tailored to the company’s situation. The aim of the course was to raise awareness of the new regulation and the importance of personal data processing. In 2020, an additional 143 employees received the training, bringing the total number of people trained between 2019 and 2020 to more than one thousand.

Safety training: in 2020, as a follow-up to the safety training for company managers provided by DEKRA in 2019, a second round of coaching sessions was given to check on the progress of each manager’s individual action plan.

Promotion of online training on safety and prevention. New bespoke courses were developed to ensure standardised and quality training. Some of these courses included Covid-19 health and safety, first aid and self-protection plans.

Training on subjects such as data analytics and agile methodologies (Kanban and Agile), with almost 6,000 hours of training and approximately 300 people trained.

Training was provided to show the different business areas how to use the new tools that the company is implementing in the form of live sessions via videoconference, pre-recorded videos and support manuals, which allowed us to complete our planned agenda and project phases on schedule.

In 2020, the Exolum Group also organised training and career development programmes on the following topics:

Simulators for skills development using game-based learning techniques. A new simulator, called “ECHO,” has been added to train participants on coaching tools.

Leadership training programmes such as the “Executive Leadership and People Management Programme” and the PACIFIC simulator focused on learning to manage teams more effectively.

Courses for internal trainers, such as the “Train with Talent” initiative, where participants are taught the keys to becoming excellent trainers.

Other career development programmes:

71

o The “PDD in Company” programme, conducted in collaboration with the IESE Business School and other companies in the energy sector, in which 11 employees from the Exolum Group participated in 2020.

o The “Sharing Talent” programme with Fundación España, where a group of companies share best practices, and skills are improved through mentoring and shadowing.

Average hours of training

in the Exolum Group,

broken down by gender

2018 2019 2020


CLH 35 47 31 34 29 43

CLH Aviación 40 32 30 30 24 49

EXOLUM - PS -- -- 38 33 23 24

Exolum Aviation Ireland -- -- 40 20 35 55

CLH Panamá -- -- 9 16 0 0

CLH Aviación Ecuador -- -- -- -- 30 30

ITL UK -- -- -- -- 2 1

ITL Germany -- -- -- -- 3 1

ITL Netherlands -- -- -- -- 2 9

ITL Ireland -- -- -- -- 4 0

2018 2019 2020

Investment in training by the Exolum Group

(€)

2018 2019 2020

Exolum Group in

Spain

Investment per employee 516 509 338

Total investment 711,329 677,527 432,309

EXOLUM-PS Investment per employee -- 942 379

Total investment -- 257,202 87,198

Exolum Aviation

Ireland

Investment per employee -- 1,622 475

Total investment -- 22,702 6,652

CLH Panamá Investment per employee -- 11 0

Total investment -- 1,440 0

CLH Aviación

Ecuador

Investment per employee -- -- 17

Total investment -- -- 1,926

ITL UK Investment per employee -- -- 54


ITL Germany Investment per employee -- -- 43


ITL Netherlands Investment per employee -- -- 92


ITL Ireland Investment per employee -- -- 25

Total investment -- -- 500

72

Average hours of

training in the Exolum

Group in Spain, broken

down by group


Management


76 101 56 104 66 87

Supervisors/Middle-

managers

53 62 40 35 48 79

Professionals 37 55 33 39 30 41

Administrative staff 7 6 9 6 8 9

Specialists/Qualified

operators

35 28 29 18 23 20

Average hours of training at

EXOLUM-PS, broken down by

group

2019 2020

Men Women Men Women

Management


45.4 67 8.6 29

Supervisors/Middle-managers 19.67 214 9.6 57.71

Professionals 81.83 17.875 56.84 18.45

Administrative staff 23.2 12.380 50 19.48

Specialists/Qualified operators 26.95 19 25.61 9

Average hours of training at Exolum

Aviation Ireland,

broken down by group

2019 2020

Men Women Men Women





Specialists/Qualified operators 35 -- 25 25

Average hours of training at CLH

Panamá, broken down by group

2019 2020

Men Women Men Women



Professionals -- --

Administrative staff 21 --

Specialists/Qualified operators -- --

73

Average hours of training at CLH

Aviación Ecuador, broken down by

group

2019 2020

Men Women Men Women


Supervisors/Middle-managers -- -- -- --

Professionals -- -- 2 2

Administrative staff -- -- -- --

Specialists/Qualified operators -- -- 17 1

Average hours of training at ITL UK,


2020

Men Women



Professionals 0 0



Average hours of training at ITL

Germany, broken down by group

2020

Men Women



Professionals 3 0



Average hours of training at ITL

Netherlands, broken down by group

2020

Men Women



Professionals 2 3



Average hours of training at ITL Ireland,


2020

Men Women

74



Professionals 0 0



2.2.10 Collective bargaining and participation

The Exolum Group guarantees its staff the freedom to affiliate with associations and unions that defend and protect their rights, in accordance with the ten principles of the United Nations Global Compact.

The workers' representatives of the trade union sections are freely elected, fully respecting legality and the freedom to join a trade union. In addition, trade union sections and their representatives are guaranteed the right to exercise their functions of negotiation, participation and representation, in accordance with the law and collective agreements.

In Spain, the Exolum Group has two collective agreements regulating labour relations that affect all workers, except those whose employment conditions are set out in an individual contract, due to the nature or responsibilities of their position, and are therefore excluded from these agreements.

In Spain, in October 2020, the management and the UGT, CC.OO. and CGT trade union sections, through the negotiating committee, signed the EXOLUM Collective Bargaining Agreement for the period 2016-2019 pursuant to the provisions of the preliminary agreement concluded in December 2019. At the same time, it was agreed that the 2016-2019 Collective Bargaining Agreement would be renewed automatically until a new agreement was signed.

Among other aspects, the Agreement incorporates the Partial Agreements signed on 23 December 2015, 30 March 2017 and 10 January 2018 concerning the working hours at Head Office, pension plans and various issues relating to working conditions.

In terms of wage increases, the new Agreement provides for an increase of 2.2% for 2016 based on the 2015 revised tables, actual CPI for the years 2017 and 2018, and 1.0% for 2019.

The wording and structure of the new Agreement was also updated and amended to ensure that it provides the necessary legal certainty which, together with the other items agreed, will help EXOLUM meet the important challenges that lie ahead for the company and the workforce.

Due to the effects of the pandemic on the aviation sector, CLH Aviación implemented a temporary workforce resizing plan (ERTE, according to its Spanish acronym) under Royal Decree Law 8/2020, which was passed by the government to alleviate the impact of the Covid-19 crisis, after agreeing on the conditions of the scheme with the CC.OO., UGT and CGT trade union sections and obtaining the authorisation of the labour authority.

75

Of the main measures agreed, CLH Aviación undertook to pay all employees affected a monthly wage supplement to cover the difference between unemployment benefit and 100% of their basic salary under the Collective Agreement, consisting of the base salary, personal, length-of-service and managerial and special responsibility positions (PMER) supplements and disability allowance.

In addition, when determining what workers to include in the temporary workforce resizing plan, the company took into account aspects such as the continuity of essential operations, volunteers for the scheme, length of service and whether the workers belonged to vulnerable groups.

At both CLH and CLH Aviación in Spain, the various Framework Agreements for the Termination of Contracts by mutual agreement remained in force in 2020.

At EXOLUM-PS, the UNITE trade union represents pipeline operators, technicians and maintenance experts in all the company’s facilities. Collective Bargaining is carried out in a pragmatic manner, and a pay freeze was agreed for 2021 on account of the impact of the pandemic on the aviation fuel industry.

2.2.11 We care for our employees. Health and Safety in the Workplace

Safety in the Exolum Group is present in all its activities. The Group has Basic Guidelines for Safety and Regulatory Management Systems in place for all companies in the Group. These set out the standards and management systems to implement to ensure that the assets are designed, maintained and operated property from the perspective of health, safety and the environment (HSE).

In Spain, the Joint Committee for Health and Safety (CISS) is the equal representation body for EXOLUM and CLH Aviación. There are also local committees and prevention officers depending on the number of employees in the workplace.

EXOLUM and CLH Aviación have an Occupational Risk Prevention Plan, which includes measures to guarantee the health and safety of everybody in the company.

In 2020, because of the exceptional situation caused by the Covid-19 pandemic, one of the biggest challenges the Exolum Group faced was adapting its operations and activities to provide all staff with a safe working environment so that it could guarantee the supply of liquid fuels to all of society.

Accordingly, it developed new operating procedures, automated processes, adapted infrastructure, implemented and rolled out remote working, etc., all of which allowed it to maintain the fuel supply service throughout the pandemic and, particularly, during the total lockdown.

Having carried out a cultural diagnosis in 2019, a strategic project for cultural change, “Safety Foundations” (life-saving rules), was launched in 2020. The aim of the project is to improve the company’s safety culture maturity scale by increasing proactivity and reducing the percentage

76

of potential accidents involving serious injury and fatality (SIF). This safety project has been rolled out to the entire Exolum Group.

Despite the mobility and organisational challenges posed by the pandemic, in 2020 we were nevertheless able to hold our first Corporate Safety Day, which focused on the first life-saving rules of Safety Foundations and covered aspects such as isolation and lockouts (Loto) as well as the safe handling of products.

In addition, in Spain, campaigns that were already under way continued, such as the Corporate Chats on Health and Safety, known as “5.5 Chats”. This year, the chats focused on highlighting the lessons learned from the main incidents that had occurred and on strengthening the concepts of self-protection and the new Safety Foundations (life-saving rules).

Similarly, the Exolum Group has continued to closely monitor and investigate accidents and near misses in order to continue fostering accident prevention and the design of training and information activities.

Number of

accidents and

evolution of the FR

(Frequency Rate)

2019 2020

Exolum Group

in Spain Men Women

Exolum Group in

Spain Men Women

Average workforce 1,277 1,111 166 1,278.65 1,107.35 171.3

Hours worked 2,174,420 1,901,745 272,675 1,903,609.25 1,634,494.05 269,115.2

Accidents with

leave 9 9 0 2 1 1

Accidents without

leave 1 1 0 0 0 0

No. of working days

lost 266 266 0 324 296 28

FR (Frequency Rate)

for every 200,000

hours worked

0.83 0.95 0 0.21 0.12 0.74

FR (Frequency Rate)

for every 1,000,000

hours worked

4.14 4.73 0 1.05 0.61 3.72

TFR (Total

Frequency Rate) for

every 200,000 hours

worked

0.92 1.05 0 0.21 0.12 0.74

TFR (Total

Frequency Rate) for

4.60 5.26 0 1.05 0.61 3.72

77

every 1,000,000

hours worked

SR (Severity Rate)

for every 1,000

hours worked

0.12 0.14 0 0.17 0.18 0.10

Number of accidents and

evolution of the FR

(Frequency Rate)

2019 2020

EXOLUM -

PS Men Women EXOLUM - PS Men Women

Average workforce 236 221 42 265 217 48

Hours worked 452,954 377,493 75,461 427,954 362,529.10 65,424.90

Accidents with leave 0 0 0 0 0 0

Accidents without leave 0 0 0 0 0 0

No. of working days lost 0 0 0 0 0 0

FR (Frequency Rate) for

every 200,000 hours

worked

0 0 0 0 0 0


every 1,000,000 hours

worked

0 0 0 0 0 0

TFR (Total Frequency Rate)

for every 200,000 hours

worked

0 0 0 0 0 0


for every 1,000,000 hours

worked

0 0 0 0 0 0

SR (Severity Rate) for every

1,000 hours worked 0 0 0 0 0 0


evolution of the FR

(Frequency Rate)

2019 2020

Men Women Men Women

78

Exolum

Aviation

Ireland

Exolum

Aviation

Ireland


Hours worked 24,958 21,931 3,039 23,573 20,373 3,201





every 200,000 hours worked0 0 0 0 0 0



worked

0 0 0 0 0 0



worked

0 0 0 8.48 9.82 0



worked

0 0 0 42.42 49.09 0


1,000 hours worked 0 0 0 0 0 0


evolution of the FR

(Frequency Rate)

2019 2020

CLH

Panamá Men Women CLH Panamá Men Women


Hours worked 260,518 242,047 18,471 183,020 168,171 14,848





every 200,000 hours worked0 0 0 0 0 0

79



worked

0 0 0 0 0 0



worked

0 0 0 0 0 0



worked

0 0 0 0 0 0


1,000 hours worked 0 0 0 0 0 0


evolution of the FR

(Frequency Rate)

2019 2020

CLH

Aviación

Ecuador Men Women CLH Aviación

Ecuador Men Women

Average workforce

Not

available

Not available Not available30 27 3

Hours worked

Not

available

Not available Not available65,547 58,974 6,573

Accidents with leave

Not

available


Accidents without leave

Not

available


No. of working days lost

Not

available



every 200,000 hours worked

Not

available




worked

Not

available


0 0 0



worked

Not

available


0 0 0



worked

Not

available


0 0 0

80


1,000 hours worked

Not

available


Number of accidents

and evolution of the

FR (Frequency Rate)

2019 2020

Exolum

Group Men Women Exolum Group Men Women

Average workforce 1,683 1,465 218 1,669.15 1,434.85 234.30

Hours worked 2,912,861.78 2,543,216 369,646 2,603,702.78 2,244,540.78 359,162.00

Fatalities 0 0 0 0 0 0


Accidents without

leave 1 1 0 1 1 0

No. of working days

lost 266 266 0 324 296 28

FR (Frequency Rate)

for every 200,000

hours worked

0.62 0.71 0.00

0.15 0.09 0.56

FR (Frequency Rate)

for every 1,000,000

hours worked

3.09 3.54 0.00

0.77 0.45 2.78

TFR (Total Frequency

Rate) for every

200,000 hours

worked

0.69 0.79 0.00

0.23 0.18 0.56

TFR (Total Frequency

Rate) for every

1,000,000 hours

worked

3.43 3.93 0.00

1.15 0.89 2.78

SR (Severity Rate) for

every 1,000 hours

worked

0.09 0.10 0.00

0.12 0.13 0.08

(*) For these indicators, not all information concerning the Group´s companies abroad is included

Accident Frequency Rate Exolum Group in Spain

2018 2019 2020


Accident Frequency Rate* (with leave)

0.72 0 4.73 0 0.61 3.72

Accident Severity Rate** 0.09 0 0.14 0 0.18 0.10

*Accident Frequency Rate: Number of accidents involving sick leave for every million hours worked

81

**Accident Severity Rate: Number of calendar days lost through accidents involving sick leave for every thousand hours worked

Accident frequency rate

EXOLUM -PS

2019 2020

Men Women Men Women


0 0 0 0

Accident Severity Rate** 0 0 0 0



Accident Frequency Rate


2019 2020

Men Women Men Women


0 0 0 0





CLH Panamá

2019 2020

Men Women Men Women


0 0 0 0




Accident Frequency Rate


2019 2020

Men Women Men Women


0 0 0 0





Exolum Group

2018 2019 2020



2.76 0.00 3.54 0 0.45 2.78

82

Accident Severity Rate** 0.07 0 0.10 0 0.13 0.08



*** For this indicator, not all information concerning the Group´s companies abroad is included.

Average hours of training

in the Exolum Group,

broken down by gender*

2018 2019 2020


CLH 35 47 31 34 29 43

CLH Aviación 40 32 30 30 24 49

(*) For this indicator, not all information concerning the Group´s companies abroad is included.

Average hours of

training in the Exolum

Group in Spain, broken

down by group

2018 2019 2020


Managers and

Assistant Managers

76 101 56 104 66 87

Supervisors/Middle-

managers

53 62 40 35 48 79

Professionals 37 55 33 39 30 41

Administrative staff 7 6 9 6 8 9

Specialists/Qualified

operators

35 28 29 18 23 20


Safety training in the Exolum Group in Spain 2018 2019 2020

Safety training (hours) 9,818 11,186 6,347.3

Attendees (no. of people) 1,720 1,920 1,694

Prevention training (basic level) (hours) 4,609 3,018.5 7,129.5

Attendees (no. of people) 973 836 2,384

Investment (thousand euros) 163.2 190.4 64.82


In 2020, the number of hours devoted to safety training decreased due to the fact that the

scheduled face-to-face courses could not be held on account of the Covid-19 pandemic.

Nevertheless, the number of hours devoted to prevention training in 2020 more than doubled

compared to 2019, with the focus on Covid-19 prevention. In addition, other training courses

were provided online and at the facilities through on-the-job training.

2.2.12 Promoting health and safety in the workplace

83

The Exolum Group continued to promote various activities in the areas of Occupational Health and Safety in 2020, and took additional protective actions for all workers to protect them against the coronavirus.

In this regard, remote working measures were implemented immediately, except for operations staff at the facilities. In addition, special consideration was given to the numerous personal circumstances of the employees as a result of the pandemic.

Furthermore, to safeguard employees’ physical and emotional well-being, they were given free access to online wellness programmes offering emotional support and psychological care for them and their families.

An online training course on Covid-19 health and safety was also designed to inform and train employees on how to recognise and prevent contagion, and preventive measures were adopted in all the company’s workplaces.

An online first aid course was also developed and launched for all EXOLUM employees in Spain, where they were trained on basic first aid and how to act in the event of an emergency.

EXOLUM-PS also began to provide mental health first aid in most of the workplaces, and monthly wellness promotions were carried out on a wide variety of topics through noticeboards, the Intranet and email.

Occupational Risk Prevention programmes and activities

Epidemiological surveillance of workers’ health with regard to work-related risks

Protection of particularly vulnerable workers and pregnant and nursing employees

Covid-19 employee protection plan

Diagnostic and screening tests for Covid-19

Personal medical advice and consultation for cases related to Covid-19

Emotional support and psychological care

Screening for chronic diseases

Prostate disease

Promotion of Health

Fruit service at head office

Physiotherapy service

Occupational Health and Safety training

First aid course

Covid-19 prevention course

Awareness-raising activities

84

Healthcare contacts

Articles about health in Acerca magazine

Monthly Corporate Chats (5.5 Chats)

2.3 Value creation among our stakeholders. We generate value for our customers

2.3.1 Quality and management systems

The Exolum Group works to meet customer expectations, offering services that are adapted to their needs and improving existing ones.

The company has an Integrated Management System that covers the processes and activities of all companies in the Group. This system is continuously improved through the ongoing review of its component processes and the incorporation of new, successful practices.

The Exolum Group holds several quality certifications:

- ISO 9001 Quality Certification for all activities in Spain. EXOLUM PS in the UK and Exolum Aviation Ireland also hold this certification.

- ISO/IEC 17025 accreditation for the Central Laboratory and Metrology Laboratory. - Quality certifications at the port facilities of Barcelona, Palma de Mallorca, Cartagena,

Gijón, Motril, Algeciras and Bilbao, according to the quality standards applicable in each case.

- ISO 14001 Environmental Certification- ISO 45001 Occupational Health & Safety Certification

The Exolum Group is a member of associations relating to quality, excellence and innovation, where it contributes its knowledge and expertise. The company is a member of the Spanish Association for Standardisation and Certification (AENOR), the Spanish National Accreditation Body (ENAC) and the Spanish Association for Quality (AEC).

In this regard, the Exolum Group maintained an active presence in working groups such as the AENOR AEN/CTN051/SC3 group, which is responsible for updating fuel and biofuel specifications, and the European fuel technology and standardisation groups CEN WG 21 Specification for unleaded petrol, and WG 24 Specification for diesel fuel.

EXOLUM is also a member of the Energy Institute and sits on the following committees:

Aviation Committee

Aviation Fuel Filtration Committee

Equipment Sub-Committee

Hydrant Sub-Committee

Operations Sub-Committee

85

Sensors Sub-Committee

Supply Chain Fuel Quality Sub-Committee

Through the Metrology Laboratory, EXOLUM has an agreement with the Spanish Metrology Centre (CEM). The laboratory is a CEM-associate laboratory and, hence, the official laboratory in Spain for liquid hydrocarbon metrology.

In addition, the Metrology Laboratory has had a strategic alliance with the Polytechnic University of Madrid for many years, through the EXOLUM Chair in Metrology, a centre of excellence for hydrocarbon metrology in Spain and, moreover, with a strong presence in prestigious international forums and journals.

In addition, CLH Aviación is an IATA Strategic Partner, and collaborates with the Fuel Services and Fuel Technical groups. It is also a member of the Joint Inspection Group (JIG), where it has an active presence in the Operations Committee responsible for reviewing and updating industry standards on aviation fuel handling and quality control, and in the Technical Forum. In addition, it is an affiliate member of the Latin American and Caribbean Air Transport Association (ALTA).

2.3.2 Commercial offer

The Exolum Group maintains its commitment to meeting the needs of its customers, both in the services it currently provides and through the ongoing development of services to cater for their new needs.

In this regard, the Exolum Group provides logistics services to the main players in the liquid fuels market, and offers a wide range of services for oil product storage and transportation. It also provides into-plane fuelling services to the main airlines, and manages and designs storage and distribution assets and infrastructure for aviation fuels.

In Spain, the company has a biofuel certification management system that is compliant with Circular 1/2016 of 30 March published by the National Markets and Competition Commission (CNMC), which regulates the sustainability of the biofuels offered for sale or consumed in the domestic market. In addition, it has obtained International Sustainability and Carbon Certification (ISCC) at several terminals. In 2020, EXOLUM continued to develop services aimed at promoting the use of biofuels by its customers.

Commercial offer of the Exolum Group

1. Storage, transport and distribution of oil products on the Iberian Peninsula and the Balearic Islands, guaranteeing free access to the logistics system by third parties.

2. Strategic and security storage.

3. Storage in segregated tanks.

4. Blending of components and products to obtain retail products.

86

5. Storage services and handling of products with differentiated specifications, adapting to customer needs and service demands.

6. Quality and quantity assurance and control of the products stored by the Exolum Group through its laboratories.

7. Advice and services relating to product quality.

8. Consultancy on metrology and calibration.

9. Environmental analyses.

10. Injection of additives for quality and property enhancement to oil products dispatched.

11. Biofuel storage, blending and dispatch.

12. Biofuel certification system for transportation purposes.

13. Tailored product storage, blending and dispatch services.

14. Storage, distribution and supply (into-plane service) of aviation fuel and lubricants for aircraft.

15. Advice and technical assistance for the installation and maintenance of distribution networks for different types of aviation fuels.

16. Advice and technical assistance for the design, construction, maintenance and operation of hydrant networks and terminals, in addition to the design of specific vehicles for fuel supply to aircraft.

17. Inspection and advisory services for the management of aviation fuel storage and supply facilities.

18. Management of documentation relating to operations and the taxes associated with product movement operations in fuel facilities.

19. Training in operations and the management of infrastructure, covering all aspects of aviation fuel storage and supply.

20. Services for blending components to obtain products with specifications of a higher value than those of their elements.

In Spain in 2020, EXOLUM began to provide the bunker and oil service in accordance with the new IMO 2020 Regulation, which has set more stringent limits on the sulphur content of fuel oil. For this purpose, it worked in coordination with customers in order to be able to provide them with a quality service tailored to their needs.

87

In 2020, the company continued to successfully provide the in-line blending service in Castellón, whereby products are received in their pure form and then blended with biofuels, and the service was extended to logistics facilities beside our plant.

In addition, a detailed analysis was carried out to improve the detection of the storage capacity of our tanks, which allows us to provide a very agile and fast response to customers who, due to market needs, request extended storage capacity.

A number of port facilities were also adapted in order to be able to provide a storage service to customers wishing to use our facilities as a transit point for products intended for export. Accordingly, our logistics operations at key ports have been adapted to enable the storage of products not subject to national specifications.

In 2020, we expanded our range of services to cater for customers wishing to move products by truck to destinations outside Spain, and we now offer a freight service for off-road diesel and heating oil for the Portuguese market.

We continue to offer services for the promotion of biofuel blending, such as blending in the pipeline and maximisation of bioethanol, thus giving our customers a wider range of options and making it easier for them to comply with the obligations laid down in biofuel legislation.

In addition, in order to increase the variety of products that can be stored and managed at the facilities, in 2020 the company continued to sign new contracts for the management and storage of unfinished products targeted at the trading market.

Furthermore, we continued to provide the en-route sales returns service which allows customers to return surplus products from the sale of fuel en route easily and independently, thus saving time and enhancing the efficiency of the service provision.

In addition, the SIMAC system is now fully operational in all facilities. This method improves the safety of the road tanker loading process through the implementation of a system that minimises the risk of overfilling during the loading process, as well as errors in the selection of tanker compartments or the failure to perform the purging process prior to loading.

For its part, CLH Aviación is also working closely with its customers and taking their individual needs into account. These collaborative activities are carried out at global or local level, depending on the expectations and needs of each airport and customer.

In addition, the company works together with the airport authorities and customers for the development of procedures to cater for special service needs, such as:

Defuelling of aircraft.

Handling of fuel panel for load selection for narrow and wide body aircraft.

H-30 supply procedure with Iberia Airlines for wide body aircraft to optimise and adjust the load in long-haul flights.

Fuel supply to customers at facilities outside of airports.

88

Loading of road tankers and/or drums for the transportation of aviation products from airports to customers outside the national airport network.

Safety regulations for aprons.

Participation in the Handling sub-working group for the coordination of apron operations with the Spanish Aviation Safety and Security Agency (AESA).

Participation in the Operational Safety Forum organised by AESA in the Ministry of Public Works.

Special services for customers in the AENA airport network and other airports.

Despite 2020 being a particularly challenging year for the aviation sector on account of the global Covid-19 pandemic, the Group managed to consolidate its operations in the new airports in Spain, Panama and Ecuador and adapt them to CLH Aviación standards. Improvements were also made to into-plane information systems.

In addition, in 2020, work commenced on the new storage terminal at Zaragoza Airport. The renovation of the facilities will allow the Group to provide a better service to the various operators at Zaragoza Airport and maximise efficiency.

Zaragoza Airport is one of Spain’s largest cargo airports and a hub for large, long-haul aircraft. Moreover, due to the exceptional situation caused by the Covid-19 pandemic, it became the main airport in Spain for the receipt of medical supplies and aid during the crisis.

With the aim of promoting sustainability in the aviation sector, at Zaragoza Airport in December 2020 CLH Aviación transported and performed the first into-plane operation with a green fuel blend of Jet A1 and SAF sourced from vegetable oil.

In 2020, EXOLUM-PS renewed the agreement with the UK Ministry of Defence and laid the foundation for a long-term contract.

2.3.3 Improvement and diversification of activities through innovation

The Exolum Group is undertaking the digitalisation and automation of its facilities and improving operational processes, while promoting the optimisation of resources and enhancing the security and sustainability of operations.

The company’s ongoing commitment to RDI also allows it to maximise operational efficiency, and maintain or even reduce the price of the services it provides every year.

In 2020, the Exolum Group continued to implement the ONE programme, an ambitious initiative intended to upgrade its computer systems and streamline the main processes of the companies in the Group to increase their efficiency.

One of the main aims of this technology update is to implement the same computer programs in all companies of the group and create a standardised and simplified working methodology that facilitates cooperation and furthers process automation.

89

Another benefit will be the storage of the main data of all the companies in a single platform. This new system improves information analysis as it makes it possible to consult the data in real time, thus facilitating decision-making.

The digital transformation process of the Exolum Group is based on the use of agile methodologies; a cloud-based digitalisation strategy; the promotion of digital initiatives that impact the business; implementation of artificial intelligence techniques in all processes, and becoming a data-driven company, which will enable it to gain a competitive advantage and optimise management processes.

In this regard, the Exolum Group launched the “HUB digital” programme in 2020 for the coordination of 18 digital initiatives, which include:

The use of a new pipeline monitoring system based on artificial intelligence and satellite technology, which enhances the safety and reliability of the infrastructure and optimises data analysis, making the process more efficient.

Implementation of predictive maintenance in the day-to-day management of its logistics network to ensure more agile, safer and efficient operations, and to prevent any malfunction of the system.

Improved output forecasts for oil products using artificial intelligence.

Improvement of the tank availability process to make it more agile and ensure that the tanks are in operation for as long as possible, therefore being able to offer our customers more storage capacity and better meet their needs and demands.

Improvement of the hydrocarbon leak detection systems at plants to make them more effective, accurate and complete.

EXOLUM is also developing a new Laboratory Information Management System (LIMS), the system used to manage product quality, and is implementing various in-line quality measurement projects using technology solutions that avoid the risks associated with sampling operations in storage tanks.

EXOLUM encourages everyone in the organisation to identify opportunities for improvement and awards prizes for the best suggestions. These awards not only allow the improvement of operations and processes, but also enhance employee engagement and commitment.

The Exolum Group continued to work on improving efficiency in 2020 by streamlining internal processes using the LEAN and 6-SIGMA methodologies.

Investment in R&D amounted to 7.5 million euros in Spain in 2020 and was mainly targeted at the following areas:

Transportation by pipeline

Storage and dispatch of liquid bulk products

90

Fuel and additive technology

Hydrocarbon metrology

Environmental technologies

Safety technologies

Industrial automation

Information and communication technologies

Investment in innovation* (million euros) 2018 2019 2020

CLH Spain 7.5 7.5 7.5


In 2020, the Exolum Group set up a new company called Exolum, dedicated exclusively to identifying and developing new business opportunities in industries or sectors where the company has not traditionally been present.

In this line, Exolum has launched several initiatives, such as Avikor, a platform that allows individuals and businesses to fly more sustainably by using sustainable aviation fuel (SAF) to reduce emissions.

Avikor gives all passengers travelling with any airline departing from Adolfo Suárez-Madrid Barajas Airport (and soon from El Prat Airport in Barcelona) the possibility to reduce the CO2 emissions of their flight by simply indicating the flight number in the website www.avikor.com. The model is flexible, tailored to each user and company, and can be used to eliminate whatever portion of CO2 emissions the passenger wishes. It is offered as an additional service irrespective of the airline the passenger is flying with.

Exolum also launched Yubick, a parking facility at Barcelona port for all types of trucks, which is specially designed and equipped for the comfort of drivers and provides every necessary service for their safety and rest.

It also implemented the hydrogen production and supply infrastructure strategic line. In this regard, in December 2020, it submitted ten expressions of interest for projects involving the production and/or distribution of renewable hydrogen. Some of the projects have also been submitted in response to the call for proposals for the European Innovation Fund and Green Deal projects.

The company is also participating, together with other companies in the energy sector, in the Energía Positiva+ initiative to identify and provide support for start-ups and scale-ups in the aftermath of the economic crisis triggered by the Covid-19 pandemic.

2.3.4 Relationship with our customers

91

Because of the special characteristics of its operations, the Exolum Group has a small number of customers with whom it maintains direct and ongoing contact, which allows it to have detailed knowledge of their needs and expectations.

In 2020 in Spain, the company implemented a new company-wide digital delivery note system through an application that allows road tanker drivers to download loading operation documentation to a mobile device, instead of having to print them on paper, thus increasing the efficiency of operations and the service quality.

This new system enhances customer convenience as they no longer have to manage data on paper, thus avoiding losses and mistakes when transcribing information, and contributing to environmental protection by considerably reducing the use of paper. In addition, a customer satisfaction survey was conducted in 2020 with the aim of speeding up the development of new services and being able to meet our customers’ needs more efficiently.

Customer satisfaction is also a priority for CLH Aviación, whose customers are not always the end users (mainly airlines) because the commercial relationship is often established with the oil operators, who are the owners of the product, although commercial relations are also established with the various airport operators.

In 2020, CLH Aviación consolidated commercial relations with its customers. In this regard, a number of different activities were carried out, such as the conclusion of new contracts directly with airlines, increased relations with suppliers and the offering of solutions to airport operators.

Each year, CLH Aviación conducts a satisfaction survey through an external company. The survey covers aspects related to product quality, service quality, the safety of supply operations, the facilities and the coordination of business activities.

In 2020 the company continued to improve the invoicing process by adopting the IATA standard, and many customers are now using this service.

Furthermore, it continued to provide one-off services at airports where it does not conduct regular operations, for which purpose it adjusted the resources and service features to the customer’s requirements. It has also increased the services it provides at Ciudad Real Airport.

To further improve the exchange of information with customers, in 2020, CLH Aviación continued to use ground-to-aircraft communication devices with Iberia. These Bluetooth devices facilitate communication with the aircraft cabin while refuelling with passengers on-board, enabling direct and smooth communication and improving coordination of the stopover with the airline operator.

In this regard, work was also undertaken in 2020 to establish a communication system based on efuelling with the main customers in accordance with the IATA standard, which allows for two-way communication in real time.

92

Furthermore, the number of airlines and airports to which the trip-check service is provided (management of the load control systems of aircraft fuel tanks) has continued to increase.

In 2020, CLH Aviación renewed the contract as the exclusive into-plane fuelling agent for one of the largest suppliers operating in Spain. The contract was awarded following a competitive tender.

For its part, Exolum Aviation Ireland completed the construction of the terminal and hydrant system at Pier 1 in Dublin Airport in 2020. The works included the commissioning of new loading areas, a CCTV security system and the completion of the fire-fighting system and all civil works at the facility.

In 2020, CLH Panamá improved, expanded and upgraded the fuel facilities at Tocumen airport, which has resulted in safer and more efficient operations. The company also consolidated operations at the other airports in Panama.

CLH Aviación Ecuador began operations at José Joaquín de Olmedo International Airport in Guayaquil city (Ecuador) at the end of 2019. In 2020 it improved procedures, equipment and processes to bring them into line with EXOLUM standards, thus improving the operation of the terminal and the quality of the operations and into-plane fuelling services.

As a result, it was able to have the red code imposed on the airport as a result of a nonconformity by the previous operator definitively lifted, and successfully pass the inspections and audits performed, for which purpose it was commended by airline companies and bodies.

Protection of commercial data and communications

In Spain, EXOLUM handles commercial information through the Operator Information System (SIO, acronym in Spanish) which makes it possible to guarantee the confidentiality of customer information.

In 2020, no breach of rules or voluntary codes was identified with regard to commercial communications, including advertising, promotion and sponsorship, in any of the companies of the Exolum Group.

Moreover, no breach was identified in relation to the information reported by the company on the services provided, and no complaints were received with regard to the privacy or personal data of its customers.

2.4 Value creation among our stakeholders. Creating value for our

suppliers

2.4.1 Purchasing model in the Exolum Group

The Exolum Group extends its vision in corporate social responsibility to its supply chain.

93

Purchasing model

The Exolum Group has a purchasing model in place that is adapted to the characteristics of its activities. The model requires that the entire supply chain embrace the same commitments that the Exolum Group has taken on in the area of corporate social responsibility.

Throughout 2020, the company continued to work to improve relations with suppliers and collaborating companies based on transparency and collaboration.

In this regard, it developed a functional model for the new corporate purchasing and contracting tools, intended to achieve two main goals: to improve efficiency and increase data analysis capacity for these processes.

As part of the process, data has been migrated to the new corporate tools, which will lead to an improvement in relations with suppliers. In addition, five training sessions were provided to suppliers to explain how the tool works and the advantages of the new platform.

This year also the relationship with a number of our suppliers was reviewed to ensure compliance with safety standards.

Furthermore, despite the impact of the pandemic on our operations, more than 150 requests for quotations (RFQs) were made in Spain, ensuring that all our suppliers were afforded transparency, equal opportunities and free competition. In all these invitations to tender, the company shared its vision, mission, code of ethics and suppliers’ ethics code, in addition to the General Data Protection Regulation (GDPR).

The new enterprise resource planning (ERP) and integrated purchasing system is scheduled to become operational during the first six months of 2021. This tool will provide greater traceability in all processes and a closer working environment between EXOLUM and its suppliers, as it will combine all activities relating to peer-to-peer (P2P) and procurement management processes.

The supply system in the Exolum Group

94

In 2020, due to the situation caused by the Covid-19 pandemic, procurement of the new personal protective equipment needed to protect against the virus posed a considerable challenge, as did avoiding interruptions in the supply chain of goods that are essential for the company’s operation and ensuring the continuity of contractors’ services in critical tasks.

Collaborating companies are those from which the Exolum Group makes purchases for an amount of over €3,000. It should be pointed out that these companies are the main links in the Exolum Group supply chain, and provide the company with the products and services it needs to carry out its activities.

Another significant feature of the purchasing and contracting model of the Exolum Group is its commitment to local suppliers. Accordingly, 94% of purchases in Spain in 2020 were from local suppliers (including suppliers of goods or services of less than 3,000 euros).

Key figures of the Exolum Group’s supply chain in Spain – 2020

1007 companies with invoicing of over €3,000 make up the supply chain

111 supplier companies are considered strategic according to the RePro system

The period for effecting payment to suppliers is less than 60 days

Tenders have been awarded for an amount of 33 million euros, of which 15% corresponds to materials and 85% to services

94 suppliers have been assessed on environmental matters

105 supplier companies have quality management systems in place 111 suppliers are certified in prevention matters

43 suppliers scored more than 70/100 in CSR.

Key figures of EXOLUM-PS’s supply chain – 2020

2,950 companies with invoicing of over €3,000 make up the supply chain


The period for effecting payment to suppliers is 30 days

Tenders have been awarded for an amount of 40.7 million euros, of which 33% corresponds to materials and 67% to services

167 suppliers have been assessed on environmental matters

286 supplier companies have quality management systems in place

289 suppliers are certified in prevention matters

76 suppliers are certified in CSR + ‘Family-friendly’ matters

Key figures of CLH Panamá’s supply chain -– 2020

8 companies with invoicing of over €3,000 make up the supply chain



95

Tenders have been awarded for an amount of 1.5 million euros, of which 67% corresponds to materials and 34% to services

Six suppliers have been assessed on environmental matters

Key figures of Exolum Aviation Ireland’s supply chain – 2020


Procurement of materials and services (thousand euros)

2018 2019 2020

CLH + CLH Aviación (Spain) 40,191 58,080 33,833

EXOLUM PS (UK) 15,800 31,548 40,690


CLH Panamá 7,500 5,063 1,524 (*) For this indicator, not all information concerning the Group´s companies abroad is included.

Supplier approval

In the Exolum Group, the first step in the supplier approval process is to check that the company meets the initial requirements based on the data they submit and, later, additional information is collected from those suppliers that are considered critical or strategic.

Through the RePro system, the company identified 111 companies that qualified as strategic suppliers in Spain. These types of suppliers are primarily those who carry out skilled work (mechanical, electrical or assembly) for the company. Companies that supply additives for oil products are also important.

Depending on the type of supplier, the nature of the work, and the services or materials to be supplied, the procedure for engaging suppliers is as follows:

o All suppliers and contractors Must adhere to the Exolum Group’s Safety Policy in order to work with the company, thus agreeing to follow occupational health and safety rules in their operations and abide by the code of ethics, confidentiality agreement and GDPR document.

o Approved suppliers (critical or strategic suppliers) These are assessed according to environmental, social and ethical criteria, in addition to their technical capacity and financial standing, and are monitored via the RePro system.

In 2020, work was undertaken on the supplier approval procedure to adapt it to the new tool

available. In 2021, the procedure will be reviewed again to integrate it into the new tool, which

will strengthen the internal management of supplier approval and assessment.

96

The Exolum Group has developed a specific set of rules for managing ethics and integrity in its supply chain, which is aligned with the United Nations Global Compact. It includes the following documents:

o Suppliers’ Ethics Code: it contains the principles that underpin the relationship with suppliers, inspired by the mission, vision and values of the company and the main ethics and sustainability codes recognised internationally.

o Ethics Code of the Purchase Function: it includes the essential ethical principles to be taken into account in performing purchasing duties.

o Ethics Code or Rules for Purchasing: it defines the way a purchaser should behave, inspired by the principles applied by the main purchasing associations, both at a national and international level (IFPSM, AERCE).

Communication with suppliers

The Exolum Group made over 150 requests for quotations in Spain in 2020 using the current negotiation platform. Although this platform guarantees transparency, there are plans to issue the tenders via a new supplier relationship tool in 2021, thus creating a single environment where, moreover, suppliers will be able to access their orders, invoices and contracts.

All the documentation that the company requires from its collaborating companies is sent in electronic format, which will also be the case with the new platform; this enhances information management security, reduces paper consumption and improves the efficiency of the process.

As a key form of communication with internal customers and suppliers, EXOLUM also has a Service Centre, the tool used to centralise all orders and incidents and channel the company’s procurement needs more effectively.

When the new management tool has been fully implemented in 2021, it will be possible to monitor suppliers more closely, control their performance in a traceable manner and gauge internal customer satisfaction.

The collaborative relationship with suppliers will also benefit from the new system, as it will allow contracts to be managed in a more practical way, and will centralise all activities of interest to the supplier in a single place.

In 2021, EXOLUM will monitor 736 suppliers with invoicing of over €6,000 in 2020.

Promoting safe practices in the value chain

The Exolum Group extends its commitment to safety to all collaborating companies, contractors and the local communities where it operates.

97

All suppliers and contractors must adhere to the Safety Policy of the Exolum Group, and during the approval process, a significant part of the analysis focuses on their conduct in occupational health and safety matters, particularly in the case of suppliers that perform critical work.

In addition, the company monitors contractors’ accident rates, and when an incident occurs, it

expressly requests an investigation into the causes and circumstances by a multi-disciplinary

team, when necessary.

Contractor accident rates

Spain 2018 2019 2020

Accident frequency rate* (with leave) 1.08 0.52 0.57

Accident Severity Rate** 0.001 0.03 0.01


**Accident severity rate: Number of calendar days lost through accidents involving sick leave for every thousand hours worked

EXOLUM - PS 2019 2020

Accident frequency rate* (with leave) 0 0

Accident Severity Rate** 0 0



Exolum Aviation Ireland 2019 2020

Accident frequency rate* (with leave) 52.03 0

Accident Severity Rate** 3.22 0



CLH Panamá 2019 2020










98

Germany 2020

Accident frequency rate* (with leave) Not available

Accident Severity Rate** Not available



Netherlands 2020





Ireland 2020





2.5 Value creation among our stakeholders. Creating value in society

2.5.1 Relations with the community

As part of its Social Action Policy, each year the Exolum Group carries out a wide variety of

initiatives aimed at building relationships of trust and cooperation with the municipalities in

which it has infrastructure.

2.5.2 Contribution to the well-being and development of our communities

Through its Social Action Plan, the Exolum Group supports projects related to integration, the

environment, culture, entrepreneurship and social and economic development.

In a year like 2020, which was dominated by the Covid-19 health crisis, the company wanted to

respond to the social emergency, to help those most affected by the pandemic and reduce the

impact as much as possible.

One of the most important initiatives was the donation of one million euros’ worth of medical

supplies to the Ministry of the Interior. The consignment, comprised of masks, gloves and

protective clothing, was distributed among the national security forces, hospitals and various

nursing homes at the peak of the pandemic.

99

The company also donated first aid supplies to more than twenty hospitals and nine nursing

homes in 21 provinces with whom we have a direct link because we have facilities in the vicinity

or because employees’ relatives work or were hospitalised there.

We also participated in the Covid-19 aid programme run by the Red Cross, to which we donating

more than 100,000 euros which were allocated to meet the basic needs of families in need of

urgent social assistance through an initiative whereby we doubled the amount donated by our

employees.

Thanks to the efforts of the workforce, we were able to donate more than 10,000 euros to

Action Against Hunger through the Indoor Challenge-EXOLUM initiative, whereby employees

clocked up more than five million steps during the lockdown period, and also donated their

lunch vouchers to those most in need.

In addition, in San Roque, the company donated 5,000 euros to the Food Guarantee Programme

launched by the town council in collaboration with the Red Cross to purchase non-perishable

food items.

CLH Aviación collaborated with the NGO Aviation Without Borders on an initiative to provide

free air transportation on a small scale to the medical community (staff and medical supplies)

by supplying the fuel needed for the flights free of charge in various airports.

In Dublin, Exolum Aviation Ireland supported The Iveagh Trust charity by donating non-

perishable foods to cover the basic needs of women and children victims of domestic violence

staying in shelters, who are particularly affected by the Covid-19 crisis.

In addition to these exceptional initiatives, the company continued to implement one of the

main programmes in its social action plan, Voluntarily, which is specifically designed to promote

charity projects organised by NGOs with the cooperation of EXOLUM employees.

One of the most important initiatives in 2020 was the company’s support of the KAT6A and

Friends association, created by the parents of children diagnosed with this rare disease to

promote an ambitious research project led by Pablo de Olavide University in Seville and aimed

at finding the most appropriate treatment for each patient.

Commitment to education

In the field of education, the Exolum Group has partnership agreements with vocational training

schools, universities and business schools all over Spain which, despite the exceptional

circumstances, allowed students to gain work experience with the company.

In association with the Polytechnic University of Madrid, CLH also sponsors the CLH Chair in

Hydrocarbon Metrology. Classes are given at the School of Mining Engineering, and students

are given the opportunity to gain work experience or scholarships.

Support for culture and science

100

The Exolum Group cooperates with prestigious cultural institutions, such as the Teatro Real

Foundation and the Bilbao Association of Friends of the Opera.

In the field of science, EXOLUM is a member of the Foundation for Energy and Environmental

Sustainability (FUNSEAM), one of the most prestigious centres for the analysis and

dissemination of new forms of energy.

Boosting entrepreneurship

As part of its entrepreneurship support policy, the company supports the development of new

business ideas and projects in collaboration with the Institute for Business Competitiveness of

Castilla y León (ICE), the Promotion Institute of the Region of Murcia (INFO) and Campus Iberus.

In addition, to alleviate the impact of Covid-19 through innovation, EXOLUM has launched the

Energía Positiva+ platform together with other companies in the energy sector. The aim of the

initiative is to provide financial support for projects and start-ups in the development of

projects that will contribute to economic and social recovery following the pandemic.

Participation in associations

In addition, the Exolum Group actively participates in economic, business, energy and social

bodies, such as the Spanish Confederation of Business Organisations (CEOE), the New Economy

Forum, the Chamber of Commerce of the United States, the Portuguese-Spanish Chamber of

Commerce, the Circle of Trust Foundation, the Civic Panel, the Institute of Directors, the Spanish

Energy Club and the Elcano Royal Institute.

Institutional relations

Each year, the Exolum Group undertakes a number of initiatives to create awareness of its

activities in the community and to share its experiences, knowledge and opinions.

At the start of the year, before the health alert, the President of La Rioja, Concha Andreu; the

Regional Minister for the Treasury, Celso González, and the Regional Minister of Public

Governance, Francisco Ocón, visited the company’s head office. In addition, the chairman of

EXOLUM gave a talk to business people in Cartagena, and met the President of Castilla y León,

Alfonso Fernández Mañueco, to explain about the company’s core activities in the region.

Also before the state of emergency was declared, a delegation from Exolum Aviation Ireland

visited EXOLUM’s infrastructure in the Community of Madrid to study the maintenance policy

before implementing it in the terminal at Dublin Airport. In addition, various representatives

from BP service stations visited the facilities in Son Banya to learn about the logistics activities

it carries out.

101

Furthermore, company executives gave a lecture to a group of students on the Master’s Degree

in Energy Management, which was organised by ESAN University in Peru in conjunction with

the Foundation for Energy and Environmental Sustainability (FUNSEAM), at head office.

During the rest of the year, despite the restrictions, the company was able to participate

regularly in forums and conferences, most of which were conducted online. These included the

first “Spanish companies leading the way” business summit organised by the CEOE, the Fifth

Annual Energy Forum organised by El Economista, the Ninth International Business Symposium

organised by FUNSEAM, the “Oil products, the current situation of the system” webinar

organised by the Spanish Energy Club (Enerclub) and the Spanish Association of Oil Product

Operators (AOP), and the First International Digital Conference for Managers organised by the

Association for the Progress of Management (APD).

2.6 Value creation among our stakeholders. Creating value in our environment

The Exolum Group is firmly committed to respecting the environment and safety and, therefore,

takes measures to reduce the impact of its operations and to use resources, technologies and

processes efficiently and safely, thus protecting the environment where it carries out its

activities.

The Exolum Group achieved the highest rating – Five Stars – in the GRESB 2020 sustainability

benchmark. Moreover, the company was the industry leader for the transportation of energy

resources by pipeline in the maintenance and operation categories. GRESB is one of the world’s

leading sustainability benchmarks and is used as an assessment and comparison tool to

measure and rate the quality of companies’ investments in terms of sustainability.

2.6.1 Facility safety and integrity

The Exolum Group’s Integrated Management System (IMS) and Major Accident Prevention

Policy are the main tools used to manage infrastructure integrity and the safety of individuals.

This system incorporates the processes that underpin the company’s environmental principles,

in accordance with the applicable legislation and its commitment to the environment.

Furthermore, the Exolum Group has Self-Protection Plans for infrastructure, which identify

possible risk situations and establish the actions to be taken, should these occur, taking account

of the human and material resources available.

Spills 2018 2019 2020

102

TIER 1 + TIER 2 industrial incident frequency rate

Exolum Group in Spain (CLH + CLH Aviación) 0.34 0.23 0.15


EXOLUM – PS --- 0.11 0



TIER 1 + TIER 2 industrial incident frequency rate CLH

Panamá --- No data 0

TIER 1 + TIER 2 industrial incident frequency rate CLH

Ecuador

--- --- 0


Exolum Group 0.34 0.23 0.13


Throughout 2020, different initiatives were undertaken at facility monitoring centres in Spain

to improve operational efficiency. Specifically, in 2020, the Oil Movement project was

developed to automate complex operations at the facilities and prevent human errors during

these operations.

In addition, improvements continue to be made to the management system at the pipeline

monitoring centre to allow certain operations to be performed automatically, thus enhancing

the safety of these operations.

At the facility monitoring centre, a new management tool was developed last year for the

remote monitoring of facilities, and the tool was installed at the facility in Santurce for testing.

In 2020, CLH Ecuador carried out several initiatives in the monitoring centres to ensure the

safety of the staff working in operations at all times. One of the initiatives was the provision of

ongoing training throughout the year on the correct use of protective equipment, ergonomics,

position in the cabin, use of contingency equipment and spill control, etc.

Pipeline and facility integrity plan

The Exolum Group’s Pipeline and Facility Integrity Plan has been developed in accordance with

the best international practices in the industry, and is another tool the company uses to manage

the safety of infrastructure.

The plan establishes the frequency of infrastructure inspections, together with action protocols,

mitigation measures and monitoring and control indicators.

In 2020, the Exolum Group implemented a new pipeline integrity risk model to optimise

decision-making with regard to repairs, investments and inspections. In addition, the company

continued to develop the facility inspection plan based on the API 570 standard “Piping

103

Inspection Code: In-service Inspection, Rating, Repair and Alteration of Piping Systems,” which

provides for the thorough inspection of piping systems and ancillary elements.

In 2020, the company continued to roll out the asset management project with the aim of

improving efficiency in asset management. In this respect, it began to implement the

improvements identified in the Reliability Centered Maintenance (RCM) and Maintenance Task

Analysis (MTA) analyses performed last year, which will enable us to reduce the number of

failures in critical assets and, therefore, optimise the company’s maintenance strategy while

ensuring the safety of people, equipment and the environment.

In addition, we continued to improve the conceptual design of the computerised maintenance

management system (CMMS) by adding additional features such as the causes of the failure

and work order priority. All of these changes will also impact the safety of people, equipment

and the environment.

Furthermore, the company has taken the first steps towards implementing preventive

maintenance for our core operating assets. In this regard, two important projects were carried

out for loading area control valves and pipeline pumps, which are now in operation and allow

us to anticipate equipment failures.

The Exolum Group has firmly established the use of Business Intelligence (BI) tools to exploit

the information in the various tank and pipeline databases. This has allowed greater control

over the safety of assets and the development of new inspection and maintenance strategies

for containment assets based on risk analysis.

In 2020, the Exolum Group developed a new inspection guide for storage tanks with the aim of

improving the integrity of these assets. The new guide covers the complete inspection of tanks

and underscores sensitive areas that are difficult to inspect.

In addition, the Facility Integrity Plan was simplified and updated in preparation for publication.

The Plan lays the foundations for integrity management in the company.

EXOLUM-PS built a new tank in the Inverness facility to replace two semi-underground tanks

and completed four pipeline diversions to replace old sections, thus reducing environmental

risks and ensuring a continuous supply of fuel to customers.

In addition, in 2020, a new automated tank overfill protection system was installed, in addition

to a programme for upgrading the leak detection system at ten storage facilities in the EXOLUM-

PS network.

104

EXOLUM-PS successfully implemented a new leak detection system for the more vulnerable

pipe sections. The system was able to accurately detect simulated incidents in pipes in static

and dynamic conditions. It has been installed in four sections, and the rest of the sections will

be completed in 2021.

In addition, the replacement of the pumping stations in Stoke has been completed, and the

works are nearing completion in Redmile and Misterton. The commissioning of the pumping

stations will take place in the first quarter of 2021.

Furthermore, plans have been drawn up for the replacement of the pumping stations at the

facilities in Nettlestead Green and Rawcliffe, and the works are scheduled to commence in

2021. The new pumping stations will make the system more resilient, energy efficient and will

ensure a continuous supply of fuel to customers.

In addition, projects relating to electrical, control, instrumentation and automation (ECIA)

commenced in EXOLUM-PS’s main facilities in 2020. The project entails the upgrading of

electrical systems and the installation of an overfill protection system, pump control systems

and a SCADA interface at the control room in Aldermaston.

In 2021, work will commence on the migration of the current control functions of the SCADA

system to the new ABB system. This will allow the entire EXOLUM-PS pipeline network to be

controlled using the new ABB SCADA system in Aldermaston.

Emergency preparedness and response

The Exolum Group has Emergency Plans for all its facilities, prepared in accordance with the

recommendations and guidelines of the main international organisations and approved by the

relevant authorities. The plans are updated regularly.

To improve the response and coordination of teams involved in emergency response

operations, the company conducts regular safety drills and exercises for the staff at each facility.

One of the most critical scenarios are incidents affecting water bodies, both rivers and port

areas, where a spill could have adverse effects on the aquatic environment. Accordingly, it is

company policy to carry out drills for rivers and ports using floating booms, skimmers and boats.

Description Facility

Simulation of product leak due to sabotage of the loading arm resulting in a spill at sea

Barcelona

Simulation of product spill from pipeline to river Burgos

Simulation of discharge into river between valves 1209 and 1210 of the pipeline

San Roque

105

Cooperation with stakeholders

Cooperation with stakeholders is a priority for the Exolum Group. Accordingly, the company

maintains direct contact with the owners of the land through which our pipelines pass and

distributes leaflets with information on how to identify the presence of pipelines and the

measures that should be adopted to prevent accidents, especially when carrying out work close

by. The leaflets and communications also provide a free telephone number for the reporting of

incidents.

Furthermore, the Exolum Group participates in several international associations to promote

the exchange of good practices in infrastructure integrity. It also works regularly with the

authorities and with the fire and civil protection services of different localities, providing

training courses for the members of these bodies and holding drills and exercises.

2.6.2 Commitment to the environment

The Exolum Group’s activity is respectful of the environment, given that it is not engaged in

manufacturing or the generation of energy and, therefore, its emissions are very limited.

According to the “VISION 2050. A Pathway for the Evolution of the Refining Industry and Liquid

Fuels” report published by FuelsEurope, the transportation of fuel only accounts for 1% of CO2

emissions from fuel production and use. (Source: Concawe based on JEC v4 and own data

(average values).

Applying the precautionary principle contained in the Rio Declaration adopted at the 1992

United Nations Conference on Environment and Development, the Exolum Group performs a

regular and systematic environmental assessment via its Environmental Management System,

which is subject to audits to identify points for improvement. Furthermore, initiatives based on

the principles of sustainable development of all the company’s activities are regularly

monitored.

The Exolum Group has an Integrated Management System (IMS) which includes an

Environmental Management System covering all aspects of the organisation, from fuel storage,

transport through the pipeline network, unloading of tanker ships at ports, dispatch of fuel by

road and pipeline and the supply of fuel to ships at ports through to aviation fuel logistics.

Moreover, it aims to ensure that all these activities are conducted in an environmentally

sustainable manner.

In keeping with the Group’s commitment to social responsibility, Exolum carries out ongoing

activities, initiatives and projects in a coordinated and structured manner to continuously

106

improve its environmental performance. In order to coordinate, standardise and implement

environmental management in the company, an environmental management system, which is

structured and documented in accordance with the UNE-EN ISO 14001 Standard

“Environmental Management Systems. Requirements with guidance for use,” has been

developed and implemented in the company.

Fuel transport via pipeline is one of the most environmentally-friendly modes of transport for

oil products. In Spain, the use of pipelines to transport fuel, instead of other means, avoids the

emission of more than 325,000 tonnes of CO2 each year, which would be the emissions figure

if other modes of transport were used.

In addition, the Exolum Group’s environmental performance is monitored regularly through

internal and external audits and management reviews to identify ways to continuously improve

our performance in this area.

As an example of the company’s commitment to the environment, in 2020 the quality and

environmental management certifications were renewed with the port authorities of

Barcelona, Gijón, Palma, Mahón, Ibiza, Algeciras, Motril, Santurce and Ziérbana.

For its part, CLH Aviación Ecuador has an Environmental Management Plan (EMP) which

includes a compliance schedule and covers all organisational processes from the receipt and

storage of fuel through to its distribution by tanker truck or dispenser. The objective of the plan

is to ensure the safety of the staff and the local environment likely to be affected by the

company’s operations.

In addition, in keeping with its commitment to social responsibility, CLH Aviación Ecuador

carries out ongoing activities, initiatives and projects in a coordinated and structured manner

to continuously improve its environmental performance.

In this regard, to minimise toxic waste and in line with its strategy to reduce, reuse or recycle,

it has devised a plan to promote the reuse of natural fibre materials to reduce the use of plastic

materials that are more difficult to dispose of or eliminate. Similarly, in 2020 it continued to

search for new ways to reuse high density plastic waste.

In 2020, EXOLUM-PS commenced the design of a project to install and pilot test a 650 kW-

photovoltaic solar power plant in Hallen. The self-generated energy will cover the electricity

needs of the Berwick Wood and Hallen facilities and will reduce annual CO2 emissions by 170

tonnes.

For its part, Exolum Aviation Ireland replaced 75% of its light vehicle fleet with plug-in hybrids

in line with the Exolum Group’s commitment to be carbon neutral by 2050.

107

The main goal of the Exolum Group’s sustainability strategy in Spain is to align its environmental

protection work with the Paris Agreements of December 2015 (COP 21) and the UN Sustainable

Development Goals (SDGs).

This strategy comprises four main lines which are implemented through specific plans and

projects that will enable the Exolum Group to strengthen its commitment to biodiversity

protection, the efficient use of natural resources and the fight against climate change over the

coming years, setting medium- and long-term goals.

Carbon Neutral

The aim of this line is to progressively reduce CO2 emissions by 50% over 2019 levels by 2025

and make EXOLUM a carbon-neutral company by 2050.

To achieve this, the company is working on reducing energy consumption by replacing its

equipment with more efficient devices, incorporating new technological developments and

purchasing renewable power or generating it ourselves at the facilities. Moreover, the plan

provides for the promotion of measures to offset emissions, where necessary.

Of the actions taken in 2020, the following are worth highlighting:

The conclusion of a long-term power purchase agreement (PPA) for renewable energy

to meet 20% of the Exolum Group’s energy needs in Spain. The agreement avoided

6,324 tonnes of CO2-equivalent emissions in 2020.

The replacement of the lighting in the road tanker loading areas, roads and perimeter

area of plants with energy saving LED lights. It is estimated that this measure will avoid

687 tonnes of CO2-equivalent emissions each year.

Approval to construct two self-generating power plants using photovoltaic panels in two

EXOLUM facilities in Spain. In the future, the plants will cover approximately 4% of

EXOLUM’s electricity needs.

The installation of an electric pump unit at the Loeches plant to replace the diesel pump

has also helped to reduce energy costs and CO2 emissions.

The use of Drag Reducing Agent (DRA) in pipeline transport, the development of

algorithms for additive dosing and maximisation of efficiency in the use of pipeline

pumping stations, thereby saving energy.

108

The agreement concluded with the American company Plug Power to expand the use of

hydrogen in Spain through the design and implementation of energy solutions based on

this technology. Aside from producing near-zero pollutant emissions, the use of

hydrogen as a fuel has other advantages, such as being totally silent when in use and

faster and more convenient refuelling, which enables uninterrupted operation.

Prevention & Recovery

This strategic line focuses on the prevention of spills and their impact on the environment. It

also aims to promote a circular economy within the Exolum Group.

Of the actions taken in 2020, the following deserve special mention:

Implementation of various actions for the early detection of product leaks through

continuous monitoring by means of camera-based and pipeline leak detection systems.

Updating of the Assessment of Environmental Aspects procedure to bring it into line

with the company’s strategic lines and the setting of environmental performance

indicators for each facility. This facilitates the assessment of the various actions taken in

the workplaces.

The incorporation of additional features and the roll out of the digital delivery note

system to all customers, starting with the facilities in Villaverde and Torrejón. The new

system allows drivers to download loading documentation to their mobile phones or

tablets via an app, instead of having to print them on paper, which considerably reduces

the use of paper and strengthens our commitment to environmental protection.

EXOLUM2O.

This initiative aims to minimise the consumption of such a scarce natural resource as water, and

study and apply the best available techniques for its reuse.

The main activities carried out in this area in 2020 were as follows:

The calculation and publication of our first water footprint report for the Exolum Group

in Spain. The report will serve as a basis for identifying and promoting more efficient

water use within the company.

Establishment of new technical specifications for the efficient use of water in the

cleaning of storage tanks prior to inspection.

Conduct of a pilot test at the Motril facility for the recovery of waste water through

treatment with bioreactors for use in fire-fighting systems.

EXOLUM Nature

109

The EXOLUM Nature line aims to achieve zero impact on ecosystems by developing measures

for restoration or remediation, where necessary.

Of the actions taken in 2020, the following deserve special mention:

Updating of the High Consequence Areas (HCA) identified by the company for EXOLUM

pipelines in Spain, taking into account both the sensitivity of the environment and the

emerging risk of an accident due to adverse weather effects caused by climate change.

The performance of biodiversity studies for the area around the facilities. In 2020

biodiversity studies were conducted for the facilities in Gijón and Zaragoza, as well as

the area beside Jarama River.

Approval for the development of a project in conjunction with the Tagus Hydrographic

Confederation to improve biodiversity through the restocking of various species suited

to the Tagus riverbank habitat. The project is scheduled for implementation in 2021.

These initiatives, among others, have enabled the Exolum Group in Spain, as well as Exolum

Aviation Ireland and EXOLUM-PS, to retain ISO 14001 Environmental Management Certification

at all their facilities.

Environmental expenditure and investment

In Spain, investment in the environment amounted to 9.85 million euros in 2020. This figure

represents an increase of 16% compared to the previous year. The main investments made

were as follows:

Improvements in the treatment of effluent discharges.

Protection of oil pipelines.

Tank integrity.

Cathodic protection of pipelines.

Improvements to secondary containment systems at the facilities.

Expenditure for groundwater and soil remediation in the Exolum Group in Spain amounted to

3.34 million euros, an increase of 96% over 2019, primarily due to the commencement of soil

remediation work in the old storage plot at Madrid-Barajas airport, and extensive works at the

old Burgos facility.

At CLH Aviación Ecuador, investment in the environment amounted to 7,179 dollars in 2020,

and focused on the control of emissions, water discharges, noise and the management of

hazardous solid waste.

110

Environmental expenditure and investment (million euros) 2018 2019 2020

Evolution of environmental investments Exolum Group in Spain 9.89 8.43 9.85

Groundwater and soil remediation expenditure Exolum Group in Spain

1.53 1.7 3.34

Evolution of environmental investments EXOLUM-PS --- 22.8 --

Groundwater and soil remediation expenditure EXOLUM-PS --- 0.26 0.04

Evolution of environmental investments Exolum Aviation Ireland ---

Not available

Not available

Groundwater and soil remediation expenditure Exolum Aviation Ireland

--- 0.00 0.00

Evolution of environmental investments CLH Panamá ---

Not available

Not available

Groundwater and soil remediation expenditure CLH Panamá --- 0.00 0

Evolution of environmental investments CLH Aviación Ecuador --- 0,001 0,006

Evolution of environmental investments CLH Panamá Not available

N7D


Energy efficiency

The Exolum Group incorporates special additives in the transport of oil products through the

pipeline, which minimise energy loss due to friction and, therefore, reduce the amount of

energy used in pumping and the associated emissions.

In 2020 the company continued to invest in the protection and integrity of equipment to

prevent possible incidents with an environmental impact, such as the replacement of pipelines

according to integrity criteria and the improvement of fire protection systems.

In 2020, the Exolum Group in Spain consumed 142,078 gigajoules (GJ) of primary energy in the

facilities (diesel oil, fuel oil and natural gas) and 331,676 GJ in the operation of two tanker

vessels, which represents a reduction of 12% compared to the previous year.

Electricity consumption by the Exolum Group in Spain in 2020 amounted to 700,484 GJ, thus

decreasing 34% compared to 2019. This decrease is primarily due to the decline in activity on

account of the Covid-19 pandemic.

The Exolum Group in Spain accounts for 85% of total electricity consumption, mainly due to its

4,016-kilometre pipeline network covering the entire country, and because a large amount of

electricity is needed to operate pipeline pumping stations.

Electricity consumption by EXOLUM-PS totalled 105,508 GJ, which represents a drop of 39%

compared to 2019.

For its part, energy consumption by CLH Panamá was 1,953 GJ, which corresponds to four

airports where supply is largely performed by road tanker.

111

At CLH Aviación Ecuador, electricity consumption amounted to 848.60 GJ, given that the

operation of transfer pumps and skids consumes a lot of power.

Energy consumption 2018 2019 2020

Total primary energy consumption (GJ/year) Exolum Group in Spain excluding tanker vessels

187,200 170,072 142,078

Primary energy consumption in tanker vessel (GJ/year) Exolum Group in Spain

351,590 371,065 331,676

Electricity consumption (GJ/year) Exolum Group in Spain 977,248 1,043,584 700,484

Renewable energy consumption (GJ/year) Exolum Group in Spain

977,248 --- 142,531

Energy consumption 2019 2020

Total primary energy consumption (GJ/year) EXOLUM-PS 4,846 6,028

Electricity consumption (GJ/year) EXOLUM-PS 174,650 105,508

Renewable energy consumption (GJ/year) EXOLUM-PS --- ---

Energy consumption IRELAND 2019 2020

Total primary energy consumption (GJ/year) Exolum Aviation Ireland

255 393.41

Electricity consumption (GJ/year) Exolum Aviation Ireland

3,854 2,649

Renewable energy consumption (GJ/year) Exolum Aviation Ireland

0 0


Total primary energy consumption (GJ/year) CLH Panamá

12,687 4805.9

Electricity consumption (GJ/year) CLH Panamá 3,322 1,953.52

Renewable energy consumption (GJ/year) CLH Panamá

--- ---


Total primary energy consumption (GJ/year) CLH Ecuador

60.48 755.76

Electricity consumption (GJ/year) CLH Ecuador 126 1,512

Renewable energy consumption (GJ/year) CLH Ecuador

--- ---


Total primary energy consumption (GJ/year) Exolum Group

187,860 154,061

112

Total primary energy consumption tanker vessels (GJ/year) Exolum Group

371,065 331,676

Total electricity consumption (GJ/year) Exolum Group

1,227,834 800,431


Climate change

In 2020, the Exolum Group in Spain recalculated its carbon footprint based on the UNE EN ISO

140641 standard.

The purpose of calculating the carbon footprint is to identify the main sources of greenhouse

gas (GHG) emissions, with the aim of designing and implementing actions for the reduction of

emissions, which make it possible to increase the sustainability of our activity, measure the

effectiveness of the projects implemented, and assess the progress made by the company.

Direct emissions (Scope 1)

In 2020, a total of 34,736 tonnes of CO2-equivalent were emitted. This represents a

decrease of 14.5% compared to the previous year, largely on account of the decline in

activity due to Covid-19.

For the calculation of Scope 1 greenhouse gas emissions, the following activities are

taken into account:

Fuel consumption by steam boilers for heating fuel oil tanks and pipes.

Fuel consumption in maritime transport.

Fuel consumption by CLH and CLH Aviación vehicles.

It should be pointed out that the company’s two tanker vessels were engaged in more

activity for third parties due to the decline in activity on account of Covid-19.

Indirect emissions (Scope 2)

The majority of the company’s CO2-equivalent emissions are associated with the

electricity consumption required to transport hydrocarbons via pipeline.

In 2020, emissions amounted to 22,194 tonnes of CO2. This represents a decrease of

69% compared to the previous year, primarily due to the decline in activity triggered by

the pandemic, and also to the considerable drop in value of the national energy mix and

the entry into force of the long-term power purchase agreement for renewable energy

to meet almost 20% of the Exolum Group’s energy needs in Spain. The agreement

avoided 6,324 tonnes of CO2-equivalent emissions in 2020.

Indirect emissions (Scope 3)

113

For the calculation of Scope 3 greenhouse gas emissions, the following company

activities are taken into account:

Fuel consumption in the transport of fuel to CLH Aviación’s airport facilities.

Indirect emissions from travel by company staff by train, plane or rental car.

Indirect emissions from travel to and from the workplace by company staff.

Indirect emissions from the use of paper.

Indirect emissions from water consumption.

Indirect emissions from the management of the waste produced.

These emissions are very low compared to Scope 1 and 2 emissions, and accounted for

1,744 tonnes of CO2-equivalent in 2020.

Exolum Group in Spain 2018 2019 2020

Greenhouse gas emissions (tCO2eq) - Scope 1 40,459 40,726 34,736

Greenhouse gas emissions (tCO2eq) - Scope 2 0 75,370

22,194

Greenhouse gas emissions (tCO2eq) - Scope 3 Not available Not available

1,744

Greenhouse gas emissions (tCO2eq) - Total 40,459 116,096

58,674

EXOLUM-PS 2019 2020

Greenhouse gas emissions (tCO2eq) - Scope 1 252 300

Greenhouse gas emissions (tCO2eq) - Scope 2 12,614 7,149



Exolum Aviation Ireland 2019 2020

Greenhouse gas emissions (tCO2eq) - Scope 1 13.47 20.11



Greenhouse gas emissions (tCO2eq) - Total 463 284.11

114

CLH Panamá 2019 2020

Greenhouse gas emissions (tCO2eq) - Scope 1 659

333.9


32.4


0

Greenhouse gas emissions (tCO2eq) - Total 907

366.3


Greenhouse gas emissions (tCO2eq) - Scope 1 -- 34.65

Greenhouse gas emissions (tCO2eq) - Scope 2 -- 209.41

Greenhouse gas emissions (tCO2eq) - Scope 3 -- 0

Greenhouse gas emissions (tCO2eq) - Total --

244.06

Total Exolum Group 2019 2020



Greenhouse gas emissions (tCO2eq) - Scope 3 1 1,744



Control of emissions to the atmosphere

The Exolum Group generates a very limited amount of emissions to the atmosphere as the

company does not carry out any manufacturing processes and does not generate energy.

In specific terms, the main origin of emissions of SOX, NOX and particles in suspension lies in

stationary internal combustion engines and those used in the vehicle fleet. Account is also taken

of the emissions resulting from fuel consumption by steam boilers for heating the fuel oil stored

at the facilities in Algeciras, Barcelona, Cartagena, Gijón, Porto Pí and Tarragona.

In 2020, fuel consumption decreased slightly compared to the previous year, mainly due to the

effect of the decline in activity on account of the Covid-19 pandemic.

115

Regarding the emissions of volatile organic compounds (VOCs), which are basically generated

in gasoline loading processes, the Exolum Group has taken a range of measures to minimise and

control them, such as the use of vapour recovery units in product loading processes, which

guarantees that emissions of these compounds are reduced to below the 10 mg/m3 limit set

by the regulations.

Thanks to these actions, an average value of 3.84g/Nm3 has been achieved in VOC emissions,

which is considerably lower than the limit set by legislation. VOC emissions from road tanker

loading areas amounted to 12.2 tonnes in 2020, while total VOC emissions by the company

stood at 296 tonnes, representing a drop of 13.9% compared to the previous year, in line with

the decrease in output triggered by the Covid-19 pandemic.

Emissions into the air Exolum Group in Spain 2018 2019 2020

NOx emissions (tonnes) 444 451 408

SOx emissions (tonnes) 312 320 237

Volatile organic compound (VOC) emissions (tonnes) 488 344 296

Particle emissions (tonnes) 26 26 23

Emissions into the air EXOLUM – PS 2019 2020

NOx emissions (tonnes) 4.48 5.51

SOx emissions (tonnes) 0.11 0.13

Volatile organic compound (VOC) emissions (tonnes) 0.04 15.55

Particle emissions (tonnes) 0.24 0.29

Emissions into the air Exolum Aviation Ireland 2019 2020





Emissions into the air CLH Panamá 2019 2020





Emissions into the air CLH Aviación Ecuador 2019 2020

NOx emissions (tonnes) -- 0.62

SOx emissions (tonnes) -- 0.014

Volatile organic compound (VOC) emissions (tonnes) -- 0.005

Particle emissions (tonnes) -- 0.03

116

Emissions into the air Exolum Group - Total 2019 2020






Water consumption

In Spain, the Exolum Group uses water in its operations for several purposes, including the

testing of fire protection systems, the generation of steam for heating fuel oil tanks and for

sanitation.

Water is mainly supplied from the municipal networks and, to a lesser extent, by wells. Total

water consumption in Spain was 172,523 m3 in 2020, which represents a decrease of 18.6%

compared to the previous year.

This drop was largely due to reduced consumption at the facilities due to the decline in activity

and to water saving measures, such as:

The drafting of technical specifications for inclusion in the tender specifications for the

cleaning of storage tanks.

The issuing of recommendations on the use of water during fire drills and limiting the

number of drills carried out with water.

Water consumption 2018 2019 2020

Total water consumption (m3) Exolum Group in Spain 198,859 211,968 172,523

Total water consumption (m3) EXOLUM-PS --- 100,192 93,492

Total water consumption (m3) Exolum Aviation Ireland --- 2,161.61 6,787

Total water consumption (m3) CLH Ecuador --- 349 1,960

Total water consumption (m3) CLH Panamá --- Not available 0


Waste management

The Exolum Group produces hazardous waste in limited quantities given that it is not engaged

in manufacturing or the processing of materials. The type of waste generated is largely due to

the regular cleaning of storage tanks and the treatment systems for hydrocarbon water.

117

The facilities classify and separate the waste generated according to type. Subsequently, it is

stored in waste storage areas until it is delivered to an authorised waste management

contractor.

The facilities keep a record of all the waste delivered, specifying the quantity, type, final

destination and authorised manager. The waste is handled by authorised managers according

to the type of waste.

In 2020, the Exolum Group in Spain managed 3,592 t of hazardous waste and 370 t of non-

hazardous waste. In total, the company managed 3,962 t of waste, 16% less waste than in 2019,

mainly due to the decline in activity as a result of the Covid-19 pandemic.

Waste generation 2018 2019 2020

Total hazardous waste Exolum Group in Spain (CLH + CLH Aviación) (t)

3,430 4,110 3,592

Total non-hazardous waste Exolum Group in Spain (CLH + CLH Aviación) (t)

278 629 370

Total waste Exolum Group in Spain (t) 3,708 4,739 3,962

Total hazardous waste EXOLUM-PS (t) --- 1,332 1,382

Total non-hazardous waste EXOLUM-PS (t) --- 384 131

Total waste EXOLUM-PS (t) --- 1,722 1,513

Total hazardous waste Exolum Aviation Ireland (t) --- 47.3 3.67

Total non-hazardous waste Exolum Aviation Ireland (t) --- 13.2 10.37

Total waste Exolum Aviation Ireland (t) --- 60.5 14.04

Total hazardous waste CLH Panamá (t) --- 57 100

Total non-hazardous waste CLH Panamá (t) --- 24 20

Total waste CLH Panamá (t) --- 81 120

Total hazardous waste CLH Ecuador (t) --- 0.13 0.65

Total non-hazardous waste CLH Ecuador (t) --- 0 0

Total waste CLH Ecuador (t) --- 0.13 0.65


Discharge management

The characteristics of the company’s operations mean that the discharges generated at the

facilities are very limited. In this respect, the main cause of discharge is usually the rainwater

collected in the different drainage networks of the facilities.

118

These networks are suitably segregated according to the type of water that circulates through

them (rainwater, sanitary water and water that is likely to contain traces of hydrocarbons).

To ensure that discharges do not pose a risk of pollution, the facilities have waste treatment

systems consisting of different phases: gravity, coalescence and, in some cases, flotation. In

addition, discharges are controlled by means of continuous or periodic analyses.

In recent years, the company has made a number of improvements to reduce the pollutant load

that reaches the treatment plants in order to enhance plant operations and effectiveness.

Closed-circuit purge systems also help to minimise the pollutant load that is sent to the

treatment systems.

In 2020 the company continued to develop RDI projects for discharge management, including

a pilot test at the Motril facility for the treatment of hydrocarbon water with biofilters and

bacteria for its reuse in the plant’s fire-fighting systems.

Protection of soil and groundwater

Protecting soil and groundwater at the Exolum Group’s facilities is a top priority for the

company. The main systems in place for the prevention of soil pollution by EXOLUM’s activities

are as follows:

Tank filling control systems to prevent accidental overfilling.

Regular inspection of the tightness of underground tanks and the bottoms of tanks at

ground level for the early detection and prevention of possible leaks.

Proofing of areas susceptible to accidental spills: bunds and pump rooms.

Computer system to monitor pipelines for leaks.

All newly-built above-ground tanks are equipped with leak detection systems at the

bottom of the tanks.

All underground tanks installed are double-walled.

All storage facilities are equipped with a piezometric control network to monitor and

control groundwater.

Installation of hydrocarbon sensors in the company’s piezometers.

The company also carries out a thorough investigation into all product spills and reports

significant environmental incidents to the authorities. In addition, it immediately activates the

necessary measures to mitigate the possible effects on the environment and the surrounding

area.

119

The Exolum Group has mechanisms in place that provide detailed information on the

environmental situation of the land where its terminals are located. In addition, each year, the

environmental condition of the subsoil at the facilities is monitored by taking samples of

groundwater and analysing these in the company’s own accredited laboratory.

The most significant work undertaken in Spain in 2020 for the protection of soil and

groundwater was as follows:

Old Burgos facility. Soil remediation work is being carried out by means of

bioremediation using biopiles. This eliminates the need for waste management in

landfills as the soil is restored to its original non-contaminated state in a natural way.

Old recipient facility at Madrid Barajas airport. Soil remediation work commenced in

November after conducting a detailed characterisation of the sub-soil and obtaining the

approval of the remediation plan from the Regional Ministry of the Environment of the

Community of Madrid. This work will continue throughout 2021.

The following table shows incidents involving spills over the past three years:

Spills 2018 2019 2020

Spills with environmental impact Exolum Group in Spain (number)

3 1 1

Total volume spilled Exolum Group in Spain (tonnes)

10.44 8.52 0.36

Spills with environmental impact EXOLUM-PS (number)

--- 2 0

Total volume spilled EXOLUM-PS (tonnes)

--- 1.2 0

Spills with environmental impact Exolum Aviation Ireland (number)

--- 0 0

Total volume spilled Exolum Aviation Ireland (tonnes)

--- 0 0

Spills with environmental impact CLH Panamá (number)

--- 0 0

Total volume spilled CLH Panamá (tonnes)

--- 0 0

Total spills with environmental impact Exolum Group in Spain (number)

3 3 1

Total volume spilled Exolum Group (tonnes)

10.44 9.72 0.36

Note: In keeping with commonly used practices in the sector, the company records spills that exceed 0.2 tonnes of product and affect the environment as spills. (*) For this indicator, not all information concerning the Group´s companies abroad is included.

2.6.3 Protection of biodiversity

120

The Exolum Group has a Plan for Identification of High Consequence Areas (HCA) which, by

means of specific geographical analysis software, defines environmentally sensitive areas

where a pipeline incident would have major consequences for individuals and/or the

environment.

The Exolum Group regards Protected Natural Areas (PNA), highly populated areas (more than

50,000 inhabitants or a population density of over 390 inhabitants/km2), other populated areas

(such as isolated buildings, schools, stadiums, etc.), infrastructure (motorways, dual

carriageways, railway lines, etc.) and water courses or water in dams (rivers, reservoirs, lakes,

etc.) as High Consequence Areas.

In 2020 the High Consequence Areas were updated and new areas were analysed taking into

account both the sensitivity of the environment and the emerging risk of an accident due to

adverse weather effects caused by climate change, such as floods, drought, erosion, risk of fire,

etc.

In Spain, the Exolum Group is conducting biodiversity studies in the areas around the facilities.

The studies assess the biodiversity of the area surrounding the plants and, at all facilities

studied, it was concluded that EXOLUM’s activity does not impact biodiversity in the area

beyond the fence of the industrial site. In 2020 biodiversity studies were conducted for the

facilities in Gijón and Zaragoza, as well as the area beside Jarama River.

In addition, approval was granted for the development of a project in conjunction with the

Tagus Hydrographic Confederation to improve biodiversity through the restocking of various

species suited to the Tagus riverbank habitat. The project is scheduled for implementation in

2021.

Furthermore, the Exolum Group has also performed environmental studies in Spain to measure

the integration of the pipelines that run through areas that are especially rich in biodiversity.

The studies carried out have found that the sections analysed do not interfere with the

development of the animal and plant species in the areas selected and highlight the integration

of the infrastructure into the environment. The Exolum Group and GREFA analysed a total of

approximately 200 kilometres of protected natural areas where the pipelines are present in

nine regions.

For more than nine years, the Exolum Group in Spain has been supporting GREFA (Rehabilitation

Group for Native Fauna and its Habitat) in the conservation of biodiversity and carrying out

various projects in partnership with the group. Specifically, in 2020, EXOLUM continued to work

with GREFA in the conservation of Iberian harrier in the region of Madrid. As part of the project,

the company assisted in the implementation of an information and social awareness campaign

121

regarding this species, the tagging of birds and the performance of tasks for the protection of

nests.

In addition, EXOLUM continued to work with the “Kestrel Network” initiative for the recovery

of the lesser kestrel in the region of Madrid. In 2020, thirty-three lesser kestrel chicks from the

captive breeding programme were reintroduced into the wild.

122

GRI indicator table and contents required under Spanish Act 11/2018

INDICATOR DESCRIPTION GLOBAL

COMPACT LOCATION IN REPORT

GRI 101 Fundamentals

GRI 102 General disclosures Organisational profile

102-1 Name of the organisation P. 3

102-2 Activities, brands, products, and services P. 16-22

102-3 Location of headquarters Titán, 13, 28045 - Madrid

102-4 Location of operations P. 16-22

102-5 Ownership and legal form P. 10

102-6 Markets served P. 16-22

102-7 Scale of the organisation P. 14-22, 24

102-8 Information on employees and other workers Principle 6 P.33-41

102-9 Supply chain P. 91-98

102-10 Significant changes to the organisation and its supply chain P. 16-22

102-11 Precautionary Principle or approach P. 102-103

102-12 External initiatives P. 84-85

102-13 Membership of associations P. 84-85

Strategy

123



102-14 Statement from senior decision-maker P. 4-5

102-15 Key impacts, risks, and opportunities P. 31-32

Ethics and integrity

102-16 Values, principles, standards, and norms of behaviour Principle 6 P. 10-11

102-17 Mechanisms for advice and concerns about ethics Principle 6 P. 67-69

Governance

102-18 Governance structure P. 26-29

102-22 Composition of the highest governance body and its committees Principle 6 P. 26-29

102-23 Chair of the highest governance body P. 26-29

102-38 Annual total compensation ratio P. 43-45

102-39 Percentage increase in annual total compensation ratio P. 43-45

Stakeholder engagement

102-40 List of stakeholder groups P. 33

102-41 Collective bargaining agreements Principle 1

Principle 3 P. 50

102-42 Identifying and selecting stakeholders P. 49, 57, 93-96

102-43 Approach to stakeholder engagement P. 33, 69-74

102-44 Key topics and concerns raised P. 98-100, 102-103

Reporting practice

102-45 Entities included in the consolidated financial statements Activity of the consolidated group of the Consolidated Annual Accounts for

the year 2020.

124



102-46 Defining report content and topic boundaries P. 30

102-47 List of material topics P. 30

102-48 Restatements of information Restatements of information are indicated throughout the report

102-49 Changes in reporting P. 30

102-50 Reporting period 2020

102-51 Date of most recent report 2019

102-52 Reporting cycle Annual

102-53 Contact person for questions regarding the report Page 3

102-54 Claims of reporting in accordance with the GRI Standards Core option

102-55 GRI content index GRI indicator table

102-56 External assurance Not available

GRI 103 Management Approach

103-1 Explanation of the material topic and its Boundary P. 30

103-2 The Management approach and its components P. 30

103-3 Evaluation of the Management approach P. 30

GRI 201 Economic Performance

201-1 Direct economic value generated and distributed P. 15

201-3 Defined benefit plan obligations and other retirement plans P. 58

125



201-4 Financial assistance received from government Note 20. Other non-current liabilities of the Consolidated Annual Accounts

for the 2020 financial year.

GRI 202 Market Presence

202-1 Ratios of standard entry level wage by gender compared to local minimum

wage

Principle 1

Principle 6 P. 43-45

202-2 Proportion of senior management hired from the local community Principle 6 P. 43-45

GRI 203 Indirect Economic Impacts

203-1 Infrastructure investments and services supported P. 98-100

203-2 Significant indirect economic impacts P. 98-100

GRI 204 Procurement Practices

204-1 Proportion of spending on local suppliers P. 94

GRI 205 Anti-corruption

205-1 Operations assessed for risks related to corruption Principle 10 P. 30

205-3 Confirmed incidents of corruption and actions taken Principle 10 In 2020, no legal action was brought against the organisation for cases of

corruption

GRI 206 Anti-competitive Behaviour

206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly

practices

In 2020, EXOLUM did not receive any complaints regarding anti-

competitive behaviour, anti-trust or monopoly practices

GRI 301 Materials 2020

301-1 Materials used by weight or volume P. 108-110

GRI 302 Energy 2020

302-1 Energy consumption within the organisation Principle 7

Principle 8 P- 110-111

126



302-2 Energy consumption outside the organisation Principle 7


302-4 Reduction of energy consumption

Principle 7

Principle 8

Principle 9

P. 110-111

GRI 303 Water

303-1 Total water withdrawal by source Principle 7

Principle 8 P. 116

303-2 Water sources significantly affected by withdrawal of water Principle 7

Principle 8 P. 116

GRI 304 Biodiversity

304-1 Operational sites owned, leased, managed in, or adjacent to, protected

areas and areas of high biodiversity value outside protected areas Principle 8 P. 119-120

304-2 Significant impacts of activities, products, and services on biodiversity Principle 8 P. 119-120

304-3 Habitats protected or restored Principle 8 P. 119-120

GRI 305 Emissions

305-1 Direct (Scope 1) GHG emissions

Principle 7

Principle 8

Principle 9

P. 112-114

305-2 Indirect (Scope 2) GHG emissions

Principle 7

Principle 8

Principle 9

P. 112-114

305-3 Other indirect (Scope 3) GHG emissions Principle 8 P. 112-114

305-5 Reduction of GHG emissions Principle 8


305-7 NOx, SOx and other significant air emissions Principle 8


GRI 306 Effluents and Waste

127



306-2 Waste by type and disposal method Principle 7


306-3 Significant spills Principle 8 P. 118-119

GRI 307 Environmental Compliance

307-1 Non-compliance with environmental laws and regulations Principle 7

Principle 8

In 2020, EXOLUM did not record any significant fines or sanctions for

non-compliance with environmental laws or regulations

GRI 308 Supplier Environmental Assessment

308-1 New suppliers that were screened using environmental criteria Principle 9 P. 93-95

308-2 Negative environmental impacts in the supply chain and actions taken Principle 9 P. 93-95

GRI 401 Employment

401-1 New employee hires and employee turnover Principle 6 P. 49-56

401-3 Parental leave Principle 6 P. 57-63

GRI 403 Occupational Health and Safety

403-1 Workers representation in formal joint management worker health and

safety committees

P. 75-82

403-2 Types of injury and rates of injury, occupational diseases, lost days, and

absenteeism, and number of work-related fatalities

P. 75-82

403-4 Health and safety topics covered in formal agreements with trade unions P. 75-82

GRI 404 Training and education

404-1 Average hours of training per year per employee Principle 6 P. 71-73

128



404-2 Programmes for upgrading employee skills and transition assistance

programmes P. 64-71

404-3 Percentage of employees receiving regular performance reviews Principle 6 P. 64-71

GRI 405 Diversity and Equal Opportunity

405-1 Diversity of governance bodies and employees Principle 6 P. 33-41

405-2 Ratio of basic salary and remuneration of women to men Principle 6 P. 39

GRI 406 Non-discrimination

406-1 Incidents of discrimination and corrective actions taken Principle 6 We are not aware of any incidents of discrimination in 2020

GRI 407 Freedom of Association and Collective Bargaining

407-1 Operations and suppliers in which the right to freedom of association and

collective bargaining may be at risk Principle 2 P. 74-75

GRI 408 Child Labour

408-1 Operations and suppliers at significant risk for incidents of child labour Principle 5 P. 74-75

GRI 409 Forced or Compulsory Labour

409-1 Operations and suppliers at significant risk for incidents of forced or

compulsory labour Principle 4 P. 74-75

GRI 410 Security Practices

410-1 Security personnel trained in human rights policies or procedures Principle 1

Principle 2 P. 74

GRI 412 Human Rights Assessment

129



412-1 Operations that have been subject to human rights reviews or impact

assessments Principle 1 P. 91-96

412-3 Significant investment agreements and contracts that include human

rights clauses or that underwent human rights screening

Principle 1


GRI 413 Local Communities

413-1 Operations with local community engagement, impact assessments, and

development programmes Principle 1 P. 33

GRI 414 Supplier Social Assessment

414-1 New suppliers that were screened using social criteria Principle 2 P. 91-96

414-2 Negative social impacts in the supply chain and actions taken Principle 2 P. 91-96

GRI 416 Customer Health and Safety

416-1 Assessment of the health and safety impacts of product and service

categories P. 101-105

GRI 417 Marketing and Labelling

417-3 Incidents of non-compliance concerning marketing communications In 2020, EXOLUM did not identify any incidents of non-compliance with

regulations or voluntary codes concerning marketing communications

GRI 418 Customer Privacy

418-1 In 2020, EXOLUM did not receive any substantiated complaints

concerning breaches of customer privacy and losses of customer data

GRI 419 Socio-economic Compliance

419-1 Non-compliance with laws and regulations in the social and economic

area

In 2020, EXOLUM did not record any significant fines or sanctions for

non-compliance with laws and/or regulations in the social and economic

area

130



OG - Sector specific indicators (Oil & Gas)

OG-13 Number of process safety incidents, by business activity P. 75-82

TABLE OF CONTENTS 2020 NON-FINANCIAL STATEMENT

CONTENTS NON-FINANCIAL STATEMENT REPORTING STANDARD LOCATION IN REPORT

BUSINESS MODEL

Description of the business model

Group business model GRI 102-2

GRI 102-7 10-11

Business environment GRI 102-4 14-22

Organisation and structure GRI 102-18 10-11, 25-29

Markets where it operates GRI 102-6 16

Objectives and strategies GRI 102-15 11-14

Key factors and trends that could affect the company’s future performance GRI 102-15 22-25

INFORMATION ON ENVIRONMENTAL ISSUES

Policies

Policies applied by the group, including the due diligence procedures applied for the

identification, assessment, prevention and mitigation of significant risks and impacts, and

for verification and control, and the measures that have been adopted.

GRI 103-2

GRI 103-3 102-104

Main risks

131


Main risks related to these issues linked to the group’s activities, including, where relevant

and proportionate, its commercial relations, products or services that may have negative

effects in those areas, and how the group manages those risks, explaining the procedures

used to identify and assess them in accordance with the national, European and international

reference frameworks for each area. This should include information on the impacts that

have been identified, providing a breakdown of these impacts, and the main risks in the

short, medium and long term in particular.

GRI 102-11

GRI 102-15

GRI 102-30

31

Environmental management

Current and foreseeable impacts of the company’s activities on the environment and,

where applicable, on health and safety

GRI 102-11

GRI 102-29

GRI 102-31

105-108

Procedures for environmental assessment or certification

GRI 102-15

GRI 102-29

GRI 102-30

105

Resources dedicated to environmental risk prevention GRI 102-29

108

Note 31. Information on the Environment of the Consolidated

Annual Accounts for the 2020 financial year.

Applying the precautionary principle GRI 102-11 101-104

Provisions and guarantees for environmental risks GRI 307-1 Note 31. Information on the Environment of the Consolidated

Annual Accounts for the 2020 financial year.

Pollution

Measures to prevent, reduce or offset CO2 emissions that seriously affect the environment,

taking all forms of activity-specific air pollution into account, including noise and light

pollution

GRI 103-2

GRI 302-4

GRI 305-5

GRI 305-7

104-116

Circular economy and waste

prevention and management

Measures for the prevention, recycling, reuse and other forms of waste recovery and

disposal. Actions to combat food waste

GRI 103-2

GRI 301-1

GRI 306-2

GRI 306-3

103, 114-120

132


Sustainable use of resources

Consumption and supply of water in accordance with local restrictions GRI 303-1

GRI 303-2 116

Consumption of raw materials and measures taken to improve water use efficiency GRI 301-1 108-109

Energy: direct and indirect consumption; measures taken to improve energy efficiency, use

of renewable energies

GRI 102-3

GRI 302-1

GRI 302-2

GRI 302-4

105-112

Climate change

Greenhouse gas emissions

GRI 305-1

GRI 305-2

GRI 305-3

112-116

Measures taken to adapt to the consequences of climate change

GRI 102-15

GRI 103-2

GRI 305-5

114-115

Self-set GHG emission reduction targets for the medium and long term and measures

taken to achieve them GRI 305-5 105-110

Protecting biodiversity

Measures taken to preserve or restore biodiversity GRI 103-2

GRI 304-3 119-120

Impacts caused by activities or operations in protected areas GRI 304-1

GRI 304-2 119-120

INFORMATION ON SOCIAL AND EMPLOYEE ISSUES

Policies


identification, assessment, prevention and mitigation of significant risks and impacts, and for

verification and control, and the measures that have been adopted.

GRI 103-2

GRI 103-3 25-29

133


Main risks





reference frameworks for each area. This should include information on the impacts that have

been identified, providing a breakdown of these impacts, and the main risks in the short,

medium and long term in particular.

GRI 102-15

GRI 102-30 31

Employment

Total number of employees broken down by gender, age, country and professional

category

GRI 102-7

GRI 102-8

GRI 405-1

33-41

Total number of employment contracts broken down by type of contract GRI 102-8 33-41

Average annual number of permanent, temporary and part-time contracts broken down by

gender, age and professional category GRI 102-8 34

Number of dismissals broken down by gender, age and professional category GRI 401-1 53

Average remuneration and trends broken down by gender, age and professional category

or of equal value GRI 405-2 43-48

Pay gap GRI 405-2 46-48

Remuneration for similar positions or average remuneration at the company GRI 405-2 43

Average remuneration of board members and executives, including variable pay,

allowances, compensation and severance, payments to long-term pension and savings

schemes and any other remuneration, broken down by gender

GRI 405-2

43

Note 27. Remuneration to the Board of Directors and Senior

Management of the Consolidated Annual Accounts for the

2020 financial year.

Implementation of measures to allow employees to disconnect from work GRI 103-2

While EXOLUM does not have a specific work disconnection

policy, there is a commitment on the part of the Company to

respect the rest time of employees, as well as their leave and

vacation, and to promote the reconciliation of family and work

life.

Employees with disabilities GRI 405-1 54-55

134


Work organisation

Organisation of working hours GRI 102-8

GRI 103-2 58-59

Number of hours of absenteeism GRI 403-2 37-41

Measures intended to achieve a work-life balance and promote the attainment of a work-

life balance by both parents

GRI 103-2

GRI 403-2 58-63

Health and Safety

Occupational health and safety conditions GRI 103-2 75-82

Workplace accidents (frequency and severity) broken down by gender GRI 403-2 75-82

Occupational diseases (frequency and severity) broken down by gender GRI 403-2 In 2020 there have been no cases of occupational diseases

Labour relations

Organising dialogue with employees, including procedures for reporting, consulting and

negotiating with employees

GRI 102-43

GRI 402-1

GRI 403-1

74-75

Percentage of employees covered by collective bargaining agreement by country GRI 102-41 50

Analysis of collective agreements, particularly in the field of occupational health and safety GRI 403-1 74-75

Training

Policies implemented in the field of training GRI 103-2

GRI 404-2 69-74

Total hours of training by professional category GRI 404-1 70-74

Accessibility

Universal access for persons with disabilities GRI 103-2 41

Equality

Measures taken to promote equal treatment and opportunities for men and women GRI 103-2 30, 33, 41

Equality plans GRI 103-2 30, 41

Measures taken to promote employment GRI 103-2

GRI 404-2 65-73

135


Protocols against sexual and gender-based harassment GRI 103-2 33, 58-59

Integration and universal access for persons with disabilities GRI 103-2 41

Policy against all forms of discrimination and, where applicable, diversity management GRI 103-2

GRI 406-1 30

INFORMATION ON RESPECT FOR HUMAN RIGHTS

Policies




GRI 103-2

GRI 103-3

GRI 410-1

4-5, 74-75

Main risks








GRI 102-15

GRI 102-30 31

Respect for human rights

Implementation of human rights due diligence procedures GRI 102-3

GRI 414-2 92-93

Preventing the risk of human rights violations and, where applicable, measures to mitigate,

manage and remedy possible abuses committed

GRI 103-2

GRI 410-1

GRI 412-1

4-5

Whistle-blowing in cases of human rights violations

GRI 102-17

GRI 103-2

GRI 419-1

31

Promotion and compliance with the provisions of fundamental ILO conventions in relation

to respect for freedom of association and the right to collective bargaining, elimination of

discrimination in employment and occupation, forced or compulsory labour and the

effective abolition of child labour

GRI 103-2

GRI 406-1

GRI 407-1

GRI 408-1

GRI 409-1

74-75

136


INFORMATION ON COMBATING BRIBERY AND CORRUPTION

Policies


identification, assessment, prevention and mitigation of significant risks and impacts, and for

verification and control, and the measures that have been adopted.

GRI 103-2

GRI 103-3 4-5, 29-31

Main risks





reference frameworks for each area. This should include information on the impacts that have

been identified, providing a breakdown of these impacts, and the main risks in the short,

medium and long term in particular.

GRI 102-15

GRI 102-30

GRI 205-1

31

Combating bribery and corruption

Measures taken to prevent bribery and corruption GRI 103-2 4-5

Measures taken to combat money laundering GRI 103-2 4-5

Contributions to foundations and non-profit organisations

GRI 103-2

GRI 201-1

GRI 203-2

15

INFORMATION ON THE COMPANY

Policies




GRI 103-2

GRI 103-3 98-101

Main risks

137









GRI 102-15

GRI 102-30 31

Company commitments to sustainable development

Impact of the company’s activity on local employment and development

GRI 203-1

GRI 203-2

GRI 204-1

GRI 413-1

49-50, 92-93, 98-101

Impact of the company’s activity on local communities and the region

GRI 203-1

GRI 203-2

GRI 413-1

49-50, 92-93, 98-101

Relations with stakeholders in the local communities and forms of dialogue with these

stakeholders

GRI 102-43

GRI 413-1 98-101

Association or sponsorship actions

GRI 102-13

GRI 201-1

GRI 203-1

98-101, 17-18

Subcontractors and suppliers

Inclusion of social, gender equality and environmental issues in procurement policies GRI 103-3 92-93

Consideration of social and environmental responsibility in relations with suppliers and

subcontractors

GRI 102-9

GRI 103-3

GRI 308-1

GRI 308-2

GRI 407-1

GRI 408-1

GRI 409-1

GRI 414-1

GRI 414-2

92-93

Oversight and auditing systems and the results of the systems

GRI 308-1

GRI 308-2

GRI 414-2

92-98

Consumers

138


Consumer health and safety measures

GRI 103-2

GRI 306-3

GRI 416-1

GRI 416-2

GRI 417-1

GRI OG-13

101-106, 117-119

Complaint systems, grievances received and resolved

GRI 102-17

GRI 103-2

GRI 418-1

91-92

Tax information

Profits earned by country GRI 201-1 Note 23. Revenues and Expenses of the Consolidated Annual

Accounts for the 2020 financial year.

Taxes paid on profits GRI 201-1 Note 22. Tax assets and liabilities of the 2020 Consolidated

Annual Accounts

Public subsidies received GRI 204-1 Note 20. Other non-current liabilities in the 2020

Consolidated Annual Accounts

compañía logística de hidrocarburos clh, sa and subsidiaries ...

Documents

Transcript of compañía logística de hidrocarburos clh, sa and subsidiaries ...