China Petroleum & Chemical Corporation

2011 Annual Results Announcement2011 Annual Results Announcement

March 26, 2012Hong Kong

Di l iDisclaimerThis presentation and the presentation materials distributed herein include forward-looking

statements. All statements, other than statements of historical facts, that address activities, events or

developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but

not limited to projections targets reserves and other estimates and business plans) are forwardnot limited to projections, targets, reserves and other estimates and business plans) are forward-

looking statements. Sinopec Corp.'s actual results or developments may differ materially from those

indicated by these forward-looking statements as a result of various factors and uncertainties,

including but not limited to price fluctuations, actual demand, exchange rate fluctuations, exploration

and development outcomes, estimates of proven reserves, market shares, competition, environmental

risks, changes in legal, financial and regulatory frameworks, international economic and financial, g g , g y ,

market conditions, political risks, project delay, project approval, cost estimates and other risks and

factors beyond our control. In addition, Sinopec Corp. makes the forward-looking statements referred

to herein as of today and undertakes no obligation to update these statements.

2012-3-26 1

A dAgenda

Performance Highlights

Operational Results by Segment Operational Results by Segment

2012 Operational Planp

2012-3-26 2

Performance HighlightsPerformance Highlights

M k t E i tMarket Environment

China maintained steady economic development with GDP growth rate of 9 2% China maintained steady economic development with GDP growth rate of 9.2% Domestic demand for refined oil and chemical products kept growing

Domestic apparent consumption of refined oil products grew by 4.5% Domestic apparent consumption of ethylene equivalent grew by 4.9%

International oil price surged in Q1 and remained high and volatile Tight control over refined oil price due to huge inflation pressure in China Nation-wide resource tax reform on gas and oil adopted Threshold for special income levy adjusted Threshold for special income levy adjusted Pilot program for the reform of natural gas pricing mechanism announced

Max domestic retail price of oilGrowth rate of oil and chemical product

110120130140

10 00011,00012,000

15%

20%

25% RMB/tonne USD/bbl

Max. domestic retail price of oil product vs Dubai crude price

Growth rate of oil and chemical product consumption in China

5060708090100110

6,0007,0008,0009,000

10,000

RON 90# Gasoline0# dieselDubai Crude (RH)

-5%

0%

5%

10%

00 01 02 03 04 05 06 07 08 09 10 11

2012-3-26

4050

5,00010-1 10-4 10-7 10-10 11-1 11-4 11-7 11-10 12-1

Dubai Crude (RH)

4

00 01 02 03 04 05 06 07 08 09 10 11

GDP Refined oil Product Ethylene equivalent

Fi i l Hi hli htFinancial Highlights

Record revenue with a 31% increase yoy

Record net profit with a 2% increase yoy

T t l f RMB 130 2 b Total capex of RMB 130.2 bn

Strong operating cash flow of RMB 150.6 bn

Full-year dividend of RMB 0.30 per share with a payout ratio of 35.5%y p p y

RevenueRMB billion

Dividend per shareRMB

1,913.2

2,505.7 RMB billion

0.21

0.30

RMB

2012-3-26 5

2010 2011 2010 2011

Operating SummaryF R d M k t——Focus on Resources and Market

Oil and Gas Production Refinery Throughput*

377.45 401.42 407.91186.58

211.13 217.37

Oil and Gas Production Refinery Throughput*mmboe mm tonnes

2009 2010 2011 2009 2010 2011

Total Sales volume of Oil Products Ethylene Production*

130.32149.23

162.32

6,713

9,059 9,894

Total Sales volume of Oil Products Ethylene Production

mm tonnes ’000 tonnes

6,713

2012-3-26 * 100% production of joint ventures included

2009 2010 2011 2009 2010 2011

6

ProfitabilityProfitability

Significant growth in revenue and other operating income Significant growth in revenue and other operating income

Net profit increased 2% to RMB 73.2 billion despite of price control on oil product

Revenue and Other Operating Income Earnings per Share

Record revenue and profit achieved

2,505.7

Revenue and Other Operating Income

RMB billion

0 7280.828 0.845

RMB

Earnings per Share

1,345.1

1,913.20.728

2009 2010 2011 2009 2010 2011

2012-3-26

2009 2010 2011 2009 2010 2011

7

Di id dDividend

Full year dividend of RMB 0 30 per share up by 42 9% yoy Full-year dividend of RMB 0.30 per share, up by 42.9% yoy

Dividend payout ratio of 35.5%, up by 10.1 percentage points yoy

Dividend yield exceeded 4.5% Dividend yield exceeded 4.5%

DPS d Di id d P t R ti Di id d Yi ld*

35.5%RMB/Share

4.53%

DPS and Dividend Payout Ratio Dividend Yield*

0.13

0.20

24.7% 25.4% 2.96%3.33%

0.07 0.08 0.10

0.110.13

2009 2010 2011 2009 2010 2011

2012-3-26 8

Interim Year-endPayout ratio

2009 2010 2011

* Based on the closing price of H-share at year-end

S d U f C hSources and Uses of Cash

RMB MM 2009 2010 2011Net cash generated from operating activities 165,513 170,333 150,622

N t h d i i ti ti iti (117 355) (105 788) (140 449)Net cash used in investing activities (117,355) (105,788) (140,449)

Net cash used in financing activities (46,411) (56,294) (2,516)

Cash and cash equivalent at year-end 8 782 17 008 24 647Cash and cash equivalent at year end 8,782 17,008 24,647

Sources and Uses of CashRMB billion

150.6

22.9

140.4

17.0 19.5 6.0

24.6 Cash as of

2010 year endCash from operating

Issuance of convertible

Cash from investing

Cash paid for dividends

Other financing activities

Cash as of 2011 year end

2012-3-26 9

2010 year-end operating activities

convertible bond

investing activities

dividends activities 2011 year-end

Fi i l P itiFinancial Position

EBITDA-to-Interest CoverageReturn on Capital Employed

19.521.3

18.811.67%12.95%

11.49%

2009 2010 20112009 2010 2011

2012-3-26 10

C it l E ditCapital Expenditure 2011 Capex: RMB 130.2 billion

More emphasis on investment in E&P and Marketing

E&P – RMB 58.8 billionShengli shallow water oil field Northwest

RMB billion Shengli shallow water oil field, Northwest

Tahe oil field and Northeast Sichuan natural gas exploration and Shandong LNG projects

Refining – RMB 25.8 billionCompletion of Beihai Refinery upgrading of

112.7 113.7 124.1

130.2

Completion of Beihai Refinery, upgrading of Shanghai and Jinling refinery, and Rizhao-Yizheng crude oil pipeline projects

Marketing – RMB 28.5 billionC t ti f i t ti il d t Construction of service stations, oil depots, oil output transfer networks along highways, in major cities and newly-planned regions

Chemicals – RMB 15.0 billionW h th l j t Zh MTO Wuhan ethylene project, Zhongyuan MTO project

Corporate & others – RMB 2.1 billion

2009 2010 2011Plan 2011

Corporate & Others ChemicalsMarketing RefiningE&P

2012-3-26 11

Safety Production, Energy Conservation and E i i R d tiEmission Reduction

Implement “green and low carbon strategy” and HSE management system

Strengthen energy saving and emission reduction and transform growth

pattern. Realize the following targets while expanding business scale:

Energy intensity declined 0.7%

Water consumption for industrial use decreased 2.0%

COD in externally discharges waste water reduced by 16.9%

SO2 emission declined 9.8%

Over 95% of industrial water recycled

2012-3-26 12

Operational Results by SegmentOperational Results by Segment

E&P O ti SE&P – Operating Summary

Yoy2009 2010 2011 YoyChange

Oil and gas production (mm boe) 377.45 401.42 407.91 1.6%

Crude oil production (mm bbls) 327 62 327 85 321 73 (1 9%)Crude oil production (mm bbls) 327.62 327.85 321.73 (1.9%)

Incl. China 301.15 302.18 303.37 0.4%

Overseas 26.47 25.67 18.36 (28.5%)

Natural gas production (bcf) 299.01 441.39 517.07 17.1%

Lifting cost (USD/bbl) 12.80 13.99 16.08 14.9%** U 9 5% l di h t ff t

As of Dec. 31, 2009

As of Dec. 31, 2010

As of Dec. 31, 2011

yoyChange

* Up 9.5% excluding exchange rate effects

Proven reserves of oil and gas (mm boe) 4,043 3,963 3,966 0.1%

Proven reserves of crude oil (mm bbls) 2,920 2,888 2,848 (1.4%)

Proven reserves of natural gas (bcf) 6,739 6,447 6,709 4.1%

2012-3-26 14

Proven reserves of natural gas (bcf) 6,739 6,447 6,709 4.1%

1. 100% production and reserves of SSI included2. 1 ton=7.1 barrels for crude oil production in China, 1 m3=35.31 c.f. for natural gas production in China, 1 ton=7.27 barrels for

overseas crude oil production

E&P S t P fE&P – Segment Performance

RMB million

Operating Profit of E&P Segment

70.87 98.70

USD/bbl

Realized Price of Crude Oil

71,63150.82

47,1492009 2010 2011

Realized Price of Natural Gas23,894

3.98 4.91

5.63 USD/'000 cubic feet

2009 2010 2011

2009 2010 2011

2012-3-26 15

R fi i O ti SRefining – Operating Summary

yoy2009 2010 2011 yoyChange

Refinery throughput (’000 bbls/day) 3,757 4,252 4,377 2.9%

Gasoline, diesel and kerosene production (mm tonnes)

113.69 124.38 128.00 2.9%

Incl. Gasoline production (mm tonnes) 34.43 35.87 37.10 3.4%

Diesel production (mm tonnes) 68.86 76.09 77.17 1.4%

Kerosene production (mm tonnes) 10.39 12.42 13.73 10.5%p ( )

Light chemical feedstock production (mm tonnes) 26.87 35.00 37.38 6.8%

Li ht i ld (%) 75 54 75 79 76 08 29 bLight yield (%) 75.54 75.79 76.08 29 bps

Refining yield (%) 94.53 94.83 95.09 26 bps

Note: 1. refinery throughput is calculated based on 1 ton = 7.35 bbls;

2012-3-26 16

Note: 1. refinery throughput is calculated based on 1 ton 7.35 bbls;2. 100% production of joint ventures included

R fi i S t P fRefining – Segment Performance

RMB million

Operating Profit of Refining Segment6.62 5.84

USD/bblRefining Margin

27,504

15,851 0.73

2009 2010 2011

2009 2010 2011

USD/bblOperating Cost

2.71 2.813.15

USD/bbl

(35,780)

2009 2010 2011

2012-3-26 17

* Up 6.9% excluding exchange rate effects

M k ti O ti SMarketing – Operating Summary

yoy(mm tonnes) 2009 2010 2011 yoyChange

Total sales of refined oil products 130.32 149.23 162.32 8.8%

Domestic sales of refined oil products 124.02 140.49 151.16 7.6%

Incl. Retail 78.90 87.63 100.24 14.4%

Distribution 25.61 32.40 33.22 2.5%

Wholesales 19.52 20.47 17.70 (13.5%)

Annualized average throughput of self-Annualized average throughput of self-operated stations (tonnes/station)

2,715 2,960 3,330 12.5%

As of Dec. As of Dec. As of Dec. yoy31, 2009 31, 2010 31, 2011 Change

Total number of domestic service stations 29,698 30,116 30,121 0.02%

Incl. Company-operated stations 29,055 29,601 30,106 1.7%

2012-3-26 18

Incl. Company operated stations 29,055 29,601 30,106 1.7%

M k ti S t P fMarketing – Segment Performance

Operating Profit of Marketing Segment

销售板块经营收益Revenue from Non-fuel Business

44,696RMB million

8,260RMB million

30,300 30,760

3 010

5,720

3,010

2009 2010 20112009 2010 2011

2012-3-26 19

Ch i l O ti SChemicals – Operating Summary

yoy’000 tonnes 2009 2010 2011 yoyChange

Ethylene 6,713 9,059 9,894 9.2%

Synthetic resins 10,287 12,949 13,652 5.4%

Monomers & polymers for synthetic fibers 7,798 8,864 9,380 5.8%

Synthetic fibers 1,302 1,393 1,388 (0.4%)

Synthetic rubbers 884 967 990 2.4%

100% production of joint ventures included

2012-3-26 20

Ch i l S t P fChemicals – Segment Performance

Ch i l P d t P i I d (CPPI)

300 RMB million

Chemical Products Price Index (CPPI) Operating Profit of Chemical Segment

200

250 26,732

150 13,77915,011

50

100

0

指数差 CPPI 石脑油价格指数Index Difference Naphtha Price Index

2009 2010 2011

2012-3-26

指数差 CPPI 石脑油价格指数Index Difference Naphtha Price Index

21

Source: Sinopec

2012 Operational Planp

M k t O tl k f 2012Market Outlook for 2012

Recovery of the world economy is expected to be arduous Uncertainty in European and US economy recovery Slowdown in economic growth of emerging markets esp. China

High uncertainty in the world economy and political landscape, especially during a year of electionsespecially during a year of elections

Affected by geopolitical and other factors, the international oil price is expected to remain at a high level

Demand for oil and chemical products is expected to grow at a slower pace

2012-3-26

2012 C Pl2012 Capex Plan

2012 C Pl 172 9 billi E&P 2012 Capex Plan 172.9 billion E&P Exploration and production capacity

building focusing in oil fields of Shengli, Tahe, south of Erdos and gas fields of Yuanba and Erdos

RMB billion

78.2

26 5

25.9 5.4 Yuanba and Erdos

Refining Retrofit of the oil refining facilities of

Sinopec Shanghai and Jinling

36.8

26.5 Huangdao-Dongjiakou-Lanshan crude oil pipelines and other ancillary facilities

Marketing Construction and acquisition of high 36.8

E&P Refining

Construction and acquisition of high quality service stations

Construction of oil product pipelines and storage facilities

Chemicals Marketing ChemicalsCorporate & Others

Chemicals Wuhan ethylene and Hainan aromatics

projects

2012-3-26 24

2012 P d ti E ti t2012 Production Estimates

Natural Gas ProdcuctionOil and Gas Production Crude Oil Production

321.73 326.5

517 07582.6

Natural Gas Prodcuctionmm bbls bcf

407.9 423.6

Oil and Gas Productionmm boe

Crude Oil Production

517.07

2011 2012E 2011 2012E

Refinery Throughput* Total Domestic Sales of Ethylene Production*

2011 2012E

151.16 1579,894 9,900

217.37 225

Refinery Throughput Total Domestic Sales of Refined Oil Products

Ethylene Production

mm tonnes mm tonnes ’000 tonnes

2012-3-26 25* 100% production of joint ventures included

2011 2012E 2011 2012E2011 2012E

F F th I f tiFor Further Information

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2012-3-26

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