China Petroleum & Chemical CorporationChina Petroleum & Chemical Corporation

2010 Annual Results Annoucement

28 March 2011Hong Kong

Di l iDisclaimer

This presentation and the presentation materials distributed herein includeforward-looking statements. All statements, other than statements of historicalfacts, that address activities, events or developments that Sinopec Corp. expectsor anticipates will or may occur in the future (including but not limited toprojections, targets, reserve and other estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ

f f fmaterially from those indicated by these forward-looking statements as a result ofvarious factors and uncertainties, including but not limited to price fluctuations,actual demand, exchange rate fluctuations, exploration and developmentoutcomes estimates of proven reserves market shares competitionoutcomes, estimates of proven reserves, market shares, competition,environmental risks, changes in legal, financial and regulatory frameworks,international economic and financial market conditions, political risks, projectdelay, project approval, cost estimates and other risks and factors beyond ourcontrol. In addition, Sinopec Corp. makes the forward-looking statements referredto herein as of today and undertakes no obligation to update these statements.

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T bl f C t tTable of Contents

2010 Results and Performance by Segment

11th Five-year Plan Period Review, 12th Five Year Plan Period Outlook and 2011 Operational Plan

2011-3-28 2

2010 Results and2010 Results and Performance by Segment

R i f M k t E i tReview of Market Environment

China’s GDP grew by 10.3%

Crude oil price continued its upward movement

Domestic apparent consumption of refined oil products increased by 11.4% YoY

Domestic apparent consumption of ethylene equivalent increased by 11.8% YoY

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Fi i l P fFinancial Performance

RMB million 2008 2009 2010 yoy%

Turnover, other operating revenues and other income 1,495,148 1,345,052 1,913,182 42.2

EBITDA 89,092 148,086 169,890 14.7

Operating profit 38,581 90,699 105,004 15.8

Net profit attributable to equity shareholders of the Company 31,199 63,147 71,800 13.7shareholders of the Company , , ,

Earnings per share (RMB) 0.360 0.728 0.828 13.7

Dividend per share (RMB) 0.12 0.18 0.21 16.7

Note：Financial data for 2008 and 2009 was restated due to acquisition of interest in Angola Block 18.

2011-3-28 5

Fi i l P itiFinancial Position

RMB million 31 Dec. 2008 31 Dec. 2009 31 Dec. 2010

Short-term debt 77,339 59,350 17,019

Long-term debt 92,988 110,918 136,465

Total equity attributable to shareholders of the Company 329,783 378,940 419,047

RMB million 2008 2009 2010

Net cash generated from operating activities 86,443 165,513 170,333

Net cash used in investing activities (108,288) (117,355) (105,788)

Net cash generated from /(used in) financing activities 20,347 (46,411) (56,294)

2011-3-28 6

C it l E ditCapital Expenditure2010 Capex: RMB 113.7 billion

110.7 112.7 113.7

RMB billion E&P – RMB 52.7bn Exploration and development in Tahe, Shengli and Angola

Block 18 oil fields and in Puguang and Erdos gas fields Sichuan to East China Gas pipeline construction

Refining – RMB 20.0bn Revamping crude adaptability and upgrading oil product

quality Construction of crude oil jetties and transportation j p

system

Marketing – RMB 26.2bn Added new service stations in key areas, like

expressways, hub cities, new planned regions, etc.

2008 2009 2010

y g Construction of storage facilities and pipelines and

improve the sales network for refined oil products

Chemicals – RMB 12.9bn Tianjin and Zhenhai ethylene projects were completed2008 2009 2010

E&P RefiningMarketing ChemicalsCorporate & others

Tianjin and Zhenhai ethylene projects were completed Construction of Wuhan ethylene, Yanshan isobutene

rubber, etc.

Corporate & others – RMB 1.9bn

2011-3-28 7

I d C t GImproved Corporate Governance

Formulated overall plan to nurture the merits of Sinopec

management style

Optimized internal control system to further rationalize internal

management

Made advancement in process standardization and digitalization

Further implemented comprehensive budget management, centralized

treasury and company wide cost management involving all staff

Strengthen investor relations and disclosure as well as maintainedSt e gt e esto e at o s a d d sc osu e as e as a ta ed

effective communications with shareholders

2011-3-28 8

T h l i l I tiTechnological Innovation

The Company continued to promote technological innovation to drive for productivity improvement

Continued improvement in R&D system and management

Supported increase in reserve and production

Substantially upgraded in refining and chemical technologies Substantially upgraded in refining and chemical technologies

Made progress in alternative energy technologies

12 technologies awarded with State Scientific and Technological Progress

642843

g g gAwards and State Technological Innovation Awards

642

2011-3-28 9

2009 2010Domestic Patent Granted Foreign Patent Granted

H lth S f t d E i tHealth, Safety and Environment

Fully implemented the HSE management system

Promoted energy conservation and emission reduction to foster low

carbon economy through cleaner production. Compared with 2009:

Energy intensity declined by 0.24%

Industrial water demand reduced by 2%

COD in discharging wastewater reduced by 2.1%

Sulfur dioxide emission reduced by 6.9%

Recycle ratio for industrial water maintained around 95%

2011-3-28 10

E&P－O ti l SE&P－Operational Summary

2008 2009 2010 yoy%

Crude oil production (mm bbls) 322.02 327.62 327.85 0.1

Natural gas production (bcf) 293.07 299.01 441.39 47.6

Total oil and gas production (mmboe) 370.87 377.45 401.42 6.4

Lifting cost (RMB/tonne) 609 621 674 8.5

31 Dec 31 Dec 31 Dec31 Dec. 2008

31 Dec. 2009

31 Dec. 2010 yoy%

Proved reserves of crude oil (mm bbls) 2,961 2,920 2,888 (1.1)

Proved reserves of natural gas (bcf) 6,959 6,739 6,447 (4.3)

Proved reserves of oil and gas (mm boe) 4,121 4,043 3,963 (2.0)

2011-3-28 11

Note: Include 100% production and reserves of SSI

E&P－S t P fE&P－Segment Performance

Realized prices of Operating profit of

Crude (RMB/tonne)Natural Gas (RMB/kcm)

Realized prices of Crude Oil and Natural Gas

RMB million

Operating profit of E&P Segment

78,6494,309

Natural Gas (RMB/kcm)

47,1492,465

3,406

23,894941 959

1,174

2008 2009 20102008 2009 2010

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R fi i －O ti l SRefining－Operational Summary

2008 2009 2010 yoy%

Refinery throughput (mm tonnes) 175.73 186.58 211.13 13.2

Gasoline, diesel and kerosene production (mm tonnes)

107.36 113.69 124.38 9.4

Incl. Gasoline production (mm tonnes) 29.65 34.43 35.87 4.2p ( )

Diesel production (mm tonnes) 69.74 68.86 76.09 10.5

Kerosene production (mm tonnes) 7.99 10.39 12.42 19.5p ( )

Light chemical feedstock production (mm tonnes) 23.12 26.87 35.00 30.3

Li ht i ld (%) 74 75 75 54 75 79 25bLight yield (%) 74.75 75.54 75.79 25bps

Refining yield (%) 94.05 94.53 94.83 30bps

N t ： R fi th h t i l d d t il d h il th 2008 d 2009 d t t t d

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Note： Refinery throughput includes condensate oil and heavy oil, the 2008 and 2009 data was restatedThe above data includes 100% production of JVs

R fi i －S t P fRefining－Segment Performance

Refining Margin/ Operating profit of

RMB millionRefining Margin(RMB/tonne)

Refining Margin/ Cash Operating Cost

Operating profit of Refining Segment

27,50815,855

333291

136 140

Cash Operating Cost(RMB/tonne)

130 136 140

-66,640

2008 2009 2010-4312008 2009 2010

2011-3-28 14

M k ti －O ti l SMarketing－Operational Summary

2008 2009 2010 yoy%

Domestic sales of refined oil products (mm tonnes)

122.98 124.02 140.49 13.3

Incl. Retail (mm tonnes) 84.10 78.90 87.63 11.1

Distribution (mm tonnes) 19.63 25.61 32.40 26.5

Wholesales (mm tonnes) 19.25 19.52 20.47 4.9

Throughput of Company-operated stations (tonnes/station)

2,935 2,715 2,960 9.0( )

Revenue from non-fuel business (RMB mn) 1,130 3,010 5,720 90.0

31 Dec. 31 Dec. 31 Dec. yoy%2008 2009 2010 yoy%

Total number of service stations 29,279 29,698 30,116 1.4

Incl. Company-operated 28,647 29,055 29,601 1.9

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Incl. Company operated 28,647 29,055 29,601 1.9

Franchised 632 643 515 (19.9)

M k ti －S t P f

Maximum retail price of

Marketing－Segment Performance

Operating profit of

38 519RMB/tonne RMB million

Maximum retail price ofRON 90# gasoline and 0# diesel

USD/bbl

Operating profit of Marketing Segment

38,519

30,300 30,760

8090100110

8000

9000

10000

40506070

6000

7000

8000

2008 2009 201010203040

4000

5000RON90 Gasoline0# DieselDubai Crude (right)

RMB/tonne 2008 2009 2010

0300009-1 09-4 09-7 09-10 10-1 10-4 10-7 10-10 11-1

2011-3-28 16

Marketing cash operating cost 153 164 170

Ch i l －O ti l SChemicals－Operational Summary

Unit: 1,000 tonnes 2008 2009 2010 yoy%

Ethylene 6,289 6,713 9,059 34.9

Synthetic resins 9,643 10,287 12,949 25.9

Monomers & polymers for synthetic fibers 7,264 7,798 8,864 13.7

Synthetic fibers 1,260 1,302 1,393 7.0

Synthetic rubbers 834 884 967 9.4

Urea 1,649 1,752 1,223 (30.2)

Note: The above data includes 100% production of JVs.

2011-3-28 17

Ch i l －S t P fChemicals－Segment Performance

Operating profit of ChemicalChemicals Price IndexRMB million

Operating profit of Chemical Segment

Spread between Index Chemical Product and Naphtha(Right)Naphtha Index(Left) Chemical Product Index(Left)

RMB/t

13,805 15,037

16000

18000

20000

450

500

550

600RMB/tonne

dex

10000

12000

14000

200

250

300

350

400

Pric

eIn

4000

6000

8000

0

50

100

150

/05

/05

/05

/05

/06

/06

/06

/06

/07

/07

/07

/07

/08

/08

/08

/08

/09

/09

/09

/09

/10

/10

/10

/10

/11

-12,9502008 2009 2010

Source: Sinopec

Jan/

Apr Jul /

Oct/

Jan/

Apr Jul /

Oct/

Jan/

Apr Jul/

Oct/

Jan/

Apr Jul /

Oct/

Jan/

Apr Jul /

Oct/

Jan/

Apr Jul

Oct/

Jan/

2011-3-28 18

11th Five-year Plan Period Review, 12th Five-year Plan Period Outlook

and 2011 Operational Planand 2011 Operational Plan

Si ifi t I i R lt d A tSignificant Increase in Results and AssetsTurnover increased by 129.8% Profit attributable to shareholders increased by 75.5%

1 205 91,495.1

1,345.1

1,913.2

1 500

2,000

2,500

53 8 56.2 63.1

71.8

60

80

100

RMB bn CAGR=18.1% RMB bn CAGR=11.9%

832.51,061.6 1,205.9 ,

0

500

1,000

1,500

2005 2006 2007 2008 2009 2010

40.9

53.8

31.2

0

20

40

60

2005 2006 2007 2008 2009 2010Turnover, other operating revenue and other revenue

2005 2006 2007 2008 2009 2010Profit attributable to shareholders

Total assets grew by 85.2%RMB bn RMB bn

Equity attributable to shareholders grew by 87.4%

537.3638.6

767.6 800.3898.3

995.2

600

800

1,000

1,200

223.6 264.9

308.1 329.8 378.9

419.0

400.0

600.0RMB bn CAGR=13.1% RMB bn CAGR=13.4%

0

200

400

2005 2006 2007 2008 2009 2010Total assets

0.0

200.0

2005 2006 2007 2008 2009 2010Equity attributable to shareholders

2011-3-28 20

Note: statistics in 2006-2009 has been adjusted by retroactive adjustment approach

C t V l f Sh h ldCreate Value for ShareholdersStock price has gained 114.5% since 2006 Dividend distributed amounted to RMB 72 bn in last 5 years

HK$ RMB, Yuna

0.21

0.25

50,000

55,000

12

14

Hang Seng Index

CAGR = 10 1%

0.15

0.165

0.18

0.15

0.2

35,000

40,000

45,000

10

12 CAGR = 10.1%

0.130.12

0.120,000

25,000

30,000

6

8

0.05

5,000

10,000

15,000

2

4

02005 2006 2007 2008 2009 2010

Dividend per share

00Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

Sinopec share price (H) Hang Seng Index

2011-3-28 21

Note: Sinopec share price, as close price on Mar. 21, 2011, was calculated on an ex-right basis Source: Factset

Prominent Core Business with Rising O ti V lOperating Volumes

Become the world‘s second largest oil refinerCrude oil and natural gas production rose by 27.0%

316.0 327.8 339.2 345.8 350.8 401.4

300

400

500

140 146 156176 187

211

124 38150

200

250

Million ton Million barrels CAGR=4.9% CAGR=8.6%

0

100

200

2005 2006 2007 2008 2009 2010

84.53 91.01 98.28 107.36 113.69124.38

0

50

100

150

2005 2006 2007 2008 2009 2010

Crude oil Natural gas2005 2006 2007 2008 2009 2010

Refinery Throughput Oil product production (gasoline, diesel, jet fuel)

Note: Refinery throughput for 2008 through 2010 includes condensate and heavy crude oil.

Become the world‘s fourth largest ethylene producer Sales volume rose by 41.9%, world 2nd largest network

105 112

122 128 130 149 27,367

29,601

23 00025,00027,00029,000

120

160

5,3196,163 6,534 6,289 6,713

9,059

6,000

8,000

10,000

1’000 tonne CAGR=11.2%Million tonne

15,00017,00019,00021,00023,000

0

40

80

2005 2006 2007 2008 2009 2010

R t il Di t ib ti Wh l l

0

2,000

4,000

2005 2006 2007 2008 2009 2010

CAGR=6.1%

No of stations

2011-3-28

Retail Distribution Wholesale

22

Ethylene production

Note: Includes 100% production from JVs.

No. of stations

Vi i f th “12th Fi Y Pl ” P i dVision for the “12th Five-Year Plan” Period

Corporate Strategies

Strategic structure adjustment

Corporate Strategies

Market expansion

Resource Market

Resource optimization, energy conservation and emission reduction

Become aBecome aMultinational energy and Multinational energy and

International operation

gygychemical company with chemical company with global competivenessglobal competiveness

Technical Innovation, management innovation, and staff development

Integration Globalization

2011-3-28 23

, p

O i T d “12th Fi Y Pl ”Operation Targets under “12th Five-Year Plan”

表格标题Comprehensive Refining capacityNatural gas production表格标题Domestic crude oil productionBillion cubic metersMillion tonnes

222

42.5643.50~45.00

Million tonnes

275~29520.0~24.0

12.5

表格标题 表格标题Refined oil product production Ethylene production capacity表格标题Domestic oil product sales volume

2010 2015E2010 2015E2010 2015E

Million tonnes Million tonnesMillion tonnes

9.33124

160140

170

Million tonnes Million tonnesMillion tonnes

12.50~13.50

2010 2015E2010 2015E2010 2015E

2011-3-28 24

2011 C it l E dit Pl E&P

2011 Capital Expenditure Plan

Exploration and development of mature oil fields in eastern China, Tahe, Angola Block 18, and gas fields in Yuanba, etc.

Construction of LNG projects in Shandong RMB billion

2011 Capex Plan: RMB 124.1 billion

Refining Changling and Beihai refinery revamping and diesel

quality upgrading projectsRi h Yi h Zh ji B ih i d il

54.3

21 3

19.2 2.8

Rizhao-Yizheng, Zhanjiang-Beihai crude oil pipelines and ancillary projects

Marketing Construction acquisition and renovation of service 26.5

21.3

Construction, acquisition and renovation of service stations

Construction of oil product pipelines and storage facilities

Ch i lE&P RefiningMarketing Chemicals

Chemicals Wuhan ethylene, Zhongyuan MTO, Yanshan

isobutene rubber, Qilu synthetic resin, etc. Construction of logistic facilities for chemical

Corporate & Others

2011-3-28 25

feedstock and products

2011 O ti E ti t

2010 2011

2011 Operation Estimates

2010Actual

2011Estimates change%

Crude oil production (mm bbl) 327.85 324.16 (1.1)

Natural gas production (bcf) 441.4 497.9 12.8

Refinery throughput (mm tonnes)* 211.1 222.0 5.2

Total domestic sales of refined oil products (mm tonnes) 140.5 147.0 4.6products (mm tonnes)

Ethylene production (‘000 tonnes) * 9,059 9,850 8.7

Note: *Including 100% production of JVs

2011-3-28 26

F F th I f tiFor Further Information

http://www.sinopec.com

Investor RelationsBeijing: Tel: (8610) 59960028 Fax: (8610) 59960386

Media RelationsTel: (8610) 59960028j g ( ) ( )

Email: ir@sinopec.comHong Kong: Tel: (852) 28242638 Fax: (852) 28243669

Email: ir@sinopechk.com

( )Fax: (8610) 59960386Email: media@sinopec.com

2011-3-28 27