China Petroleum & Chemical Corporation

2007 Annual Results Announcement

April 7, 2008Hong Kong

2008-4-7 2

Disclaimer

This 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, 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 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.

2008-4-7 3

Agenda

2007 Overview

2007 Operational Results

2008 Operational Plan

2007 Overview

2008-4-7 5

Profit Growth

RMB million 2005 2006 200707/06

Change

Turnover, other revenues and other income 826,825 1,066,902 1,209,706 13.4%

EBITDA 99,124 114,186 129,179 13.1%

EBIT 67,977 80,632 85,864 6.5%

Net profit attributable to shareholders of the Company

41,354 53,603 56,533 5.5%

EPS (RMB) 0.477 0.618 0.652 5.5%

2008-4-7 6

Financial Position

RMB million 31 Dec. 2005 31 Dec. 2006 31 Dec. 2007

Short-term debts 42,339 44,654 56,467

Long-term debts 63,630 61,617 83,134

Equity attributable to shareholders of the Company

226,099 264,334 307,433

RMB million 2005 2006 2007

Net cash flow from operating activities 78,663 92,507 119,594

Net cash flow from in investing activities (78,113) (103,385) (113,587)

Net cash flow from financing activities (4,257) 2,878 (5,310)

2008-4-7 7

12.0%12.8%12.0%

0%

5%

10%

15%

2005 2006 2007

Financial Position (Continued)

ROCEDebt/equity and

EBITDA/interest coverage

16.1

17.7

17.328.13

27.57

31.38

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

2005 2006 2007

10.00

15.00

20.00

25.00

30.00

35.00

EBITDA/interest coverage Debt/equity

EBITDA/interest coverage

Debt/equity(%)

2008-4-7 8

Dividend

0.050.040.04

0.1150.11

0.09

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

2005 2006 2007

Interim Final

Dividend Per ShareRMB

2008-4-7 9

Cost Reduction

RMB million

3,0602,7812,762

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2005 2006 2007

E&P Refining Marketing Chemicals

2008-4-7 10

Capital Expenditure

E&P: RMB 54.498 billion. Newly added crude oil production capacity was 6.05 million tonnes per year and that of natural gas was 1.66 billion cubic meters per year. Sichuan-East China pipeline project started

Refining: RMB 22.763 billion. Qingdao project progressed smoothly; Oil products quality upgrading projects such as Yanshan project commenced production

Marketing and Distribution: RMB 12.548 billion. Improved refined oil products distribution network through construction, acquisition and renovation of service stations and oil depots; added 753 new stations

Chemicals: RMB 16.184 billion. Major Ethylene projects progressed smoothly.

Corporate and others: RMB 3.289 billion

2007 Capex RMB 109.282 billion

RMB Billion

109.282

83.903

67.253

0

20

40

60

80

100

120

2005 2006 2007

E & P RefiningMarketing ChemicalsCorporate & others 折线图 6

2008-4-7 11

Technological Innovation

Driving corporate development through technological innovation

E&P: New technologies such as enhancing oil recovery rate

Refining: Substantial progress has been made in technologies to process

low-grade crude oil; commercialized technology to produce gasoline and

diesel which meet the National IV emission standard (equivalent to Euro IV

standard)

Chemicals: Developed proprietary technology for 300ktpa polypropylene

R&D in new and alternative energies

Obtained 616 domestic and 61 foreign patents

2008-4-7 12

Social Responsibility

Ensured stable domestic supply of refined oil products

Implemented energy conservation and effluent-reduction measures

Energy intensity decreased by 6.1%

Fresh water consumption decreased by 4.3%

COD in discharged waste water decreased by 5.4%

Philanthropic activities

Donations to support rescue and rebuilding in Southern China area affected by snow storm disaster early 2008

Sponsored “Health Express” campaign

Sponsor of Beijing 2008 Olympics

2007 Operational Results

2008-4-7 14

Review of Market Environment

China’s economy maintained steady and rapid growth

GDP increased by 11.4%

Domestic consumption of refined oil products grew by 6.8%

Domestic ethylene-equivalent consumption grew by 7.8%

International crude oil prices kept increasing and rose dramatically in the 4th quarter

Domestic refined oil product prices still tightly controlled

Chemical product prices remained high

2008-4-7 15

E&P－ Operational Summary

2005 2006 200707/06

Change

Crude oil production (mm bbls) 278.82 285.19 291.67 2.3%

Natural gas production (bcf) 221.9 256.5 282.6 10.2%

Lifting cost (RMB/tonne) 488.34 520.44 600.77 15.4%

Newly added proved reserves of crude oil

(mm bbls)306 286 21 (92.7%)

Newly added proved reserves of natural gas (bc

f)140.6 161.5 3,756.7 2,226.1%

31 Dec. 2005

31 Dec. 2006

31 Dec. 2007

07/06Change

Proved reserves of crude oil (mm bbls) 3,294 3,295 3,024 (8.2%)

Proved reserves of natural gas (bcf) 2,951.7 2,856.7 6,330.8 121.6%

Proved reserves of oil and gas (mm boe) 3,786 3,771 4,079 8.2%

2008-4-7 16

E&P－ Segment Performance

Realized prices of Crude Oil and Natural Gas EBIT of E&P Segment

Crude OilRMB/tonne

Natural GasRMB/’000 cubic meter

48,334

63,182

48,766

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2005 2006 2007

3,095

2,680

3,195

823794

673

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2005 2006 2007

0

100

200

300

400

500

600

700

800

900

1000

Crude Oil Natural Gas

RMB million

2008-4-7 17

Refining－ Operational Summary

2005 2006 200707/06

Change

Refinery throughput (mbbls / day) 2,817.9 2,946.5 3,132.9 6.3%

Gasoline production (mm tonnes) 22.98 23.00 24.69 7.3%

Diesel production (mm tonnes) 54.92 57.86 60.08 3.8%

Kerosene production (mm tonnes) 6.63 6.35 8.32 31.0%

Light chemical feedstock production

(mm tonnes)21.10 22.74 23.47 3.2%

Light yield (%) 74.16 74.75 74.48 (27bps)

Refining yield (%) 93.24 93.47 93.95 48bps

* The above data does not include production from the five refineries acquired from Sinopec Group Company at end of 2007.

2008-4-7 18

Refining－ Segment Performance

EBIT of Refining SegmentRefining Margin / Cash

Operating Cost

Refining Margin(RMB/tonne)

(10,452)

(25,710)

(3,695)

-30,000

-25,000

-20,000

-15,000

-10,000

-5,000

0

2005 2006 2007

107

79

(20)

133

115

135

-40

-20

0

20

40

60

80

100

120

2005 2006 2007

0

50

100

150

200

Refining Margin Cash Operating Cost

Cash Operating Cost(RMB/tonne)

RMB million

2008-4-7 19

2005 2006 200707/06

Change

Domestic sales of refined oil products

(mm tonnes)104.56 111.68 119.39 6.9%

Incl. Retail (mm tonnes) 63.52 72.16 76.62 6.2%

Distribution (mm tonnes) 20.38 18.95 20.17 6.4%

Wholesales (mm tonnes) 20.66 20.57 22.60 9.9%

Total number of service stations 29,647 28,801 29,062 0.9%

Incl. Company-operated 27,367 28,001 28,405 1.4%

Franchised 2,280 800 657 (17.9%)

Annualized throughput of company-operated

stations (tonnes/station)2,321 2,577 2,697 4.7%

Marketing－ Operational Summary

2008-4-7 20

Marketing－ Segment Performance

RON #90 Gasoline Guidance Price

RMB/tonne 2005 2006 2007

Marketing cash

operating cost*118 130 139

10,350

30,234

35,727

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2005 2006 2007

2,0003,000

4,0005,000

6,0007,000

Jan Mar May Jul Sep Nov

2005 2006 2007 2008

2,000

3,000

4,000

5,000

6,000

Jan Mar May Jul Sep Nov

2005 2006 2007 2008 * 2005 and 2006’s figures are adjusted to the same basis as 2007

EBIT of Marketing Segment

#0 Diesel Guidance Price

RMB/Tonne RMB million

RMB/Tonne

2008-4-7 21

Chemicals－ Operational Summary

Unit: 1,000 tonnes 2005 2006 200707/06

Change

Ethylene* 5,319 6,163 6,534 6.0%

Synthetic resins* 7,605 8,619 9,660 12.1%

Monomers & polymers for synthetic fibers 6,725 7,242 8,018 10.7%

Synthetic fibers 1,570 1,502 1,417 (5.7%)

Synthetic rubbers 626 668 800 19.8%

Urea 1,780 1,609 1,565 (2.7%)

*Includes 100% production from BASF-YPC and Shanghai-Secco.

2008-4-7 22

Chemicals－ Segment Performance

RMB/tonne 2005 2006 2007

Ethylene cash operating cost

1,254 1,282 1,329

13,30614,186 14,458

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2005 2006 20070

200

400

600

800

1,000

1,200

Jan-2002 Jan-2003 Jan-2004 Jan-2005 Jan-2006 Jan-2007 Jan-2008

LDPE-Naphtha PP-Naphtha

Chemicals Price Spread (2002 – Feb. 2008)

USD/tonne

EBIT of Chemicals Segment

RMB million

2008 Operational Plan

2008-4-7 24

Prospect for 2008 China’s economy is expected to maintain rapid growth, which will lead to

steady growth in demand for oil products and petrochemicals

International crude oil prices will remain high, yet refined oil products will still be subject to tight price control in Mainland China

Measures to cope with the challenges Leveraging the Company’s unique strengths in oil and gas exploration and

development, competitive advantages in refining & marketing as well as chemical businesses, well-established global trading networks

Leveraging the advantages of Sinopec Group in engineering services in oil and petrochemical businesses and in its overseas assets

2008-4-7 25

2008 Operation Estimates

2007 Actual 2008 Estimates Change

Crude oil production (mm bbls) 291.67 298.20 2.2%

Natural gas production (bcf) 282.6 317.79 12.5%

Refinery throughput (mm tonnes) 155.59* 174.00 11.8%

Total domestic sales of refined oil products (mm tonnes)

119.39 124.00 3.9%

Ethylene production (mm tonnes)** 653.4 672.0 2.8%

* Does not include production from the five refineries acquired from Sinopec Group Company at end of 2007.

**Includes 100% production from BASF-YPC and Shanghai-Secco.

2008-4-7 26

2008 Capital Expenditure Estimates

Estimated 2008 Capex: RMB121.8 billion

RMB billion

60.1

19.9

13.0

25.7

3.1

E & P Refining

Marketing Chemicals

Corporate and others

E&P: RMB 60.1 billion. Mainly focus on Sichuan-East China Gas Project and development of Tahe, Shengli and Ordos.

Refining: RMB 19.9 billion. Qingdao Refinery Project to be completed in 2008, Further progress in refined oil products quality upgrading projects.

Marketing and Distribution: RMB 13.0 billion. Improve marketing networks through construction and acquisitions of service stations along expressways and in strategic areas.

Chemicals: RMB 25.7 billion for major ethylene projects.

Corporate and others: RMB 3.1 billion.

2008-4-7 27

For Further Information

http://www.sinopec.com

Investor Relations

Beijing: Tel: (8610) 64990060 Fax: (8610) 64990489Email: ir@sinopec.com

Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669Email: ir@sinopechk.com

New York: Tel: (212) 759 5085 Fax: (212) 759 6882Email: fangzq@sinopecusa.com

Media Relations

Tel: (8610) 64990092Fax: (8610) 64990093Email: media@sinopec.com