China Petroleum & Chemical Corporation

2013 Annual Results Announcement

March 24, 2014

Hong Kong

2014-3-24 2

Cautionary Statement

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, 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

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.

2014-3-24 3

Agenda

2013 Performance Highlights

2013 Operational Results by Segments

2014 Operational Plan

Fuling Shale Gas Discovery and Restructuring

of Marketing Segment

2013 Performance Highlights

2014-3-24 5

Market Environment in 2013

Slow recovery of global economy vs. steady growth of Chinese economy with GDP up

7.7% yoy

Strong Domestic gasoline demand albeit weak diesel demand. Domestic consumption of

refined oil products grew by 5.1% yoy

Domestic consumption of ethylene equivalent grew by 6.3% yoy; chemical margin

squeezed due to competition from low-cost imports and addition of domestic capacity

Crude Oil price fluctuated within a wide range at high level

China‟s energy prices became more market-driven due to:

Further enhancement of refined oil products pricing mechanism

Premium pricing for better quality product policy announced

Natural gas price reform announced to gradually pegging to alternative energy price

2014-3-24 6

Highlights

E&P

Refining

Marketing

Chemicals

Breakthrough in shale gas exploration

Domestic crude oil reserve 100% replaced

Steady growth in oil and gas production

Completion of overseas assets acquisition

Turnaround from loss making

Completed gasoline upgrading ahead of schedule

Optimized oil products sales and increased retail

volume

Robust growth of non-fuel business

Announced proposal to introduce non-state capital

Optimized feedstock mix to reduce cost

Optimized product mix to increase high value-added

products ratio

Financial

Management

Completed low cost refinancing in overseas

market to reduce financial cost

2014-3-24 7

2,505.7

2,786.0 2,880.3

2011 2012 2013

Revenue

Profitability

RMB billion

73.2

63.9 66.1

2011 2012 2013

Net Profit

RMB billion

2014-3-24 8

Financial Position

472.3 510.9

568.8

2011 2012 2013

RMB billion

Shareholder‟s Equity

150.6 142.4 151.9

2011 2012 2013

RMB billion

Net Cash Generated from

Operating Activities

56.0% 53.3% 52.5% 51.7% 52.8% 52.9% 53.4% 54.6% 54.5% 54.6% 54.7% 55.7% 56.4% 55.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total liability to total asset ratio

2014-3-24 9

26,01126,615

27,976

2011 2012 2013E

Cash dividend

35.5%

40.8% 42.1%

Payout Ratio

4.68% 4.65%

4.82%

2011 2012 2013

Focus on Shareholder Return

RMB million

Total cash dividend and

payout ratio

Dividend yield*

Note: * Based on the average H-share price of the year;

Final dividend of RMB 0.15 per share, plus the interim dividend of RMB 0.09 per share,

full year dividend amounts to RMB 0.24 per share

Full year dividend payout ratio was 42.1% with a dividend yield of 4.82%

2014-3-24 10

130.2

158.7

181.7

168.6

2011 2012 2013E 2013AE&P Refining

Marketing Chemicals

Corporate and others

Capital Expenditure

E&P: RMB 88.8 billion

Oil and gas development, pipeline

construction and unconventional oil and gas

development

Refining: RMB 26.1 billion

Refinery expansion and quality upgrading

projects

Marketing: RMB 29.5 billion

Construction of service stations and

logistics networks

Chemicals: RMB 19.2 billion

Key projects and optimization of feedstock

Corporate and others: RMB 5.1 billion

R&D facilities and IT system

RMB billion

Disciplined capex focusing on quality and efficiency of investment, the actual capex in

2013 was lowered than budget

With the acquisition of Taihu, Mansarovar Energy and CIR, total capex for the year

amount to RMB 185.1 billion

2014-3-24 11

Research and Development

Actively implemented an innovation-driven development strategy, consistently strengthened

technology research with total R&D expenses of RMB 6.34 billion in 2013

Achieved breakthrough in shale gas technology in Fuling

Successful commissioning of countercurrent moving bed continuous reforming

facility and the application of liquid phase recycling diesel hydrogenation technology

Commercialized the loop reactor process for Polypropylene production and

technology for rare-earth isoprene rubber

Successful trial of self-developed bio jet fuel in commercial flights

4,442 patent application at home and abroad, of which 2,388 were granted

No. of granted domestic patents ranked No.2 among domestic enterprises

3,732 3,8934,442

2011 2012 2013

No. patent application

1,290 1,451

2,388

2011 2012 2013

No. of patents granted

2014-3-24 12

“11.22” Accident – Significantly Enhanced

Safety Awareness

November 22nd has been designated as the Company‟s “Safety Awareness Day”

Adhering to the fundamental principle that development shall not be achieved at the

cost of human life, a comprehensive accountability system has been strictly

implemented to ensure safe operation at all production facilities

Risk management awareness have been improved to promote production safety across

all production process

Conduct comprehensive safety checks

Revised safety production emergency response plan

2014-3-24 1313

Sustainable Development, Energy

Conservation and Emission Reduction

Actively advocated green and low carbon development

Proposed and signed the “Proposal to Address Climate Change” with 60 other Chinese

enterprises

Adhered to a modern industrialization path to promote the construction of an ecological

civilization and a “beautiful China”

Launched the “Clean Water, Blue Sky” initiative with total investment of RMB 1.78 billion

Actively participated in carbon trading pilot program, and promoted contract-based energy

management

Strengthened efforts in energy conservation and emission reduction, with continued

improvement in key indicators

2013 Operational Results

by Segments

2014-3-24 15

Upstream - Domestic Crude Reserve 100%

Replaced

2011 2012 201313-12

Change%

Oil and gas production (mmboe) 407.91 427.95 442.84 3.48

Crude oil production (mmbbls) 321.73 328.28 332.54 1.30

China 303.37 306.60 310.84 1.38

Overseas 18.36 21.68 21.70 0.09

Natural gas production (bcf) 517.07 598.01 660.18 10.40

Lifting cost (USD/boe) 16.08 17.51 18.18 3.8

As of Dec.

31, 2011

As of Dec.

31, 2012

As of Dec.

31, 2013

Proved reserves of oil and gas(mmboe) 3,966 3,964 4,217

Proved reserves of crude oil(mmbbls) 2,848 2,843 3,130

China 2,769 2,771 2,773

Proved reserves of natural gas(bcf) 6,709 6,730 6,520

Note: 1. 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=7.28 barrels

for overseas crude oil production;

2. Proved reserves of gas and oil include the equity reserves of newly acquired overseas assets

2014-3-24 16

71,631 70,054

54,793

2011 2012 2013

Upstream - Performance

16

RMB million

Operating Profit of E&P Segment

5.635.79

6.22

2011 2012 2013

98.70100.20

95.41

2011 2012 2013

USD/bbl

USD/'000 cubic feet

Realized Price of Crude Oil

Realized Price of Natural Gas

2014-3-24 17

Refining -

Structural Adjustment, Quality Upgrading

2011 2012 201313-12

Change %

Refinery throughput (mm tonnes) 217.37 221.31 231.95 4.81

Gasoline, diesel and kerosene production

(mm tonnes)128.00 132.96 140.40 5.59

Gasoline production(mm tonnes) 37.10 40.55 45.56 12.36

Diesel production(mm tonnes) 77.17 77.39 77.40 0.02

Kerosene production(mm tonnes) 13.73 15.01 17.43 16.15

Light chemical feedstock production

(mm tonnes)37.38 36.33 37.97 4.52

Light yield (%) 76.08 76.75 76.19 (56)bps

Refining yield (%) 95.09 95.15 94.82 (33)bps

Note:1. Refinery throughput is calculated based on 1 tonne= 7.35 bbls;

2. 100% production of joint ventures included

2014-3-24 18

-35,780

-11,444

8,599

2011 2012 20132013

Refining - Performance

18

RMB million

Operating Profit of Refining Segment

0.73

3.37

5.74

2011 2012 2013

3.153.39

3.70

2011 2012 2013

USD/bbl

USD/bbl

Refining Margin

Operating Cost

2014-3-24 19

Marketing - Expanding Retail Volume

(mm tonnes) 2011 2012 201313-12

Change %

Total sales of refined oil products 162.32 173.15 179.99 3.95

Domestic sales of refined oil products 151.16 158.99 165.42 4.04

Retail 100.24 107.85 113.73 5.45

Distribution 33.22 33.25 33.49 0.71

Wholesale 17.70 17.89 18.20 1.73

Annualized average throughput of self-

operated stations (tonnes/station)3,330 3,498 3,707 5.97

As of Dec.

31, 2011

As of Dec.

31, 2012

As of Dec.

31, 2013

Total number of Sinopec-branded service stations 30,121 30,836 30,536

Company-operated stations 30,106 30,823 30,523

2014-3-24 20

44,69642,652

35,143

2011 2012 2013

Marketing - Performance

RMB million

Operating Profit of Marketing Segment

8,260

11,000

13,350

2011 2012 2013

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

RMB million

2014-3-24 21

Chemicals-

Optimized feedstock & Products Mix

‟000 tonnes 2011 2012 201313-12

Change %

Ethylene 9,894 9,452 9,980 5.58

Synthetic resins 13,652 13,343 13,726 2.87

Synthetic rubbers 990 936 960 2.59

Monomers & polymers for synthetic fibers 9,380 8,950 9,227 3.10

Synthetic fibers 1,388 1,339 1,392 3.99

Note: 100% production of joint ventures included

2014-3-24 22

26,732

1,178 868

2011 2012 2013

22

Chemicals - Performance

RMB million

Operating Profit of Chemicals Segment

Source: Sinopec

0

50

100

150

200

250

300

Index Difference CPPI Naphtha Price Index

Chemical Products Price Index

2014 Operational Plan

2014-3-24 24

2014 Market Outlook

Global economy is expected to show slow recovery

China‟s economic growth will remain stable as China continues to implement reforms

Global supply and demand of crude will be relatively stable, while crude oil price is

expected to fluctuate within a small range, at high levels

Domestic demand for refined oil and chemical products is expected to maintain

steady growth

2014-3-24 25

2014 Production Estimates

Note: * 100% production of joint ventures included

165 169

2013 2014E

mm tonnes9,980 10,580

2013 2014E

333364

2013 2014E

Crude Oil Production

660706

2013 2014E

232244

2013 2014E

Natural Gas Production

Refinery Throughput * Total Domestic Sales of

Refined Oil Products

Ethylene Production *

mm bbls bcf

mm tonnes „000 tonnes

443481

2013 2014E

Oil and Gas Production

mmboe

2014-3-24 26

181.7

168.6 161.6

2013E 2013A* 2014E

E&P Refining

Marketing Chemicals

Corporate & others

2014 Capex Plan

RMB billion E&P: RMB 87.9 billion

Pilot projects of shale gas and coal-bed

methane; oil and gas capacity construction, LNG

and natural gas pipeline construction, and

overseas projects

Refining: RMB 25.5 billion

Upgrading and revamping of refining facilities

Marketing: RMB 24.1 billion

Construction and revamping of service stations

and oil product pipelines, optimization of storage

location

Chemicals: RMB 17.6 billion

Completion of propylene oxide project in

Jinling, acrylonitrile project in Shandong and

Ningdong coal to chemical project etc.

Corporate and others: RMB 6.5 billion

RMB 9.1 billion for “Clean Water, Blue Sky” scheme

included in the above capex plan

More disciplined capex focusing on returns

* Acquisition capex not included

Fuling Shale Gas Discovery and

Restructuring of Marketing Segment

2014-3-24 28

Fuling Shale Gas – Significant Breakthrough

0

10

20

30

9/30 10/10 10/20 10/30 11/9 11/19 11/29 12/9 12/19 12/29 1/8 1/18 1/28 2/7 2/17 2/27 3/9

井口

压力

（MPa）

日期

0

150000

300000

450000

气产

量（m3）

0

10

20

30

9/30 10/10 10/20 10/30 11/9 11/19 11/29 12/9 12/19 12/29 1/8 1/18 1/28 2/7 2/17 2/27 3/9

井口

压力

（MPa）

日期

0

150000

300000

450000

气产

量（m3）

10

15

20

25

30

11/28 12/28 1/28 2/28 3/31 4/30 5/31 6/30 7/31 8/31 9/30 10/31 11/30 12/31 1/31 2/28井

口压

力（MPa）

日期

套压

0

50000

100000

150000

200000

气产

量（m3）

10

15

20

25

30

11/28 12/28 1/28 2/28 3/31 4/30 5/31 6/30 7/31 8/31 9/30 10/31 11/30 12/31 1/31 2/28

井口

压力

（MPa）

日期

套压

0

50000

100000

150000

200000

气产

量（m3）

Date

Date

Well Jiaoye 1HF: Pilot Production Curve

Well Jiaoye 6-2HF: Pilot Production Curve

Ga

s P

rod

uc

tio

n

(m3)

Ga

s P

rod

uc

tio

n (

m3)

The first large scale and commercialized

shale gas field in China

Favourable area(depth less than 4,500m) is

around 4000 km2 with 2.1 tcm gas in place

Good quality shale formation - big thickness

and high richness

600 million m3 capacity already built

Completed 21 wells in pilot area

High and stable single well production

Formed unique evaluation criteria system

Resource evaluation system

Engineering system

Frac-equipment R&D and manufacturing

2014-3-24 29

Fuling Shale Gas - Development Plan

Overall deployment and step by step development

10 billion m3 production capacity target by 2017

5 billion m3 production capacity target in Phase 1 by

2015

1.8 billion m3 production capacity target in the

North Block of Phase 1 by 2014

The third phase development plan will set out end of 2014

Fuling

Northern Block

Central Block

Southern Block

Pilot Well Area(2013)

Phase I Project Blueprint, Jiaoshiba

Area, Fuling Shale Gas Field

Map of Sinopec‟s shale gas exploration area

in southeast Sichuan

2014-3-24 30

Restructuring of Marketing Business –

Unlock the Value

The Company owns the most extensive oil products distribution network in China

More than 30,000 service stations nationwide

Around 23,000 convenience stores

80 million members

Serve for 20 million consumers every day

Introduce non-state capital to unlock value

Introduce a modern concept on corporate governance structure and management

Promote transformation and upgrading of the Company‟s traditional business

Bring in complimentary expertise, new market opportunities and value-added business.

Image

Logistics

Retail

Service

Network

Financial

2014-3-24 31

Roadmap

Innovative

developmentIntroduce

strategic

investors

Establishment

of limited

company

Auditing

and

evaluation

Proposal

Project

kick-off

On 19 February 2014

On 31 March 2014

2014-3-24 32

Q&A

http://www.sinopec.com

Investor Relations

Beijing: Tel: (8610) 59960028 Fax: (8610) 59960386

Email: ir@sinopec.com

Hong Kong: Tel: (852) 28242638 Fax: (852) 28243669

Email: ir@sinopechk.com

New York: Tel: (212) 759 5085 Fax: (212) 759 6882

Email: marlenepan@sinopecusa.com