March 21st 2015 Hong Kong

2015 Annual Results Presentation

Sinopec Engineering (Group) Co., Ltd.

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Disclaimer

1

Company Overview

Operation Overview

Financial Performance

2

Contents

Company Overview

Improve core

competitiveness

Better

understanding

customer demand

Generate stable

demand

Provide high-quality

equipment

Provide stable, high

quality construction

services

Generate stable

demand

EPC Constructing

Equipment Manufacturing

Construction

Our licensing business

further facilitates our

engineering, consulting and

EPC contracting business.

Clean Energy Oil Refining Inorganic

Chemicals

The Environment,

Energy-Saving

and Others

New Coal

Chemicals

3

An International Oil Refining and Chemical Engineering Company with the Leading Edge in the PRC

Leading

Engineering

and R&D

Capacity with

Technological

Strength

Petrochemical

En

gin

ee

rin

g, C

on

su

ltin

g a

nd

Lic

en

sin

g

Unit: RMB billion

The GDP Growth of the PRC Remains Moderate

FAIs for the PRC Oil Refining and

Chemical Industry

Key Economic Status and

Industry Indicators in the 1H2015

Urbanization and Industrialization

Investment Opportunity

Outdated Refinery Updating

Acceleration

Petrochemical Products

Moving to High-End

Environment and Energy

Saving Market Possess

Broad Prospects

4

Difficulties Implies Long-Term Growth

Unit: RMB billion

China’s gross GDP China’s GDP Growth Global GDP Growth

FAIs for China oil refining and chemical engineering industry as a percentage of GDP

Source: SSB, NDRC, MIIT, CPCIF and ICIS

The GDP growth of the PRC was 6.9% during

2015, domestic economy remaining steady

growth.

In 2015 , the Chinese domestic refined oil

output was 300 million tonnes (an increase of

5.4%). The estimated amount of refined oil

apparent consumption was 276 million tonnes

, representing an increase of 1.2% of which

the estimated amount of gasoline was 110

million tonnes(an increase of 7.0%).

In the 2015, the cumulative Chinese domestic

ethylene output was 17.15 million tonnes, an

increase of 1.6% . The amount of ethylene

apparent consumption was 18.89 million

tonnes, representing an increase of 1.9%.

In 2015, the oil and chemical industry fixed

asset investment (“FAI”) totaled around RMB

2,320 billion, an decrease of 0.5%.

2,000

2,600

2013 2018E 2014

2,330

0.00%

6.00%

12.00%

2012 2013 2014 2015 2016E

0

40,000

80,000

120,000

2012

1,475

2017E 2018E 2015

2,318

“Belt and Road”(一带一路) Projects are Approaching

5

Aromatics Project and FCC Project

of Kazakhstan Atyrau Refinery

Saudi Sulfuric Acid and Power Plant EPC Project

Saudi Phosphate Fertiliser Utilities Project

Kuwait Al-Zour New Oil Refinery

Malaysia Oil Refining Project

Thailand PP Project

“The Silk Road Economic Belt”

“The 21th Century Maritime Silk Road”

“SEG Overseas Project”

SEG overseas development agrees with the “Belt and Road”.

SEG follow closely to the “Belt and Road ” and its implementation.

Some “Belt and Road ” projects are expected to reach substantive milestones.

Operation Overview

2014 2015

42,507 36,407

6,839

9,091

Revenue（RMB mn）

7

Revenue by

Domestic/Overseas (RMB mn)

13.9% (Overseas)

86.1% (Domestic)

20.0% (Overseas)

80.0% (Domestic)

Steady Progresses Made in Reform, Development, Production and Operations

on-site work has commenced

and the progress, cost,

quality and safety of this

project were under control

Eight tenths of the

overall progress of the

project had been

completed

U.S. JUMBO PTA and PET

Project

Zhongtian Hechuang

Coal Chemical Project

Eight tenths of the overall

progress of the project has

been completed

Over two tenths of the

overall progress has been

completed

Six tenths of the overall

progress of the project has

been completed

Handover of the project

is finished

Inner Mongolia

Sinocoal Plastic Project

The handover for the

project has been fulfilled

and all units have been

put into operation.

Aromatics Project of

Kazakhstan Refinery

2014 2015

49,346 45,498

Malaysia Oil Refining

Project Guangxi LNG Project

Tianjin LNG Project

Seven tenths of the

overall progress of the

project has been

completed.

FCC Project of Kazakhstan

Atyrau Refinery

The detailed design of

project has been started,

critical equipment requisition

has been commenced

Kuwait Oil Refining Project

26,640 32,951

23,600 22,731

47,262 37,346

6,420 18,072

6,515 6,936

82,080 89,776

15,191

14,273 137

115

By Business Segment (RMB mn) By Industry Sector (RMB mn)

8

Backlog Grow Steadily

2015/12/31

80.8%

12.9%

6.2%

0.1%

111,100 111,100

2015/12/31

33.6%

16.2%

20.5%

29.7%

2014/12/31

79.0%

14.6%

6.3%

0.1%

103,922 103,922

2014/12/31

45.5%

6.2%

22.7%

25.6%

Engineering, consulting and licensing 、 EPC contracting

Construction Equipment manufacturing

Oil refining Petrochemicals New coal chemicals Other industries

17,894 13,995

12,336

11,112

23,041

7,516

7,429

20,053

4,110 3,047

38,173 35,535

18,299

13,996

118

98

By Business Segment (RMB mn) By Industry Sector (RMB mn)

52,676

2015

67.5%

26.5%

5.8%

0.2%

9

New Contracts Practically Achieved the Target for 2015

52,676

2015

26.6%

21.0%

14.3%

38.1%

29.5%

38.0%

12.2%

60,700 60,700

2014 2014

62.9%

30.1%

6.8%

0.2%

20.3%

Engineering, consulting and licensing 、 EPC contracting

Construction Equipment manufacturing

Oil refining Petrochemicals New coal chemicals Other industries

Market Development Braved Difficulties

10

Tianjin LNG

Project

Maoming

Ethylene Oxide

Project

Saudi Phosphate

Fertiliser Project

Kuwait Oil

Refining Project

Thailand PP

Project Guangxi LNG

Project

Shenhua Coal

Direct to Liquids

Project

Chongqing LNG

Liquefaction

Project

Shenhua Ningxia

Coal Polyethylene

Project

Oil Refining

Petrochemical

New Coal Chemical

Others

• Tests have been completed for the Fluidized-bed Methanol To Gasoline (FMTG) pilot device; detail design of the project has been generally

completed for the R&D project of using biological fluidized bed to treat PTA sewage; the pilot project of moving bed is in full-scale installation and

construction. The technical plan of development and industrial test project of the advanced delayed coking process (ADCP) with higher liquid yield

has passed review and the experimental base has been ascertained for the project. the second-generation technology for the refinery corrosion

protection, the researches on the anti-corrosion technology for the use of syngas to ethylene glycol unit, the anti-corrosion plan and materials

selection studies for the pulverized coal gasification unit and pipeline are in orderly progress；

• Steady progress of the collaborative R&D projects: the R&D center carried out different forms of R&D activities with the subsidiaries to support the

enhancement of their engineering technology in the aspects of the R&D on packaged technology, engineering and technical services. All of the 29

projects are operating well and have been showing the preliminary benefits of synergy.

Technological innovation of Luoyang Technology Research and Development Center (R&D Center) achieved effect.

Development of the new technology for medium-low-temperature extraction of phenol from coal tar and hydrogenation for making clean fuels:

Detailed design is underway for the hydrocracking device of coal tar suspension bend of Inner Mongolian Qinghua Group with a capacity of 500

Ktpa. The compilation of process package has been completed for 4 million Nm3/d SNG.

The packaged technological development has been completed for the two projects of packaged process for fluidized bed polyethylene in gas-liquid

state and the industrial application of IHCC technology for prolific light oil, with the packaged technologies having been in the stage of promotion. As

for the development of packaged technology for fluid bed residual hydrogenation and for high-quality needle-like cokes and industrial testing for

hydrogenated production of China V RS-2200 low-cost diesel fuel, their technical stability has been verified and conditions are available for

promotion thereof.

As packaged technologies for the pure epoxy ethane, the SE coal slurry gasification, the large LNG receiving terminals, the premium

hydroisomerization dewax base oil, their principal parts have been completed, which have entered the stage of construction.

Steady progress of the R&D of major technologies developed along with the key projects.

11

Achieving Numerous Fruitful Results in Technology Innovation

On 8th January 2016, at the National Science and Technology Awards Conference , the project “Development and Application

of Complete Set of Technology for Efficient and Environmental-Friendly Aromatics” engaged by the Group won the 2015

National Special Award for Scientific and Technological Progress. In the project, the Group made outstanding contributions in

aspects such as innovations in process and engineering technology, energy utilisation, smart control, safety and

environmental protection and work implementation through the pioneering work it did in green new technology for refinement

of raw materials, new molecular sieve materials of efficient transformation and separation, and the new technology for in-

depth integration of aromatics complex that can substantially lower energy consumption, innovative integrated control

methods, design methods and manufacturing processes, which achieved smart control, the long-cycle essential safety of the

unit, localization of key equipment and other targets. The technological achievement has markedly improved China’s

technology for the production of aromatics and its international competitiveness.

Won the 2015 National Special Award for Scientific and Technological Progress

Vision：Establishing

World Class

Engineering Company

12

Business Prospects

Continuously Promote In-depth Reform and Accelerate the Optimisation

of Internal Resources.

Exploring Transformational Development To Open Up New Business

Scopes And Modes.

Strengthen Process Management and Project Control , Take Multiple

Measures Simultaneously, and Reduce Cost While Increasing Efficiency.

Capture the Strategic Opportunity Of The “Belt and Road” Initiative for

Development.

Focus On Advancing Technology Progress To Maintain And Increase

Technology Leading Advantages.

Vigorously Exploit Environmental Protection and Energy Saving Sectors,

and Create New Business Growth .

Establish Modern Human Resource Management System and

Management Incentive Mechanism.

Set up an Integrated Management Information System

Financial Performance

Financial Overview

Dec 31st 2015

29,212

22,869

22,873

Dec 31st 2014

58,404

33,766

24,635

24,639

（RMB million）

Equity Attributable to Shareholders of the Company

Total Assets

Total Liabilities

Net Assets

52,085

Operation Performance Indicators

Assets and Liabilities

Other Key Financial Indicators

14

Gross Profit

ROA1

ROE2

Net Profit Margin

2015 2014

ROIC3

12.7%

7.0%

15.3%

7.1%

15.3%

13.5%

6.0 %

7.3 %

13.5%

Dividend 0.297

2015 2014

2015

45,498

6,157

3,845

3,318

2014 Change Rate

(7.8%)

(2.1%)

(4.8%)

(4.9%)

（RMB/Share） Change Rate

(4.8%)

Operational Profit

Net Profit

Gross Profit

Revenue 49,346

6,291

4,039

3,490

0.312

12.1%

7.7%

15.6%

7.7%

Change Rate

13.5%

（RMB million）

Notes: 1. ROA=Net Profit/((Opening Balance of Total Asset + Closing Balance of Total Asser)/2)

2. ROE=Net Profit/Closing Balance of Total Equity

3. ROIC=EBIT x（1-Effective Tax rate）/ (Closing Balance of Total Interest Bearing Debt- Credit Loans + Closing Balance of Total Equity)

2013 2014 2015

12,299 10,007

7,683

16,703

16,011

11,983

8,855 14,938

17,432

5,715

8,390

8,400

2013 2014 2015

4,354 3,645 2,626

23,560 30,132

27,838

15,215

15,325

14,914

497

244

120

By Industry Sector (RMB mn)

15

Revenue

5.3%

56.5%

36.8%

1.4%

38.3%

26.3%

16.9%

18.5%

By Business Segment (RMB mn)

43,572 49,346 45,498 43,572 49,346 45,498

6.8%

56.2%

35.7%

1.3% 17.0%

30.3%

32.4%

20.3%

Engineering, consulting and licensing 、 EPC contracting

Construction Equipment manufacturing Oil refining Petrochemicals New coal chemicals Other industries

Note: Total amounts of revenue are after inter-segment elimination;

2013 2014 2015

2,017 1,597

926

3,312 3,590

3,848

1,079 1,072 1,242

31

2013 2014 2015

3,657 3,490

3,318

Gross Profit (RMB mn) and Gross Profit Margin Net Profit (RMB mn) and Net Profit Margin

16

8.4% 7.1%

Gross Profit and Gross Profit Margin, Net Profit and Net Profit Margin

62.5%

15.0%

20.2%

2.3%

6,406 6,291 6,157

7.3%

3,657 3,490 3,318

12.7% 14.7%

13.5%

0.5%

17.0%

57.1%

25.4%

Engineering, consulting and licensing 、 EPC contracting

Construction Equipment manufacturing

Gross profit margin

Net profit margin

Total Assets (RMB mn) Equity Attributable to Shareholders of the Company

(RMB mn)

17

Total Assets and Equity

2013/12/31 2014/12/31 2015/12/31

47,365 52,085

58,404

2013/12/31 2014/12/31 2015/12/31

20,977 22,869

24,635

Current Ratio

Asset-Liability Ratio Operating Current Liabilities/Total Liabilities

Note: operating current liability includes notes and trade payables, other payables and amount due to customers for contract work.

Quick Ratio

18

Assets Structure

2013/12/31 2014/12/31 2015/12/31

55.7% 56.1% 57.8%

2013/12/31 2014/12/31 2015/12/31

88.9% 89.4% 90.4%

2013/12/31 2014/12/31 2015/12/31

1.7 1.7 1.6

2013/12/31 2014/12/31 2015/12/31

1.6 1.6 1.6

Net Cash Flow Generated for Operating Activities

(RMB mn) Cash and Cash Equivalent (RMB mn)

19

Cash Flow

2013 2014 2015

-86

333

5,793

2013 2014 2015

5,514

9,182

11,406

Turnover Days of Notes and Trade Receivables Turnover Days of Notes and Trade Payables

Operating Cycle Turnover Days of Inventories

Note: Operating cycle= Turnover days of notes and trade receivables + Turnover days of inventories

Unit: Day Unit: Day

Unit: Day Unit: Day

20

Capital Turnover

2013 2014 2015

55 67

92

2013 2014 2015

91 95

134

2013 2014 2015

64 79 108

2013 2014 2015

10 12

16

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