Presented By: Group 5

MISSION

Develop the enterprise Contribute to the country Serve the society and Benefit staff Respect and protect the interests of

stakeholders.

VISION

Construct a multinational energy and chemical company with international competitiveness.

Aiming at constructing a top-ranking enterprise in the world

PRODUCT LINESERVICE STATIONS

LUBRICANTS-• Automotive• marine• industrial• greases• special synthetic lubricants

• Oil refining• Petrochemicals. LPG

Natural gas transmission through pipelines

CATALYSTS-• FCC catalysts• hydrogenation catalysts• reforming catalysts• ethylene polymerization catalysts• propylene polymerization catalysts

OIL PRODUCTS

• Diesel• Automotive Gasoline:

CHALLENGESDOMESTIC

• Rising domestic inflationary pressure

• Continuing price controls on oil products in our home market

• Domestic economic growth facing downward pressure

INTERNATIONAL

• Complex geopolitical tensions, international oil prices are expected to remain high.

Top 3 Competitors• PetroChina Company

Limited• CNOOC Limited• Exxon Mobil Corporation

Internal Analysis

External Analysis

Strengths1. Market Leadership Position

2. Vertically Integrated Operations3. Increased Revenues

Weaknesses1. Dependence on third party crude oil supplies2. Lack of geographical diversification3. Decline in crude oil reserves

Opportunities1. Growth through JV and

alliances2. Increased emphasis on

exploration and production

3. High demand potential in China

SO1. Leverage its market position to form better JV’s and alliances2. Use its vertically integrated operations to communicate with R&D3. Achieve economies of scale

WO1. Invest in exploration and production and form JV’s.2. Move into newer markets.

Threats1. Government Regulations and Control2. Environmental Laws and Regulations

ST 1. Leverage its market position to reduce regulations.2. Invest in green production and innovations.

WT1. Reduce govt. regulations to form JV’s with crude oil suppliers.

Porter’s Five Forces Model

Threat of New

Entrants-LOW

(high barriers to enter- specialized

workers, investments )

Power of Suppliers-

Handful of suppliers have significant power

over smaller drilling and support companies.

Availability of Substitutes-

LOWAlso, oil has many

uses.

Power of Buyers- HIGH

 Buyers to seek lower prices and better contract terms.

Competitive

Rivalry. (Slow industry growth rates,

high exit barriers )

STRATEGIC GOALS

Sinopec's international strategy is to meet increasing domestic demands through expansion of its direct access oil and gas assets .

• Sinopec is investing heavily in establishing production facilities and in exploration in China and outside of China.

E,g, Swiss Canadian petrochemical producer, Addax Petroleum Corp.

• Sinopec planned to make foreign investments of US$20 million in 2010 and 2011 (Wall Street Journal Eastern Edition 2009).

• To fund its acquisitions , it formed partnerships with companies. such as Kuwait Petroleum Corporation and released bonds into Chinese bond market.

• Focus on growth of core businesses and intensified efforts in R&D for key projects and technologies of strategic significance.

Sinopec gave priorities to and achieved major progress in research on strategic planning, investment optimization, execution of key construction projects as well as structural adjustment.

E.g. The evaluation and technological research of unconventional resources such as hydrocarbons in tight formation, shale oil/gas, etc.

• Emphasis on improving corporate management, forged ahead with standardized institutional upgrading via application of IT.

• Bringing forth the concept of green and low carbon development in the backdrop of the increasingly complicated environmental protection situation and a challenging job in energy conservation and emmision reduction. 

STRATEGIC OBJECTIVES

• In 2011, the company’s total revenues and other operating income amounted to RMB 2,505.7 billion, an increase of 31% from 2010,

• Profits attributable to shareholders in accordance with International Financial Reporting Standards were RMB 73.225 billion, an increase of 2.0% from the previous year.

• Total annual dividend for 2011 to RMB 0.30 per share, an increase by 43% over the previous year.

RESULTS

3 ROUTES FOR PRODUCT DIFFERENTIATION

SUPERIOR INNOVATION

• 7628 granted patents by end of 2011.

• 1 NATIONAL science and technology award

• 47 TECHNOLGY AND INVENTION AWARD

• 300 SCIENCE AND TECHNOLOGY PROGRESS AWARD

EXCELLENT QUALITY

"Quality Management Measures" and "Quality-related Accident Management Regulation"

RESPONSIVENESS TO CUSTOMER NEEDS

Multi-Functional Non-Fuel Businesses that enable Customers to Enjoy Convenient and premium Services in Stations

The Value-Added Services of the Fuel Cards and Self-Service Stations Are Enriching Customers' Shopping Experience.

LISTENING to customers- opening telephone and internet information platforms to developing strategic cooperation, maintaining the profit margin of the downstream industry and conducting customer satisfaction survey

THE VALUE CHAIN

R&D

• Internal integration and the reform of the R&D system, Sinopec has preliminarily set up the R&D management mechanism of "One entity, Three platforms, Unified

planning and Integrated development".

• close collaboration with our industry peers and clients.

• Sinopec Discovered Yuanba Gas Field, the Deepest Large Marine Gas Field in China.

• CO2 capture & flooding technology• Multi-stage fracturing technology for horizontal wells• New S-Zorb technology• Catalytic oxidative treatment technology for PO/SM off-gases• Packaged technology for ethylene• PX adsorption and separation technology• S-MTO technology

ACHIEVEMENTS

PRODUCTION

Sinopec is the largest producer and supplier of chemical products in China.Sinopec is the largest refiner in China and the second largest in the world.

MARKETING AND SALES

Sinopec has the most extensive service station network, the largest storage capacity and the longest pipelines for oil products, fueling all types of vehicles including cars, trucks, motorcycles, ships and agricultural vehicles.

CUSTOMER SERVICE

VALUE ADDED SERVICES OF THE FUEL CARDS

Improving the fuel card system, including enhancing the system's functionality so the customers can experience more efficient and convenient servicesBroadening the types of services such as topping up the card outside of the city where it is issued, micro-refund, affiliated card application, etc. to increase service efficiencyEstablishing cooperation with third parties such as banks, Alipay, telecom companies etc to meet the demand of topping up cards in numerous waysUpgrading the customer service system to include voice service, online service, multi-media service to improve efficiency

Providing the text message notice service to facilitate the smooth communication with customers and increase their satisfaction