Investor Presentaiton

Natural Gas Pricing Reform Shanghai Petroleum & Natural Gas Exchange ➤ Commenced trading on 1 July 2015 ENN 新奥 The Group procured 939mil m³ of piped gas at 8% discount to corresponding city-gate price in 2015 Aim at becoming the pricing hub in China and Asia Latest non-residential gas tariff cut Effective from 20 November 2015 ➤ City-gate price -0.70/m³ New city-gate price became benchmark-based with no floor, the 20% ceiling will be effective from 20 November 2016. Upstream suppliers and downstream buyers can negotiate a final gas purchasing price. 51 out of 82 affected projects completed pass through by the end of 2015 Residential gas tariff ➤ NDRC proposed to establish tier pricing mechanism for residential gas usage in all city with piped-gas supply 32 projects already set up tier pricing mechanism by the end of 2015. Other projects are in preparation for public hearing. 1.0x 1st Tier Average gas volume consumed by 80% of users 1.2x 2nd Tier Average gas volume consumed by 95% of users 1.5x 3rd Tier Average gas volume consumed exceeds 2nd tier volume 10

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