These hands do more than make quality fuels. VALERO ENERGY CORPORATION 2008 SUMMARY ANNUAL REPORT The expertise of 22,000 pairs of hands means highways expand and connect. Hospitals deliver life-saving treatments. And a toddler can wear pink tights for her fi rst dance recital. Beyond Gasoline Valero is a vehicle for progress —from plastics to polymers, sulfur to asphalt. In a world thirsty for stability, Valero holds steadfast to its principles. In our communities, the hands and heartfelt action of Valero employees rise each day around North America to make a diff erence. Reliability. Effi ciency. Ethics. Integrity. Social responsibility. They mend fences. They foster friendships. They turn a world of steel, heat and pressure into a source of warmth for their communities. Valero is part of an extraordinary mission that reaches beyond infrastructure and global demand. Commitment to excellence where it matters most. Our hands improve people’s lives. Financial Summary [MILLIONS OF DOLLARS, EXCEPT PER SHARE AMOUNTS] OPERATING REVENUES GOODWILL IMPAIRMENT LOSS OPERATING INCOME NET INCOME (LOSS) EARNINGS (LOSS) PER COMMON SHARE— ASSUMING DILUTION TOTAL ASSETS STOCKHOLDERS’ EQUITY CAPITAL EXPENDITURES AND DEFERRED TURNAROUND AND CATALYST COSTS 2008 As Reported $ $ $ $ $ $ $ $ 119,114 4,069 563 (1,131) (2.16) 34,417 15,620 3,198 2008 Adjusted* 119,114 – 4,632 2,879 5.42 $ $ $ $ $ 2007 As Reported $ $ $ $ $ $ $ $ 95,327 – 6,918 5,234 8.88 42,722 18,507 2,778 *The data in this column exclude the eff ects of our goodwill impairment loss that we recognized in the fourth quarter of 2008. The goodwill impairment loss is described in Note 8 of the notes to our consolidated fi nancial statements for the year ended December 31, 2008. SUMMARY ANNUAL REPORT This summary annual report format provides only a fi nancial summary. The company’s full, audited fi nancial statements are contained in its Annual Report on Form 10-K for the year ended December 31, 2008, which has been fi led with the SEC and made available to all stockholders. This information is also available at www.valero.com. Left to Right—Back Row: Mike Crownover, Senior Vice President—Human Resources; Jay Browning, Senior Vice President—Corporate Law and Secretary; Clay Killinger, Senior Vice President and Controller; Gary Arthur Jr., Senior Vice President—Retail Marketing; Hal Zesch, Senior Vice President and Chief Information Offi cer; Kim Bowers, Executive Vice President and General Counsel; Rich Marcogliese, Executive Vice President and Chief Operating Offi cer; Mike Ciskowski, Executive Vice President and Chief Financial Offi cer. Left to Right—Seated: Donna Titzman, Vice President and Treasurer; Eric Fisher, Vice President—Investor and Corporate Communications; Joe Gorder, Executive Vice President—Marketing and Supply; Gene Edwards, Executive Vice President— Corporate Development and Strategic Planning; Bill Klesse, CEO, President and Chairman of the Board. To Our Stockholders Without a doubt, the petroleum refi ning industry has experienced some of the most dramatic swings in its history. From the price of crude oil to the stock market, the LEVEL OF VOLATILITY in 2008 was unmatched by any other period I have witnessed. Despite these challenging times, I have NEVER BEEN MORE PROUD of the work our employees are doing to deliver world-class products that improve consumers’ lives. As you can see in this report, excluding the non-cash write-off of goodwill, we reported solid earnings results in 2008. Our success, though, REACHES BEYOND the production of clean quality fuels. The hands of our 22,000 dedicated employees completed many major projects in 2008 as we invested nearly $3.2 billion in our facilities. All of it achieved with the BEST REFINERY SAFETY performance in company history. Looking to the future, we embrace the CALL FOR INNOVATION and development of alternative fuels and other energy sources. In fact, our new wind farm outside of Dumas, Texas is now operational, and we expect the remaining turbines to be installed this year. We have also taken a major step ENTERING THE ETHANOL BUSINESS with our recent purchase of seven world-scale plants. However, we continue to believe that sound science and economics should drive public policy decisions on investment in alternative fuels, as we face a HIGHLY COMPETITIVE economic world. Lawmakers and their constituents must recognize the vast benefi ts our company and our industry provide to this country in our production of low-cost, HIGH- QUALITY transportation fuels and petrochemical feedstocks. CONSIDER the following: challenges of climate change with positive incentives for business rather than with policies that would further weaken the economy and move jobs overseas. American manufacturing JOBS ARE DISAPPEARING along with the economic vitality that those jobs create. Hard-working Americans are the backbone of this company, and the thousands of jobs Valero provides throughout our operations help keep the AMERICAN DREAM alive. Our employees enjoy good salaries, health benefi ts, company-matched savings plans, retirement plans, educational assistance, disaster-relief assistance, development training, a safety culture, and much more. The EXCELLENT JOBS created by manufacturing companies like Valero give people the ability to have a productive and satisfying career. Refi ners in the United States compete every day Valero is a strong supporter of COMMUNITY against production from abroad. We have INVESTED BILLIONS in capital in the United States in order to comply with state and federal environmental rules and regulations—capital that our foreign competition typically does not have to spend. Because refi ning is a GLOBAL BUSINESS, thousands of jobs in the refi ning industry can and will go elsewhere if the shifting regulatory framework makes it impossible for American refi ners to be competitive in the global marketplace. The United States imports about 10 million barrels of crude oil and 3 million barrels of refi ned products every day. It also exports refi ned products, taking advantage of freight effi ciencies. The majority of gasoline, jet fuel and diesel fuel that Americans use, however, is still produced domestically. We can continue to COMPETE on a global level only if we do not let rhetoric about dependence on foreign oil turn into dependence on foreign refi ned products. The refi ning industry continues to address CO2 emissions, and Valero refi neries continue to become more ENERGY-EFFICIENT. Whether you support CO2 regulations or not, the POTENTIAL IMPACT on people and industry from many of the current proposed regulations is far-reaching and dramatic. Careful and thoughtful legislation is imperative to PRESERVE AMERICA’S POSITION as the leader in the industrial sector. We believe this nation can attack the INVOLVEMENT and volunteerism. We are well-known for our generous employees—their gifts of time, talents and fi nancial resources improve thousands of lives every year. Our employees demonstrate their generosity in our company-wide United Way campaign, which exceeded $12 MILLION this year. The Valero Energy Foundation, our charitable arm, is active in every community where we do business. Combined with sponsorships from our charitable events, the foundation distributed $21.5 million to WORTHY CHARITIES. Valero is an American company that works hard for all of its stakeholders with sound business principles, planning and products that improve consumers’ lives. The jobs we provide, the taxes we pay, and the IMPACT WE HAVE on the neighborhoods and communities around our facilities show the truly positive role we have in our society. That is our commitment to you. Bill Klesse CEO, President & Chairman of the Board Stockholder Information ANNUAL MEETING Valero’s annual meeting of stockholders is scheduled to be held at 10 a.m., Thursday, April 30, 2009, at Valero’s corporate headquarters located at One Valero Way in San Antonio, Texas. Valero’s 2008 Annual Report on Form10-K and the proxy statement for the 2009 Annual Meeting of Stockholders can be accessed by clicking here. VALERO ENERGY CORPORATION COMMON STOCK Valero’s common stock is listed for trading on the New York Stock Exchange under the ticker symbol “VLO.” TRANSFER AGENT AND REGISTRAR Computershare Investor Services has been appointed transfer agent, registrar and dividend disbursing agent for Valero’s common stock. Inquiries with respect to stock accounts and dividends and all requests to transfer certifi cates should be addressed to: Computershare Investor Services 250 Royall Street Canton, MA 02021 (888) 470-2938 (312) 360-5261 www.computershare.com/contactus DIVIDEND WITHHOLDING Under federal income tax law, you are subject to certain penalties, as well as withholding with respect to your dividend payments, if you have not provided Valero with your correct social security number or other taxpayer identifi cation number. For this reason, any security holder who has not provided a taxpayer identifi cation number should obtain a Form W-9 (Payer’s Request for Taxpayer Identifi cation Number). To request a Form W-9, please contact Valero’s transfer agent and registrar at the address shown above. Forward-Looking Statements Certain information provided in this report includes or is based upon estimates, predictions, projections and other “forward-looking statements” (as defi ned in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) that involve various risks and uncertainties. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and refl ect Valero’s current judgment regarding the direction of its business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions, or other future performance suggested herein. Certain risks and uncertainties that may aff ect Valero are detailed from time to time in its SEC reports, including Valero’s most recent Annual Report on Form 10-K. The fi nancial and other information provided in this summary annual report should be read in conjunction with Valero Energy Corporation’s complete Consolidated Financial Statements (including the notes) and Management’s Discussion and Analysis of Financial Condition and Results of Operations. This and other information about Valero is contained in Valero’s Notice of the 2009 Annual Meeting of Stockholders Proxy Statement and Form 10-K for the year ended December 31, 2008. This document is provided to all stockholders of record as of March 2, 2009. In addition, persons may request, without charge, a Form 10-K by writing or calling Valero’s Investor Relations Department. Valero’s 2008 Annual Report on Form 10-K and the Proxy Statement also may be accessed at www.valero.com. BOARD OF DIRECTORS William R. Klesse CEO, President and Chairman of the Board of Valero Energy Corporation Bob Marbut CEO of Argyle Security, Inc.; former director of Ultramar Diamond Shamrock Corporation Sen. Don Nickles Retired U.S. Senator (R-Okla.); Chairman and CEO of The Nickles Group Robert A. Profusek A partner and head of the Mergers & Acquisitions practice of the Jones Day law fi rm Dr. Susan Kaufman Purcell Director of the Center for Hemispheric Policy at the University of Miami Stephen M. Waters Managing partner of Compass Advisers, LLP; Chief Executive of Compass Partners European Equity Fund W.E. “Bill” Bradford Retired Chairman of Halliburton Company; former director of Ultramar Diamond Shamrock Corporation Dr. Ronald K. Calgaard Chairman of the Ray Ellison Grandchildren Trust in San Antonio, Texas; former President of Trinity University in San Antonio Jerry D. Choate Former Chairman of the Board and CEO of Allstate Corporation Irl F. Engelhardt Chairman and Executive Advisor of Patriot Coal Corporation; former Chairman and CEO of Peabody Energy Corporation Ruben M. Escobedo Retired owner of Ruben Escobedo & Company, CPAs, in San Antonio, Texas Contact Information VALERO CORPORATE HEADQUARTERS One Valero Way San Antonio, TX 78249-1616 (210) 345-2000 INVESTOR INQUIRIES For investor inquiries, please contact: Investor Relations Department P.O. Box 696000 San Antonio, TX 78269-6000 (800) 531-7911 or (210) 345-2198 (210) 345-2103 (fax) investorrelations@valero.com WEB SITE www.valero.com MEDIA INQUIRIES For media inquiries, please contact: Media Relations Department P.O. Box 696000 San Antonio, TX 78269-6000 (800) 531-7911 or (210) 345-2928 (210) 345-2103 (fax) corporatecommunications@valero.com Valero Energy Corporation One Valero Way San Antonio, Texas 78249 www.valero.com