Methanex Corporation · TSX:MX
Methanex — Investor Presentation (April 2025)
34 slides from Methanex's investor presentation, April 2025
Slide 1: The Global Methanol Leader
The Global Methanol Leader CORPORATE PRESENTATION APRIL 2025
Slide 2: Forward-looking statements and non-GAAP measures
Forward-looking statements and non-GAAP measures Information contained in these materials or presented orally, either in prepared remarks or in response to questions, may contain forward-looking statements. Actual results could differ materially from those contemplated by the forward-looking stateme
Slide 3: Methanex is the world's largest producer and supplier of methanol globally
Methanex is the world’s largest producer and supplier of methanol globally Strategy Competitive advantage Safety is the top priority We create value through our Safe, sustainable, and secure supply. We are committed to the leadership in the global Underpinned by our global integrated highest standar
Slide 4: Safety is our number one priority
Safety is our number one priority Our commitment to Responsible Care is unwavering; we work everyday to put our values and safe practices into action to ensure the safety of our employees, contractors, visitors, and communities where we operate Our 2024 recordable injury Recordable Injury Rate vs. A
Slide 5: Why Invest?
Why Invest? Leader in an industry Growing cash flow Sustainable Well-positioned in Disciplined with a positive capability competitive advantage the transition to a capital allocation long-term outlook from integrated global low-carbon economy strategy capabilities Leading market share in an Cash flo
Slide 6: Strategic Priorities for the Business
Strategic Priorities for the Business Focused on delivering value-generating initiatives in a safe and reliable way Safety + reliability Executing our Advancing Capital allocation feedstock strategy sustainability initiatives Continuous improvement Achieve economic gas Invest resources to Maintain t
Slide 7: Global production capacity across 6 production sites
Global production capacity across 6 production sites Operating Number Gas capacity of plants2 supply (mmt)1 Medicine Hat, Canada 0.60 1 Fixed price contract Medicine Hat Geismar, USA Vancouver Beijing Brussels Seoul Financial hedges, fixed price 4.0 3 Dallas Damietta contracts, and spot market Tokyo
Slide 8: Competitive advantage from global integrated capabilities
Competitive advantage from global integrated capabilities Scale and flexibility enabling Methanex to be the supplier of choice and attract and retain customers around the world ✓ Extensive integrated global supply chain with ✓ Industry leading customers, including a dedicated shipping fleet Samsung,
Slide 9: Strong free cash flow conversion over a range of methanol prices
Strong free cash flow conversion over a range of methanol prices Adjusted EBITDA1 and Free cash flow2 capability to equity holders ($M) at average realized methanol prices ($/MT) Financial obligations to get to Adjusted EBITDA Free Cash Flow free cash flow: 67% • Debt service 62% $1,525 • Lease paym
Slide 10: Global methanol demand and supply dynamics
Global methanol demand and supply dynamics Demand expected to grow at ~3% CAGR or +17 mmt over next five years Europe (including Russia) China Production Demand Production Demand 5% 10% 45% 60% ~65% of ~85% of production production from Russia from coal- based plants North America/Latin America Midd
Slide 11: Methanol is difficult to substitute based on its unique chemistry, scale, ease of transport
Methanol is difficult to substitute based on its unique chemistry, Traditional chemical Essential building block used in formaldehyde scale, ease of transport and cost applications expected to grow with GDP and acetic acid to make raw materials for building and automotive parts, paints, paper, plast
Slide 12: Momentum is growing for methanol as a marine fuel
Momentum is growing for methanol as a marine fuel Cleaner burning, proven technology, easily transportable with existing infrastructure, and cost competitive Methanol is a cleaner- In 2024, a methanol Multiple fuels needed to burning fuel and can reduce powered vessel operated support the marine ind
Slide 13: Firm capacity additions unlikely to meet growing demand in the mid-term
Firm capacity additions unlikely to meet growing demand in the mid-term Estimated Methanol Industry Capacity Additions New capacity additions MMT 7.0 Besides G3 and a 1.8 mmt plant in Malaysia, limited firm capacity additions expected outside of China in the near term. 6.0 New capacity is needed to
Slide 14: Competitive position on attractive industry cost curve
Competitive position on attractive industry cost curve Illustrative methanol industry cost curve ($/tonne) Methanex assets competitive across a wide range of methanol prices due to position on cost curve Marginal producers on the high end of cost curve are high-cost coal producers and natural gas pr
Slide 15: Methanol demand growth expected to outpace capacity additions in the mid-term
Methanol demand growth expected to outpace capacity ~3% CAGR or +17 mmt demand growth over next five years (2025-2030) additions in the mid-term 140 78% requiring operating rates to 76% increase 120 74% 100 72% Structural operating rate limits impacting over 50% of global capacity 70% 80 China – imp
Slide 16: Methanol's role in the low-carbon economy
Multiple methanol pathways Methanol’s role in the low-carbon GREEN economy RENEWABLE HYDROGEN FEEDSTOCKS Methanol can also be made using carbon capture technology, with BIOGENIC CO₂ renewable feedstocks, such as renewable natural gas or renewable syngas, or from green hydrogen combined with recycled
Slide 17: Embedding sustainability: from strategy to action
Embedding sustainability: from strategy to action1 Solutions focused and committed PROGRESS to continual improvement COMMITMENTS Advancing Reduce Scope 1 and Scope 2 GHG 3.7% reduction in GHG Intensity3 emission intensity by 10%2 since 2019 solutions for a low-carbon future Invest in low-carbon met
Slide 18: Reducing emissions and exploring paths to low-carbon methanol
Reducing emissions and exploring paths to low-carbon methanol Providing solutions for the emerging low-carbon market supports our strategy of global methanol leadership REDUCING EMISSIONS FROM PROGRESSING LOW-CARBON OUR OPERATIONS SOLUTIONS Reduced-intensity Expansion Projects Carbon Capture Utiliza
Slide 19: Focused cost discipline
Focused cost discipline Our flexible-cost structure enables us to provide secure supply to our customers and create value throughout the cycle Natural gas Logistics Natural gas Logistics ~ 50% 1 Flexible cost structure as ~ 25% Fleet of 33 vessels Network of owned and approximately 60% of our natura
Slide 20: Consistent capital allocation priorities balancing growth and shareholder returns
Consistent capital allocation priorities balancing growth and shareholder returns Profitable growth Pursue value-accretive conventional and low-carbon growth opportunities which will enhance cash flow Maintain our business generation capability Maintain financial flexibility to operate assets reliab
Slide 21: Strong financial position
Strong financial position Strong liquidity and well-balanced debt maturities Consistent track record of balanced capital investment and shareholder distributions Targeting investment grade leverage metrics Since 2014 we have returned ~$2.4B to shareholders and spent ~$3.6B on capital investments Tar
Slide 22: Why Invest?
Why Invest? Leader in an Growing cash flow Sustainable Well-positioned Disciplined industry with capability with competitive in the transition capital a positive the G3 plant and advantage from to a low-carbon allocation long-term the acquisition of integrated global economy strategy outlook the OCI
Slide 23: 2025 Modeling Information
1 2025 Modeling Information 25-30% Financial profile (Methanex share) Sales mix Europe ~$145M ~$420M 20% 25-30% Lease Payments Depreciation + Amortization Americas China 25% Asia Pacific ~$90M ~25% (ex. China) Debt Service Effective tax rate 2025 Capital expenditures Gas cost structure ~$120M ~$130
Slide 24: Forward-looking statements
Forward-looking statements This presentation, our First Quarter 2025 Management’s Discussion and Analysis ("MD&A") as well as comments made during the First Quarter 2025 investor conference call contain forward-looking statements with respect to us and our industry. These statements relate to future
Slide 25: Appendix
Appendix methans " the poner of agity 25
Slide 26: Methanol demand applications
Methanol demand applications Applications % of global demand1 End uses Traditional Used as wood adhesive for plywood, particleboard and other engineered wood products Formaldehyde ~25% chemical Also used as raw material for a variety of building and automotive products applications Used to produce a
Slide 27: Chemicals value chain
BUTADIENE AROMATICS Chemicals value chain OLEFINS PROPYLENE METHANOL ETHYLENE AMMONIA FEEDSTOCKS BASE CHEMICALS AND INTERMEDIATES PRODUCTS MARKETS/USES MDI/TDI POLYESTER CLOTHING, BOTTLES (PET), FABRIC TOLUENE PTA NYLON FABRIC, CARPET, AUTOMTIVE XYLENE CYCLOHEXANE PHENOL/ACETONE SOLVENTS, INTERMEDIA
Slide 28: Methanol-to-olefins (MTO) value chain
Methanol-to-olefins (MTO) value chain Food packaging, Polyethylene plastic bags Natural Gas or Coal Feedstock Pipes, window EDC PVC frames Ethylene Synthesis EO MEG PET Textile, bottles • MTO production Gas mostly integrated with downstream products Insulation cups, Ethyl benzene Styrene Polystyrene
Slide 29: Price response required to incentivize new low-carbon methanol production
Price response required Range of current capital and production to incentivize new costs for different forms of methanol USD $/tonne of methanol* low-carbon methanol $2,380 production We expect government policies and $1,620 regulations to lead to increased investment and demand for low and zero car
Slide 30: Qualities that give methanol the competitive edge
Qualities that give methanol the competitive edge Methanol offers among the best volumetric energy densities of the mainstream alternatives. In addition, as methanol is biodegradable, it opens up more storage options in some vessel types (i.e. tank design, stored in ballast of Stena Germanica) reduc
Slide 31: Leading the shipping industry for over a decade
Leading the shipping industry for over a decade Methanex has been there from the beginning, developing methanol as a marine fuel, and is well-positioned to help transition the shipping industry to a low-carbon future. 2015 2017-18 Creole Sun 2019 Stena Line & World's first WFS 2nd gen WFS 3rd gen du
Slide 32: The first move advantage
The first move advantage When it comes to structural competitiveness versus alternative maritime fuels, methanol comes out on top for engine development, infrastructure, and regulations. Fuel storage Onboarding Onboard The Fuel Pathway Maturity Map presents Feedstock Fuel energy storage Vessel Regul
Slide 33: Illustrative Adjusted EBITDA and free cash flow capabilities assumptions
Illustrative Adjusted EBITDA and free cash flow capabilities assumptions (non-GAAP measures) – Methanex Run Rate 1 Note that Adjusted EBITDA and Free cash flow are forward-looking non-GAAP 2Free cash flow reflects Methanex’s proportionate ownership interest. Free measures that do not have any standa
Slide 34: Investor Relations
Investor Relations T: 604 661 2600 invest@methanex.com www.methanex.com linkedin.com/company/methanex-corporation @Methanex 34