Methanex Corporation · TSX:MX

Methanex — Shareholder Meeting (May 2006)

21 slides from Methanex's shareholder meeting presentation, May 9, 2006

  1. Slide 1: 2006 Annual General Meeting

    2006 Annual General Meeting May 9, 2006 Pierre Choquette Chairman

  2. Slide 2: Janice Rennie

    Janice Rennie | swans METHADEX

  3. Slide 3: Phillip Cook

    Phillip Cook — METHADEX

  4. Slide 4: Douglas Mahaffy

    Douglas Mahaffy

  5. Slide 5: 2006 Annual General Meeting - President & CEO

    2006 Annual General Meeting May 9, 2006 Bruce Aitken President & CEO

  6. Slide 6: Forward-looking Statements & Non-GAAP Measures

    Forward-looking Statements & Non-GAAP Measures Information contained in these materials or presented orally at this meeting, either in prepared remarks or in response to questions, contains forward-looking statements. Certain material factors or assumptions were applied in drawing the conclusions or

  7. Slide 7: 2005 – Another Excellent Year

    2005 – Another Excellent Year $250 24% Return $200 on Equity $150 $224 million Income1 $325 million Cash Flow $100 $50 $179 million Distributions $0 Q1 Q2 Q3 Q4 (US$ millions) 1 Before unusual items (after-tax)

  8. Slide 8: 2005 – Another Excellent Year

    2005 – Another Excellent Year $400 $452 million Adjusted EBITDA1 $300 $200 $224 million Net Income $325 million Cash Flow2 $100 $179 million Distributions $0 Q1 Q2 Q3 Q4 (US$ millions) 1 Adjusted EBITDA is a Non-GAAP measure 2 Before changes in non-cash working capital

  9. Slide 9: 2005 – Another Excellent Year

    2005 – Another Excellent Year $200 38% increase $150 to dividend $100 $224 million Net Income $325 million Cash Flow $50 $179 million Distributions $0 Q1 Q2 Q3 Q4 (US$ millions)

  10. Slide 10: Outstanding Share Price Performance

    Outstanding Share Price Performance 280 Methanex (MEOH) S&P Chemicals Index Share Price Appreciation 191 % over last 5 years 230 180 $224 million Net Income $325 million Cash Flow 130 $179 million Distributions 80 2000 2001 2002 2003 2004 2005

  11. Slide 11: 2005 – Another Excellent Year

    2005 – Another Excellent Year A decade of strategy execution…. Trinidad Chile

  12. Slide 12: 2005 – Another Excellent Year

    2005 – Another Excellent Year • Responsible Care Performance • Completed Chile IV plant with excellent safety record • Multi-lingual methanol handling training video for crews of ocean vessels • Employee and contractor safety performance better than industry benchmark • Adoption of formal Corporate

  13. Slide 13: 2006 & 2007….

    2006 & 2007…. • Demand is buoyant • New supply is limited • Pricing is strong

  14. Slide 14: Current Industry Cost Curve

    Current Industry Cost Curve 450 300 USA, Canada, Netherlands, Estimated Delivered cash cost (US$/tonne) E. Europe / Russia, Germany, Mexico, China, India 150 SE Asia, India, Russia, China, Argentina Methanex (Chile & Trinidad), Total Global Demand Venezuela, Eq. Guinea, Iran, 35-36 million MT’s Saud

  15. Slide 15: 2010E - Supply/Demand Balance

    2010E - Supply/Demand Balance New methanol plants off-set new uses Beijing +175 -188 -65 -31 +268 -11 +230 -485 Tianjin +392 +415 +468 -99 -1016 +324 -533 -2124 Shanghai -138 -437 +412 -236 -815 -157 -22 -175 -123 Estimated Imports 2010: -64 ≈ 3 to 5 MMT -68 -900 CFR Price = $150 / MT Hainan Source:

  16. Slide 16: A perspective on high energy prices

    A perspective on high energy prices Methanol has energy value… 90.00 14.93 80.00 13.28 Distillates - No.2 Diesel Fuel 70.00 11.62 (US$/bbl) 60.00 9.96 50.00 8.30 40.00 6.65 30.00 4.99 20.00 3.33 100 120 140 160 180 200 220 240 260 280 300 Methanol (US$/Tonne) Î Sustained high energy prices and histo

  17. Slide 17: Earnings Capability of Low Cost Assets

    Earnings Capability of Low Cost Assets $5.00 300 $277 $240 250 $4.00 $223 $225 „ (Adjusted EBITDA per share) 200 (US$ per tonne) $3.00 $157 $150 „ 150 $2.00 100 $1.00 50 $0.00 0 2002 2003 2004 2005 EBITDA/share Estimates Actual Adjusted EBITDA/share CMAI U.S. Net Transaction Methanol Price less 10%

  18. Slide 18: Growth

    Growth Egypt

  19. Slide 19: A Balanced Approach

    A Balanced Approach For the five year period ending December 31, 2005, Methanex has generated over US$1.8 billion in Adjusted EBITDA Reinvested ~US$850 million in our business Distributed ~US$700 million to shareholders Balance Sheet Current net debt to capitalization ~26% …and has delivered 191% (U

  20. Slide 20: A Balanced Approach

    A Balanced Approach • Liquidity • Maintenance CapEx • Strategic CapEx • Dividends • Appropriate leverage • Share repurchases • Efficient balance sheet

  21. Slide 21: Thank You. Questions?

    A Responsible Care® Company Thank You. Questions?

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