Annual and Special Meeting Joh John Flo loren en, Pres esiden - PowerPoint PPT Presentation

Annual and Special Meeting Joh John Flo loren en, Pres esiden ent t and CE CEO April 27, 2017

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. For more information, please refer to the Forward-looking Statements slide at the end of this presentation. This presentation also contains certain non-GAAP financial measures that do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. For more information regarding these non-GAAP measures, please see our 2016 annual MD&A and our first quarter 2017 MD&A. 2

Methanex Strategy 3

Responsible Care Recordable Injury Frequency Rate (RIFR) 2.5 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015 2016 Employees Contractors Blended RIFR Blended Target 4

Environment 5

Social Responsibility 6

Investing in People 7

Methanol Price 8 U.S .S. $/ $/tonne $100 $200 $300 $400 $500 $600 $0 Q1 2010 Q3 2010 Q1 2011 Meth thanex Average Rea Q3 2011 Q1 2012 Q3 2012 Q1 2013 ealiz ized Meth Q3 2013 Q1 2014 thanol Q3 2014 l Pric rice Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017

Methanol Demand Growth 2012 – 2016 CAGR: 8% 70 60 onnes 50 of ton 40 millions of 30 mill 20 10 0 2012 2013 2014 2015 2016 Traditional Other E Energy MTO Source: Methanex 9

Growing Energy Applications Mar arine Fue Fuels Fue Fuel Blendin Bl ing Meth thanol Ind Industrial Bo Boile ilers 10

Forecast Demand Growth 2016 – 2020 CAGR: 5% 100 90 Millions of tonnes of methanol 80 70 60 50 40 30 20 10 0 2016 2017 2018 2019 2020 Tradit itio ional Other E Energy MTO MTO 11 Source: IHS Chemical

Capital Projects 2011-16 $1.4 .4 billio illion Geismar Relocation $100 mill illion $200 mill illion Medicine Hat New Zealand • • Restart Restart (2 plants) • • Refurbishment Refurbishment • • Expansion Expansion 12

Chile Growth Opportunity 13

Capital Investments 700 • $2.1 .1 billio illion invested 600 2011-2016 millions of dollars 500 Potential Chile Investment 400 300 Growth Capital Expenditures 200 Maintenance Capital 100 Expenditures - 2011 2012 2013 2014 2015 2016 2017 FCST 14

Methanex Production Doubled Versus 2010 Production Volume – Methanex Share (millions of tonnes) 7.7 7.0 5.2 4.9 4.3 4.1 3.8 3.5 2010 2011 2012 2013 2014 2015 2016 Run- rate 15

Financial Summary U.S .S. $m $mil illions Q1-17 Q1 17 2016 2016 2015 2015 except t as as ind ndicated 2,5 2,572 9,478 9,4 8,4 8,471 Sales les volu olume e (0 (000s ton onnes) 1,8 1,866 7,0 7,017 5,1 5,193 Production (0 (000s ton onnes) 267 267 287 287 401 401 Adjusted EBI BITDA 140 140 (15 (15) 110 110 Adjusted net t in income e (los (loss) 16

Financial Results $5.00 50% A Adjusted EPS $4.00 40% M Modif ifie ied R ROCE Adjusted EPS $3.00 30% Modified ROCE $2.00 20% $1.00 10% $0.00 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -17 Q1-1 -$1.00 -10% • Average Modified ROCE of 12% from 2007-2016 17

Run-rate EBITDA and Free Cash Flow Capability Free cash 1600 flow yield EBITDA 1400 at $50 Free Cash Flow share price 1200 millions of dollars 22% 22 1000 18% 18 800 13 13% 600 8% 400 200 0 300 350 400 450 Methanol price (dollars per tonne) 18

Returning Excess Cash to Shareholders 450 400 350 millions of dollars $1 billio illion returned 300 to shareholders 250 January 1, 2011 to 200 April 26, 2017 150 100 50 0 2011 2012 2013 2014 2015 2016 EST 2017 Dividends Estimated remaining 2017 dividend Share Repurchases Potential purchases under 10% NCIB 19

Dividend Growth and Shares Outstanding $1.40 180 Regular Dividends per Share $1.20 Weighted Avg Shares Outstanding Regular Annual Dividend (US$) 160 Shares Outstanding (millions) $1.00 140 $0.80 $0.60 120 $0.40 100 $0.20 $0.00 80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 E 20

Total Annual Shareholder Return – last 15 Years 16% 14% 12% 10% 8% 15.1 .1% 6% 10.4 .4% 4% 7.4 .4% 2% 0% Methanex S&P 5 500 S&P T TSX SX Chemic icals ls I Index I Index 21 Source: RBC Capital Markets

Summary • Strong market leadership position • Continued investment in people, reliability, safety and the environment • Continuing to foster new energy applications for methanol • Low capital cost growth potential in Chile • Limited near-term financial commitments • Expect strong cash generation at a range of methanol prices • Excess cash to be allocated to dividends and share repurchases Com ommitted to o Return Exce cess Cas ash to o Sh Shar areholders 22

Thank You www.methanex.com linkedin.com/company/methanex- corporation @Methanex

APPENDIX Sli Slide Ass Assumptions 11 11 Demand forecast excludes demand from integrated coal-to-olefins plants (CTO) 14 14 Capital expenditures shown include Methanex’s propionate share of capital for Egypt (50%) and Atlas (63.1%) Maintenance expenditures include expenditures on catalyst, plants turnarounds, sustaining capital and other expenditures required to maintain the condition of plant assets. Growth and other capital expenditures include all other expenditures to grow the business. 15 15 Production shown includes Methanex’s proportionate for Egypt (50%) and Atlas (63.1%). Run-rate operating rate assumptions are: Geismar / Medicine Hat – 100%; NZ 92% (2.2MM tonnes); Trinidad 85%; Egypt 50%; Chile I 100%; Chile IV 0% 16 16 Production volume shown is Methanex’s proportionate share 17 17 1. Adjusted EPS = Adjusted net income per common share attributable to Methanex shareholders (excludes the after-tax mark-to-market impact of share-based compensation and the impact of certain items associated with specific identified events) 2. Modified ROCE = Adjusted net income before finance costs (after-tax) divided by average productive capital employed. Average productive capital employed is the sum of average total assets (excluding plants under construction) less the average of current non-interest-bearing liabilities. 3. Adjusted net income, Adjusted EPS and Modified ROCE are non-GAAP measures - for more information regarding this non-GAAP measure, please see our 2016 annual MD&A 18 18 Run-rate operating rate assumptions are described in the notes to slide 15 above. EBITDA reflects Methanex's proportionate ownership interest. Free cash flow is calculated after cash interest, maintenance capital of approximately $80 million, cash taxes, debt service and other cash payments. Free cash flow yield is calculated based on 90 million weighted average diluted shares for Q1, 2017 and share price of US$50/share 19 19 The potential purchases under a 10% NCIB are calculated assuming a total of 6.2 million shares are purchased. The first 1,580,000 shares are purchased for US$73 million, and the remaining approximately 4,620,000 shares are purchased at an average price of US$50 per share. The remaining dividend payable assumes that a quarterly dividend of $0.30 per share is approved for 3 quarters by the Methanex Board of Directors and paid to an average number of shares outstanding of 86 million shares. 21 21 Source: RBC Capital Markets, based on Bloomberg information as at April 21, 2017. Assumes dividends are reinvested 24