Methanex Financial Highlights

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Myles Powell
5 years ago
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1 Methanex Financial Highlights only Year data is required going forward, don't do quarterly Income and Cash Flows from Operating Activities (US$ millions) For the years ended December, Revenue,6,,04,54,608,967,98,4,66,08 Cost of sales and operating expenses (,858) (,46) (,66) (,09) (,07) (,695) (,056) (,984) (,64) (,08) Depreciation and amortization (95) (4) () (49) (57) (7) (8) (07) () (07) Finance costs (70) (7) (57) (6) (6) () (7) (8) (44) (45) Finance income and other expenses (7) (7) Earnings of associate Specific identified events 65 4 (59) (6) Income tax (expense) recovery () (55) (70) 85 (56) (4) 4 (7) (47) (0) Net income (loss) (4) Net income (loss) attributable to non-controlling interests () Net income (loss) attributable to Methanex shareholders (68) Net income (loss) (4) Add (deduct): Earnings of associate (5) (9) () Dividends received from associate Depreciation and amortization Specific identified non-cash items () Income tax expense (recovery) (85) 56 4 (9) () Income taxes paid (47) (5) (4) (8) (46) (9) Finance costs Other, net 4 (58) (5) - 0 (8) (0) 76 5 (4) Cash flows from operating activities Adjusted EBITDA Adjusted net income The Company's date of transition from Canadian GAAP to IFRS was January, 00. All figures prior to 00 have not been restated in accordance with IFRS and are reported in accordance with Canadian GAAP. Effective January, 0, Methanex adopted new IASB accounting standards related to consolidation and joint arrangements. As a result, Methanex s 6.% interest in the Atlas entity is now accounted for using the equity method. Methanex restated its figures as at and for the year ended December, 0 using the equity method. Figures prior to 0 have not been restated. Specific identified events include: gain on termination of terminal services agreement (05), Argentina gas settlement (04), Geismar project relocation charges and expenses (0 and 0), asset impairment and restructuring charges (0 and 0), gain on sale of Kitimat assets (00), and adjustment to future income tax related to change in Trinidad tax legislation (006). Income tax expense (recovery) for the 0, 0 and 00 IFRS figures represent both current and deferred taxes. All Canadian GAAP figures prior to 00 represent deferred income taxes only. Other, net includes share-based compensation, other non-cash items, other cash payments and changes in non-cash working capital. Adjusted net income and Adjusted EBITDA are non-gaap measures. Refer to page 7 of our 05 Annual Report for a reconciliation to the most comparable GAAP measure. Methanex 05 Factbook Page of 5

2 Methanex Financial Highlights only Year data is required going forward, don't do quarterly Consolidated Statements of Financial Position (US$ millions) As at December, ASSETS Cash and cash equivalents Trade and other receivables Inventories Prepaid expenses Current assets,0,686,6,46, , 990 Property, plant and equipment,59,778,,76,,59,8,899,5,6 Investment in associate Other assets ,494 4,775 4,,44,94,4,9,799,86,45 LIABILITIES AND SHAREHOLDERS' EQUITY Trade, other payables and accrued liabilities Current maturities on long-term debt Current maturities on other long-term liabilities Current liabilities Long-term debt,488,58,7, Other long-term liabilities Deferred income tax liabilities Total liabilities,55,7,6,965,79,7,554,4,49,5 Shareholders equity,70,786,658,90,405,5,6,89,,09 Non-controlling interests ,494 4,775 4,,44,94,4,9,799,86,45 The Company's date of transition from Canadian GAAP to IFRS was January, 00. All figures prior to 00 have not been restated in accordance with IFRS and are reported in accordance with Canadian GAAP. Effective January, 0, Methanex adopted new IASB accounting standards related to consolidation and joint arrangements. As a result, Methanex s 6.% interest in the Atlas entity is now accounted for using the equity method. Methanex restated its figures as at and for the year ended December, 0 using the equity method. Figures prior to 0 have not been restated. Methanol Price History Methanex average non-discounted posted price ($/tonne) Methanex average realized price ($/tonne) Methanex average realized price ($/gallon) Methanex 05 Factbook Page of 5

3 Methanex Performance Financial Metrics (all financial metrics are quoted in US$, unless otherwise noted) For the periods ended December, Year end share price (US$, NASDAQ) Diluted net income (loss) per share (0.7) Adjusted net income per share Cash flows from operating activities per share Adjusted EBITDA per share Book value per share Price to cash flow Price to book value per share Regular dividends per share Dividend yield 4.%.6%.7%.4%.4%.6% 4.5%.7%.%.% Liquidity Ratios Quick ratio Current ratio Working capital (US$ millions) Profitability Ratios Modified return on capital employed (ROCE) 6.% 6.%.0%.0%.8% 8.0%.%.6% 5.4% 5.0% Return on equity (ROE) 6.%.%.0%.4% 4.% 7.% 0.%.%.% 46.% Debt Ratios Asset coverage Adjusted EBITDA interest coverage Debt to capitalization 44% 46% 8% 45% 6% 40% 40% 6% 0% 9% Net debt to capitalization 9% 7% 9% 4% 6% 5% 5% 5% 7% 0% Definitions Adjusted net income per share = Adjusted net income per common share is a non-gaap measure because it excludes the mark-to-market impact of share-based compensation and the impacts of certain items associated with specific identified events. Adjusted EBITDA = Net income before finance costs, finance income and other expenses, income tax expense (recovery), depreciation and amortization, mark-tomarket impact of share-based compensation and certain items associated with specific identified events. Adjusted EBITDA includes an amount representing our 6.% share of the Atlas facility and excludes the non-controlling shareholders interests in entities which we control but do not fully own. Quick Ratio = (Current Assets - Inventories) Current Liabilities Current Ratio = Current Assets Current Liabilities 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. Average total assets exclude cash held in excess of $50 million. We use an estimated mid-life depreciated cost base for calculating our average assets in use during the period. The calculation of ROCE includes our share of income, assets and liabilities in the Egypt and Atlas methanol facilities. ROE = Adjusted net income attributable to Methanex shareholders Average Shareholders' Equity Asset Coverage = Total Assets Long-Term Debt (including current portion) Adjusted EBITDA Interest Coverage = Adjusted EBITDA Finance Costs (including capitalized interest) Debt to Capitalization = Long-Term Debt (including current portion) Total Capitalization Net Debt to Capitalization = (Long-Term Debt (including current portion) - Cash and Cash Equivalents) (Total Capitalization - Cash and Cash Equivalents) Total Capitalization = Long-Term Debt (including current portion) + Total Equity Net Debt = Long-Term Debt (including current portion) - Cash and Cash Equivalents The Company's date of transition from Canadian GAAP to IFRS was January, 00. All figures prior to 00 have not been restated in accordance with IFRS and are reported in accordance with Canadian GAAP. Effective January, 0, Methanex adopted new IASB accounting standards related to consolidation and joint arrangements. As a result, Methanex s 6.% interest in the Atlas entity is now accounted for using the equity method. Methanex restated its figures as at and for the year ended December, 0 using the equity method. Figures prior to 0 have not been restated. Figures represent amounts attributable to Methanex shareholders. 4 Dividend yield is calculated using the average annual share price. Note: Book value per share is based on period ended shares outstanding; all other per share amounts are based on weighted average shares outstanding. Methanex 05 Factbook Page of 5

4 Methanol Industry Supply & Demand Global Market Position (thousands of tonnes) Sales of produced methanol 5,050 4,878 4,04 4,09,85,540,764,6 4,569 5,0 Sales of purchased methanol,780,685,75,565,85,880,546,074,45,0 Commission sales Total Methanex sales 8,47 8,504 7,99 7,459 7,54 6,99 5,948 6,054 6,6 6,995 Total world production 6,000 58,00 55,8 5,470 49,00 45,049 8,85 9,650 9,5 7,9 Commission sales volume represents volume marketed on a commission basis related to the 6.9% of the Atlas methanol facility and 50% of the Egypt methanol facility that we do not own. Excluding demand from integrated methanol-to-olefins facilities. Methanex Production & Supply Statistics (thousands of tonnes) ANNUAL PRODUCTION PLANT DATA CAPACITY ANNUAL OPERATING CAPACITY Chile Chile I Chile II Chile III Chile IV , ,088,84,86 Trinidad Titan Atlas (6.% interest),5, ,05,4 98,057,000,000,644,57,6,6,60,775,779,005,84,9 New Zealand Waitara Valley Motunui I Motunui II ,40,40,856,96,49, North America Medicine Hat Geismar,000, Geismar,000, ,600,600, Egypt Egypt 5 (50% interest) Total production 5,9 4,85 4,44 4,07,847,540,54,66 4,9 5,5 Production capacity 9,80 8,40 7,40 9,460 9,0 7,90 6,750 6,750 6,9 6,9 Number of employees,95,,05,05,04, Operating capacity includes only those facilities which are currently capable of operating, but excludes any portion of an asset that is underutilized due to a lack of natural gas feedstock over a prolonged period of time. Our current annual operating capacity is 8. million tonnes, including 0.4 million tonnes related to our Chile operations. The operating capacity of our production facilities may be higher than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing operating efficiencies at these facilities. Actual production for a facility in any given year may be higher or lower than operating capacity due to a number of factors, including natural gas composition or the age of the facility s catalyst. We have relocated the Chile II and Chile III plants to Geismar, Louisiana. We commenced methanol production from Geismar (Chile II) in January 05 and from Geismar (Chile III) in December 05. The.8 million tonne Atlas methanol facility is a joint venture between Methanex and BP. Capacity stated represents the 6.% owned by Methanex. 4 In 05, the Medicine Hat facility underwent a planned major refurbishment which improved its production capacity. 5 On December 9, 0, we completed the sale of a 0% equity interest in the Egypt facility. Production figures prior to December 9, 0 reflect a 60% interest. Methanex 05 Factbook Page 4 of 5

5 Methanex Stock Trading History Common Share Data (millions of shares except where noted) For the years ended December Diluted net income (loss) per share attributable to Methanex shareholders (0.7) Adjusted net income per share attributable to Methanex shareholders Weighted average shares outstanding Period end shares outstanding Canadian Trading Volume US Trading Volume Closing Share Price (C$), end of period Closing Share Price (US$), end of period Market Capitalization (000's C$), end of period 4,098 4,97 6,07,988,75,80,89,6,709,75 Market Capitalization (000's US$), end of period,960 4, 5,69,006,8,86,795,04,7,896 The Company's date of transition from Canadian GAAP to IFRS was January, 00. All figures prior to 00 have not been restated in accordance with IFRS and are reported in accordance with Canadian GAAP. Methanol - General Information Simplified Process Flowchart Natural Gas Steam Reforming Synthesis Gas (CO, H, CO) Synthesis Crude (CH OH + H O) Methanol + Water Distillation Chemical Grade (CH OH) Methanol Conversion Formulas Production Conversion (unit of methanol consumed per unit of product by weight; Source: IHS Chemical) Acetic Acid 0.55 Diethylene Glycol MME 0.0 Methyl Methacryla 0.9 Triethylene Glycol 0. Carbon Tetrachloride 0. Dimethyl Ether (DME).40 Methylene Chlorid 0.4 Single Cell Protein Chloroform 0.9 Formaldehyde (7%) 0.45 MTBE 0.6 Methyl Chloride 0.68 Methyl Acetate 0.4 Polyacetal.50 DMT (non-retained) 0.8 Methylamines.45 Synthetic Gasoline.80 Biodiesel 0. Volume and Mass Conversions Energy Conversions/Definitions Tonne methanol =.6 US Gallons = 7.9 Barrels Barrel = 4 US Gallons Gallon = US Gallon or.785 Litres Tonne =.05 Short Ton Short Ton = Tonne Kilogram =.05 Pounds MSCF = 6.8Nm $00 per tonne methanol = $0.0 per gallon methanol MMBTU =.055 GJ GJ = MMBTU (assuming approximate caloric value of pipelines gas = 000 BTU/SCF or 0.09 GJ/Nm ) BTU = British Thermal Unit GJ = Gigajoule = 0 9 joules MSCF = Thousand Standard Cubic Feet Nm = Normal Cubic Meter Methanex 05 Factbook Page 5 of 5

MANAGEMENT S DISCUSSION & ANALYSIS

MANAGEMENT S DISCUSSION & ANALYSIS Index 05 Overview of the Business 06 Our Strategy 08 Financial Highlights 09 Production Summary 10 How We Analyze Our Business 11 Financial Results 18 Liquidity and Capital