Investor Presentation March 2024
Illustrative Adjusted EBITDA and free
cash flow capabilities assumptions
(non-GAAP measures)
1 Note that Adjusted EBITDA and Free cash flow are forward-
looking non-GAAP measures that do not have any standardized
meaning prescribed by GAAP and therefore, are unlikely to
be comparable to similar measures presented by other
companies. For historical Adjusted EBITDA, refer Additional
Information - Non-GAAP Measures in the Company's 2023
Annual MD&A. For historical Free cash flow, refer to footnote
3.
2 Adjusted EBITDA is a forward-looking non-GAAP measure and
reflects Methanex's proportionate ownership interest. We
target to hedge ~70% of our North American natural gas
requirements. The unhedged portion of our North American
natural gas requirements are purchased under contracts at
spot prices. Estimates assume Henry Hub natural gas price of
~$3.50/mmbtu based on near-term forward curve.
3 Free cash flow is a forward-looking non-GAAP measure and
reflects Methanex's proportionate ownership interest. Free
cash flow is presented after lease payments, cash interest
(based on current debt levels), debt service, maintenance
capital, estimated cash taxes and other cash payments. Various
factors such as rising/declining methanol prices, planned and
unplanned production outages, production mix, changes in tax
rates, and other items that can impact actual Free cash
flow. Incremental free cash flow from G3 is presented with
zero cash tax due to the significant tax shelter available to it.
Free cash flow, both historical and forward-looking, is useful as
it provides a measure of our cashflow generation capability and
differs from the most comparable GAAP measure,
Increase (decrease) in cash and cash equivalents, as it is
adjusted to include out proportional share of the Atlas joint
venture cashflows and to exclude the non-controlling interests
share of Egypt and Waterfront Shipping, with dividends and
repurchase of shares added back. This non-GAAP measure
does not have any standardized meaning prescribed by GAAP
and therefore, is unlikely to be comparable to a similar
measure presented by other companies.
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Methanex | The Global Methanol Leader | Investor Presentation March 2024
APPENDIX
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