Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Q1 2023 Earnings Presentation
23 slides from Tecnoglass's earnings presentation, May 2023
Slide 1: Tecnoglass (TGLS) Investor Presentation
Tecnoglass (TGLS) Investor Presentation May 2023 1
Slide 2: Disclaimer
Disclaimer Disclaimer This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries, this “Presentation”) contains information regarding Tecnoglass Inc. and its subsidiaries, as applicable, where
Slide 3: Tecnoglass at a Glance
Tecnoglass at a Glance Overview Key Stats Leading Position in U.S. Market U.S. End Market Mix 4% $785 MM LTM Q1’23 Revenue SF Residential Total Total U.S. U.S. 44% Revenues Revenues Multi-Family/ LatAm/Other 56% LTM Q1’23 LTM Q1’23 Commercial ~19% 2012 – LTM Q1’23 Revenue CAGR 96% ~39% LTM Q1’23 Adj
Slide 4: Global Leader in Architectural Glass and Windows
Global Leader in Architectural Glass and Windows Supplying Architectural Glass Products to Landmark Properties in the U.S. and Latin America ✓ Leading manufacturer, distributor and installer of high-spec architectural glass and windows for residential and commercial applications 50 United Nations Pl
Slide 5: Built-to-Suit Innovative Products Pacing Ahead of Evolving Industry Trends
Built-to-Suit Innovative Products Pacing Ahead of Evolving Industry Trends Tecnoglass’ High-Quality Products and Exceptional Customer Service Allow it to Better Serve Customers and Support Organic Growth for Each of Our End Markets Residential Multi-Family & Commercial Markets: Single-Family: Curtai
Slide 6: Investment Highlights
Investment Highlights Leading Architectural Glass and Windows Company in the U.S. and Latin America 1 Strong Revenue Generating Capability, Track Record and Positive Outlook ➢ Record of Profitable Growth Driven by Strong Backlog and Residential Expansion ➢ Effectively Positioned to Further Penetrate
Slide 7: Effectively Positioned to Further Penetrate the Attractive U.S. Market
1 Effectively Positioned to Further Penetrate the Attractive U.S. Market TGLS Revenues by Country ▪ U.S. revenues continue to represent the majority of our sales, contributing 900 785 ~96% of total revenues and ~95% total backlog as of Q1’23 800 Total Sales 717 700 ▪ Leverage combination of high qua
Slide 8: Demonstrated History of Converting Backlog to Revenue
1 Demonstrated History of Converting Backlog to Revenue Backlog by End Market ▪ Solid single-family residential growth trajectory not fully captured in backlog given shorter term “spot” duration of projects ▪ Backlog of $776.3 mm, up ~19.2% YoY, representing ~1.7x LTM multi family 3% 3% Multifamily
Slide 9: Vertically-Integrated & Well-Situated Operations Driving Step-Change in Performance
Vertically-Integrated & Well-Situated Operations Driving Step-Change 2 in Performance Sales, JV & Long Raw Term Final Production Process Distribution Supply Relationships Materials Product & Installation Tecnoglass integration across the architectural glass and window value chain provides significan
Slide 10: Geographic Location Provides Cost and Logistical Advantages
2 Geographic Location Provides Cost and Logistical Advantages Manufacturing and Delivery Cost Efficiencies Provide a Significant Structural Competitive Advantage and Result in High Barriers to Entry Main Competitive Advantages Strategically Located Manufacturing Units 1 Strategic location near 3 of
Slide 11: Structurally Strengthened Margins & Cash Flow
3 Structurally Strengthened Margins & Cash Flow Improved Gross Margin Operating Cash Flow Bridge (2018 – LTM Q1’23) 60.0% 53.2% 48.8% 50.0% 40.8% 40.0% 37.0% 31.5% 30.0% 20.0% 10.0% 0.0% 2019 2020 2021 2022 Q1'23 ✓ Gross margin increased to 53.2% in Q1’23, up from 31.5% at the end of ✓ Tecnoglass ha
Slide 12: Strong Balance Sheet and Leverage Profile To Execute Growth
3 Strong Balance Sheet and Leverage Profile To Execute Growth Liquidity of $300 million, including cash of $128.5 million and $170 million available under committed revolver and other working capital lines Capital Allocation Priorities 1 High Return Strategic Capex 2 Dividend Payments ▪ Growth capit
Slide 13: Track Record of Strong Returns Above Peers
Track Record of Strong Returns Above Peers 3 Year Average ROE 3 Year Average ROIC 32% 18% 12% 7% TGLS U.S. Building Products Peers 1 TGLS U.S. Building Products Peers 1 ✓ Stronger profitability and a meaningful step-up in cash flow generation has driven significant average returns over the past 3 ye
Slide 14: Committed to ESG Principles
4 Committed to ESG Principles Outstanding Achievements Environmental Social Governance Enhancing Our Environment Promoting Continuous, Ethical and Leading Eco-Efficiency and Innovation Responsible Growth National Carbon Employee Training and Ethics and Compliance Neutrality Program Education Program
Slide 15: Committed to ESG Principles
4 Committed to ESG Principles Our Sustainability Strategy contains the Company’s guidelines and value propositions to meet the expectations of our stakeholders Environmental Social Governance Enhancing Our Environment Promoting Continuous, Ethical and Leading Eco-Efficiency and Innovation Responsibl
Slide 16: Q1 2023 Key Takeaways
Q1 2023 Key Takeaways ✓ Q1’23 all-organic revenue growth of 50.6% to $202.6 mm. Growth continues to be Sales By Geography Q1’23 fueled by strong U.S. performance, up 53.4% to $194.8 mm, on continued healthy single-family residential revenue, up 40.0% to $83.6 mm, through dealership 4% expansion, geo
Slide 17: Improved 2023 Double-Digit Growth Outlook
Improved 2023 Double-Digit Growth Outlook ▪ Expected revenue growth led by continued geographical expansion and market share gains into single-family residential, coupled with stronger momentum from multi- family and commercial backlog Revenue ▪ Adjusted EBITDA outlook incorporates expectation for f
Slide 18: Appendix
Education First Phase II Massachusetts, United States King Open School & Cambridge Street Upper School – MA, USA Appendix 18
Slide 19: Culture of Passion and Experience Throughout the Organization
Culture of Passion and Experience Throughout the Organization Strong Company Culture Driving Exceptional Employee Engagement Compensation Comprehensive customer Job-specifictraining Assistance with home materially above service, management and Educational stipends for develops expertise buying / mor
Slide 20: Operational Review
Operational Review Detailed, Integrated Production and Distribution Process Vertically Integrated Operations Provide Low Cost Base and Operational Flexibility Suppliers Raw Material Production Process Final Product Sales, Distribution & Installation 3rd Party Providers of Distributors Glass: Insulat
Slide 21: Profit & Loss 2023 vs 2022
(1) Profit & Loss 2023 vs 2022 Three months ended March 31, 2023 vs 2022 Figures in U.S. $k 2023 % Sales 2022 % Sales $∆ %∆ Operating revenues 202,639 100.0% 134,548 100.0% 68,091 50.6% Raw materials 53,066 26.2% 39,638 29.5% 13,428 33.9% Direct labor 4,516 2.2% 6,047 4.5% (1,531) -25.3% Indirect co
Slide 22: Non-GAAP Reconciliation
(1) Non-GAAP Reconciliation Adjusted EBITDA and adjusted net (loss) income attributable to parent reconciliation Figures in U.S. $k Three months ended Mar 31, 2023 2022 Net (loss) income 48,372 20,953 Less: Income (loss) attributable to non-controlling interest (137) (100) (Loss) Income attributable
Slide 23: Non-GAAP Reconciliation
(1) Non-GAAP Reconciliation Net Debt, Leverage and Total Investment Reconciliations Figures in U.S. $k As of March 31, 2022 2023 Short Term Debt and Current Portion of Long Term Debt 485 819 Long Term Debt 183,414 169,076 Gross Debt 183,899 169,895 Cash at the end of the period 84,431 128,538 Net De