Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Investor Presentation (May 2014)
27 slides from Tecnoglass's investor presentation, May 28, 2014
Slide 1: A Leading Manufacturer of Architectural Glass & Windows
A Leading Manufacturer of Architectural Glass & Windows May 2014 Nasdaq: TGLS; OTC
Slide 2: Forward Looking Statements
2 FORWARD LOOKING STATEMENTS This presentation includes certain forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 , including statements regarding future financial performance, future growth and future acquisitions . These statements are based on
Slide 3: Timeline
Timeline 2012 • Andina Acquisition Corp. goes public • Focused on Latin American growth companies • Commences evaluation of potential targets 2013 • Begin negotiations with Tecnoglass • August 2013 : Announces transaction • December 2013 : Closing occurs • Tecnoglass becomes the first company headqu
Slide 4: SPAC Transaction Summary
• Tecnoglass S.A. and C.I. Energia Solar E.S Windows (collectively, Tecnoglass) went public via transaction with Andina Acquisition Corporation, which closed on December 20, 2013 • Current owners of Tecnoglass retained majority ownership and operational control • Prior to expenses, raised a total of
Slide 5: Investment Highlights
Investment Highlights • #1 glass transformation company in Colombia, with ~40% market share • 8 00+ customers in North, Central and South America, with 36% of 2013 combined revenues to the U.S. • Strategic location in Barranquilla, Colombia provides convenient, cost - effective access to the America
Slide 6: A Respected Industry Leader
A Respected Industry Leader 30 - year History of Quality, Innovation, and Service 6 • Leveraged market - leading position in Colombia with intent to expand into Argentina, Aruba, Costa Rica, Panama, and Puerto Rico. • Glass Magazine ranked Tecnoglass as the second largest glass fabricator serving th
Slide 7: Global Customer Base: Hi-Spec Products for Premier Properties
7 Global Customer Base: Hi - Spec Products for Premier Properties Park Square at Doral (Miami, FL) Trump Plaza (Panama) South Dade Miami Cultural Arts Center (Miami, FL) The W Hotel (Ft. Lauderdale, FL) Miami Courthouse (Miami, FL) 4 Waterway Square (The Woodlands, TX) Aeropuerto El Dorado (Bogota)
Slide 8: Glass and Window Production
8 Glass and Window Production • Four lamination machines with independent assembly rooms • Six specialized tempering furnaces and state - of - the - art glass molding furnaces • CNC - controlled profile bending machine • Five silk - screening machines Aluminum Plant Window Façade & Assembly • Capaci
Slide 9: State-of-the-Art Assets, Talented Workforce
9 Manufactures various glass + aluminum products Products are customized into finished goods Tecnoglass purchases prime raw materials Quick, on - time delivery to global customers State - of - the - Art Assets, Talented Workforce
Slide 10: Barranquilla: Strategic Location
10 Barranquilla: Strategic Location • Tecnoglass’s operations are located near three major ports in Colombia: Barranquilla , Cartagena , and Santa Marta • Location favors: - Exports to the Americas, the Caribbean, and the Pacific - Imports of raw materials • 4 - day transportation to Southeast U.S.
Slide 11: Strong Revenue, Net Income and Adjusted EBITDA Growth Expected to Continue in 2014
Strong Revenue, Net Income and Adjusted EBITDA Growth Expected to Continue in 2014 11 $22 $39 $46 2012 2013 2014E Consolidated Adj. EBITDA (USD mm) Tecnoglass projects 2014 revenue of $205.7 million, net income of $16.8 million and Adjusted EBITDA of $46.0 million, reflecting strong forecasted growt
Slide 12: Appendix Slides
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Slide 13: Tecnoglass: The Power of Quality
13 Sales and Marketing • No customer accounts for greater than 10% of revenues (excl. intercompany) • 80 - 85% of glass and aluminum sales to architectural market; 15 - 20% to industrial • Sell architectural products primarily through window contractors Manufacturing • Captive aluminum extrusions pr
Slide 14: High Quality, Innovative Products
14 High Quality, Innovative Products Finished Products Windows Floating facades Commercial display windows Hurricane - proof windows Automatic doors Bathroom dividers Aluminum Products Bars Plates Profiles Rods Tubes
Slide 15: High Quality, Innovative Products: Glass Products
High Quality, Innovative Products 15 Glass Products Description Laminated / Thermo - Laminated Produced by bonding two glass sheets with an intermediate film between. Safety product – fractures into small pieces if it breaks. Thermo - Acoustic Manufactured with two or more glass sheets separated by
Slide 16: Market Opportunity
Market Opportunity U.S. Market Rebounding, Especially Southeast / Florida ...aided by niche Southeastern U.S. / Florida impact - resistant window and door market 0 50 100 150 200 250 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E Florida Total Housing Starts (000s) (2) Florida Impact Res
Slide 17: Improving U.S. Market
Improving U.S. Market U.S. demand for windows is expected to grow significantly over the next several years... 66.7 59.1 48.4 38.9 41.6 37.9 40.5 45.8 54.2 58.9 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E U.S. Window Demand by Shipment
Slide 18: Global Construction Market
• Global construction industry expected to grow from $7.2 trillion currently to over $10 trillion by 2020 (13% of global GDP to 15%) (1) • Latin America: $550 billion – Growing annually at 6% with good long - term prospects (2) • U.S.: $915 billion (3) – $340 billion residential ( 3) – $300 billion
Slide 19: Colombia Economic Outlook
Colombia Economic Outlook • The U.S. is Colombia's leading trade partner (1) , and the two countries entered into the U.S. - Colombia Trade Promotion Agreement , a free trade agreement, in May 2012. • Colombia GDP grew 4.3% in 2013 and forecasted to grow 4.7% in 2014 (2) • Fixed investment grew 5.8%
Slide 20: Growth Strategy
Growth Strategy • Utilize increased bonding capacity to participate in larger projects • Increase market share in U.S. and South America • Penetrate European and Asian markets, leveraging labor and transportation advantages • Establish and maintain alliances • Continued investments in product innova
Slide 21: Strong & Experienced Team
Strong & Experienced Team 21 Name Position Age Biography Notes José M. Daes Chief Executive Officer & Director 53 • Founder and CEO of C.I. Energia Solar E.S since 1990 • Over 30 years experience starting and operating various businesses in Colombia and the U.S Christian T. Daes Chief Operating Offi
Slide 22: Strong & Experienced Team
Strong & Experienced Team 22 Name Position Age Biography Notes Omar Dominguez National Sales Manager, SA Tecnoglass 61 • 32 years of industry experience, 19 with Tecnoglass Jean Paolo Chemello Technical Manager, C.I. Energia Solar S.A 76 • 41 years of industry experience • 23 years with Tecnoglass K
Slide 23: Board of Directors
Board of Directors 23 Name Position Age Biography Notes A. Lorne Weil Non - Executive Chairman of the Board 66 • Chairman of the Board of Scientific Games Corporation (Oct. 1991 – Nov. 2013); CEO for all but ~ 24 months of that time • During his tenure, Scientific Games grew from under $50 million i
Slide 24: Financial Highlights: Quarterly
Financial Highlights 24 Quarterly Financial Highlights (in MMs, except per share data) Q1 2014 Q1 2013 Total Revenues $ 47.8 $ 39.6 Net Income $ 4.2 (1) $ 2.5 Net Income per Diluted Share $ 0.17 (1) $ 0.12 Diluted Average Shares Outstanding 24.2 20.6 Working Capital $ 53.0 $ 52.1 Adjusted EBITDA $ 1
Slide 25: Financial Highlights: Annual and 2014 Forecast
Financial Highlights 25 Annual Financial Highlights and 2014 Forecast (in MMs, except share and per share data) 2014F 2013 2012 Total Revenues $ 205.7 $ 183.2 $ 130.3 Net Income $ 16.8 (1) $ 14.7 (2) $ 5.9 Net Income per Diluted Share $ 0.70 (1) $ 0.71 (2) $ 0.29 Diluted Average Shares Outstanding 2
Slide 26: Adjusted EBITDA Reconciliation
26 Adjusted EBITDA Reconciliation ($ in 000s) Year Adjusted EBITDA Depreciation Adj. EBIT Warrants (Gain) / Loss Interest Expense Tax Provision Net Income (Loss) Net Income w/o Warrants 2012 22,296 7,668 14,628 - 5,513 3,223 5,892 5,892 2013 38,506 7,238 31,268 (7,626) 7,886 8,696 22,312 14,686 2014
Slide 27: Contacts
27 Contacts Devin Sullivan Senior Vice President (212) 836 - 9608 dsullivan@equityny.com José M. Daes Chief Executive Officer jdaes@energiasolarsa.com Christian Daes Chief Operating Officer chris@tecnoglass.com A . Lorne Weil Non - Executive Chairman lorne.weil@tecnoglass.com