Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Investor Presentation (February 2014)
24 slides from Tecnoglass's investor presentation, Feb 7, 2014
Slide 1: A Leading Manufacturer of Architectural Glass & Windows
A Leading Manufacturer of Architectural Glass & Windows February 2014 Nasdaq: TGLS; TGLSW
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: Investment Highlights
Investment Highlights • #1 glass transformation company in Colombia, with ~40% market share • 300+ customers in North, Central and South America – ~ 30% of 2012 sales to the U.S. • Strategic location in Barranquilla, Colombia provides convenient, cost - effective access to the Americas, the Caribbea
Slide 4: Global Customer Base: Hi-Spec Products for Premier Properties
4 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 5: A Respected Industry Leader
A Respected Industry Leader 30 - year History of Quality, Innovation, and Service 5 • 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 the
Slide 6: Tecnoglass: The Power of Quality
6 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 pro
Slide 7: Glass and Window Production
7 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 8: State-of-the-Art Assets, Talented Workforce
8 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 9: Barranquilla: Strategic Location
9 Barranquilla: Strategic Location • Tecnoglass’s operations are located near three major ports in Colombia: Barranquilla , Cartagena , and Santa Maria • The Port of Barranquilla is in the process of being expanded into a “super - port,” capable of supporting 65 - foot deep vessels • Location favors
Slide 10: Strong Revenue and Adjusted EBITDA Growth Expected to Continue in 2014
Strong Revenue and Adjusted EBITDA Growth Expected to Continue in 2014 10 $159 $219 $261 2012A 2013E 2014E Consolidated Revenue (USD mm) $22 $34 $43 2012A 2013E 2014E Consolidated Adj. EBITDA (USD mm) Tecnoglass projects 2014 revenue of $260.9 million and Adjusted EBITDA of $42.7 million, reflecting
Slide 11: High Quality, Innovative Products
11 High Quality, Innovative Products Finished Products Windows Floating facades Commercial display windows Hurricane - proof windows Automatic doors Commercial display windows Bathroom dividers Aluminum Products Bars Plates Profiles Rods Tubes
Slide 12: High Quality, Innovative Products: Glass Products
High Quality, Innovative Products 12 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 13: Market Opportunity: U.S. Market Rebounding
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 14: 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 15: 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 16: 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 is forecast at 4.1% for 2013 and 4.7% in 2014 (2) • Fixed investment will grow 6.3% in
Slide 17: 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 18: Strong & Experienced Team
Strong & Experienced Team 18 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 19: Strong & Experienced Team
Strong & Experienced Team 19 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 20: Board of Directors
Board of Directors 20 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 $50 million i
Slide 21: Contacts
21 Contacts Devin Sullivan Senior Vice President (212) 836 - 9608 dsullivan@equityny.co m A. Lorne Weil Non - Executive Chairman lorne.weil@tecnoglass.com Claudia Castano Claudia.castano@tecnoglass.com (305) 395 - 7653 ~
Slide 22: Appendix Slides
22 APPENDIX SLIDES
Slide 23: SPAC Transaction Summary
• Tecnoglass S.A. and C.I. Energia Solar E.S Windows (collectively, Tecnoglass) went public via transaction with Andina Acquisition Corporation, which closed on December 20, 2013 • Current owners of Tecnoglass retained majority ownership and operational control • Proceeds devoted exclusively to fund
Slide 24: EBITDA Reconciliation
24 EBITDA Reconciliation ($ in 000s) Year Adjusted EBITDA Depreciation Adj. EBIT Banking Expense Interest Expense Tax Provision Net Income 2012 $22.3 $7.6 $29.9 $0.5 $3.9 $3.2 $6.8 2013(E) $33.5 $8.4 $25.1 $0.8 $6.5 $5.8 $11.8 2014(E) $ 42.6 $ 8.9 $ 33.8 $ 1.0 $ 7.6 $ 8.3 $16.9 The exchange rate use