Slide 1: Second Quarter 2022 Earnings Conference Call
SECOND QUARTER 2022 EARNINGS CONFERENCE CALL August 4, 2022 – TECNOGLASS INC. (NASDAQ: TGLS)
Slide 2: Safe Harbor
Safe Harbor 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 ba
Slide 3: Summary & Highlights
165 Main Street Massachusetts, United States SUMMARY & HIGHLIGHTS
Slide 4: Q2 2022 Key Takeaways
Q2 2022 Key Takeaways ✓ Structural advantages drove record results across revenues, gross profit, Sales By Geography operating income, net income, and Adj. EBITDA 5% ✓ Q2’22 organic revenue growth of 39% to a record $169.1 mm led by continued growth in U.S. single-family residential activity and com
Slide 5: U.S. Growth Driving Resilient Backlog
U.S. Growth Driving Resilient Backlog Backlog Overview Backlog as of Q2’22 by End Market ✓ Our track record of successfully delivering high profile Multi Family / projects and maintaining consistent lead times has Residential Related earned us an increasing number of opportunities Commercial across
Slide 6: Single-Family Residential Weighted Towards R&R
Single-Family Residential Weighted Towards R&R R&R Exposure Geographic Exposure Q2’22 Total SF 35% Residential Significant presence (~64% of Revenue US revenues) $75.9 mm Developing Presence (~ 31% 65% of US Revenues) Emerging Presence (~5% of US Revenues) R&R New Residential ✓ Q2’22 single-family r
Slide 7: Vertically-Integrated & Well-Situated Operations Create Structural Advantages
Vertically-Integrated & Well-Situated Operations Create Structural Advantages Suppliers JV & Long Term Sales, Raw Production Final Suppliers Supply Distribution Materials Process Product Relationships & Installation Tecnoglass integration across the architectural glass and window value chain provide
Slide 8: Financial Update
Paramount Miami Worldcenter Florida, United States FINANCIAL UPDATE 8
Slide 9: Revenue Bridge Q2 2022 vs Q2 2021
Revenue Bridge Q2 2022 vs Q2 2021 Q2 2022 Revenue Bridge (US$M) ✓Organic revenue growth of 38.9% to $169.1 mm in Q2’22 driven by strong performance in the U.S., with outstanding growth in our strongest geographical areas and ramping commercial activity ✓U.S. revenues of $161.5 mm grew 47.0% compared
Slide 10: Adjusted EBITDA Bridge Q2 2022 vs Q2 2021
(1) Adjusted EBITDA Bridge Q2 2022 vs Q2 2021 Adjusted EBITDA margin Q2 2022 Adjusted EBITDA Bridge (US$M) 29.5% 32.3% ✓Record gross margin of 43.5%, up 310 bps, attributable to higher sales, greater operating efficiencies and a higher mix of revenue from manufactured products vs installation ✓SG&A
Slide 11: Continued Balance Sheet & Leverage Profile Improvement
Continued Balance Sheet & Leverage Profile Improvement Improved Leverage ✓Solid cash conversion of adj. EBITDA(1) driving $35.9 $ 300 ($ in Millions) 3.5x mm of cash flow from operations in Q2’22 $ 259.8 $ 242.3 3.0x $ 250 $ 224.3 $ 224.5 $ 199.1 2.5x ✓Continued deleveraging, with lowest net debt /
Slide 12: Structurally Improved Margins & Cash Flow
Structurally Improved Margins & Cash Flow Improved Gross Margin Operating Cash Flow Bridge (2018 – LTM Q2’22) 42.8% 45.0% 40.8% 40.0% 37.0% 35.0% 31.5% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2019 2020 2021 LTM Q2'22 ✓ Gross margin increased to 42.8% during LTM June’22, up from 31.5% ✓ Tecnoglass ha
Slide 13: Outlook Update
Residential Project, Florida, United States OUTLOOK UPDATE 13
Slide 14: Improved 2022 Double-Digit Growth Outlook
Improved 2022 Double-Digit Growth Outlook ▪ Expected revenue growth led by continued expansion into single-family residential, coupled with stronger Revenue momentum from multi-family and commercial backlog $620-$640 MM ▪ Adjusted EBITDA outlook incorporates expectation for +25-29% YoY full year gro
Slide 15: Appendix
APPENDIX Hub50House Massachusetts, United States 15
Slide 16: ESG Strategy
ESG Strategy 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 Programs Program +15,000
Slide 17: ESG Strategy
ESG Strategy 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 Responsible Growth Encourag
Slide 18: 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 Six months ended Jun 30, Jun 30, 2022 2021 2022 2021 Net (loss) income 33,413 19,642 54,366 27,924 Less: Income (loss) attributable to non-controllin
Slide 19: Non-GAAP Reconciliation
(1) Non-GAAP Reconciliation Net Debt, Leverage and Total Investment Reconciliations Figures in U.S. $k As of June 30, 2021 2022 Short Term Debt and Current Portion of Long Term Debt 13,376 591 Long Term Debt 218,949 184,268 Corporate Bond - - Gross Debt 232,325 184,859 Cash at the end of the period