Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Investor Presentation (November 2014)
28 slides from Tecnoglass's investor presentation, Nov 21, 2014
Slide 1: A Leading Manufacturer of Architectural Glass and Windows
November 2014 A Leading Manufacturer of Architectural Glass and Windows Serving the Global Residential and Commercial Construction Industries (Nasdaq: TGLS; OTCBB: TGLSW)
Slide 2: Safe Harbor
2 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
Slide 3: Investment Highlights
3 Investment Highlights • #1 architectural glass transformation company in Latin America • 800+ customers in North, Central and South America • United States accounted for 49% of total 9 Mo. 2014 sales • Significant growth in revenue and Adjusted EBITDA, with record forecasts for 2014 and 2015 • Inv
Slide 4: Year History of Quality, Innovation, and Service
4 30 - year History of Quality, Innovation, and Service • 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 U.S. market in 2013. • Foc
Slide 5: Global Customer Base: Hi-Spec Products for Premier Properties
5 Global Customer Base : Hi - Spec Products for Premier Properties South Dade Miami Cultural Arts Center (Miami, FL) 50 UN Plaza (New York City) Lincoln Center (Miami, FL) 4 Waterway Square (The Woodlands, TX) Fordham University (New York City) The Edge (West Palm Beach, FL)
Slide 6: Global Customer Base: Hi-Spec Products for Premier Properties
6 Global Customer Base : Hi - Spec Products for Premier Properties Forum II (Costa Rica) Trump Tower (Panama) OPM (Argentina) Hotel Marriott (Aruba) Aeropuerto El Dorado (Bogota) Hotel La Concha (Puerto Rico)
Slide 7: 2.3 M Square Foot, State-of-the-Art Manufacturing Facility
7 2.3 M Square Foot, State - of - the Art Manufacturing Facility Glass & Window Production • Five 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 - screen
Slide 8: State-of-the-Art Assets, Talented Workforce
8 State - of - the - Art Assets, Talented Workforce Manufactures various glass + aluminum products Products are customized into finished goods Tecnoglass purchases prime raw materials Quick, on - time delivery to global customers
Slide 9: $50 M Capacity Expansion
9 $50 M Capacity Expansion • Target ~ 50% increase in manufacturing capacity • Responding to improving global outlook (2015 - 2016) for architectural glass and aluminum • Fully - financed initiatives include: • New laminating lines • High - volume insulating equipment • Aluminum extrusion press (add
Slide 10: Strong Growth Profile: Rising Revenues, Income, Adjusted EBITDA
10 Strong Growth Profile: Rising Revenues, Income, Adjusted EBITDA (1) Excludes gains / losses related to change in fair value of warrant liability $130 $183 $206 $240 $- $50 $100 $150 $200 $250 $300 2012 2013 2014E 2015E Revenues $6 $15 $16.9 $20.3 $- $5 $10 $15 $20 $25 2012 2013 2014E 2015E Consol
Slide 11: Revenue Breakdown
11 Revenue Breakdown $ 101.8 $ 66.7 $10.2 $4.6 Other Panama U.S. Colombia Expanding U.S. sales driven by : • Rising demand in South Florida. • Penetrating newer markets, including Baltimore - Washington, California, New York, New Jersey and Texas. • Increased bonding capacity. • Quality, service, ma
Slide 12: Rising Backlog
12 Rising Backlog ($ in MMs; backlog at quarter end) $120 $140 $132 $220 $0 $50 $100 $150 $200 $250 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Up $100 M Over the Last Four Quarters
Slide 13: Barranquilla: Strategic Location Supports Geographic Diversity
13 Barranquilla: Strategic Location Supports Geographic Diversity • 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 tra
Slide 14: Growth Strategy
14 Growth Strategy • Utilize increased bonding capacity to participate in larger projects. • Increase market share in U.S. and South America. • Penetrate Europe and Asia, leveraging labor and transportation advantages. • Establish and maintain alliances. • Continued investments in product innovation
Slide 15: Appendix Slides
15 APPENDIX SLIDES
Slide 16: Tecnoglass: The Power of Quality
16 Tecnoglass: The Power of Quality 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
Slide 17: High Quality, Innovative Products
17 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 18: High Quality, Innovative Products: Glass Products
18 High Quality, Innovative Products 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 19: Market Opportunity: U.S. Market Rebounding
19 Market Opportunity U.S . Market Rebounding, Especially Southeast / Florida 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 Resistant Window & Door Market (1) (1) State of Florida.; Florida Building Commission ;
Slide 20: U.S. demand for windows is expected to grow significantly
20 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 Shipments (mm units) (1) (1
Slide 21: Global Outlook
21 Global Outlook • 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
Slide 22: Colombia Economic Outlook
22 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 is forecast to grow 4.9% in 2014 (2) • Growth in Colombia is
Slide 23: Strong & Experienced Team
23 Strong & Experienced Team Name Position Biography Notes José M. Daes Chief Executive Officer & Director • 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 Officer & D
Slide 24: Strong & Experienced Team
24 Strong & Experienced Team Name Position Biography Notes Omar Dominguez National Sales Manager, SA Tecnoglass • 32 years of industry experience, 19 with Tecnoglass Jean Paolo Chemello Technical Manager, C.I. Energia Solar S.A • 41 years of industry experience • 23 years with Tecnoglass Karla Rodri
Slide 25: Board of Directors
25 Board of Directors 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 in
Slide 26: Financial Highlights
26 Financial Highlights Quarterly Financial Highlights (in MMs, except per share data) Q3 2014 Q3 2013 9 Mo. 2014 9 Mo. 2013 Total Revenues $ 53.5 $ 45.5 $ 153.2 $ 129.5.0 Net Income $ 11.3 (1) $ 3.2 $ 7.0 (2) $ 8.9 Net Income per Diluted Share $ 0.40 (1) $ 0.16 $ 0.25 (2) $ 0.43 Diluted Average Sha
Slide 27: Adjusted EBITDA Reconciliation
27 Adjusted EBITDA Reconciliation ($ in 000s) Year Adjusted EBITDA Depreciation Adjusted EBIT Warrants Liability Interest Expense Tax Provision Net Income Net Income w/o Warrants Q3 2013 8,616 1,982 6,634 - 1,888 1,552 3,194 3,194 Q3 2014 11,458 2,805 8,653 (6,756) 2,380 1,770 11,259 4,503 9 Mo. 201
Slide 28: Contacts
28 Contacts Devin Sullivan Senior Vice President (212) 836 - 9608 dsullivan@equityny.com Kalle Ahl Senior Associate (212) 836 - 9614 kahl@equityny.com José M. Daes Chief Executive Officer jdaes@energiasolarsa.com Christian Daes Chief Operating Officer chris@tecnoglass.com A . Lorne Weil Non - Execut