Tecnoglass Inc. · NYSE:TGLS
Tecnoglass — Investor Presentation (May 2024)
26 slides from Tecnoglass's investor presentation, May 2024
Slide 1: Tecnoglass Investor Presentation May 2024
Tecnoglass (NYSE: TGLS) Investor Presentation May 2024 www.tecnoglass.com
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 Key Stats Leading Position in U.S. Market U.S. End Market Mix U.S. LatAm/Other SF Residential Multi-Family/ Commercial Miami, FL ~9,000 $2.7 B 5% Global Headquarter Employees Market Cap At Q1’24 Total Total U.S. 39% Revenues Revenues LTM Q1’24 61% LTM Q1’24 95% $823 MM ~18% $9
Slide 4: Global Leader in Architectural Windows and Glass
Global Leader in Architectural Windows and Glass Supplying Architectural Glass Products to Landmark Properties in the U.S. and Latin America Leading global manufacturer, distributor and installer of high-spec TGLS Successful Geographic Expansion in the U.S. architectural windows and glass for reside
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 in Each of Our End Markets Multi-Family / Commercial Markets: Glass Technology Curtain Walls and
Slide 6: Evolution of Revenue & Adjusted EBITDA
Evolution of Revenue & Adjusted EBITDA Key Milestones 2013 Became public 900.0 Revenue & Adj. EBITDA 400.0 2015 Investment in top-class manufacturing facility to produce high-spec Delivering Double-Digit Organic CAGR insulated glass 833.3 800.0 350.0 2017 Entered into the single-family residential m
Slide 7: Why Invest in Tecnoglass
Why Invest in Tecnoglass Key Investment Highlights Seven Oaks East | Austin, Texas 1 | Strong Revenue Generating Track Record and Positive Outlook ➢ Impressive Track Record of Organic Revenue Growth in the U.S. Commercial and Residential Markets ➢ Effectively Positioned to Further Penetrate the Attr
Slide 8: Impressive Track Record of Organic Revenue Growth in the U.S.
Impressive Track Record of Organic Revenue Growth in the U.S. Multi-Family / Commercial and Residential Markets • U.S. revenues continue to represent the majority of sales, contributing ~95% and TGLS Revenue by Country 86% of total revenues and total backlog as of Q1’24 Total Sales 900 823 • The Com
Slide 9: Penetrating the U.S. Market and Converting Backlog to Revenue
Effectively Positioned to Further Penetrate the Attractive U.S. Market With Demonstrated History of Converting Backlog to Revenue • Solid single-family residential growth trajectory not fully captured in backlog given shorter term “spot” duration of Backlog by End Market projects 3% • Record Backlog
Slide 10: Recent Strategic Entry into Vinyl Windows More than Doubles Addressable Market
Recent Strategic Entry into Vinyl Windows More than Doubles Addressable Market Significant Addressable Market Potential1 Operational Update • Five fully operational vinyl window production lines capable 3% 2% of serving both the US and LatAm markets. Initial shipments began in December 2023 Vinyl Cu
Slide 11: Vertically-Integrated, Well-Situated, Cutting-Edge Manufacturing Operations
Vertically-Integrated, Well-Situated, Cutting-Edge Manufacturing Operations Drive Industry Leading Margins Production Sales, Distribution & Suppliers Raw Material Final Product Process Installation Fully Vertically Integrated • Tecnoglass’ integration across the architectural glass and window value
Slide 12: Operational Efficiencies Resulting from Structural Competitive Advantages
Operational Efficiencies Resulting from Structural Competitive Advantages Competitive Structural Operational Benefits Advantage Lean Cost Below Average High Quality Favorable Favorable ESG Structure Lead Times Product Shipping Impact Fully • Retain profit at every step • Tight control over a short •
Slide 13: Best in Class Profitability and Cash Flow Generation
Best in Class Profitability and Cash Flow Generation Structurally Improved Gross Margin Industry-Leading Adjusted EBITDA Margin 60.0% 40.0% 37.1% 36.5% 48.8% 50.0% 46.9% 43.5% 35.0% 32.7% 40.8% 30.2% 40.0% 37.0% 30.0% 25.9% 31.5% 25.0% 21.4% 30.0% 20.0% 20.0% 15.0% 10.0% 10.0% 5.0% 0.0% 0.0% 2019 20
Slide 14: Best in Class Profitability and Cash Flow Generation
Best in Class Profitability and Cash Flow Generation Operating Cash Flow Bridge (2018 – 2023) Improved Free Cash Flow ($ in Millions) 160.0 141.9 138.8 140.0 129.2 117.3 US$ millions 120.0 71.3 100.0 78.0 51.5 72.3 80.0 71.7 60.0 18.3 40.0 26.7 65.7 70.6 60.9 53.4 56.9 20.0 25.0 0.0 1.8 FY'19 FY'20
Slide 15: Disciplined Capital Allocation Supporting Leading Financial Returns
Disciplined Capital Allocation Supporting Leading Financial Returns Strong Balance Sheet and Leverage Profile To Execute Growth Liquidity of $306 million, including cash of $136 million and $170 million available under committed revolver and other working capital lines 1 High Return Strategic Capex
Slide 16: Disciplined Capital Allocation Supporting Leading Financial Returns (Cont'd)
Disciplined Capital Allocation Supporting Leading Financial Returns (Cont’d) Strong Balance Sheet and Leverage Profile To Execute Growth 14 Lecount Place l New Rochelle, New York 2 Dividend Payments • ~$53M of aggregate dividends paid since 2016 • In February 2024 the Board approved a quarterly cash
Slide 17: Committed to ESG Principles
Committed to ESG Principles Leading Eco-Efficiency and Innovation Green Revenues Tecnoglass aims to become a certified carbon neutral company in 2024. Already a carbon neutral company as of 2021 and expected to be carbon neutral company as of 2022 in the first semester 2024 Proactively invested in c
Slide 18: Committed to ESG Principles
Committed to ESG Principles Enhancing our Environment | Ventana de Campeones Barranquilla, Colombia As of March 2024, +85% of our ~9,000 employees have participated and benefited in social well- being programs offered by the Company Employee salaries are 15% above minimum wage in Colombia on average
Slide 19: Committed to ESG Principles
Committed to ESG Principles Promoting Continuous, Ethical and Responsible Growth Ethical Governance and Board Composition Highly Experienced and Dedicated Management Team Board composition: 5 independent & 2 executive Diverse industry expertise, including broad experience in the construction industr
Slide 20: Q1 2024 Key Takeaways
Q1 2024 Key Takeaways • Revenues of $192.6 mm, 96% from the U.S., with single-family residential revenues of Key Takeaways $73.2 mm • Multi-family/commercial revenues stable at $119.5 mm through consistent execution of growing backlog, once again at a record level $192.6 MM -4.9% $184.0 MM 96.0% Tot
Slide 21: 2024 Outlook
2024 Outlook Full Year 2024 Scenarios Assumptions • 3 or more interest rate cuts Upside Case • COP $4,000 average • Legacy residential revenues in line with current order level • Vinyl revenues of $25 mm $910 MM $285 MM • Improved activity in short-term/small commercial projects Revenue Adj. EBITDA
Slide 22: Appendix
300 Third Avenue Waltham, Massachusetts l APPENDIX www.tecnoglass.com
Slide 23: Operational Review
Operational Review Vertically Integrated Operations Provide Low-Cost Base and Operational Flexibility Sales, Distribution & Suppliers Raw Material Production Process Final Product Installation 3rd Party Suppliers Sheet Glass Architectural of Glass Glass Transformation Glass Distribution End 3rd Part
Slide 24: Profit & Loss 2024 vs 2023
Profit & Loss 2024 vs 20231 Three months ended March 31, 2024 vs 2023 2024 % Sales 2023 % Sales $∆ %∆ Operating revenues 192,627 100.0% 202,639 100.0% (10,012) -4.9% Raw materials 67,024 34.8% 53,066 26.2% 13,958 26.3% Direct labor 7,389 3.8% 4,516 2.2% 2,873 63.6% Indirect costs 43,554 22.6% 37,302
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation1 Adjusted EBITDA and adjusted net (loss) income attributable to parent reconciliation Figures in U.S. $k Three months ended Twelve months ended Mar 31, Mar 31, 2024 2023 2024 2023 Net (loss) income 29,730 48,372 164,868 183,831 Less: Income (loss) attributable to non-controll
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation1 Net Debt, Leverage and Total Investment Reconciliations Figures in U.S. $k As of March 31, 2023 2024 Short Term Debt and Current Portion of Long Term Debt 819 3,338 Long Term Debt 172,688 154,567 Gross Debt 169,895 157,905 Cash at the end of the period 128,538 135,881 Net De