TGLS
Tecnoglass (NYSE: TGLS) Investor Presentation
November 2024
www.tecnoglass.com
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 it holds a direct or indirect interest (together "Tecnoglass" or the "Company") that is confidential and proprietary to the Company. We have prepared this document solely for informational purposes. You should not definitively rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction or otherwise. By participating in this Presentation, each participant agrees to the terms hereof, as follows: Each participant will and will cause its directors, officers, employees, affiliates, agents, advisors and representatives to use the information contained in this Presentation only to evaluate the proposed transaction in respect of the Company and may not communicate, reproduce, distribute or disclose it to any other person, or refer to it publicly, in whole or in part at any time except with our prior written consent. If you are not the intended recipient of this document, please delete and destroy all copies immediately.
Neither the Company nor any of its representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this Presentation, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. Only those representations and warranties that are made in a definitive written agreement relating to a transaction in respect of the Company, when and if executed, and subject to any limitations and restrictions as may be specified in such definitive agreement, shall have any legal effect.
This Presentation does not purport to contain all of the information that may be required to evaluate a potential transaction in respect of the Company, and any person participating in this Presentation should conduct its own independent investigation and analysis.
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 Tecnoglass' current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic. business. competitive and/or regulatory factors. and other risks and uncertainties affecting the operation of Tecnoglass' business. These risks. uncertainties and contingencies are indicated from time to time in Tecnoglass' filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further. investors should keep in mind that Tecnoglass' financial results in any particular period may not be indicative of future results. Tecnoglass is under no obligation to. and expressly disclaims any obligation to. update or alter its forward-looking statements. whether as a result of new information. future events. changes in assumptions or otherwise.
Financial Presentation
Certain of the financial information contained herein is unaudited and does not conform to SEC Regulation S-X. Furthermore. it includes EBITDA (earnings before interest. taxes depreciation and amortization) which is a non-GAAP financial measure as defined by Regulation G promulgated by the SEC under the Securities Act of 1933. as amended. Accordingly, such information may be materially different when presented in Tecnoglass' filings with the Securities and Exchange Commission. Tecnoglass believes that the presentation of this non-GAAP financial measure provides information that is useful to investors as it indicates more clearly the ability of Tecnoglass to meet capital expenditures and working capital requirements and otherwise meet its obligations as they become due. EBITDA was derived by taking earnings before interest. taxes. depreciation and amortization as adjusted for certain one-time non-recurring items and exclusions.
No offer or solicitation
This announcement is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction. nor shall there be any sale. issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933. as amended.
Investor Presentation | November 2024
2
Tecnoglass at a Glance
Key Stats
Miami, FL
~9,000
$3.2 B
Global Headquarter
Employees
Market Cap
at Q3'24
$845 MM
~17%
$1.04 B
LTM Q3'24 Revenue
2012 - LTM Q3'24
Backlog
Revenue CAGR
$259 MM
~31%
~24%
LTM Q3'24 Adj.
LTM Q3'24
2012 - LTM Q3'24
EBITDA(1)
Adjusted
Adjusted EBITDA(1)
EBITDA(1) Margin
CAGR
Leading Position in U.S. Market
U.S. End Market Mix
U.S. LatAm/Other
SF Residential
Multi-Family/ Commercial
5%
Total
Total U.S.
42%
Revenues
58%
Revenues
LTM Q3'24
LTM Q3'24
95%
Attractive Portfolio of Well-Positioned Brands
Tecnoglass is a leading architectural glass manufacturer with vertically integrated operations under one roof
Notes:
1. Adjusted EBITDA excludes non-recurring and non-cash expenses mainly associated with non-cash foreign exchange transaction gains or losses, non-recurring professional fees and other non-core items, and include the proportional contribution of the Company's joint venture with Saint-Gobain.
Investor Presentation | November 2024
3
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 architectural windows and glass for residential and multi-family / commercial applications with leadership position in the U.S. market
40-year track record of product innovation and high-quality standards
Broad portfolio serving a well-diversified base of nearly 1,000 customers
Vertically integrated, state-of‐the‐art manufacturing complex with significant recent capital investments
Strategic, cost-efficient business model provides a significant structural competitive advantage and high barriers to entry
Highly skilled, dedicated employee base led by an experienced management team
Double-digit organic growth CAGR over past decade with industry-leading margins
Over 85% of revenues considered green revenues, contributing to reducing global emissions and mitigating climate change effects
TGLS Successful Geographic Expansion in the U.S.
Operational Showrooms
Expected 2025 Openings
Significant presence
Developing Presence
Emerging Presence
Investor Presentation | November 2024
4
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:
Curtain Walls and Other Architectural Systems such as windows, doors, window walls, storefronts, railings, louvers and new vinyl product line
Aluminum products for architectural glass settings: bars, plates, profiles, rods, and tubes
Single-Family Residential Specialty Brands:
High performance energy-efficient Low-E and impact-resistant aluminum and vinyl Windows and Doors meeting demanding security, strength, and durability standards
Glass Technology
Features:
Low-emissivity
Tempered
glass (Low-E)
Glass
Blast Resistant
Laminated
Insulated Glass
Hurricane Resistant
Glass
Thermally Broken
Digital Print
Silkscreen glass
Glass
The Prestige residential line offers meticulously crafted luxury windows and doors with superior quality and style
E-Line offers homeowners comfort, high design, and superior thermal performance
Multimax product line specifically targeting large scale homebuilders, legacy and new dealers in Florida
Investor Presentation | November 2024
5
Evolution of Revenue & Adjusted EBITDA
Key Milestones
900.0
800.0
700.0
Revenue & Adj. EBITDA
400.0
Delivering Double-Digit Organic CAGR
833.3
350.0
716.6
2013
2015
2017
2019
Became public
Investment in top-class manufacturing facility to produce high-spec insulated glass
Entered into the single-family residential market in the U.S., now accounting for 43% of total U.S. sales
Entered into JV agreement with Saint Gobain for secure float glass supply
600.0
500.0
Revenue CAGR '13 - '23: 16.3%
Adj. EBITDA CAGR '13 - '23: 23.4%
300.0
304.1
265.7
250.0
496.8
2020
Investments in automation began, $25 mm of Capex invested during 2019
Automation investments became operational
COVID-19 Pandemic
400.0
300.0
200.0
100.0
0.0
430.9200.0
371.0
376.6
314.5
150.3
150.0
305.0
242.2
197.5
97.5
183.3
100.0
80.8
92.4
72.0
57.162.0
50.0
37.3 37.2
0.0
2021
2022
2023
Introduction of Multimax products oriented towards production homebuilders
Sales reps in expanding geographies building relationships with targeted general contractors, developers, architects & glazers
Opening of new showrooms in expanding geographies (NYC, Charleston, Houston now operational)
Revenue increase of 44% YoY at the higher end of guidance; gross margin up ~790 bps
Installed capacity reaches approx. $1.2 B
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Revenues
Adjusted EBITDA
Entered into vinyl windows market, more than doubling addressable market Relocated Global Headquarters from Colombia to Miami, Florida Completed nearly half of $50 mm Buyback Program
2024 Record backlog of $1.04 B, up ~25% YoY
Investor Presentation | November 2024
6
Seven Oaks East|
Austin, Texas
Investor Presentation | November 2024
Why Invest in Tecnoglass
Key Investment Highlights
5 | Committed to ESG Principles
7
Impressive Track Record of Organic Revenue Growth in the U.S. Multi-Family / Commercial and Residential Markets
TGLS Revenue by Country
Total Sales
• U.S. revenues continue to represent the majority of sales, contributing ~96% and
94% of total revenues and total backlog as of Q3'24
900
845
• The Company has ~1,000 customers, mostly located in North America, without any
one customer exceeding 10% of revenues
800
717
700
600
497
500
431
377
314
371
400
305
300
197
242
183
200
100
0
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
LTM
Q3'24
Other
Colombia
United States
Vast Market Opportunity1
Single-Family Residential Contributing to Strong Revenues
845
850.0
750.0
717
650.0
498
489
550.0
497
410
431
450.0
371
377
350.0
314
319
250.0
365
305
334
356
335
150.0
307
306
177
50.0
66
71
16%
$40 B
20% 2022
64%
US Market Size: $40bn
TGLS U.S. Share : Top-5
Windows
Architectural
Glass
Windows
Installation
7
37
(50.0)
2017
2018
2019
2020
2021
2022
2023
LTM Q3'24
SF Residential
Multi-Family/Commercial
•
Continued growth into the single-family residential market through showroom
openings across expanding geographic footprint (NYC and Charleston, SC and
Houston, TX now operational), with two more showrooms planned by the end of
2024, along with the introduction of new and innovative products
•
Long term strategy continues to be supported by an expanding dealer base in
underpenetrated geographies and geographic expansion within the Southeast
and Southcentral U.S.
Notes:
1. External sources include IBISWorld, Fenestration and Glazing Industry Alliance (FGIA), Insight Partners and Arizton Advisory and Intelligence
Investor Presentation | November 2024
8
Effectively Positioned to Further Penetrate the Attractive U.S. Market With Demonstrated History of Converting Backlog to Revenue
Backlog by End Market
3% 3%
Multifamily /
Residential Related
13%
Commercial
38%
62%
$1.04 bn
Backlog primarily
Q3'24
19%
62%
consists of
residential related
projects which were
less impacted by
COVID-19
Backlog to Revenue Conversion
106%
108%
104%
98%
100%
106%
114%
110%
111%
107%
105%
102%
100%
95%
92%
90%
87%
88%
88%
89%
93%
86%
75%
millions
69%
70%
73%
72%
71%
66%
60%
70%
73%
69%
64%
63%
64%
64%
61%
63%
58%
56%
59%
60%
58%
55%
57%
1,021
1,041
$
836
870
916
776
797
697
725
651
668
552
559
576
585
501
497
506
515
518
525
532
542
546
550
536
545
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
Q1'21
Q2'21
Q3'21
Q4'21
Q1'22
Q2'22
Q3'22
Q4'22
Q1'23
Q2'23
Q3'23
Q4'23
Q1'24
Q2'24
Q3'24
Total Backlog
Multi-Family / Commercial Revenue Next 12M as % of Backlog
Multi-Family / Commercial Revenue Next 18M as % of Backlog
Note: Excludes Single-family Residential
Historically, ~65% of multi- family and commercial revenue in backlog rolls off within 12 months and ~99% of the backlog rolls off within 18 months. This dynamic provides strong backing to support double digit revenue growth in 2024
Investor Presentation | November 2024
9
Recent Strategic Entry into Vinyl Windows More than Doubles Addressable Market
Significant Addressable Market Potential1
Operational Update
3%
2%
20%
Vinyl
~$26 B
Wood
Aluminum
U.S. Architectural
Windows Market
Fiberglass
12%
63%
Other
Current vinyl window operating capacity
represents an
estimated $300 million in annual revenues over time
• Strong quoting activity YTD, leveraging the network of approximately 60 legacy dealers in central and northern Florida which already carried both aluminum & vinyl products, providing a faster ramp-up opportunity vs. the legacy aluminum line with new distributors signed in northern Florida in 2024
Notes:
10
1.
External sources include IBISWorld, Fenestration and Glazing Industry Alliance (FGIA), Insight Partners and Arizton Advisory and Intelligence
Disclaimer
Tecnoglass Inc. published this content on November 11, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 11, 2024 at 03:42:02.979.