Post on 03-Nov-2015
description
May 2015
A Leading Manufacturer of Architectural Glass and Windows
Serving the Global Residential and Commercial Construction Industries
(Nasdaq: TGLS; OTCBB: TGLSW)
Vanessa_TorresTypewritten textJose Manuel Daes Abuchaibe President at ES Windows LLC. Chief Executive Officer at Tecnoglass. Committed with Corporate Social Responsibility and Environmental Sustainability.
2Safe Harbor
FORWARD LOOKING STATEMENTS
This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation ReformAct of 1995, including statements regarding future financial performance, future growth and future acquisitions. Thesestatements are based on Tecnoglasss current expectations or beliefs and are subject to uncertainty and changes incircumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes ineconomic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation ofTecnoglass business. These risks, uncertainties and contingencies are indicated from time to time in Tecnoglass filings with theSecurities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investorsshould keep in mind that Tecnoglass financial results in any particular period may not be indicative of future results. Tecnoglassis under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as aresult 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, itincludes EBITDA (earnings before interest, taxes depreciation and amortization) which is a non-GAAP financial measure asdefined by Regulation G promulgated by the SEC under the Securities Act of 1933, as amended. Accordingly, such informationmay be materially different when presented in Tecnoglasss filings with the Securities and Exchange Commission. Tecnoglassbelieves that the presentation of this non-GAAP financial measure provides information that is useful to investors as it indicatesmore clearly the ability of Tecnoglass to meet capital expenditures and working capital requirements and otherwise meet itsobligations as they become due. EBITDA was derived by taking earnings before interest, taxes, depreciation and amortization asadjusted for certain one-time non-recurring items and exclusions.
3Investment Highlights: 30-year History of Quality, Innovation, and Service
#1 architectural glass transformation company in Latin America; second largest glass fabricator serving the U.S. in 2014 (Glass magazine)
800+ customers in North, Central and South America
Growing U.S. presence, representing ~51% of total 2014 sales
and ~61% of Q1 2015 total sales
Record 2014 revenue and Adjusted EBITDA; significant growth forecast for 2015 and 2016
Strategic, cost-effective location in Barranquilla, Colombia
Invested / committed ~$95 M to expand manufacturing capacity, reduce costs, and improve efficiencies
Organic growth and market consolidation via acquisitions
Plans to initiate regular quarterly dividend of $0.125 per share
Vanessa_TorresTypewritten textChristian Daes Abuchaibe founder of Tecnoglass
4Global 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)
5Global 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)
6Barranquilla: Manufacturing and Delivery Cost Advantages Provide Significant Structural Competitive Advantages
Tecnoglass ships its products from
Barranquilla to Miami less expensively than
its competitors ship from
Minneapolis to Miami
$34.9
$56.1$61.4
$17.2
2012 2013 2014 Q1 2015
$ in MMs
26.8%
31.1%30.2%
Gross Profit / Margin
33.0%
7State-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
8Capacity Expansion: Responding to Improving Global Outlook for Architectural Glass and Aluminum
Target ~ 50% increase in manufacturing capacity
Aluminum extrusion capacity to increase to 1,600 tons/month from 1,200 tons/month
Painted aluminum capacity +100%
Aluminum billet manufacturing capacity +100%
Laminated glass production capacity +20%
$40 M glass coating line
Places TGLS among a handful of manufacturers with this capability
Will initially use ~15% of capacity; longer term, $200 - $250 M in estimated sales at full capacity
$6 - $8 M in waste-related cost savings in the first year
Commence operations in Q3 2015
9Strong Growth Profile: Rising Revenues, Income, Adjusted EBITDA
(1) Excludes gains / losses related to change in fair value of warrant liability
$130
$183 $197
$240 $288
$-
$100
$200
$300
$400
2012 2013 2014 2015E 2016E
Revenues
$6
$15
$20.3 $22.3
$32.6
$-
$10
$20
$30
$40
2012 2013 2014 2015E 2016E
Consolidated Net Income
$22
$39 $48
$60
$80 - $85
$-
$20
$40
$60
$80
$100
2012 2013 2014 2015E 2016E
Consolidated Adjusted EBITDA (1)
(1)
22%
53%
38 - 40%
CAGR
CAGR
CAGR
($ in MMs)
Vanessa_TorresTypewritten text
The Tecnoglass ESWindows Foundation was created on July 18th, 2005 due to Tecnoglass and Energia Solar S.A.s founders Jose Manuel Daes y Chistian Daes interest in collaborating with the management of social projectsdevelopment projects.
10
Global Revenue Profile: Rising U.S. Sales
OtherPanamaU.S.Colombia
Rising demand in South Florida
Penetrating newer markets, including Baltimore-Washington, California, New York, New Jersey and Texas
Initiatives underway to reach new markets, including Europe, Far East, and Africa
Increased bonding capacity
Quality, service, manufacturing efficiencies
Strategic Acquisitions
$80.1
$101.6
$11.4$4.4
2014 Revenues $197.5 M
$12.4$15.5
$17.7$21.1 $21.9
$26.0 $26.8 $26.9$31.7
31.2%35.1%
38.9% 39.2%45.7%
50.1% 50.2%
60.8% 60.9%
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
$ in
MM
S
U.S Sales / % of Total Sales
11
Rising Backlog($ in MMs; backlog at quarter end)
$120 $140 $132
$220
$280
$320
$0
$50
$100
$150
$200
$250
$300
$350
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
12
Consolidating South Florida Market
Glasswall, LLC
o Selected assets acquired from CMC Group in January 2015
o CMC Group has developed 10M + sq. ft. of luxury properties in South Florida
o TGLS establishes U.S. base with acquisition of warehouse / manufacturing / office facility
o TGLS expected to supply windows and doors for four upcoming CMC properties
RC Aluminum Industries
o Selected assets acquired July 2014
o $70 M of South Florida backlog
o Miami-Dade NOA for 50+ products
o Industry veteran now leading South Florida sales effort
13
APPENDIX SLIDES
14
Financial Highlights
Financial Highlights
(in MMs, except per share data)
Q1 2015
Q1 2014
FY2014
FY2013
Total Revenues (1) $ 52.0 $ 47.8 $ 197.5 $ 183.3
Gross Profit $ 17.2 $ 14.6 $ 61.4 $ 55.4
Operating Income $ 8.0 $ 7.9 $ 27.2 $ 27.3
Change in Fair Value of Warrant Liability $ 5.1 $ (8.9) $ (1.7) $ 7.6
Non-operating Revenues (2) $ 3.7 $ 1.3 $ 12.2 $ 4.0
Net Income $ 9.9 $ (4.7) $ 20.3 $ 22.3
Net Income per Diluted Share $ 0.35 $ (0.19) $ 0.73 $ 1.08
Adjusted EBITDA $ 14.2 $ 11.1 $ 48.0 $ 38.5
Adjusted EBITDA Margin 27.3% 23.2% 24.3% 21.0%
(1) Revenues in 2014 /2015 reflect impact of depreciation of COP against the US Dollar
(2) Non-operating revenues primarily reflect gain in exchange rate derived from US Dollar-denominated receivables
15
Adjusted EBITDA Reconciliation ($ in 000s)
Adjusted EBITDA
DepreciationAdjusted
EBITWarrantsLiability
Interest Expense
Tax Provision
Net Income
Net Income w/o
Warrants
Q1 2014 11,095 1,952 9,143 -8,880 1,973 2,971 -4,681 -4,199
Q1 2015 14,228 2,501 11,727 5,078 2,152 4,772 9,881 4,803
2013 38,506 7,238 31,268 - 7,626 7,886 8,696 22,312 14,686
2014 48,009 8,542 39,467 1,711 8,900 8,538 20,318 22,029
2015 (E) 60,000 12,400 47,600 - 12,600 12,700 22,300 22,300
2016 (E) 80,000 17,200 62,800 - 13,500 16,700 32,600 32,600
16
Strong & Experienced Team
Name Position Biography Notes
Jos M. DaesChief 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. DaesChief Operating Officer
& Director
Founder and CEO of Tecnoglass S.A. since 1995
Responsible for all aspects of operations, marketing, sales and overall expansion
Joaqun F. Fernndez
Chief Financial Officer & Director
CFO of Tecnoglass and ES since 2007
Director of ES since 2002
Sergio Barake Deputy CFO
10+ years experience as U.S. financial executive, including 6 years as Worldwide Director of Corporate Finance for global manufacturer
Fluent in English
BA, MS Universidad del Norte; MBA University of Maryland
Joined Tecnoglass in 2014
Rodolfo Espinosa Meola
President, C.I. EnergiaSolar S.A.
Attorney, specializing in business, tax and finance
9 years with Tecnoglass
17
Strong & Experienced Team
Name Position Biography Notes
Omar DominguezNational Sales Manager,
SA Tecnoglass 32 years of industry experience, 19 with Tecnoglass
Jean Paolo ChemelloTechnical Manager,
C.I. Energia Solar S.A
41 years of industry experience
23 years with Tecnoglass
Karla Rodriguez ChainChief Operating Officer
C.I. Energia Solar S.A 15 years industry experience, all with Tecnoglass
Carlos Amin Cargo Sales USA 10 years of industry experience, all with Tecnoglass
Raul CasaresSales Director for
South Florida
Founder and President of RC Aluminum
50 years of industry experience
18
Board of Directors
Name Position Age Biography Notes
A. Lorne WeilNon-Executive
Chairman of the Board66
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 annualized revenue to ~ $2 billion
Samuel R. Azout Director 54
Investment Manager, Abacus Real Estate
Served as Senior Presidential Advisor for Social Prosperity
Served as CEO of National Agency for Overcoming Extreme Poverty in Colombia
Juan Carlos Vilario
Director 51 GM of various business consortiums in Colombia, including the Malla
Vial del Atlntico Consortium and the Barranquilla-Cinaga consortium
Martha (Stormy) L. Byorum
Director 59
Founder and CEO, Cori Investmet Advisors
Former EVP, Stephens, Inc. & co-founder, VB&P
Former Chief of Staff and CFO for Citibanks Latin American Banking Group, and former head of Citibanks U.S. Corporate Banking Business
Julio A. TorresDirector 46 Managing Director, Nexus Capital Partners
Former Director General of Public Credit and Treasury, Colombia Ministry of Finance
Former Vice President, JPMorgan Chase Bank
19
Contacts
Devin Sullivan
Senior Vice President
(212) 836-9608
dsullivan@equityny.com
Kalle Ahl
Senior Associate
(212) 836-9614kahl@equityny.com
Jos M. Daes
Chief Executive Officer
jdaes@energiasolarsa.com
Christian DaesChief Operating Officer
chris@tecnoglass.com
Sergio BarakeDeputy CFOsbarake@tecnoglass.com
A. Lorne Weil
Non-Executive Chairmanlorne.weil@tecnoglass.com
Vanessa_TorresTypewriterJose Manuel Daes