Tecnoglass Inc at Lytham Partners Spring Investor Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Joe Diaz - Lytham Partners - Analyst : That's a lot of growth in a short period of time. How did you make that transition, or how is it that you were able to successfully develop that relatively new market? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 18, 2023 / 1:00PM, TGLS.N - Tecnoglass Inc at Lytham Partners Spring Investor Conference (Virtual)

Question: Joe Diaz - Lytham Partners - Analyst : So during the pandemic, you did not have a real big issue with regards to your supply chain. Am I understanding that correctly?

Question: Joe Diaz - Lytham Partners - Analyst : Right, and so again, I would anticipate now that many of the effects of the pandemic are behind us, your ability to get orders, manufacture the product, and deliver that product to wherever it needs to go is still in pretty good shape right now.

Question: Joe Diaz - Lytham Partners - Analyst : You mentioned competitive advantages here throughout your comments. What kind of competitive advantage, if any, does your glass actually bring to the product? Is there something that makes your glass outstanding more so than whatever else you're competing with out there?

Question: Joe Diaz - Lytham Partners - Analyst : Well, it's certainly reflecting in your financial results. The business appears to be doing very, very well. Let's talk about the sustainability of your margins. You have some very hefty margins. What could cause that to continue to go forward here? Do you see somewhere in the 50% area to be normal, above, below? What's your sense of that?

Question: Joe Diaz - Lytham Partners - Analyst : Yeah. Yeah. And in terms of your capital structure, you have virtually no long-term debt. Talk about your capital allocation goals going forward. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 18, 2023 / 1:00PM, TGLS.N - Tecnoglass Inc at Lytham Partners Spring Investor Conference (Virtual)

Question: Joe Diaz - Lytham Partners - Analyst : In terms of that manufacturing capacity and the CapEx you're making into it, are you expanding your operations, your manufacturing operations in Colombia? And what do you need to invest in to make that happen?

Question: Joe Diaz - Lytham Partners - Analyst : Yeah. In terms of -- again, your balance sheet provides you flexibility for all types of value enhancing initiatives. What are some of those things that you see here in the next year to three years out to enhance your capabilities?

Question: Joe Diaz - Lytham Partners - Analyst : Yeah. Yeah. And again, I was just going in that direction in terms of your financial returns being substantially above those in the building products and industrial sector. Do you expect these returns to continue? I mean, you're talking about average 30% on return on invested capital, return on equity. Is that sustainable for you?

Question: Joe Diaz - Lytham Partners - Analyst : Now, you mentioned early on that maybe 95% of your revenue generated from the US. Did I understand that correctly?

Question: Joe Diaz - Lytham Partners - Analyst : OK. And what percentage of that is commercial? What percentage is now single family or other types of?

Question: Joe Diaz - Lytham Partners - Analyst : Right. And on the commercial end, I assume you're talking about commercial business buildings, things of that nature. What is that like in the US for you right now?

Question: Joe Diaz - Lytham Partners - Analyst : Now, you mentioned that you've got a pretty hefty presence in Latin America. What other markets, Europe, Asia, anything in those areas?

Question: Joe Diaz - Lytham Partners - Analyst : Sure. Sure. And let's talk a little bit about your backlog. I mean, you mentioned that it's expanding pretty consistently. What's your backlog looking now and how do you see it expanding here and what's your visibility into 2024 and maybe beyond?

Question: Joe Diaz - Lytham Partners - Analyst : Fantastic. Let's -- look, I want to go back to your vertically integrated platform. Tell me how that has come together, and it appears to be very much a competitive advantage for the company. How does that work?

Question: Joe Diaz - Lytham Partners - Analyst : Sure. Sure. And in terms of your raw materials needs, is there anything unusual that creates a challenge for you in terms of getting materials in to manufacture and fulfill your orders?

Question: Joe Diaz - Lytham Partners - Analyst : Yeah. So as you look into the future here a little bit, the next handful of years out, what opportunities are out there that are exciting to the company that perhaps might be a new direction for the company or maybe just expand what you've already got going? What's exciting out there as you look into the market?

Question: Joe Diaz - Lytham Partners - Analyst : Yeah, in markets like South Carolina, Arizona, high heat, high humidity and on the East Coast, very low humidity on the West Coast. What is your product being to the table that, again, is an advantage for those high sun, really high levels of sun, and high humidity?

Question: Joe Diaz - Lytham Partners - Analyst : Yeah, yeah. And here in the US, particularly on California, you've got earthquake type issues. Did you have earthquake type ratings for your glass and those products?

Question: Joe Diaz - Lytham Partners - Analyst : Yeah, well, this is a huge market and I think that you're going to do very, very well given your history. And we appreciate your spending some time with us today, Eduardo. I think it'll be interesting to follow for the next couple of years. So thank you much for taking the time to speak with us. And again, if any of you out there in the audience, if you would like to sign up for a one-on-one meeting with management of Tecnoglass, please visit lythampartners.com/virtual and click on the one-on-one meeting request button. We wish you all a great day and enjoy the rest of the conference. Thank you.