Tecnoglass Inc at Stifel Cross Sector Insight Conference Transcript

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

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : No, this is a great. I think one thing that sticks out looking at your financials is that at the margin profile versus the rest of the industry. So of this 20 points, I mean, how sustainable do you think this gap is? You've got a lot of investments going on. We can talk about vertical integration and things along those lines. But how structural or how stable do you think that this margin delta came and remain on a go forward basis?

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : How -- I guess, how did the manufacturing footprint evolve with the vertical integration? But it would seem to me that you -- with the relationship that you have the on the JV, the footprint that you have at a low-cost producing country, a lot of that would be fairly hard to replicate at this point from an investment standpoint.

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : And let's talk about the residential marketplace. I mean, fantastic growth in the past six, seven years. We've seen a lot of pricing within the marketplace. But certainly, there's a lot of volume in this as well. Tell us about how you entered into the resident -- into the Florida market and kind of some of the share opportunities that you've seen there?

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : And within that, with that $150,000 investment, what sort of -- how do you envision the sales to ramp as you sign on dealers and I guess in the second part, you would be addressing a broader part of the window market even beyond hurricane and impact-resistant windows as well?

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : And let's just say we do get the $600 million of additional capacity where -- of revenues, how are you positioned from a capacity standpoint? You just increased -- made some investments to expand your facility there, but how can you keep up with the growth that you are projecting over the longer term?

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : And that would imply, I would say, close to $2 billion sort of capacity longer term as the facilities continue to get upgraded. And within your portfolio, it is fairly seamless to shift from commercial products to residential products?

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : When you mentioned -- we've talked about the residential market being about $32 billion in the market and you really only playing at a fraction of that on the aluminum side. What are some of the other new products, I guess, you could potentially see down the road?

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : And talk a little bit about the distribution network. We've seen within a various number of other building products. There's been destocking and risk in -- how does the window industry combat that? And what sort of risk, I guess, would there be out there?

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : Right.

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : We don't get the question quite as much anymore, but from an ESG perspective, I did want to bring that up because you're doing some very interesting things with your energy consumption down in Colombia. I think investors might be interested if they can figure some of that.

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : Yeah, but I think you could even have another discussion around the technologies that are going to be incorporated into windows EO over our lifetime. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 07, 2023 / 6:25PM, TGLS.N - Tecnoglass Inc at Stifel Cross Sector Insight Conference

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : And let's kind of wrap up the conversation. Talk a little bit about the balance sheet and kind of the capital allocation part, right? Leverage has come down over the years. What is the right level of debt for this business? You should be generating a significant amount of cash on a go-forward basis. How should we think about some of the capital priorities that you'll have?

Question: Stanley Eliott - Stifel Financial Corp. - Analyst : Absolutely, it is. And that's a perfect time to wrap it up. So Santiago, thank you very much.