PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business.) Tecnoglass manufactures architectural glass and aluminum products, primarily serving the U.S. construction market - Tecnoglass is a leading vertically-integrated manufacturer of architectural glass and aluminum products, with its main manufacturing complex in Barranquilla, Colombia[23](index=23&type=chunk) - The United States is the company's largest market, accounting for **92% of revenues in 2021**[23](index=23&type=chunk) - In May 2019, the company formed a joint venture with Saint-Gobain, acquiring a **25.8% interest** in Vidrio Andino for **$45 million** to secure a key raw material supply[24](index=24&type=chunk) - In January 2021, the company redeemed its **$210 million senior notes (8.2% interest)** using proceeds from a new, lower-cost Senior Secured Credit Facility, which was later amended in November 2021 to increase borrowing capacity and reduce interest rates[27](index=27&type=chunk)[29](index=29&type=chunk) - The company has significantly penetrated the U.S. residential market, with sales growing from **less than 5% in 2017 to nearly 36% in 2021**[36](index=36&type=chunk)[59](index=59&type=chunk) [Competitive Strengths](index=9&type=section&id=Competitive%20Strengths) Vertical integration, cost advantages from Colombia, and strategic port proximity are key competitive strengths - Vertical integration allows the company to control the supply chain, maintain strict quality control, reduce dependence on third parties, and generate strong margins[39](index=39&type=chunk)[40](index=40&type=chunk) - Manufacturing in Colombia provides significant cost advantages due to lower labor and energy costs compared to the U.S. The company has also invested in solar power to reduce energy expenses[42](index=42&type=chunk) - The Barranquilla facility's proximity to major ports enables low-cost and efficient distribution to the U.S., with shipping times of three days to Miami and one week to New York[43](index=43&type=chunk)[44](index=44&type=chunk) - Since 2012, the company has invested nearly **$350 million** in technology to enhance production efficiency, improve product quality, and expand its capabilities[46](index=46&type=chunk) [Strategy](index=12&type=section&id=Strategy) Strategy focuses on U.S. geographic expansion, deeper residential market penetration, and continuous technology investment - The company is focused on organic growth in the U.S. outside of Florida, targeting coastal markets like New York, Boston, and the Gulf Coast. In 2021, sales in Florida comprised **82% of U.S. revenue**[55](index=55&type=chunk)[56](index=56&type=chunk)[58](index=58&type=chunk) - A key strategic priority is penetrating the U.S. residential market, which represented **35.7% of total sales** in 2021, up from less than 5% in 2017[59](index=59&type=chunk) - Continued investment in technology and automation is central to the strategy, aimed at increasing production capacity, improving efficiency, and reducing lead times[60](index=60&type=chunk)[62](index=62&type=chunk) [Products, Sales, and Operations](index=14&type=section&id=Products%2C%20Sales%2C%20and%20Operations) Tecnoglass offers diverse glass and aluminum products, serves over 1,000 customers, and holds key industry certifications - The company manufactures a diverse portfolio of glass and aluminum products, including specialized items like low-e glass, thermo-acoustic glass, and hurricane-proof windows[65](index=65&type=chunk) - Tecnoglass serves **over 1,000 customers**, with the 100 largest representing over 81% of sales. No single customer exceeded **10% of revenues** in 2021 or 2020[72](index=72&type=chunk) - In 2021, two suppliers accounted for **26.6% of total raw material purchases**, including a 10% share from its joint venture partner, Vidrio Andino SAS[74](index=74&type=chunk) - The company holds key industry certifications, including the Miami-Dade County Notice of Acceptance (NOA), which is critical for marketing hurricane-resistant glass in Florida[77](index=77&type=chunk) - Total employee count increased to **6,908** as of December 31, 2021, up from 5,666 at the end of 2020[89](index=89&type=chunk) [Item 1A. Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors.) The company faces operational, international, securities, and pandemic-related risks, including competition and supply chain reliance - The company operates in highly competitive markets, facing pressure on pricing and margins from both large and small competitors[94](index=94&type=chunk) - Reliance on a single manufacturing facility in Barranquilla, Colombia, concentrates risks related to equipment failures, catastrophic loss, or other production shutdowns[117](index=117&type=chunk)[118](index=118&type=chunk) - The top ten third-party customers accounted for **35% of total sales revenue** in 2021, indicating a degree of customer concentration risk[119](index=119&type=chunk) - Operations are subject to risks from economic, political, and tax conditions in Colombia, including currency fluctuations, as approximately **39% of expenses** in 2021 were denominated in Colombian pesos[134](index=134&type=chunk)[148](index=148&type=chunk) - The company is a "controlled company" as Energy Holding Corporation beneficially owned approximately **54.8% of outstanding ordinary shares** as of December 31, 2021[142](index=142&type=chunk)[195](index=195&type=chunk) - The global COVID-19 pandemic continues to pose risks related to workforce availability, supply chain disruptions, and volatility in global capital markets[200](index=200&type=chunk) [Item 2. Properties](index=44&type=section&id=Item%202.%20Properties.) Tecnoglass operates 3.5 million square feet of manufacturing facilities, primarily in Barranquilla, Colombia, and Miami-Dade County, Florida - The main manufacturing complex in Barranquilla, Colombia, spans **3.3 million square feet** and is vertically integrated with glass, aluminum, and assembly plants[208](index=208&type=chunk) - The company owns a **123,399 square foot** manufacturing and warehousing facility in Miami-Dade County, Florida, which also houses administrative and sales offices[208](index=208&type=chunk) [Item 3. Legal Proceedings](index=45&type=section&id=Item%203.%20Legal%20Proceedings.) The company is involved in routine legal matters, none expected to materially impact its financial condition - The company is subject to routine litigation related to its business operations but does not expect any current proceedings to have a material adverse effect[211](index=211&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) The company's ordinary shares trade on Nasdaq under 'TGLS', with a declared quarterly dividend - The company's ordinary shares trade on Nasdaq under the symbol "TGLS"[214](index=214&type=chunk) - A regular quarterly dividend of **$0.065 per share** was declared for Q4 2021, continuing the company's practice of paying quarterly dividends since August 2016[216](index=216&type=chunk)[196](index=196&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) In FY2021, Tecnoglass achieved significant revenue and net income growth, driven by U.S. market strength and improved margins [Results of Operations (FY 2021 vs 2020)](index=51&type=section&id=Results%20of%20Operations%20(FY%202021%20vs%202020)) Operating revenues grew 31.9% to $496.8 million, with gross margin improving to 40.8% and net income nearly tripling Consolidated Results of Operations (in thousands) | | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | **Operating Revenues** | **$496,785** | **$376,607** | | Gross profit | $202,584 | $139,441 | | Operating income | $116,985 | $65,707 | | Interest Expense | ($9,850) | ($21,671) | | Loss on extinguishment of debt | ($10,699) | - | | **Net income** | **$68,428** | **$23,841** | | Income attributable to parent | $68,151 | $23,875 | - Operating revenue increased by **31.9% YoY**, driven by a **34.0% increase in U.S. sales**. Sales to the U.S. single-family residential market grew **151.1% to $177.3 million**, accounting for **35.7% of total sales**[245](index=245&type=chunk)[246](index=246&type=chunk) - Gross margin improved by **380 basis points to 40.8%** in 2021 from 37.0% in 2020, attributed to a higher mix of manufacturing revenue, operational efficiencies, and operating leverage[248](index=248&type=chunk) - Interest expense decreased by **54.5% to $9.9 million** due to the refinancing of high-cost senior notes with a new, lower-rate credit facility[251](index=251&type=chunk) [Liquidity, Capital Resources, and Cash Flow](index=49&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Cash%20Flow) The company maintained strong liquidity, generated $117.3 million from operations, and refinanced debt to enhance financial flexibility Cash Flow Summary (in millions) | | Year Ended Dec 31, 2021 ($) | Year Ended Dec 31, 2020 ($) | | :--- | :--- | :--- | | **Cash from Operating Activities** | **$117.3** | **$71.7** | | Cash used in Investing Activities | ($50.8) | ($18.1) | | Cash used in Financing Activities | ($43.8) | ($33.5) | | **Net Increase in Cash** | **$17.3** | **$19.3** | | Cash at End of Period | $85.0 | $67.7 | - The company invested **$53.3 million** in capital expenditures in 2021, focusing on automation of assembly processes and other growth initiatives to increase plant capacity[240](index=240&type=chunk)[256](index=256&type=chunk) - In November 2021, the Senior Secured Credit Facility was amended to increase the revolving credit line from $50 million to **$150 million**, reduce borrowing costs by **~130 basis points**, and extend maturity to 2026[238](index=238&type=chunk) [Item 9A. Controls and Procedures](index=56&type=section&id=Item%209A.%20Controls%20and%20Procedures.) Management and auditor confirmed effective disclosure and internal controls over financial reporting as of December 31, 2021 - Management concluded that both disclosure controls and procedures and internal control over financial reporting were **effective as of December 31, 2021**[276](index=276&type=chunk)[280](index=280&type=chunk) - There were no material changes to the company's internal control over financial reporting during the most recent fiscal quarter[281](index=281&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=57&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance.) This section details the company's directors, executive officers, and audit committee composition - The company's key executive officers are José M. Daes (CEO), Christian T. Daes (COO), and Santiago Giraldo (CFO)[285](index=285&type=chunk) - The audit committee is composed of independent directors Carlos Cure (Chairman), Luis Fernando Castro, and Julio Torres. Mr. Cure is designated as the audit committee financial expert[299](index=299&type=chunk)[300](index=300&type=chunk) [Item 11. Executive Compensation](index=60&type=section&id=Item%2011.%20Executive%20Compensation.) Executive compensation for 2021 included base salaries and bonuses, with increases approved for 2022 2021 Named Executive Officer Compensation | Name and principal position | Year | Salary ($) | Bonus ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | | Jose M. Daes, CEO | 2021 | $1,512,000 | $453,600 | **$1,965,600** | | Christian T. Daes, COO | 2021 | $1,512,000 | $453,600 | **$1,965,600** | | Santiago Giraldo, CFO | 2021 | $189,162 | $47,634 | **$236,796** | - For 2022, the Board approved increased base salaries of **$2,100,000** for both the CEO and COO, and **$444,000** for the CFO, plus potential performance bonuses[310](index=310&type=chunk) - As of December 31, 2021, no equity awards were outstanding for any executive officers[312](index=312&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management](index=62&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters.) Energy Holding Corporation is the largest beneficial owner with 54.8% of shares, and no equity awards were granted Security Ownership of Major Holders (as of Dec 31, 2021) | Name of Beneficial Owner | Amount of Beneficial Ownership (Shares) | Approximate Percentage (%) | | :--- | :--- | :--- | | All directors and executive officers as a group (8 persons) | 693,240 | **1.5%** | | Energy Holding Corporation | 26,103,937 | **54.8%** | | American Century Companies, Inc. | 3,405,196 | **7.1%** | - The 2013 Long-Term Equity Incentive Plan has **1,593,917 ordinary shares** available for future issuance, with no awards granted as of December 31, 2021[322](index=322&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=65&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence.) The company engaged in related-party transactions, subject to audit committee review, and has independent directors - In 2021, the company purchased **$9.3 million** in construction services from A Construir S.A., a company in which affiliates of the CEO and COO have an ownership stake[325](index=325&type=chunk) - The company purchased **$15.3 million** of materials from its joint venture, Vidrio Andino, in 2021[335](index=335&type=chunk) - The company has a policy for the audit committee to review and approve related-party transactions exceeding **$120,000**[338](index=338&type=chunk)[339](index=339&type=chunk) - The Board of Directors has determined that **five of its directors are independent**[343](index=343&type=chunk) [Item 14. Principal Accounting Fees and Services](index=68&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services.) The company paid PwC $777,358 in 2021 for audit and audit-related services, pre-approved by the audit committee Accountant Fees (2021 vs 2020) | | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | Audit Fees | **$669,158** | $662,577 | | Audit-Related Fees | **$105,300** | $20,697 | | All Other Fees | $2,900 | $3,787 | | **Total Fees** | **$777,358** | $687,061 | PART IV [Item 15. Exhibits, Financial Statement Schedules](index=69&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules.) This section lists consolidated financial statements and exhibits filed with the Form 10-K - This section provides an index of the consolidated financial statements and a list of all exhibits filed with the Form 10-K[349](index=349&type=chunk)[351](index=351&type=chunk) Financial Statements and Independent Auditor's Report [Report of Independent Registered Public Accounting Firm](index=73&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PwC issued an unqualified opinion on financial statements and internal controls, noting a Critical Audit Matter for fixed-price contracts - The auditor issued an **unqualified opinion** on both the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2021[363](index=363&type=chunk) - A Critical Audit Matter was identified concerning Revenue Recognition for fixed-price contracts. This was due to the significant management judgment involved in estimating the total costs to complete these contracts, which directly impacts the timing and amount of revenue recognized[369](index=369&type=chunk)[370](index=370&type=chunk)[371](index=371&type=chunk)

Financial Data and Key Metrics Changes - Tecnoglass achieved record results in Q4 2021, with total revenues increasing by 28% year-over-year to $131.8 million and full-year revenues rising by 32% to $496.8 million [31][42] - Adjusted EBITDA for Q4 2021 increased by 65.7% to a record $42.2 million, with a margin of 32%, while full-year adjusted EBITDA rose by 54.1% to $150.3 million, representing a margin of 30.2% [34][42] - Gross margins improved significantly, reaching 42.9% in Q4 2021, up 710 basis points year-over-year, and a full-year gross margin of 40.8%, an increase of 380 basis points [11][35] Business Line Data and Key Metrics Changes - Single-family residential sales surged over 140% year-over-year in Q4 and over 150% for the full year, accounting for 41% of total Q4 sales and 36% for the full year [10][26] - The backlog increased by approximately 7.2% year-over-year to a record $585 million, primarily driven by medium and high-rise residential projects [17][18] Market Data and Key Metrics Changes - The majority of the backlog is concentrated in the attractive southeast and south-central US regions, with strong demand reflected in the January ABI readings of 61.0 for the US south, the highest since 2005 [19] - The company has contracted to supply architectural glass to 20 of the 22 tallest towers under construction in South Florida for 2022 and 2023 [19] Company Strategy and Development Direction - The company aims to leverage its vertically-integrated structure and geographic positioning to capture additional market share while maintaining industry-leading margins [15][45] - Future growth is expected to be driven by single-family residential sales, with a target growth rate of at least 20% annually [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue growth in 2022, with revenue guidance set between $575 million to $600 million, representing an 18% growth at the midpoint [42] - The company anticipates adjusted EBITDA for 2022 to be in the range of $170 million to $190 million, with gross margins expected around 40% [43] Other Important Information - The company voluntarily prepaid $30 million of debt during the year, achieving the lowest leverage ratio in its history at 0.8 times net debt to adjusted EBITDA [13][39] - A 136% increase in dividends was announced in December 2021 to enhance capital returns to shareholders [13] Q&A Session Summary Question: Can you discuss the adjusted EBITDA outlook and the factors influencing the range? - Management indicated that gross margin will be a key determinant, with input costs on raw materials and SG&A expected to remain flat [48] Question: What is the progress on the Multimax line and its revenue contribution? - The Multimax line accounts for about 20% of the residential sales, indicating ongoing growth in that sector [49] Question: Can you elaborate on the revenue guidance and contributions from different segments? - Residential is expected to grow between 30% to 35%, while commercial is projected to grow about 15% at the higher end of the guidance range [54] Question: Are there supply chain issues affecting residential products? - Management noted that while homebuilders face challenges, Tecnoglass maintains short delivery times and high product quality, leading to customer satisfaction [83] Question: What are the pricing dynamics in the commercial backlog? - Prices are being adjusted in response to rising aluminum costs, with long-term contracts allowing for price locking [84][85]

FOURTH QUARTER & FULL YEAR 2021 EARNINGS CONFERENCE CALL March 3, 2022 – TECNOGLASS INC. (NASDAQ: TGLS) Safe Harbor 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 circumstanc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 Commission file number: 001-35436 TECNOGLASS INC. (Exact Name of Registrant as Specified in Its Charter) Cayman Islands 98-1271120 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Avenida Circunvalar a 100 mts de la Via 40, Barr ...

Financial Data and Key Metrics Changes - Tecnoglass achieved record revenue of $130.4 million for Q3 2021, a 26% year-over-year increase, with U.S. revenues growing approximately 29% to $123.2 million compared to $95.7 million in the prior year quarter [36][10][12] - Adjusted EBITDA increased 36.1% to a record $38.7 million, with an adjusted EBITDA margin of 29.7%, reflecting a 220 basis points improvement year-over-year [38][12] - Gross profit rose 28.7% to $51.6 million, resulting in a gross margin of 39.6%, up from 38.8% in the prior year [39][12] Business Line Data and Key Metrics Changes - Single-family residential sales surged 213% year-over-year, accounting for 48% of Q3 U.S. revenues and 35% of U.S. sales on a last twelve months (LTM) basis [28][10] - The backlog reached a record level of $575.8 million, with over 86% of it related to U.S. projects, primarily in medium and high-rise residential and commercial projects [22][25] Market Data and Key Metrics Changes - The Architectural Billings Index (ABI) increased to 56.6 in September, indicating expansion in commercial activity for the eighth consecutive month [23][22] - The U.S. market continues to represent a significant majority of Tecnoglass's growth, with expectations for continued strength in single-family residential and commercial projects [46][12] Company Strategy and Development Direction - The company plans to leverage its vertically integrated platform to enhance customer relationships and penetrate the U.S. single-family residential market further [52][12] - Tecnoglass is focused on maintaining high margins while expanding its product offerings, including the new Multimax product line targeting production homebuilders [21][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve growth objectives while maintaining industry-leading margins, despite potential volatility in the housing market [52][12] - The company anticipates continued strong cash flow generation and plans to invest in growth CapEx to enhance operational capacity [26][12] Other Important Information - Tecnoglass has maintained stable lead times and has not faced significant material constraints, allowing for efficient service delivery [80][12] - The company has a conservative leverage profile, with a net debt to adjusted EBITDA ratio of 0.9 times, providing financial flexibility for future growth [44][12] Q&A Session Summary Question: What is the visibility for residential into next year? - Management believes that $60 million in quarterly sales is a proper baseline moving forward, with expectations for continued growth in the residential line [57][12] Question: How big is the Florida market for residential and what is the company's share? - The company estimates its market share in Florida to be around 20%, indicating significant upside potential [58][12] Question: What is the contribution of the Multimax product line to single-family sales? - The Multimax product line is currently contributing about $2 million per month, with expectations for continued ramp-up [69][12] Question: How is the backlog distributed regionally? - There has been a slowdown in commercial activity outside Florida, but recent trends indicate a recovery in those areas [71][12] Question: What are the 2022 CapEx expectations? - The company anticipates a decrease in CapEx to around $10 million to $15 million for 2022 [73][12] Question: How are lead times trending compared to competitors? - Lead times have remained steady at 6 to 8 weeks, with customers expressing satisfaction with the service [80][12] Question: What is the target leverage and cash priorities? - The company is comfortable with its leverage below one time and plans to continue investing in growth while considering debt repayment as needed [83][12] Question: What is the outlook for the U.S. commercial business in 2022? - The company expects commercial activity to be on par or slightly better than the previous year, particularly in Florida [102][12]

THIRD QUARTER 2021 EARNINGS CONFERENCE CALL November 8, 2021 – TECNOGLASS INC. (NASDAQ: TGLS) Safe Harbor 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 ...

Financial Data and Key Metrics Changes - Total revenues increased 49% year-over-year to a record $121.7 million, driven by strong U.S. revenue growth of 39% [9][31] - Adjusted EBITDA rose 52.7% to a record $35.6 million, with an adjusted EBITDA margin of 29.3%, marking an 80 basis point improvement [32] - Gross profit increased 52.9% to $48.6 million, achieving a gross margin of 40%, up from 38.8% in the prior year [33] Business Line Data and Key Metrics Changes - Single-family residential revenues surged 159% year-over-year, accounting for 37% of U.S. sales during the quarter [9][21] - Approximately 2/3 of the backlog consists of medium- and high-rise residential projects, with the remaining 1/3 related to various commercial projects [17] - The backlog grew 1.7% year-over-year to a record level of $559 million, representing more than 1.25 times the last 12 months' revenue [17] Market Data and Key Metrics Changes - The U.S. market represented over 90% of the backlog, up from 88% in the prior year quarter, benefiting from an active construction environment [18] - The ABI index increased to 57.1% in June, indicating expansion for the fifth consecutive month [19] Company Strategy and Development Direction - The company plans to invest an additional $10 million to $15 million in capital expenditures to enhance production lines, with a focus on automation [38] - The strategy includes expanding single-family residential and commercial demand in the U.S. while maintaining a growth-oriented capital allocation approach [14][63] - The company aims to leverage its vertically integrated operations to deliver innovative products with superior lead times [26][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and the positive momentum moving into the second half of the year [13][14] - The outlook for full-year 2021 revenue is raised to $450 million to $465 million, representing a growth of 22% at the midpoint [40] - The company anticipates a higher mix of product versus installation revenue for the full year, driven by strong single-family residential sales [42] Other Important Information - The company achieved its lowest leverage ratio since 2015 at 1.1x, reflecting improved financial flexibility [35] - The construction of a new float glass plant in Barranquilla is on track to break ground in the first half of 2022 [39] Q&A Session Summary Question: Can you expand on your view of the residential market and revenue potential from homebuilders? - Management indicated that new revenue from homebuilders is minimal as they are just entering that market, but see significant growth potential [50] Question: Can you discuss the commercial side of the business and geographic strengths? - Management noted strong commercial activity across all states they operate in, with expectations for continued growth in 2022 [54] Question: What are your lead times compared to competitors? - Management stated they have shorter lead times, experiencing some delays due to increased orders but have since returned to normal [57] Question: What is the outlook for the commercial business? - Management expects the commercial side to pick up in the second half of the year, with significant growth anticipated in 2022 [68] Question: Can you update on initiatives to expand the residential business outside of Florida? - Management is cautiously expanding into states like Georgia and Texas, learning the market requirements before full-scale operations [71] Question: What is the guidance for Colombia and single-family? - Management expects continued growth in single-family while anticipating flat performance in Colombia and Latin America [73]

Election SECOND QUARTER 2021 EARNINGS CONFERENCE CALL August 6, 2021 – TECNOGLASS INC. (NASDAQ: TGLS) Safe Harbor 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 ...

Revenue and Sales Growth - Operating revenues increased by $39.8 million, or 48.5%, from $81.9 million in Q2 2020 to $121.7 million in Q2 2021[86] - Sales in the U.S. residential and commercial markets increased by $30.7 million, or 38.8%, from $79.1 million in 2020 to $109.9 million in 2021[87] - Single-family residential market sales surged by $25.1 million, or 159%, from $15.8 million in 2020 to $40.9 million in 2021, accounting for 33.6% of total sales in Q2 2021[87] - For the six months ended June 30, 2021, operating revenues increased by $63.4 million, or 37.4%, from $169.2 million in 2020 to $232.6 million[96] - Sales to Latin American markets, including Colombia, increased by $10.6 million, or 94.0%, as customers resumed activities post-lockdowns[98] Profitability - Gross profit rose by $16.8 million, or 52.8%, to $48.6 million in Q2 2021, resulting in a gross profit margin of 39.9%[90] - Gross profit for the first six months of 2021 increased by $31.5 million, or 50.7%, to $93.7 million, with a gross profit margin of 40.3%[99] - The company recorded a net income of $19.3 million for Q2 2021, compared to $16.1 million in Q2 2020[95] - For the six months ended June 30, 2021, the company recorded a net income of $27.5 million, a significant improvement compared to a net loss of $2.6 million for the same period in 2020[106] Operating Expenses and Cash Flow - Operating expenses increased by $3.7 million, or 22.1%, from $16.6 million in Q2 2020 to $20.2 million in Q2 2021, with operating expenses as a percentage of sales improving from 20.2% to 16.6%[91] - Operating activities generated approximately $60.8 million in cash flow for the six months ended June 30, 2021, compared to $24.8 million in the same period of 2020[113] - The main source of operating cash was trade accounts payables, which generated $24.6 million in the first half of 2021, compared to a use of $10.4 million in the same period of 2020[114] Financial Position and Investments - Cash and cash equivalents increased to approximately $100.3 million as of June 30, 2021, up from $66.9 million as of December 31, 2020[107] - The company invested $19.3 million in capital expenditures during the six months ended June 30, 2021, compared to $8.3 million in the same period of 2020[110] - Financing activities resulted in a cash outflow of $6.8 million for the six months ended June 30, 2021, primarily due to the redemption of $210 million in unsecured senior notes[116] Tax and Interest Expenses - Interest expense decreased by $5.1 million, or 46.2%, to $6.0 million for the six months ended June 30, 2021, due to a new financing arrangement[104] - The effective income tax rate for the six months ended June 30, 2021 was 29%, compared to -40% for the same period in 2020, reflecting changes in foreign currency transaction losses[105] Strategic Initiatives - A joint venture with Saint-Gobain was established, acquiring a 25.8% interest in Vidrio Andino for $45 million, with plans to build a new plant in Galapa, Colombia[111] - The new $300 million Senior Secured Credit Facility is expected to save approximately $12 million annually in interest expenses[108] - The company anticipates that working capital will continue to benefit cash flow for the full year 2021, providing flexibility to service obligations[109]

50 United Nations- New York, US Tecnoglass (TGLS) Investor Presentation May 2021 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 Compan ...