Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Darling International — Investor Presentation (April 2007)
26 slides from Darling Ingredients's investor presentation, Apr 9, 2007
Slide 1: Servicing the Food Industry Investor Presentation
April 9, 2007 Servicing the food industry Investor Presentation
Slide 2: Forward-Looking Language
This presentation contains forward-looking statements regarding the business operations of Darling and the industry in which it operates. These statements are identified by words such as “may,” “will,” “expect,” “believe,” “intend,” “anticipate,” “should,” “estimate,” “continue,” and other words ref
Slide 3: America's leading provider of rendering, recycling and recovery solutions
Over a century old, Darling International Inc. is America’s leading provider of rendering, recycling and recovery solutions to the nation’s food industry.
Slide 4: Darling at a Glance
Darling at a Glance Founded in 1882; public since 1994 years old Corporate headquarters in Irving, Texas locations across the US 1,850 employees nationwide Fleet of approximately 1,000 trucks and tractor-trailers AMEX: DAR Financial metrics: – $500 million market capitalization – $500 million of ann
Slide 5: Industry Overview
Industry Overview Over 50 billion pounds of inedible by-products generated annually from meat packers, poultry processors and retail food stores Animal and food by-product recycling industry is “mission critical” in food supply chain and is most efficient and environmentally sound disposal alternati
Slide 6: Creating value by leveraging our core competencies
Creating value by leveraging our core competencies in collection, processing and marketing Industry Leader Largest and only publicly-traded US provider of rendering, recycling and recovery solutions Only rendering company with national footprint – Network of 39 processing facilities from coast to co
Slide 7: Darling's Value Proposition
Committed to driving growth and delivering value to our stockholders Darling’s Value Proposition Unmatched capabilities and breadth of service offerings Diversified business model Healthy capital structure with attractive asset and debt mix Uniquely positioned to capitalize on favorable market and r
Slide 8: Business Segments
Business Segments Rendering Restaurant Services
Slide 9: Purchase and Collection, Pricing, Marketing, Sales and Distribution
Purchase and Collection Pricing Marketing, Sales and Distribution Darling operates a fleet of approx 1,000 trucks to collect raw materials from approx 115,000 food service establishments, butcher shops, grocery stores, and independent meat and poultry processors nationwide “Formula” basis: Applied t
Slide 10: Macro Factors Impacting Performance
Macro Factors Impacting Performance Raw material supply – Fluctuations in demand for proteins – Trade constraints Finished product prices Energy costs
Slide 11: NBP Acquisition Highlights
Greater scale, industry expertise and management talent will drive improved operating efficiencies and growth opportunities NBP Acquisition Highlights On May 15, 2006, Darling completed its acquisition of National By-Products (NBP), a top-five US independent rendering company based in Des Moines, IA
Slide 12: Darling Processing Facilities and Serviced Areas
San Francisco Tacoma Boise Fresno Las Vegas Dallas Tulsa Kansas City (3 + hides St. Louis Blue Earth Newark Jacksonville Detroit Los Angeles Chicago Tampa Sioux City Turlock Houston(2) Wahoo Coldwater San Antonio Portland Cleveland Cincinnati Pittsburgh San Diego Alma Santa Ana Ft. Lauderdale Zanesv
Slide 13: Smooth and Successful Integration
Smooth and Successful Integration ü Implemented operational best practices ü Completed route optimization ü Redirected raw material ü Closed non-essential facilities ü Administrative improvements on-going
Slide 14: Rendering Revenues
R E N D E R I N G R E V E N U E S Millions Rendering Revenues
Slide 15: Restaurant Services Overview
Only US provider of collection, storage, transport, and recycling of old grease on a national scale Grease trap maintenance and cleaning service – Operates in 20 markets – Customers represent FSEs, malls and industrial food processors Premium service offered in conjunction with COR – Self-contained
Slide 16: CleanStar
CleanStar Environmentally safe and efficient – Used cooking oil is pumped directly into sealed, insulated CleanStar storage tank with press of button Customer choice – Option of inside or outside storage systems to fit customer needs
Slide 17: Torvac (Trap)
Torvac ( Trap ) Ongoing maintenance –Provides manpower, equipment and expertise to find and fix grease trap problems Compliance – Removed material is tracked and handled in a legal and environmentally sound manner
Slide 18: Cooking Oil Removal (COR)
Cooking Oil Removal (COR) Bundled services – Complete, individualized used cooking oil collection and recycling services nationwide through local providers Environmental compliance –Efficient, reliable pickup and disposal of non-recyclable waste
Slide 19: Restaurant Services Revenues
Millions Restaurant Services Revenues
Slide 20: Key Growth Drivers
Service areas encompass most major metropolitan areas in US Adoption of stringent ordinances to regulate disposal of used cooking oil and animal waste Large national chains prefer to deal with fewer suppliers Superior quality and service Multiple service offerings (Trap & COR) LOCATION LEGISLATION R
Slide 21: Renewable Fuels
Renewable Fuels The market – US consumption of over-the-road diesel is over 60 billion gallons annually The current environment – Growing consumer demand for affordable alternatives to petroleum-based fuel product The business – Since 2001, bio-diesel consumption in US grew from virtually zero to 25
Slide 22: The Opportunity
Access to large, stable supply of raw materials is a key competitive advantage The Opportunity Darling is uniquely positioned to capitalize on emerging bio-diesel opportunity – Animal fats have historically traded at a discount to vegetable oils – Largest producer of animal fat and used cooking oil
Slide 23: Management Team
Name Position Biography Randall Stuewe Chairman and Chief Executive Officer Chairman and CEO since February 2003. EVP at ConAgra Foods from 1996 to 1999; President of Gilroy Foods from 2000 to 2003; prior to that spent 12 years in management, sales and trading positions at Cargill John Muse Executiv
Slide 24: Operating Cash Flows
Millions Operating Cash Flows
Slide 25: Well Positioned for Success
Market leader National footprint Unmatched capabilities and service offerings Experienced leadership team Favorable industry trends Healthy capital structure Diversified business model ...to drive growth and shareholder value Leveraging our strengths... Well Positioned for Success
Slide 26: Servicing the food industry
Servicing the food industry
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