Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — FY2021 Earnings Presentation
19 slides from Darling Ingredients's earnings presentation, Feb 28, 2022
Slide 1: Fourth Quarter & FY 2021 Conference Call
Fourth Quarter & FY 2021 Conference Call Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking” statements that are subject to risks and uncertainties that could cause the actual results of Darling Ingredients Inc. (the “Company”) to differ materially from those expressed or implied in the statements. Statements that are not st
Slide 3: Summary Highlights
Summary Highlights Darling Ingredients Fourth Quarter & FY 2021 Financial Update • Fourth quarter combined adjusted EBITDA of $306.8 million led by a strong performance in our feed segment • 2021 combined adjusted EBITDA totaled a record $1.235 billion • Q4 2021 net income of $155.8 million, EPS of
Slide 4: Financial Highlights
Financial Highlights (1) Leverage ratio calculated per bank covenant Page 4 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 Financials % % (in mill ions, except per share) Variance Variance Net sales $1,310.1 $1,019.8 28.5% $4,741.4 $3,571.9 32.7% Gross margin 321.1 248.6 29.2%
Slide 5: Financial Highlights
Financial Highlights $177 $222 $230 $224 $851 $108 $132 $60 $83 $383 $0 $150 $300 $450 $600 $750 $900 $1,050 $1,200 Global Ingredients DGD $284.8 $353.7 $289.6 (In millions) Combined adjusted EBITDA $306.8 $1,234.8 Q1-21 Q2-21 Q3-21 Q4-21 FY 2021 Page 5 | Fourth Quarter & FY 2021 Financial Results (
Slide 6: Feed Segment
Feed Segment Key Drivers: • Robust global markets for fats and proteins drove growth • Global volumes remained strong, new capacity added over last 5 years showing strong returns • Climate change initiatives transforming value of waste fats with carbon intensity defining final sales price • Pet food
Slide 7: Food Segment
Food Segment • Collagen business drove earnings growth with hydrolyzed collagen applications and demand accelerating into 2022. • Raw material availability in South America improving • Health and Nutrition segment seeing new demand and expected to fuel growth in 2022 • Edible fats demand remained st
Slide 8: Fuel Segment
Fuel Segment (Includes Diamond Green Diesel JV consolidated EBITDA) Key Drivers: • FY 2021 combined adjusted EBITDA of $483.1 million, with DGD earning $2.07 per gallon on 370.2 million gallons sold • DGD – Norco, LA expansion fully operational in Q4, potential to produce over 750 million gallons of
Slide 9: Port Arthur, TX 470-million-gallon facility
Page 9 | Fourth Quarter & FY 2021 Financial Results | 02.28.2022 January 2022 Port Arthur, TX 470-million-gallon facility
Slide 10: Appendix Additional Information
Appendix Additional Information
Slide 11: California LCFS & RIN value history
California LCFS & RIN value history Source: The Jacobsen and StoneX Page 11 | Fourth Quarter & FY 2021 Financial Results | 02.28.2022
Slide 12: Feed Segment - Historical
Feed Segment - Historical (1) Does not include Unconsolidated Subsidiaries EBITDAPage 12 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 * 4Q 2021 and 4Q 2020 were 13 week and 14 week quarters and FY 2021 and FY 2020 were 52 week and 53 week years, respectively. US$ (in million
Slide 13: Historical Pricing
Historical Pricing The Jacobsen, Wall Street Journal and Thomson Reuters Page 13 | Fourth Quarter & FY 2021 Financial Results | 02.28.2022 2021 Finished Product Pricing Feed Segment finished ingredients January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4
Slide 14: Food Segment - Historical
Food Segment - Historical Page 14 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 US$ (in millions) Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Net Sales 270.3$ 278.9$ 291.8$ 344.6$ 1,185.7$ 298.1$ 317.0$ 311.9$ 344.7$ 1,271.6$ Gross Ma
Slide 15: Fuel Segment - Historical
Fuel Segment - Historical Page 15 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 Diamond Green Diesel (50% Joint Venture) US$ and gallons (in millions) Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 EBITDA (Entity) - recorded w/no BTC 127
Slide 16: Non-U.S. GAAP Measures
Non-U.S. GAAP Measures Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accord
Slide 17: Adjusted EBITDA
Adjusted EBITDA Page 17 | Fourth Quarter & FY 2021 Financial Results (unaudited) | 02.28.2022 (1) The average rate assumption used in this calculation was the actual fiscal average rate for the three months ended January 1, 2022 of €1.00:USD$1.14 and CAD$1.00:USD$0.79, as compared to the average rat
Slide 18: Upcoming IR Conference Events
Upcoming IR Conference Events • Raymond James Conference (Orlando, FL) - March 7, 2022 • Bank of America Downstream Conference (Virtual) – March 10, 2022 • Roth 34th Annual Conference (Dana Point, CA) – March 13-15, 2022 • BNP Paribas Consumer Ingredients Conference (Virtual) – March 17, 2022 • Pipe
Slide 19: al ae
al ae WE CREATE SOLUTIONS THAT SUSTAIN LIFE 4 WEARE.DARLING! HEALTH « NUTRIENTS BIOENERGY + SERVICES DARLING INGREDIENTS