Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Investor Presentation (August 2014)
29 slides from Darling Ingredients's investor presentation, Aug 13, 2014
Slide 1: Seeing the World Through Our Eyes
Seeing the World Through Our Eyes August 2014 Creating sustainable food, feed and fuel ingredients for a growing population EXHIBIT 99.1
Slide 2: Safe Harbor Statement
Creating sustainable food, feed and fuel ingredients for a growing population Safe Harbor Statement This media release contains “forward-looking” statements regarding the business operations and prospects of Darling Ingredients Inc. and industry factors affecting it. These statements are identified
Slide 3: Our History
Creating sustainable food, feed and fuel ingredients for a growing population 3 Our History 3 By 2013, we were... The largest and most innovative recycling solutions company serving the nation’s food industry, with... • Over 120 locations across U.S. • Approx. 4,000 employees • $1.7+ billion in reve
Slide 4: And today...
Creating sustainable food, feed and fuel ingredients for a growing population 4 And today... A global growth platform for the development and production of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of products and customized specialty solutions • O
Slide 5: Our Strengths Today
Creating sustainable food, feed and fuel ingredients for a growing population 5 2 0 1 3 • #1 position globally in value-added ingredients from the protein industry • Global platform focused on margins and emerging market potential • Strong cash generation model Our Strengths Today: RAW MATERIAL SOUR
Slide 6: A World Leader in Bio-Nutrient Transformation
Creating sustainable food, feed and fuel ingredients for a growing population Over 200 locations on 5 continents A World Leader in Bio-Nutrient Transformation 6 Europe : 51 facilities Asia/Australia: 14 facilities No. America : 135+ facilities So. America: 3 facilities
Slide 7: A World Leader in Bio-Nutrient Transformation
Creating sustainable food, feed and fuel ingredients for a growing population A World Leader in Bio-Nutrient Transformation Global footprint: 5 continents Locations: Over 200 Founded: 1882 Listed: 1994 Publicly traded: NYSE: DAR Principal segments: Three Industries served: Pharmaceutical, food, pet
Slide 8: Our New Business Segments: Food, Feed & Fuel
Food, Feed & Fuel Our New Business Segments Creating sustainable food, feed and fuel ingredients for a growing population
Slide 9: Our Brands by Reporting Segments
Creating sustainable food, feed and fuel ingredients for a growing population • The ingredients we produce are used in three primary segments: - Food (pharmaceutical, gelatin, natural casings, edible fats) - Feed (fats & proteins, pet food, nutritional feed supplements, fertilizers) - Fuel (renewabl
Slide 10: Unique Diversified Portfolio
Creating sustainable food, feed and fuel ingredients for a growing population Unique Diversified Portfolio Provides broad stabilized market exposure worldwide 10
Slide 11: Our Food Ingredients
Creating sustainable food, feed and fuel ingredients for a growing population Ingredients for living. Darling’s food ingredients are sold to a worldwide market that includes the pharmaceutical, food and cosmetic industries. Rousselot is the world’s leading supplier of gelatin and Peptan® collagen
Slide 12: Our Feed Ingredients
Creating sustainable food, feed and fuel ingredients for a growing population 12 Our Feed Ingredients Nutrients for growth. Our feed ingredients compose the largest segment of our business, with sales to animal feed, aquaculture and pet food manufacturers worldwide. The DAR PRO Solutions, Sonac an
Slide 13: Our Fuel Ingredients
Creating sustainable food, feed and fuel ingredients for a growing population 13 Our Fuel Ingredients Energy for today’s world. For the past two decades, Darling has led the way in biofuel innovation and development. Rendac provides European-regulated animal by-products disposal, used for energy p
Slide 14: Growth Strategy
Growth Strategy How we will grow and sustain our business Creating sustainable food, feed and fuel ingredients for a growing population
Slide 15: Our growth is a response to our growing world
Creating sustainable food, feed and fuel ingredients for a growing population Our growth is a response to our growing world ...exponentially increases the demand for food, feed and fuel... thus increasing the need for our innovative ingredients and customized services which provide a sustainable mea
Slide 16: Strengthen Current Position / Capture Growth Opportunities
Creating sustainable food, feed and fuel ingredients for a growing population Strengthen Current Position • Operational excellence: - Optimizing integration of global supply chains - Consolidation and realignment across brands of current raw materials, products and services - Use advanced and sustai
Slide 17: Projected EBITDA Growth thru 2017 and Beyond
Creating sustainable food, feed and fuel ingredients for a growing population Nutrient Recovery Plant Sonac Blood Expansion West Coast Biodiesel Rousselot Growth USA Rendering Acquisition(s) Euro Rendering Acquisition(s) Brazil Rendering Acquisition(s) $75-110mm new EBITDA Note: Management’s current
Slide 18: Capture Growth Opportunities North America
Creating sustainable food, feed and fuel ingredients for a growing population Capture Growth Opportunities North America Sonac – Upper Midwest • Grow hemoglobin/plasma business 18 Rothsay - Canada • Grow the used cooking oil/ restaurant services • Introduce Terra Renewal Services to Canada • Potenti
Slide 19: Nutrient Recovery Technology and Terra Renewal
Creating sustainable food, feed and fuel ingredients for a growing population Nutrient Recovery Technology Currently operating pilot plant in Hampton, FL What is it? • Protein and fat recovery process from industrial residuals • Discovering additional value and products • Restoring water stream to w
Slide 20: Capture Growth Opportunities South America
Creating sustainable food, feed and fuel ingredients for a growing population Capture Growth Opportunities South America Rousselot - Brazil • Continue to expand gelatin •Grow the Peptan® brand 20 Growth Opportunities • Enter rendering business • Enter blood processing business 20
Slide 21: Capture Growth Opportunities Europe
Creating sustainable food, feed and fuel ingredients for a growing population Capture Growth Opportunities Europe Ecoson - Son, Netherlands • Expand biophosphate production 21 Growth Opportunities • Expand rendering business in Southern and Eastern Europe 21
Slide 22: Growth Opportunities China
Creating sustainable food, feed and fuel ingredients for a growing population Growth Opportunities China Growth Opportunities • Continued gelatin expansion •Growth of blood position • Enter core rendering business Rousselot - China •Gelatin expansion 22 22
Slide 23: Financials
Financials Creating sustainable food, feed and fuel ingredients for a growing population
Slide 24: Pro Forma Operating Performance
Creating sustainable food, feed and fuel ingredients for a growing population $0 $100 $200 $300 $400 $500 $600 $700 2012 2013 LTM June '14 2Q 13 2Q 14 $655 $0 $1,000 $2,000 $3,000 $4,000 $5,000 2012 2013 LTM June '14 2Q 13 2Q 14 24 Food Feed Fuel Pro Forma Operating Performance Net Sales (US $ in mi
Slide 25: Pro Forma Adjusted EBITDA
Creating sustainable food, feed and fuel ingredients for a growing population Pro Forma Adjusted EBITDA 25 See Cautionary Statement on slide # 29. FYE 2012 FYE 2013 LTM Q2 2014 Q2 2013 Q2 2014 Net Income 302,642$ 241,426$ 69,407$ 71,927$ 32,757$ Depreciation and Amortization 173,217 188,977 235,028
Slide 26: Operating Performance and Debt Summary
Creating sustainable food, feed and fuel ingredients for a growing population 0 100 200 300 400 500 600 700 Mar. 29, 2014 June 28, 2014 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 FYE 2012 FYE 2013 LTM Q2 2014 Note: Net working capital is defined as current assets less current liabilities. O
Slide 27: Our Recipe for Success
Develop new products and applications and grow geographically to answer these needs Shareholder Value Value- Adding Success is consistently providing maximum value to the supply chain Our Recipe for Success... Creating sustainable food, feed and fuel ingredients for a growing population 27 Protein P
Slide 28: Q&A
Q&A 28 Creating sustainable food, feed and fuel ingredients for a growing population
Slide 29: Cautionary Statement on Pro Forma Financial Information
Creating sustainable food, feed and fuel ingredients for a growing population 29 The unaudited pro forma financial information (“Unaudited Pro Forma Financial Information”) presented in the Financial Section pages of this presentation was prepared by Darling management and is based upon (i) Darling
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