Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Darling International — Debt Investor Presentation (December 2013)
46 slides from Darling Ingredients's debt investor presentation, Dec 3, 2013
Slide 1: Darling International Inc. Lenders' Presentation December 2013
Exhibit 99.1 Darling International Lenders’ December Creating Sustainable Presentation 2013 Food, Inc. Feed and Fuel Ingredients for a Growing Population
Slide 2: Forward-Looking Statements
Forward-Looking This uncertainties “believe,” statements Forward-looking from to: consummate confidence cost competitive European that highly tomeat economic including 2associated disturbances may of presentation actual dependent feed and be the debt and “intend,” with reflect include, and poultry f
Slide 3: Forward-Looking Statements (Cont'd)
Forward incorrectly personnel; over union spending; acquisition; business 3the impact Rothsay financial or works Looking and regulatory our of linked our uncertainty and VION Bovine reporting; dependence council ability VION Statements toIngredients’ animals, agency Spongiform to acquisitions; issue
Slide 4: Forward-Looking Statements (Cont'd)
Forward-Looking Recipients Darling, disclaims forward-looking This prospectus. performance. 4for orpresentation superior itsany are business Investors such cautioned to,statements also any Statements obligation and measure contains should not theattributable industry to(Cont’d) to) recognize of info
Slide 5: Agenda
Introduction Agenda 5Combined Company Executive Highlights SummaryFinancial BusinessSummary OverviewTransaction Overview Q&A
Slide 6: Introduction and Executive Summary
Executive Randall 6Chairman C.and Summary Stuewe Chief Executive Officer
Slide 7: Transaction Overview
Transaction On “Transaction”) VION pharmaceuticals, The $1.0 $1.2 $1.3 71Pro October forma Company billion Ingredients, See for Senior Overview 7th, notes both closed has for 2013, feed, received on approximately acquisitions, Secured Unsecured founded on slide pet Darling itsfood, 24 financing Term
Slide 8: "Legacy" Darling: Heritage and Presence
“Legacy” Most Oldest A Darling National Servicing Largest One 1998—Began Pioneers designed recycling 8serving Family ofInnovative the the independent &Presence to solutions Heritage Darling all Co. largest nation’s produce 50 the was states country’s bakery International founded company food 9,300 r
Slide 9: "Legacy" Darling: History of Transition
“Legacy” Soap Feed, Feed Commodity Specialized Custom Animal Fuel Boiler Renewable Biodiesel Enriched Fertilizer Organic 9UCO &–Fuel, fuels Used Fats, Fertilizer aquaculture fertilizer Animal &Darling diesel and pet Feed ingredients UCO, UCO Cooking food Fertilizer Proteins (green -AProteins ingredi
Slide 10: "Legacy" Darling: Transforming Raw Materials into Value-Added Products
“Legacy” Transforming Key Beef Value Aquaculture Grease Fresh Integrated Suppliers: Target Regional/niche Animal Markets: Pet 10 Oleo-chemicals Biofuels foods Food Raw Poultry Add oil management nutrition delivery Material Darling packers Strategy feeds Pork raw slaughterers systems -materials Lamb
Slide 11: Pro Forma Darling at a Glance
Global Worldwide Pro A Approximately 21The 11substantial forma New newgrowth Assumes Darling: Darling LTM Seeposition portion platform 10,000 September notes at Branded closing onon aof Glance1 employees five the transforming slideof24 activities 2013 combined continents the VION revenue edible busi
Slide 12: Darling's Mission Statement Evolves
Darling’s “North DAR “Global marketplace: the 12 pharmaceutical, International: Ingredients: America’s growth Mantraplatform Evolves oldest, corporate developed food,for largest petmission development food, our and corporate feed, statement mostfuel innovative and mission and production changed fert
Slide 13: Business Structure
Business ~42% Darling ~5% ~53% Canada DAR 1Note: 13 of USA International See ofRevenue Diamond Revenue1 Revenue Structure notes onGreen slide 24. Diesel Assumes (“DGD”) closing is anofequity the VION investment acquisition and revenue from the Joint Venture is not included herein
Slide 14: Key Investment Considerations
Key Investment Integrated Worldwide Access Leading Global Stable Diamond Strong 1Experienced 14 business industry growth customer toAssumes market Green new supply- position management international platform platform fundamentals positions Considerations1 Diesel base closing chain onconsisting five
Slide 15: Business Overview
BusinessC.Overview Randall Chairman 15 and Stuewe Chief Executive Officer
Slide 16: VION Overview
VION LTM Overview Revenue: Geographic Europe, Operational 58 Number /5,700 Rousselot Sonac Key Market production Strategic Transforms 1food, Brands 216 global Q4 Segments highlights Sep pharmaceuticals (Proteins, Ingredients leading China, See of 2012rationale production 13 $2,185 of (Gelatin) sites
Slide 17: VION End Markets and Product Groups
VI End Pet Feed Pharma Technical Food Market Fertilizer Energy Meat Casings Heparin Bone Blood Fat C3 Proteins Gelatin Natural Hides Green Bio 17 food Energy By-Products Power segment Markets casings and Fatsand Product Groups
Slide 18: VION's Processes and Rousselot
VI’s Processes Rousselot Sources Preparation, Market A Strong Facilities capture Source: 18leading Gelatin market position this Management hides, on market and growth extraction, Business 4 key continents position pigskin, position activities due estimates in bone filtration/concentration towith hig
Slide 19: VION Suppliers
VISource: Supplier raw material closing Key Cargill, China Heidemark JBS Rothkötter Shineway Smithfield Tönnies Tyson Van-Drie 1VION 19 Suppliers materials SA suppliers Yurun Foods, Ingredients Food VION Inc. Lebensmittel from relationships Group Management Group Foods, Kraftfutterwerk Mästerkreis G
Slide 20: VION Customers
VI Customers Customer The concentration VION Key Agrifirm Atop General NBTY, Nestlé Oleon Want 1Zhejiang 20 largest customers Food Want NV Ingredients Purina Inc. Mills, Source: Xianju Feed relationships Qualicaps Products Holdings customer Neste PetCare risk BV Inc. Xianle Management Oil and has pr
Slide 21: Rothsay Overview
Rothsay LTM Overview Geographic Operational /Number Revenue: 5Pro Canada Approximately Rendering Key Canada’s base Strategic Provides 1Company’s Brands 221rendering Forma Segments highlights Well SepSee of snapshot Historicaccess rationale leading 13 $236 invested of Biodiesel Adjusted Employees Nor
Slide 22: Rothsay Raw Material Suppliers and Customers
Raw Approximately 59.0% executed Cargill, Conestoga Loblaws, Longo Maple NORPAC Pinty’s Quality Sargent Finished Rothsay in Key Elmira Masterfeeds, Northeast 1Parrish 22 domestic raw finished material Leaf of Brothers Pet Delicious & Meat Inc. Farms Based Suppliers is has material products araw Inc.
Slide 23: Combined Company Highlights
Combined Randall Chairman 23 C.and Company Stuewe Chief Executive HighlightsOfficer
Slide 24: A Transformed Darling
AQ4 LTM $236 $1,720 $299 $265 $2,185 3224Transformed Darling 1Revenue $4,141 9/28/13 3Adjusted VI Includes 2012 2Terra See 3Adjusted $83 Pro 2 Business Rothsay Revenue$647 Forma EBITDA Total Renewal and Adjusted Revenue EBITDA Pro Adjusted Services($ FormaEBITDA1 millions) reconciliation Darling EBI
Slide 25: Historical Adjusted EBITDA and Acquisitions
The $40 Historical $647 Closed $317 $393 $32 $96 $114 $133 212005A 25 New 2006A Aug13 Dec10 May06 Darling Adjusted See 2007A Closed Platform EBITDA Adjusted notes on 2008A Oct13isPending EBITDA slide 2009A /Scaled 24. Pro Forma 2010A and financials Global Combined 2011A reconciliation Darling’s 2012
Slide 26: Enhanced Darling: Scale and Diversification by Geography
Enhanced Darling United Operations by Geography South Beef Pork Raw Supply Material Grease Proteins Fats Biodiesel Bakery Product Edible Fuel Casings Hides Heparin Bones Blood 26 Europe Fats Grease Beef Poultry America Pet fats States Grease Bakery Gelatin 2005 Hides Proteins Fats Biodiesel food Sca
Slide 27: Global Brands and Specialty Products
Global Brand Specialty Unique Pharma Peptan® Casings Gelatin (Pharma) Heparin 27 Meal® Gelatin Specialty Food Diesel Edible Natural (Food) Products Energy Positioning Food Fats Bone China Leather Commodity Fertilizer General Green Power Renewable Plasma Feed Biodiesel Products Products Fats PetMucoP
Slide 28: DAR North American Processing Facilities
DAR North American Processing Facilities 28
Slide 29: International Processing Facilities
DAR Australia Ecoson No./So. Europe Asia/ 29 International (1) America Rendac Processing (6) Sonac (29) Facilities Rousselot (13) CTH (6) BestHides (3)
Slide 30: Diamond Green Diesel Update
On June reported under identified. The DGD Natural cooking Attractive Superior products 30 installation Update update value actual hedge oil 26, that product: economics: Installation proposition 2013, process after for ofrenewable the successful the this conditions Company: Company DGD of equipment
Slide 31: Management Team with Global Reach
Management Randall Chairman Colin Dirk Marty (International) (North John .Chief 31 1 Assumes Kloosterboer1 Sterling Bullock Counsel Financial Operating Strategy Stevenson Griffin America) C.&Stuewe VION CEO Team Officer Officer Officer closing. with Global At such Reach time Mr. Kloosterboer will as
Slide 32: Successfully Integrated Acquired Businesses: Griffin Case Study
Integration Acquired For Demonstrated Successfully Diversified 1Consolidation 32 the periods See Griffin Case raw Adjusted integrated commitment of2011, material Study facilities for $840 2012 EBITDA the supply and million and businesses to de concentration LTM reconciliation leveraging on September
Slide 33: Financial Policy and Focus
Financial Demonstrated Our Liquidity: Shareholder We Focus Acquisitions: Selectively Risk Darling diversification 33 will have target management: onwill continue upsized no the Policy liquidity, pursue near distributions: hedge integration track and term our tostrategic considering committed adhere
Slide 34: Financial Executive Summary
Financial Colin Executive 34 Stevenson Summary Vice President – Chief Financial Officer
Slide 35: Rothsay Historical Revenue and Adjusted EBITDA
Historical Revenue $223 $87 Capital Adjusted $12 $74 12011 35Per$72 $85 $13 2012 $227 theexpenditures $13 ($ statements EBITDA1 Rothsay LTM $236 millions) $87Sep $99 Operating of –($ 13 ($capital net millions) millions) 2011 revenues expenditures 2012 Performance LTM and direct Sep ($ 13 millions) c
Slide 36: VI Historical Revenue and Adjusted EBITDA
Historical Revenue1 $251 $2,185 $2,088 $1,964 Capital $93 2011 $131 Adjusted 36 $99 2012 $265 $224 expenditures3 $92 EBITDA1,2 VI ($ LTM $152 millions) Operating Sep$173 13($ – Performance 2011 capital millions) 2012 expenditures3 LTM Sep 13 ($ millions)
Slide 37: Darling Historical Revenue and Adjusted EBITDA
Historical Revenue $1,797 $317 Capital Adjusted $115 $333 $60 $202 12011 37 $171 Note:$119 2012 $290 $1,701 expenditures The($ EBITDA1 Darling LTM Seemillions) $1,720 Sep Operating Adjusted LTM Sep –($ 13 ($EBITDA 13 $393 capital millions) millions) 2011 Performance period expenditures 2012 LTMTRS S
Slide 38: Transaction Overview
Transaction J.P. 38 Morgan Overview
Slide 39: Transaction Sources and Uses; Pro Forma Capitalization
Transaction Sources Assumed Pro 4Capitalization Cash $1,000mm Term Existing Other Senior Market 321Totalforma 54 Based$2,619 and Uses debt capitalization Pro on Overview uses Total 82 $38 8capitalization debt loan debt—82 secured unsecured 8equity5 VION HYA $905 BRC 350 (USD bonds Pro 305($ Existing
Slide 40: Summary of Senior Secured Term Loan B Terms
Summary Senior Borrowers Guarantors Facility 1.0% Purpose First Collateral Incremental Call 100% Mandatory 1Excess 40 Note:protection priority per proceeds Secured Cash Amount Acquisition Equates annum; ReferTerms subject Darling All the $600mm Flow, lien to credit material 101 Term from theTenor an
Slide 41: Summary of Senior Secured Term Loan B Terms (Cont'd)
Summary Senior Financial -Usual Note: 41 Limitations Refer and Secured covenants Terms customary toonthe Term indebtedness restricted transactions asset restrictions and legal None Conditions Loan for sales, term transactions payments Bmergers on sheet with subsidiary (Cont’d) affiliates posted and
Slide 42: Transaction Timetable
Transaction 81S 15 22 29 Note: Key Date December January 4292M30 16 23 3Event 10 TDetails 4Indicates 17 24 31 11 W52014 6T 18 25 26 12 2013 4, 5, 17, 18, 7FTimetable 19 26 27 13 12013 SClosing 2013 228 20 27 Bank S14 January 3M4Lenders’ 21 28 29 5Allocations Commitments T6Holiday 12 19 30 W 7 82014
Slide 43: Appendix
Appendix INTERNATIONAL
Slide 44: Historical and Pro Forma Adjusted EBITDA Reconciliation
Historical Pro ($ FYE LTM 2005 Net Depreciation Goodwill Interest (Income)/loss (0) 44 millions) 0Forma Income FYE 2006 Sep-13 expense Darling Rothsay operations, Income Other, 0Equity of 00EBITDA—Historical Acquisition Transitional Adjusted 1Source: Darling Amounts EBITDA impairment Adjusted 0FYE A
Slide 45: Simplified Corporate Structure Following the Acquisition
Simplified D Industries Craig 50% Division, Diesel H DII Limited (Gibraltar) NL Darling Netherlands International Germany Ingredients B N G 1FG Brazil, become 45arling riffin oldings Following Vion Darling Denotes GDenotes International NL (Holding) Canada Nederland GmbH CV Holdings Green Protein Ho
Slide 46: Management Team Biographies
Management Randall recently operations, Dirk predecessor geographic Marty experience Mr. Colin 2002 Counsel John Trading in Diamond 46 enhancing Griffin Kloosterboer Sterling Bullock and Stevenson Griffin C. and as and served Green Stuewe president in and has presence entities, Processing Secretary
Darling International — Debt Investor Presentation (December 2013) on 6ix