Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Darling International — Stephens Inc. Investment Conference 2008
24 slides from Darling Ingredients's conference presentation, Jun 4, 2008
Slide 1: Stephens Inc. Investment Conference June 4, 2008
Stephens Inc. Investment Conference June 4, 2008 NYSE: DAR Stephens Inc. Investment Conference
Slide 2: Forward-Looking Statements
2 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 r
Slide 3: Company Information
3 Over a century old, Darling International Inc. is America’s leading provider of rendering, recycling and recovery solutions to the nation’s food industry. Our commitment to environmental responsibility is at the core of our values. Company Information
Slide 4: Industry Overview
4 Source: NRA/Harvard Risk Assessment Industry Overview • Animal and food by-product recycling industry is “mission critical” in the food supply chain and is the most efficient and environmentally sound disposal alternative for a sustainable society. • Over 50 billion pounds of inedible by-products
Slide 5: Macro Factors Impacting Performance
5 Cattle Slaughter Numbers (Weekly) (Thousands) 2008 2007 2006 2005 Annual Avg. Wkly 647.6 637.2 612.3 4th Qtr Avg. Wkly 645.4 628.0 603.3 3rd Qtr Avg. Wkly 658.3 656.0 630.6 2nd Qtr Avg. Wkly 668.9 672.1 632.4 1st Qtr Avg. Wkly 626.3 617.7 592.8 582.9 Macro Factors Impacting Performance • Raw mater
Slide 6: Industry Overview: Finished Products and Applications
6 RAW MATERIAL Tallow Meat & Bone Grease Hides Lubricants Textiles Plastics Shampoo Emulsifiers Cleaners Creams Esters Paints Plastics Lubricants Inks Glues Solvents Antifreeze Explosives Rubber Plastics Tires Lubricants Leather Shoes Garments Upholstery Bio- Fuels Animal Feed Pet Food Poultry Feed
Slide 7: Our Recycling Process
7 Our Green Impact Our Recycling Process • Darling offers a sanitary and eco-friendly way to dispose of the massive amount of meat and food by-products produced every year. • Our facilities utilize world-class processing equipment, treatment processes and control equipment to minimize the air and wa
Slide 8: Our Carbon Footprint
8 Our Green Impact Our Carbon Footprint • For approximately each metric ton of CO 2 produced by one of our recycling operations seven tons of CO 2 are removed from the environment. • Recycled fat and protein significantly reduce the amount of green house gases, such as CO 2 , versus the alternative
Slide 9: Industry Leader
9 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 a national footprint operating in 42 states - Network of 39 process
Slide 10: Business Segments
10 Rendering Rendering is the process of recycling animal and food waste products into useful commercial goods, including tallow, protein meals (meat and bone meal), yellow grease, and hides. Restaurant Services Darling is the only US provider of collection, storage, transport, and recycling of old
Slide 11: Collection and Marketing of Products
11 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 to approx 55% of Darling’s annual raw material volume; cost is
Slide 12: Restaurant Services Overview
12 • Premium service offered in conjunction with COR - Self-contained used cooking oil storage system inside or outside customer’s premises • Grease trap maintenance and cleaning service - Operates in 20 markets - Customers represent FSEs, malls and industrial food processors • Basic cooking oil rem
Slide 13: CleanStar
13 • Environmentally safe and efficient - Used cooking oil is pumped directly into sealed, insulated CleanStar storage tank with press of a button • Customer choice - Option of inside or outside storage systems to fit customer needs CleanStar
Slide 14: Torvac (Trap)
14 • 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 Torvac (Trap)
Slide 15: Cooking Oil Removal
15 • 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 Cooking Oil Removal
Slide 16: National Service Center
16 • Manages grease and rendering related service needs. • Ensures compliance for trap regulations and ordinances. • 24 hr/day, 7 day/week high-quality customer service. • Web-based records management system. National Service Center Darling’s National Service Center (NSC) offers complete service man
Slide 17: Renewable Fuels
17 Renewable Fuels Fuels produced from bio-mass or non-petroleum sources • Technology is rapidly evolving – Bio Diesel (methyl ester) vs. Green Diesel (hyrdo-treating) • Animal fats and greases have been slow to be incorporated • Supply push or Demand pull • RFS now encourages “Big Oil” to participa
Slide 18: Competitive Advantages
18 Source: NRA Competitive Advantages Darling is uniquely positioned to capitalize on emerging bio-fuel opportunities. • Concentrated regions which source large, stable supplies of raw materials • A top producer of fats and greases • Historically, animal fats and greases have traded at a discount to
Slide 19: Feedstock Prices
19 Source: The Jacobsen Feedstock Prices
Slide 20: Le Od
O: Z 5 2 é Zi: Le Od z =e & Z. z ~ a
Slide 21: Total Revenues
21 (in millions) Total Revenues
Slide 22: Operating Cash Flows
22 (in millions) Operating Cash Flows
Slide 23: 2008 Outlook
23 Darling 2008 Outlook Strong Fundamental Core Business Segments • Demand for protein meal and oil remain strong • Market fundamentals remain solid • Expanding Restaurant Services reach Renewable Fuels • In process of developing comprehensive bio-fuels plan • Well positioned to participate in growi
Slide 24: For more information, visit www.darlingii.com
INVESTOR PRESENTATION NYSE: DAR For more information, visit www.darlingii.com INVESTOR PRESENTATION
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