Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Q4 2024 Earnings Presentation
25 slides from Darling Ingredients's earnings presentation, Feb 6, 2025
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Slide 2: Forward-looking statements
| ee Sk RSS. ,_,_Ci_ This presentation includes “forward-looking” statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or impliedin the statements. Statements that are not statements of historical facts are forward-looking s
Slide 3: 2024 Significant Business Highlights
2024 Significant Business Highlights + Delivered strongest quarter of the year in Q4 2024, and 4" best year in 142-year history * Paid down $353.4 million in debt, improving financial leverage ratio to 3.68X. * Received $179.8 million in dividends from Diamond Green Diesel + DGD successfully started
Slide 4: 2024 Financial Highlights (unaudited)
2024 Financial Highlights (unaucites) Q4 2024 FY 2024 Total Net Sales $1,417.7 million $5,715.2 million Net Income $101.9 million $278.9 EPS Diluted $0.63 $1.73 Debt Paydown $162.9 million $353.4 million Diamond Green Diesel al ali Dividends Received $68.6 million $179.8 million Combined Adjusted EB
Slide 5: Debt paydown and leverage ratio
(2) Per Bank Covenant ❑ Calculated by Financial Statements, leverage ratio would be 3.68X
Slide 6: Quarterly Combined Adjusted EBITDA
$418.4 $508.3 $334.0 $350.9 $280.1 $273.6 $236.7 $289.5 0 100 200 300 400 500 600 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Global Ingredients DGD Feed Food Fuel
Slide 7: Feed Segment
Feed Segment Regulatory environment improving, and recent 45Z notice and updated GREET model should provide tailwind as it clearly favors waste fats Global fat prices are reacting positively Despite lower fat prices in Q4 2024, compared to Q3 2024, gross margins improved sequentially from 21.5% to 2
Slide 8: Feed Segment Reconciliation
Feed Segment Reconciliation of Net Income/(loss) to (Non-GAAP) Segment Adjusted EBITDA ‘Segment income** $ 63,084 $ 107305 $ 215,946 $ 424,183 Acquisition and integration costs Depreciation and amortization 98,400 350,141 360,249 Equity in net income of other unconsolidated subsidiaries (2,885) (150
Slide 9: Food Segment
Food Segment * Slight improvement in sales as industry destocking slowed + Focus on spread management resulted in gross margin improvement from Q3 2024 to Q4 2024 + First sales of Nextida GC, new collagen peptide that targets post- meal glucose spike + Nextida GC brand and demand beginning to accele
Slide 10: Food Segment Reconciliation
Food Segment Reconciliation of Net Income/(loss) to (Non-GAAP) Segment Adjusted EBITDA US$ finthousands) @4 2024" G4 2023" FY 2024" FY 2023 ‘Segment income** $ 35,747 $ 54,867 $ 144,682 $ 211,646 Acquisition and integration costs Depreciation and amortization 26,19 26655 109,102 9491 Equity in net i
Slide 11: Fuel Segment
Fuel Segment + 45Z Clean Fuel Production Credit Notice and updated GREET model supportive of waste fats — Sufficient guidance to compute and benefit from tax credit — Market for credits developing * Sustainable aviation fuel unit running online and producing on spec * Cash dividends from Diamond Gre
Slide 12: Fuel Segment Reconciliation
Fuel Segment *Unaudited Reconciliation of Net Income/(loss) to (Non-GAAP) Segment Adjusted EBITDA ‘Segment income** $ 40,028 $ 22,714 $ 197,167 $ 425,265 ‘Acquisition and integration costs Depreciation and amortization 8,480 35,876 34,466 Equity in net income of other unconsolidated subsidiaries Rec
Slide 13: Fuel Segment — DGD
Fuel Segment — DGD Diamond Green Diesel US$ and gallons (in millions) Q42024* FY 2024* @42023* FY 2023 DGD Adjusted EBITDA (Daring sshare) $59.2 (1) $289.9(2) $38.8(8) $502.08) Total gallons produced 290.9 1,252.6 352.0 1,267.2 Total gallons sold/shipped 292.8 1,252.3 336.6 1,246.6 EBITDA per gallon
Slide 14: Appendix
Appendix
Slide 15: California LCFS and RIN Value History
California LCFS and RIN Value History Monthly Average LCFS Carbon Credit Price (USD/MT) Biofuel RIN Values (cents/RIN) Source: Argus $250 250 $200 200 $150 150 $100 100 $50 50 $0 0 N i> iD ved SL SCS SS Rg Rg e eS eh s s 2020 2021 2022 2023 2024 2025 RUIN LAIR UA NIE NUNS ES LL LES LS LLL Saar) SPM
Slide 16: Feed Segment — Historical
Feed Segment — Historical (uncucitess fRCCETES SEES 12375 $ 17 ~§ 10478 § 10456 $ 44726 § 8898 $ 9341 $9275 $ 9242 $3,6756 eioreMcroly 287.4 265.2 243.5 290.6 1,086.7 184.1 1963 199.8 209.3 789.5 ices Motos 23.2% 23.2% 23.2% 27.8% 24.3% 20.7% 21.0% 21.5% 22.6% 215% Loss (Gain) on sale of assets 03)
Slide 17: Feed Segment Sales
Feed Segment Sales Fats Proteins Other _ Total Rendering Used Cooking Oils Bakery Other Total Net sales year ended December 30, 2023 17393 16720 243.6 3,654.9 4978 255.2 649 4472.6 Increase/(decrease) in sales volumes (43.1) 408 - (23) (122) (127) - (27.2) Decrease in finished goods prices 67.0) (22
Slide 18: Food Segment — Historical
Food Segment = Historical wuncucitesy Total Net Sales $3964 § 4761 $ 4557 $ 4238 $ 17521 $ 313 $ 3788 $§ 3573 $ 317 $ 14891 Gross Margin 106.3, 105.0 117.5 27 441.5, 93.1 102.1 85.4 931 373.8 ross Morain 26.8% 22.1% 25.8% 26.6% 25.2% 23.8% 26.9% 23.9% 25.7% 25.1% Loss (gain) on sale of assets 0) 0.0
Slide 19: Fuel Segment and DGD EBITDA notes
(1) Includes Fuel Segment base EBITDA and Darling's share of DGD EBITDA. (2) Excludes feed stock (raw material) processed at the DGD joint venture.
Slide 20: 2024 Finished Product Pricing
2024 Finished Product Pricing Feed Segment Ingredients January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg. Yellow Grease - Illinois / cwt $31.60 $31.50 $32.05 $31.71 $34.27 $35.36 $38.00 $35.85 $39.50 $36.48 $35.00 $37.11 $35.00 $35.00 $34
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro-Forma Adjusted EBITDA to Foreign Currency For the Three and Twelve Months Ended December 28, 2024 and December 30, 2023 (in thousands) Three Months Ended Twelve Months Ended Adjusted EBITDA December 28, December 30, December
Slide 22: Event Calendar
Event Calendar BofA Securities Global Ag and Materials Conference Fort Lauderdale, Fla. - February 26 Scotia Bank Howard Weil Energy Conference Miami, Fla. - February 27 Raymond James Institutional Investors Conference Orlando, Fla. - March 3 Citi Consumer Conference Miami, Fla. - March 10 Piper San
Slide 23: Non-GAAP Measures
40'S.GAAP Measures.) Segment Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income/(loss), as a measure of ‘operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alte
Slide 24: Non-U.S. GAAP Measure
n-U.S; GAAP Measure Combined Adjusted EBITDA is n operating results, or as an alternative to rating performance. Combined Adj EBITDA is pr by segment, Combined Adjusted EBITDA that Ci djusted EBITDA is useful in evaluating the Company's nerally eliminates the effects of finan inting measurement U su
Slide 25: Darling Ingredients
: DARLING / _— / > Linancial Results