Slide 1: Earnings Report Q4 - February 27, 2023
1 23 EARNINGS REPORT Q 4 | F E B R U A R Y 2 7 , 2 0 2 3 Exhibit 99.2
Slide 2: Safe Harbor Statement
2 23 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 n
Slide 3: Solid Financial Performance: Summary Highlights
3 23 Solid Financial Performance SUMMARY HIGHLIGHTS Q4 - 22 EARNINGS Growing Shareholder Value Definitive agreement to purchase Gelnex – Oct. 18, 2022 De Jong Recycling acquisition – Oct. 31, 2022 Definitive agreement to purchase Miropasz Group – Nov. 2, 2022 Diamond Green Diesel Port Arthur, Texas
Slide 4: 2022 Significant Business Highlights
4 23 Q4-22 EARNINGS 2022 Signif icant Business Highl ights • Record combined adjusted EBITDA of $1.541 billion • Acquired Op de Beeck, a leading organic waste processing company in Belgium, growing the company’s European green energy business • Acquired Valley Proteins, strengthening the core busine
Slide 5: Strong Full Year Earnings, Positioned for Continued Growth
5 23 Strong Full Year Earnings, Positioned for Continued Growth In millions, except per share Q4-2022 Q4-2021 % variance FY 2022 FY 2021 % variance Net Sales $1,768.1 $1,310.1 35.0% $6,532.2 $4,741.4 37.8% Gross Margin $388.8 $321.1 21.1% $1,529.6 $1,242.0 23.2% Gross Margin % 22.0% 24.5% (10%) 23.4
Slide 6: Combined Adjusted EBITDA Q4 2022 / Fourth Quarter EBITDA
6 23 Food 15% Feed 45% Fuel 40% Food Feed Fuel (1) Combined Adjusted EBITDA Q4 2022 % of Total EBITDA by Segment $244 $312 $274 $267 $1,098 $87 $91 $120 $146 $443 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Global Ingredients DGD (In millions) $330.7 $394.7 Q2 22Q1 22 Q3 22 $402.6 FY 22 $1,54
Slide 7: Feed Segment: Key Drivers
7 23 Key Drivers • Global raw material volumes remaining strong with no signs of easing • Integration of acquisitions progressing • Quarter-over-quarter gross margins showed slight improvement • Q4 global fat prices slightly weaker reflecting anticipated downtime and turn arounds at various RD facil
Slide 8: Feed Segment net sales change
8 23 Feed Segment US $ (in millions) Fats Proteins Other Total Rendering Used Cooking Oil Bakery Other Total Net Sales Twelve Months Ended Jan. 1, 2022 $ 1,198.1 $ 1,022.7 $ 173.4 $ 2,394.2 $ 319.1 $ 287.4 $ 38.8 $ 3,039.5 Increase in sales volumes 289.4 275.1 - 564.5 55.8 5.1 - 625.4 Increase in fi
Slide 9: Food Segment: Record year driven by hydrolyzed collagen
9 23 Key Drivers • Fifth consecutive record annual EBITDA • Global collagen business remains strong and on plan • Fiscal year gross margin improvement due to continued shift to higher margin hydrolyzed collagen and slight reduction in raw material prices – more than offsetting higher energy prices •
Slide 10: Food Segment
10 23 Food Segment $100 $120 $140 $160 $180 $200 $220 $240 $260 Food Segment Trailing 4Q adjusted EBITDA Trailing 4 Q's 77% 14% 9% Fiscal Year 2022 % of Sales Breakdown Collagen Edible fats Other products
Slide 11: Fuel Segment Key Drivers
11 23 Fuel Segment Key Drivers • Diamond Green Diesel sold 754 million gallons of renewable diesel, $1.18 EBITDA per gallon for fiscal year 2022 • Diamond Green Diesel 3 in Port Arthur, Texas started up in November 2022, on- time, under budget • Sustainable aviation fuel adds optionality and diversi
Slide 12: Fuel Segment Diamond Green Diesel
12 23 Fuel Segment Diamond Green Diesel US $ and gallons (in millions) Q4 2022 Q4 2021 FY 2022 FY 2021 EBITDA (Entity) – recorded w/no BTC $75.5 $19.8 $125.9 $395.6 EBITDA (Entity) – recorded including BTC $292.0 $166.4 $887.0 $766.8 Pro forma Adjusted EBITDA (Darling’s share) $146.0 $83.2 $443.5 $3
Slide 13: 2023: Growing Shareholder Value
13 23 Q4-22 EARNINGS 2023: Growing Shareholder Value • Laser focus on integration efforts, both operationally, geographically and administratively • Expected DGD dividends in 2023 will help to reduce debt • Work toward investment grade • Continue opportunistic share repurchase program, $374.5 millio
Slide 14: Appendix Additional Information
14 23 APPENDIX ADDITIONAL INFORMATION Q4-22 EARNINGS
Slide 15: California LCFS RIN Value History
15 23 Q4-22 EARNINGS Cal i fornia LCFS RIN Value History
Slide 16: Feed Segment – Historical
16 23 Q4-22 EARNINGS Feed Segment – Historical US$ (in millions) Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Total 2022 Net Sales $ 651.4 $ 771.9 $ 769.6 $ 846.5 $ 3,039.5 $ 879.4 $ 1,170.3 $ 1,273.1 $1,216.1 $4,539.0 Gross Margin 176.9 215.5 216.0 224.9 833.3 233.9 30
Slide 17: Food Segment – Historical
17 23 Q4-22 EARNINGS Food Segment – Historical US$ (in millions) Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Q1 -2022 Q2-2022 Q3-2022 Q4-2022 Total 2022 Net Sales $ 298.1 $ 317.0 $ 311.9 $ 344.7 $ 1,271.6 $ 354.8 $ 369.2 $ 347.9 $387.7 $1,459.6 Gross Margin 71.7 78.5 70.5 71.7 292.4 84.5 88.2 91.3 93
Slide 18: Fuel Segment – Historical
18 23 Q4-22 EARNINGS F u e l S e g m e n t – H i s t o r i c a l (1) Includes Fuel Segment base EBITDA and Darling's share of DGD EBITDA. (2) Excludes feed stock (raw material) processed at the DGD joint venture. US$ (in millions) Q1-2021 Q2-2021 Q3-2021 Q4-2021 Total 2021 Q1-2022 Q2-2022 Q3-2022 Q4
Slide 19: Historical Pricing: 2022 Finished Product Pricing
19 23 Historical Pricing 2022 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. Bleachable Fancy Tallow - Chicago Renderer / cwt $67.00 $72.03 $74.70 $71.39 $75.60 $81.00 $81.76 $79.51 $8
Slide 20: Adjusted EBITDA
20 23 Adjusted EBITDA (1) The average rate assumption used in this calculation was the actual average rate for the three months ended December 31, 2022 of €1.00:USD$1.02 and CAD$1.00:USD$0.74, as compared to the average rate for the three months ended January 1, 2022 of €1.00:USD$1.14 and CAD$1.00:U
Slide 21: Event Calendar
21 23 EVENT CALENDAR Q4 – 22 Earnings Bank of America Global Ag and Minerals Conference March 1 – Fort Lauderdale, Florida Raymond James Annual Institutional Investors Conference March 7 – Orlando, Florida Scotia Howard Weil Energy Conference March 8 – Miami, Florida 35th Annual Roth Conference Marc
Slide 22: Non-U.S. GAAP Measures
22 23 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
Slide 23: Earnings Report
23 23 Q 4 | F E B R U A R Y 2 7 , 2 0 2 3 EARNINGS REPORT