Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Q4 2020 Earnings Presentation
19 slides from Darling Ingredients's earnings presentation, Mar 2, 2021
Slide 1: Fourth Quarter & FY 2020 Conference Call
Fourth Quarter & FY 2020 Conference Call Exhibit 99.2
Slide 2: Safe Harbor Statement
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 not st
Slide 3: Summary Highlights Fourth Quarter & FY 2020 Business Update
Summary Highlights Fourth Quarter & FY 2020 Business Update • Record fourth quarter global ingredients EBITDA of $146.3 million lead by a strong performance in our feed segment • 2020 combined adjusted EBITDA totaled a record $841.5 million • Q4-2020 adjusted net income of $75.3 million, adjusted EP
Slide 4: Financial Highlights
Financial Highlights Balance Sheet (in millions, except ratio data) As of 01/02/2021 As of 12/28/2019 Cash (including restricted) $81.7 $73.0 Revolver availability $893.9 $911.9 Net working capital $257.5 $246.9 Total debt $1,508.1 $1,649.4 Leverage ratio (2) 1.90x 3.18x Capital expenditures $280.1
Slide 5: Financial Highlights: Segment EBITDA and 2021 Guidance
Financial Highlights Financials (in millions) Q4-2020 Q4-2019 FY-2020 FY-2019 Segment EBITDA Feed $90.2 $56.8 $317.8 $258.2 Food 49.8 37.5 167.1 157.1 Fuel (2) 89.0 118.7 411.9 $369.1 Corporate (14.5) (19.7) (55.3) (57.9) Total Combined adjusted EBITDA (2) $214.5 $193.3 $841.5 $739.7 (1) FY 2019 exc
Slide 6: Feed Segment
Feed Segment Key Drivers: Page 6 | Fourth Quarter & FY 2020 Results | 03.03.2021 • Solid growth in overall feed segment sales quarter over quarter and year over year. Lead by a 7.2% improvement in raw material processed for 4Q and 2.4% increase in raw material processed for 2020 over 2019 • UCO volu
Slide 7: Food Segment
Food Segment Page 7 | Fourth Quarter & FY 2020 Results | 03.03.2021 • Second half of 2020 Peptan sales were 16% higher than the first half of 2020. Peptan sales continues to show growth into 2021. • Excluding the gain on the sale of assets in 2019, 2020 EBITDA improved 6.4% over the previous year an
Slide 8: Fuel Segment
Fuel Segment (Includes Diamond Green Diesel JV consolidated EBITDA) Key Drivers: • Q4-2020 Combined adjusted EBITDA of $89.1 million, with DGD earning $2.40 per gallon on 56.8 million gallons sold • DGD turnaround in October lowered the production gallons for the quarter, but DGD still sold record n
Slide 9: DGD 400-million-gallon expansion
January 2021 400-million-gallon expansion Existing 290-million-gallon plant Page 9 | Fourth Quarter & FY 2020 Results | 03.03.2021
Slide 10: Appendix Additional Information
Appendix Additional Information
Slide 11: California LCFS & RIN value history
California LCFS & RIN value history Source: https://ww3.arb.ca.gov/fuels/lcfs/credit/lrtweeklycreditreports.htm Page 11 | Fourth Quarter & FY 2020 Results | 03.03.2021 $- $50 $100 $150 $200 $250 A p r - 1 6 J u n - 1 6 A u g - 1 6 O c t - 1 6 D e c - 1 6 F e b -1 7 A p r - 1 7 J u n - 1 7 A u g - 1
Slide 12: Feed Segment - Historical
Feed Segment - Historical (1) Does not include Unconsolidated Subsidiaries EBITDA Page 12 | Fourth Quarter & FY 2020 Results | 03.03.2021 US$ (in millions) Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Net Sales 495.8$ 487.4$ 497.0$ 490.4$ 1,970.6$ 512.6$ 503.
Slide 13: Historical Pricing
Historical Pricing Jacobson, Wall Street Journal and Thomson Reuters Page 13 | Fourth Quarter & FY 2020 Results | 03.03.2021 Avg. Jacobsen Prices January February March Q1Avg. April May June Q2 Avg. July August September Q3 Avg. October November December Q4 Avg. Avg. BFT - Chicago Renderer / cwt $31
Slide 14: Food Segment - Historical
Food Segment - Historical (1) Adjusted for the $13.1 million gain on the asset sale in China for Q2-19 and FY-19 Page 14 | Fourth Quarter & FY 2020 Results | 03.03.2021 US$ (in millions) Q1-2019 Q2-2019 Q3-2019 Q4-2019 Total 2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Total 2020 Net Sales 279.2$ 274.8$ 276
Slide 15: Fuel Segment - Historical
Fuel Segment - Historical (1) Includes Fuel Segment EBITDA and Darling's share of DGD EBITDA. * Excludes feed stock (raw material) processed at the DGD joint venture. Page 15 | Fourth Quarter & FY 2020 Results | 03.03.2021 Diamond Green Diesel (50% Joint Venture) US$ and gallons (in millions) Q1-201
Slide 16: Non-U.S. GAAP Measures
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 accor
Slide 17: Adjusted EBITDA
Adjusted EBITDA Page 17 | Fourth Quarter & FY 2020 Results | 03.03.2021 Adjusted EBITDA January 2, December 28, January 2, December 28, (U.S. dollars in thousands) 2021 2019 2021 2019 Net income attributable to Darling 44,745$ 242,609$ 296,819$ 312,600$ Depreciation and amortization 96,467 86,453 35
Slide 18: Upcoming IR Events
Upcoming IR Events • Roth Capital Conference- 3.15.21 • BNP Exane Conference– 3.17.21 • Gabelli Conference – 3.18.21 Page 18 | Fourth Quarter & FY 2020 Results | 03.03.2021
Slide 19: We Create Solutions That Sustain Life
WE CREATE SOLUTIONS THAT SUSTAIN LIFE 4 WEARE.DARLINGIICOM HEALTH « NUTRIENTS 4 BIOENERGY « SERVICES DARLING INGREDIENTS