Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Darling International — 16th Annual Goldman Sachs Agricultural Biotech Forum (March 2012)
24 slides from Darling Ingredients's conference presentation, Mar 7, 2012
Slide 1: North America's oldest, largest recycling solutions company serving the food industry
North America’s oldest, largest and most innovative recycling solutions company serving the nation’s food industry 16th Annual Goldman Sachs Agricultural Biotech Forum March 7, 2012 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements regarding the business, operations and prospects of Darling and industry factors affecting it, as well as forward-looking information regarding the Griffin Industries transaction and the combined company. These statemen
Slide 3: Darling International is the recycling solutions company serving the nation's food industry
recycling solutions company serving the nation’s food industry Darling International is the A Family Heritage ► Darling & Co. was founded in 1882 by the Swift and Darling families to meet the needs of the growing Chicago meat-packing industry. ► Taken public in 1994, Darling Intl has a 130 year hist
Slide 4: Our Model: Recycling Waste Streams into Value-Added Ingredients for Feed and Fuel
We are North America’s oldest, largest and most innovative recycling solutions company serving our nation’s food industry Our Model Recycling Waste Streams into “Value-Added” Ingredients for Feed and Fuel 4 DAR Inv_v030712 Darling International Route- based Service Provider Feed Ingredients Specialt
Slide 5: Darling International Our Lines of Business
Darling International Our Lines of Business 5 DAR Inv_v030712 Darling Bio-Energy ? New Line Nature Safe Fertilizers Bakery Feeds DAR PRO Solutions a Darling–Griffin Company Introducing… TM TM
Slide 6: Rendering and Restaurant Services
Source: NRA/Harvard Risk Assessment, Supplier Relations U.S. ► Used cooking oil recycling and grease trap maintenance ► Regulated recycling of used cooking oil and wastewater streams ► Approximately 2 billion pounds of waste cooking oil is recycled annually ► Restaurant equipment business to support
Slide 7: Bakery Recycling
Bakery Recycling Bakery Industry ► 9 plants, primarily east of the Mississippi river ► Value-added nutrition approach producing animal feed for the poultry industry ► Creates an additional linkage to our raw material suppliers ► DAR real estate allows for new growth opportunities … new Dallas transf
Slide 8: A stake in the ground… Game changer? Diamond Green Diesel JV
A stake in the ground… Game changer? 50/50 JV with Valero Energy Corporation of San Antonio, TX Located adjacent to Valero’s St. Charles Refinery in Norco, LA Creates a new market for Darling’s feed stocks and is expected to consume nearly 15% of the waste fats and grease supply in the U.S.
Slide 9: Anticipated start up in late fourth quarter 2012 or early 2013
Anticipated start up in late fourth quarter 2012 or early 2013 9 DAR Inv_v030712
Slide 10: Nature Safe
Nature Safe ► One of the largest suppliers of organic fertilizer ► Leverage animal nutrition principles and expertise and apply to soil and plant nutrition ► Develop a complete organic and organic-based product line derived from our animal proteins to serve: o Golf courses o Sports turf & municipali
Slide 11: Vortex of Value
Vortex of Value….. Positive industry fundamentals Innovators of value and technology; passionate about growth Robust financial performance & cash flow generation Business model reduces risk and protects margins “Best in Class” across the food recycling spectrum 1 2 3 4 5 11 DAR Inv_v030712
Slide 12: Positive Industry Fundamentals: Demand Growth
Demand growth should remain strong, primarily driven by a larger global population that is living better and eating more high-value foods As personal incomes rise, people reduce the amount of calories they obtain from cereals in favor of meat Positive Fundamentals Growing Population Globally Restaur
Slide 13: Global Biofuel Demand
Global Biofuel Demand Positive Industry Fundamentals 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 OTHER ADVANCED BIOFUEL 0.2 0.3 0.5 0.75 1.0 1.5 2.0 2.5 3.0 3.5 3.5 3.5 4.0 BIOMASS BASED DIESEL 1.15 0.8 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 CELLULOSIC BIOFUEL 0.1 0.25 0.5
Slide 14: Darling's National Platform
Darling’s National Platform – A superior platform to assist customers nationwide ► Coast to coast coverage by over 120 company facilities and a network of 3rd party providers* ► We are the preferred service provider to the BRANDS! ► Geographic diversity will create more opportunities for core and no
Slide 15: Business Model Reduces Risk and Protects Margins
0 10,000 20,000 30,000 40,000 50,000 1970 1977 1984 1991 1998 2005 2012 2019 Poultry Beef Pork 1 70-2009 CAGR: 3.8% 1970-2009 CAGR: 0.5% 1970-2009 CAGR: 1.2% ► Approximately 75% of our raw material is procured under a processing agreement, whereby margins are established and the risk is shared. The
Slide 16: Innovation driven: Creating non-commodity ingredients
Innovation driven… Creating non-commodity ingredients Strategic Focus on Premium and Value-Added Products Premium Products Pricing Relative to Commodity Meals Focus on Value-Add and Branding of Ingredients ► Opportunity to move more products into premium/value-added products ► Differentiated and val
Slide 17: Innovation through Technology
Innovation through Technology Start up – February 2012 Solvent extraction plant in Hampton, Florida Focused on recovering fat from non-traditional waste streams Innovators of Value 4 17 DAR Inv_v030712
Slide 18: BOSS: Best Oil Storage System
BOSS….Best Oil Storage System ► Creating an alternative to other fresh oil delivery systems ► Lower total supply chain cost ► Restaurant owns equipment ► Telemetry equipped ► Reduces theft and increases customer retention Innovators of Technology 4 18 DAR Inv_v030712
Slide 19: Passionate about Growth: acquisitions and value creation
Aug 2008 API Recycling, div of American Proteins Inc. GA Oct 2005 Southeastern Maintenance & Construction Inc. FL, GA Feb 2009 Boca Transport, Inc. GA Dec 2009 Sanimax USA Great Lakes Dec 2010 Griffin Industries SE/Central US Passionate about Growth Dec 2004 Burrows Industries, Inc. dba Minuteman Pu
Slide 20: Historical Financials: Fiscal 2011 Key Highlights
Historical Financials Fiscal 2011 Key Highlights Key Financials Fiscal 2011 Business Results by Qtr Strong Financial Performance & Cash Flow Generation 5 ► Record setting earnings ► Robust balance sheet ► Strong finished product markets ► Improved raw material volumes ► Successful integration result
Slide 21: Darling EBITDA & Pro Forma Diamond Green Diesel EBITDA
$218 $308 $203 $237 $394 $65 $75 $40 $34 $70 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2007 2008 2009 2010 2011 DGD EBITDA - 50% Darling EBITDA & Pro Forma Diamond Green Diesel EBITDA Strong Financial Performance & Cash Flow Generation 5 U S $ m ill ion s $283 $383 $243 $271 $464 21 DAR In
Slide 22: Historical Financials
Historical Financials Revenue (US$ millions) Capex (US$ millions) EBITDA - Capex (US$ millions) EBITDA (US$ millions) Source: Company Management NOTE: 2007-2010 includes combined proforma of Griffin Industries. Strong Financial Performance & Cash Flow Generation 5 $213 $308 $190 $237 0 50 100 150 20
Slide 23: Balance Sheet
Balance Sheet Balance Sheet as of Fiscal 2011 and Fiscal YE 2010 (US$ in millions) Fiscal 2010 12/31/2011 1/1/2011 Cash and cash equivalents $38.9 $19.2 Restricted cash 0.4 0.4 Accounts receivables, net 95.8 103.7 Inventories 50.8 45.6 Other current assets 33.8 16.7 Total current assets $219.7 $185.
Slide 24: Q&A
North America’s oldest, largest and most innovative recycling solutions company serving the nation’s food industry Q&A 24 DAR Inv_v030712
Darling International — 16th Annual Goldman Sachs Agricultural Biotech Forum (March 2012) on 6ix