Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Darling International — Investor Day (September 2012)
107 slides from Darling Ingredients's investor day presentation, Sep 12, 2012
Slide 1: Investor and Analyst Forum
North America’s oldest, largest and most innovative recycling solutions company serving the nation’s food industry Investor and Analyst Forum Sept. 12, 2012 Exhibit 99.1
Slide 2: Forward-looking Statements
1 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Forward-looking Statements This presentation contains forward-looking statements regarding the business, operations and prospects of Darling and industry factors affecting it. These statements are identified by words such as “may,” “will,”
Slide 3: America's oldest, largest recycling solutions company
2 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 • For over 130 years….Darling has efficiently transported and processed waste streams from the food industry into value added ingredients. • Today, Darling continues to innovate, finding new ways to transform sustainable waste streams and
Slide 4: A history of transition
3 Inv Conf 92012 Feed Fuel Fertilizer Investor and Analyst Forum – Sept. 12, 2012 A history of transition • Commodity ingredients • Specialized pet food ingredients • Custom aquaculture ingredients • Boiler fuels • Biodiesel • Renewable diesel (green diesel) • Organic fertilizer Fer tili z e r & F e
Slide 5: What does rendering do?
The industry does all of this within hours of receiving raw materials, rather than taking weeks or months as some popular alternative methods do. 4 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 What does rendering do? • Kills pathogenic organisms o Pathogens may threaten human/animal he
Slide 6: Source and potential volumes of animal byproducts
5 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Source and potential volumes of animal byproducts available for rendering (from USDA 2009, data) Specie Annual weights in million pounds Pre-slaughter Slaughter Downstream (Meat Processing and Retail) Specie Totals and Grand Total On-Farm
Slide 7: Meat waste
6 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Meat waste Digester Compost Animal Feed Rendering Fertilizer Biofuel Oleo-chemical Cleansers Tires Paints Lubricants Fertilizer Effluent Biogas 75% Methane 25% CO Electricity Water 7:1 capture to emit ratio Pet Food Generator Greenhouse Ga
Slide 8: A Look Back and a Glimpse to the Future
7 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 A LOOK BACK AND A GLIMPSE TO THE FUTURE
Slide 9: Years of DAR Growth
8 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Years of DAR Growth
Slide 10: Basic Principles to Guide Us
9 Inv Conf 92012 Run the business Brand the business Grow the business Investor and Analyst Forum – Sept. 12, 2012 Basic Principles to Guide Us
Slide 11: Run the Business
10 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Run the Business • Focused on standardizing many aspects of our business • One Team, One Dream • Remain entrepreneurial while using central planning • Strengthening and empowering our management teams at all levels • Differentiating and l
Slide 12: How does DGD change our model?
11 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 How does DGD change our model? • DGD creates a new market for our fats and greases o Expected to consume +1.1 billion pounds annually o Plant design facilitates expansion • DGD provides arbitrage opportunities between feed and fuel • DGD
Slide 13: Basic Principles to Guide Us
12 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Grow the business Brand the business Run the business Basic Principles to Guide Us
Slide 14: Inv Conf 92012
13 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012
Slide 15: Why DAR PRO Solutions?
14 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Why “DAR PRO Solutions”? Our New York Stock Exchange (NYSE) symbol provides a strong connection to both our corporate identity and our 130 years of recycling expertise. It also connects our brand to our owners – the shareholder. We are a
Slide 16: DAR PRO Solutions Fleet Identification
15 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 DAR PRO Solutions Fleet Identification Sample of Plant Signage A Darling/Griffin Brand
Slide 17: Basic Principles to Guide Us
16 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Run the business Brand the business Grow the business Basic Principles to Guide Us
Slide 18: Grow the Business
17 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Grow the Business • Our balance sheet remains strong o Senior Debt will not be retired till 2014/2015 o Cash is growing o Ample debt capacity • 2012 is geared towards completing Diamond Green Diesel • Other rendering businesses may come f
Slide 19: Darling facilities and competitor map
18 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 American Proteins facilities (4-SE) Baker Commodities facilities (7) Valley Proteins facilities (11) Wintzer facility (1-OH) Tallow Masters facility (1- FL) Kaluzny Bros. facility (1- IL) Pascal (5- TX/LA) Central By-Products (2- MN) West
Slide 20: Darling facilities and competitor map
19 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Central By-Products (2- MN) Western Mass facility (1-MA) Mahoney Mendola (1-IL) Sanimax facilities (5- US & Canada) Rothsay (6-Canada) West Coast Reduction (6- Canada) Darling Corporate/Regional Offices Darling Facilities American Protein
Slide 21: Bakery feeds facilities
20 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Scope Products (13) Endres Processing (8)
Slide 22: Darling Bakery Feeds facilities
21 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Darling Bakery Feeds facilities Scope Products (13) Endres Processing (8)
Slide 23: Organic Growth Opportunities
22 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Organic Growth Opportunities • New Bakery Waste Recycling Locations o Dallas transfer station o Options on several properties for future plants • Integrated Oil Delivery Systems • Hexane Extraction Waste Recovery • Expansion of Diamond Gr
Slide 24: Fresh Oil System
23 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Fresh Oil System Integrated Oil Delivery Small footprint, Additional storage
Slide 25: Secondary protein nutrients process
24 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Secondary protein nutrients (SPN), also called dissolved air flotation (DAF) float or skimming's, is a wastewater byproduct that is produced by the poultry industry. Today a majority of this product is land applied. We estimate several bi
Slide 26: Raw to Finished
25 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Finished Meal Finished Meal Finished Finished Grease Grease Raw SPN Fines Raw SPN Fines Raw to Finished
Slide 27: Q&A
26 Inv Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 North America’s oldest, largest and most innovative recycling solutions company serving the nation’s food industry Q&A Q&A
Slide 28: Protein Products – Adding Value
Investor and Analyst Forum – Sept. 12, 2012 PROTEIN PRODUCTS – ADDING VALUE Jim Conway, VP of Sales & Marketing
Slide 29: Value Added
28 INV Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Val•ue Add•ed The amount by which the value of a product increases as it proceeds through the various stages of its manufacture and distribution. Having features added to a basic product for which the buyer is prepared to pay extra.
Slide 30: Adds $300-$400 to the value of rendered products
29 INV Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Adds $300-$400 to the VALUE of rendered products
Slide 31: Blending Facilities
30 INV Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Blending Facilities • Blending increases the value of basic commodities produced • Our Blending Operations: o Lynn Center, IL o Omaha, NE o KC Blending
Slide 32: Petfood
Investor and Analyst Forum – Sept. 12, 2012 31 INV Conf 92012 Petfood Pet food grade poultry meal increases the value of our poultry meal production by over $200 a ton.
Slide 33: Aquaculture
Investor and Analyst Forum – Sept. 12, 2012 32 INV Conf 92012 Aquaculture Aquaculture Production in China and the U.S. 1950-2010 Source: FAO Our pet food grade poultry meal has become an effective high grade protein for fish diets. Demand has steadily grown in our export markets
Slide 34: Validating our goal of adding value for our stockholders
Investor and Analyst Forum – Sept. 12, 2012 33 INV Conf 92012 Validating our goal of adding value for our stockholders by better serving our customers – offering the highest quality products and services under one brand name.
Slide 35: Risk Management & Global Fat Markets
Investor and Analyst Forum – Sept. 12, 2012 RISK MANAGEMENT & GLOBAL FAT MARKETS Mike Rath, EVP Commodities
Slide 36: Topics
Investor and Analyst Forum – Sept. 12, 2012 35 Inv Conf 92012 Topics • Managing Risk in the Darling Portfolio • Risk factors • Risk mitigation tools • Global S & D Fats & Oils • North America fats – supply & demand • Markets • Darling’s footprint to market • Fundamental indicators
Slide 37: Risk Factors
Investor and Analyst Forum – Sept. 12, 2012 36 Inv Conf 92012 Payment Sale & Transportation Finished Product Conversion Evaporate & Separate Collection and Purchase of Raw Material Price and/or Formula Relationship Diesel Natural Gas Electricity •Volume •Quality •Storage •Weather •Customer •Destinat
Slide 38: Mitigating Risk
Investor and Analyst Forum – Sept. 12, 2012 37 Inv Conf 92012 Mitigating Risk • Focus on “How we buy it” o Buying it on the right market is key o Selling it to the right destination is required o Spread Management Business • Use of Derivatives to Lock in Margins o Natural Gas & Diesel • Most all for
Slide 39: Global Fat Markets
Investor and Analyst Forum – Sept. 12, 2012 38 Inv Conf 92012 GLOBAL FAT MARKETS Key Drivers of our Products
Slide 40: Animal Fat Markets
Investor and Analyst Forum – Sept. 12, 2012 39 Inv Conf 92012 Feed Biofuel Export Oleo- chemicals 50% 10% 30% 10% 2011 North American Rendering Industry Profile Volume Share Source: Informa Economics, A Profile of the North American Rendering Industry, March 2011 Animal Fat Markets
Slide 41: Market Flexibility
Investor and Analyst Forum – Sept. 12, 2012 40 Inv Conf 92012 Tacoma San Francisco New Orleans Tampa Newark Mexico Market Flexibility
Slide 42: 2011 U.S. Fat and Grease Production
Investor and Analyst Forum – Sept. 12, 2012 41 Inv Conf 92012 2011 U.S. Fat and Grease Production (9-10 billion lb. market) Total size in billion lbs. Poultry Fat 15% Other Grease 14% Edible Tallow 21% Lard 2% Yellow Grease 14% Inedible Tallow 34% Source: Informa Economics
Slide 43: Biofuels are Changing the Marketplace
Investor and Analyst Forum – Sept. 12, 2012 42 Inv Conf 92012 2008: 409 tmt rendered fat used 2009: 432 tmt rendered fat used 2010: 240 tmt rendered fat used 2011: 504 tmt rendered fat used Source: U.S. Census Bureau Rendered Fat Used in Biodiesel Production Biofuels are Changing the Marketplace Sou
Slide 44: Fats Outlook
Investor and Analyst Forum – Sept. 12, 2012 43 Inv Conf 92012 Fats Outlook • Global droughts effecting grain supply • Palm oil supply increasing • European biodiesel demand evolving • Stable U.S. renewable fuel policy • Economic pressures decreasing world animal supply • China demand
Slide 45: DAR PRO Solutions Go To Market Approach
Investor and Analyst Forum – Sept. 12, 2012 Brian Griffin, SVP Procurement & Service DAR PRO SOLUTIONS GO TO MARKET APPROACH
Slide 46: DAR PRO Solutions to Market
Investor and Analyst Forum – Sept. 12, 2012 45 INV Conf 92012 DAR PRO Solutions to Market Quick Look: • Over 200,000 raw material suppliers in states + • Over 2,000 vehicles to provide more than 35,000 weekly services DAR PRO Solutions was created to unite two legacy companies and present the market
Slide 47: DAR PRO Solutions to Market: PROfessional Team
Investor and Analyst Forum – Sept. 12, 2012 46 INV Conf 92012 DAR PRO Solutions to Market PRO fessional Team Greatest wealth of customer service knowledge in rendering industry with sales staff of 6 National/15 Regional/80 Local reps with full support from an Advisory Group of 24 team members Accoun
Slide 48: DAR PRO Solutions to Market: PROfile
Investor and Analyst Forum – Sept. 12, 2012 47 INV Conf 92012 PRO file Best-in-Class Collection Equipment Moving industry to indoor collection equipment Best selection in the restaurant industry Focus on “intelligent, long-term relationships” PRO active Environmental Stewardship Stress the importanc
Slide 49: DAR PRO Solutions to Market: PROgressive Pricing
Investor and Analyst Forum – Sept. 12, 2012 48 INV Conf 92012 DAR PRO Solutions to Market PRO gressive Pricing Our National Service Center will be able to reach out “electronically’ to all 200,000+ suppliers and customers via www.darpro.com , customer portals, and our new toll-free service number –
Slide 50: DAR PRO Solutions launching this fall
Investor and Analyst Forum – Sept. 12, 2012 49 INV Conf 92012 DARPRO Solutions , launching this fall, will be a very exciting period for both us and our customers. Our goal is to bring new energy and leverage our abilities to change the typical stereotype of the “invisible rendering company” into a
Slide 51: DAR PRO Solutions sales team
Investor and Analyst Forum – Sept. 12, 2012 50 INV Conf 92012 Larry Angotti • John Rini • Chris Fleek • Harold Bowman Mike Molini • Ken Viviani • Bill Morris • Mark Baker Brent Frisch • Donnie Thomas • Tom Gabriel Rick Geise • Dwain Varisco • Ken Thomley Doug Sabins • Kraig Fussell • Esco Hornsby An
Slide 52: Financial Update
Investor and Analyst Forum – Sept. 12, 2012 FINANCIAL UPDATE John Muse, Executive Vice President
Slide 53: Topics
Investor and Analyst Forum – Sept. 12, 2012 52 INV Conf 92012 Topics • Balance Sheet • Working Capital • Debt • Investments • Statement of Operations • Revenue • EBITDA % of Sales • Formulas/Prices • Investments • Cash Flows • Capex • Debt • Investment • Cash • Interest • Taxes • Other • Questions
Slide 54: Balance Sheet as of Q2 2012 and Fiscal YE 2011
Investor and Analyst Forum – Sept. 12, 2012 53 INV Conf 92012 Balance Sheet as of 2 Qtr 2012 and Fiscal YE 2011 (US $ in millions) nd Balance Sheet 6/30/2012 12/31/2011 Cash and cash equivalents $72.3 $38.9 Restricted cash 0.4 0.4 Accounts receivables, net 97.4 95.8 Inventories 56.2 50.8 Other curre
Slide 55: Working Capital Data
Investor and Analyst Forum – Sept. 12, 2012 6/30/2012 12/31/2011 54 INV Conf 92012 Balance Sheet Working Capital Data : ($ millions) Accounts receivable, net $ 97.4 $ 95.8 Average days sales outstanding 21.5 days 19.5 days Inventories $ 56.2 $ 50.8 Days sales in inventory 12.4 days 10.3 days Account
Slide 56: Balance Sheet as of Q2 2012 and Fiscal YE 2011
Investor and Analyst Forum – Sept. 12, 2012 55 INV Conf 92012 Balance Sheet as of 2 Qtr 2012 and Fiscal YE 2011 (US $ in millions) nd Balance Sheet Fiscal 2011 6/30/2012 12/31/2011 Cash and cash equivalents $72.3 $38.9 Restricted cash 0.4 0.4 Accounts receivables, net 97.4 95.8 Inventories 56.2 50.8
Slide 57: Investment in Unconsolidated Subsidiary (DGD)
Investor and Analyst Forum – Sept. 12, 2012 56 INV Conf 92012 Capital Investment Balance Sheet Investment in Unconsolidated Subsidiary (DGD) ($ millions) 2010 Capital Cost $ 1.6 2011 Cash Contributions 21.7 2011 JV Recognized P&L (1.6) 2011 Investment Balance $21.7 2012 Cash Contributions 25.6 2012
Slide 58: Balance Sheet as of Q2 2012 and Fiscal YE 2011
Investor and Analyst Forum – Sept. 12, 2012 57 INV Conf 92012 Balance Sheet as of 2 Qtr 2012 and Fiscal YE 2011 (US $ in millions) nd Balance Sheet 6/30/2012 12/31/2011 Cash and cash equivalents $72.3 $38.9 Restricted cash 0.4 0.4 Accounts receivables, net 97.4 95.8 Inventories 56.2 50.8 Other curre
Slide 59: Senior Credit Facilities: Long-Term Debt
Investor and Analyst Forum – Sept. 12, 2012 58 INV Conf 92012 Senior Credit Facilities: Long-Term Debt: Balance Sheet Debt (@ 6/30/12): ($ millions) Revolver : 5-yr facility–expires 12/17/15 Revolver Credit Facility $415.0 Issued L/C’s (25.3) Availability under Revolver $389.7 Current Borrowings on
Slide 60: Revenue: Business Model
Investor and Analyst Forum – Sept. 12, 2012 59 INV Conf 92012 Revenue Business Model Raw Material/Finished Products Diversified supply of raw material Approximately 75% of our raw material is procured under a processing agreement, whereby margins are established and the risk is shared. The balance i
Slide 61: DAR Listed, NYSE
DAR LISTED, NYSE
Slide 62: Revenue/Products
Investor and Analyst Forum – Sept. 12, 2012 60 INV Conf 92012 Revenue/Products Industry Raw Yield Finished Material Factors Product Finished Products % Category (1) Available Protein Fat 28.74% Beef 48% 13.80% 6.90% 6.90% 24.27% Poultry 35% 8.50% 4.61% 3.89% 10.10% Pork 42% 4.25% 2.12% 2.13% 9.65% U
Slide 63: Darling Formula Pricing Example: How We Buy It
Investor and Analyst Forum – Sept. 12, 2012 61 INV Conf 92012 Darling Formula Pricing Example How We Buy It A Significant Portion has a “Built-In Margin” Industry has evolved to a shared risk procurement model Pricing protocols reduce exposure to commodity price fluctuation and provide minimum margi
Slide 64: LCLLO LEELA
LCLLO LEELA
Slide 65: DARLING
DARLING A:
Slide 66: Revenue
63 INV Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 Revenue ($ Millions) 2008 2009 2010 2011 2Q-12 EBITDA (% Sale) 20.7% 18.1% 17.7% 21.9% 19.3% Revenue $1,489 $1,123 $1,340 $1,797 $824 EBITDA $308 $203 $237 $394 $159 $1,489 $1,340 (1,123) 1,797 x .30 $308 x .30 $237 ($109) (109) $137 $199
Slide 67: aes DARLING
aes DARLING NYSE as
Slide 68: Cash Flows
Investor and Analyst Forum – Sept. 12, 2012 64 INV Conf 92012 Cash Flows ($ millions) 6 Months 6/30/12 Fiscal 2011 Source: EBITDA $158.9 $393.5 Uses: Capex ($53.5) ($60.2) Acquisition (2.0) (1.8) Debt Reduction (30.0) (427.0) Issuance of Common Stock 0.0 293.1 Cash Interest (10.9) (29.1) Cash Taxes
Slide 69: Capex
Investor and Analyst Forum – Sept. 12, 2012 65 INV Conf 92012 Capex (US$ millions) 1 Historical Financials - Capex Source: Company Management Griffin capex includes capex and investments, including acquisitions. Note: 2008-2010 includes combined proforma of Griffin Industries $- $10 $20 $30 $40 $50
Slide 70: Investor and Analyst Forum – Sept. 12, 2012 66 INV Conf 92012
Investor and Analyst Forum – Sept. 12, 2012 66 INV Conf 92012
Slide 71: Diamond Green Diesel
Investor and Analyst Forum – Sept. 12, 2012 DIAMOND GREEN DIESEL John Bullock, SVP Business Development
Slide 72: Darling Biofuels – The Path to Here
Investor and Analyst Forum – Sept. 12, 2012 68 INV Conf 92012 2004 2005 2007- 2008 2010 2011 1Q- 2013 Darling Biofuels – The Path to Here Darling begins studying biofuels Tax credit for Biodiesel/Renewable Diesel implemented Darling evaluates Biodiesel product and processes RFS 1 implemented-Ethanol
Slide 73: What is DGD?
Investor and Analyst Forum – Sept. 12, 2012 69 INV Conf 92012 What is DGD? 50/50 JV with Valero Energy Corporation Construct & operate a 136.7 million gallon Renewable Diesel plant located next to Valero’s 3 rd largest oil refinery in NORCO Louisiana using Desmet-Ballestra pre-treatment & UOP Eco-fi
Slide 74: DGD Objective – Why it is being built
Investor and Analyst Forum – Sept. 12, 2012 70 INV Conf 92012 Most economical feedstock available – 1.135 billion #’s annually D-975 diesel fuel is capable of distribution using existing infrastructure – 136.7 million gallons renewable diesel annually – 21.7 million gallons of LPG’s & Naphtha DGD Ob
Slide 75: DGD Difference
Investor and Analyst Forum – Sept. 12, 2012 71 INV Conf 92012 DGD Difference Engine – Old tricks with new twists Traditional agricultural raw material handling and storage practices Traditional oil distribution of finished products DIFFERENCE ENGINE Traditional agricultural pretreatment processing (
Slide 76: DGD Feedstock: Origination
Investor and Analyst Forum – Sept. 12, 2012 72 INV Conf 92012 DGD Feedstock Origination – What we use defines our advantage Darling is one of the largest suppliers of animal fats & used cooking oils in U.S. DGD is expected to consume ~11% of historical 10-year avg. supply of animal fats & used cooki
Slide 77: DGD Feedstock: Logistics
Investor and Analyst Forum – Sept. 12, 2012 73 INV Conf 92012 DGD Feedstock Logistics – Receive, separate, and homogenize rail cars per day – over 2.5 days of usage trucks per day – of a days usage DGD HAS UNMATCHED FEEDSTOCK RECEIVING CAPABILITY 3 raw material tanks 3 mixing tanks prior to pretreat
Slide 78: DGD Pretreatment – Desmet Ballestra
Investor and Analyst Forum – Sept. 12, 2012 74 INV Conf 92012 DGD Pretreatment – Desmet Ballestra plus plus One of the five largest such facilities in the world Sole purpose is to remove impurities which will impact eco-fining catalyst DGD CAN UTILIZE LOW COST FEEDSTOCK WITH HIGHER IMPURITIES Five-s
Slide 79: DGD Eco-fining – UOP
75 INV Conf 92012 Investor and Analyst Forum – Sept. 12, 2012 DGD Eco-fining – UOP UOP licensed process – UOP is largest provider in the world of catalyst technology to the oil refining industry Three-stage process utilizing hydrogen and well established catalysts to convert feedstock into a true hy
Slide 80: DGD Finished Product Distribution & Marketing
Investor and Analyst Forum – Sept. 12, 2012 Renewable Diesel tank (Located in St. Charles Refinery tank farm) 76 INV Conf 92012 Renewable Diesel tank (Located @ DGD) Bengal pipeline Colonial pipeline Parkway pipeline Plantation pipeline Barge 2.2 days production 19.5 days production DGD Finished Pro
Slide 81: DGD Margin foundation
77 INV Conf 92012 RENEWABLE DIESEL is a superior fuel than Biodiesel RENEWABLE DIESEL can be distributed using existing infrastructure (Biodiesel cannot) RENEWABLE DIESEL process can efficiently use lower cost feedstocks (However only with specialized pretreatment with scale) Co-Products from RENEWA
Slide 82: RFS – The bedrock
Investor and Analyst Forum – Sept. 12, 2012 78 INV Conf 92012 RFS 2 – The bedrock Billions of annual gallons ADVANCED BIOFUELS 2.75 6.50 8.25 10.00 12.00 14.00 16.00 19.00 22.00 Biomass-based diesel may be more than 1.0 billion gallons Biomass-based diesel may be used to fulfill undifferentiated cat
Slide 83: DGD Product & Distribution Advantage
Investor and Analyst Forum – Sept. 12, 2012 79 INV Conf 92012 PRODUCT QUALITY ADVANTAGE PRODUCT DISTRIBUTION ADVANTAGE DGD Product & Distribution Advantage RENEWABLE DIESEL meets DIESEL FUEL QUALITY specification(D-975) INCLUDING COLD FLOW PROPERTIES while Biodiesel is not a true hydrocarbon and can
Slide 84: DGD Feedstock & Processing Advantage
Investor and Analyst Forum – Sept. 12, 2012 80 INV Conf 92012 Hydrogen vs. methanol Energy efficiency DGD Feedstock & Processing Advantage Although DGD utilizes much higher pressure and temperature than for biodiesel processing, the process is exothermic – heat generated from the process results in
Slide 85: DGD Margin Equation – The bottom line
Investor and Analyst Forum – Sept. 12, 2012 3.05 3.05 1.97 (1.7 multiplier of 1.16) 1.74 (1.5 multiplier of 1.16) (.07) (.22) 4.95 4.57 .28 .09 5.23 4.66 3.86 4.39 .12 .16 .26 .26 4.24 4.81 .99 (.15) 81 INV Conf 92012 Diesel fuel price RIN’s value Distribution cost/discount Fuel value @ plant Co-Pro
Slide 86: Renewable Diesel is RIGHT for Darling
Investor and Analyst Forum – Sept. 12, 2012 82 INV Conf 92012 Renewable Diesel is RIGHT for Darling... The RIGHT PRODUCT from The RIGHT FEEDSTOCK using The RIGHT PROCESS at The RIGHT LOCATION with The RIGHT PARTNER
Slide 87: Newark Rendering
Investor and Analyst Forum – Sept. 12, 2012 NEWARK RENDERING Neil Katchen, EVP and Co-COO
Slide 88: You won't see this at our Newark operation
Investor and Analyst Forum – Sept. 12, 2012 84 INV Conf 92012 You won’t see this at our Newark operation...
Slide 89: Welcome to our Newark facility
Investor and Analyst Forum – Sept. 12, 2012 Welcome to our Newark facility 85 INV Conf 92012
Slide 90: Our Newark NJ Facility
Investor and Analyst Forum – Sept. 12, 2012 86 INV Conf 92012 Our Newark NJ Facility Built in 1977 Originally located in Long Island City NY; moved due to excessive cost of operating in the 5 Boroughs 115 employees 45 kitchen grease and rendering routes run daily Located in Newark on mouth of Passai
Slide 91: Investor and Analyst Forum – Sept. 12, 2012 87 INV Conf 92012
Investor and Analyst Forum – Sept. 12, 2012 87 INV Conf 92012
Slide 92: Safety is Critical
Investor and Analyst Forum – Sept. 12, 2012 88 INV Conf 92012 Safety is Critical • Employees and guests are provided safety gear prior to gaining access to any of our operations areas
Slide 93: Our Newark Operation
Investor and Analyst Forum, Sept. 12 2012 89 INV Conf 92012 OUR NEWARK OPERATION
Slide 94: Weighing In
Investor and Analyst Forum – Sept. 12, 2012 90 INV Conf 92012 Weighing In
Slide 95: Boiler
Investor and Analyst Forum – Sept. 12, 2012 91 INV Conf 92012 Boiler
Slide 96: Raw Material Receiving Hopper
Investor and Analyst Forum – Sept. 12, 2012 92 INV Conf 92012 Raw Material Receiving Hopper
Slide 97: Restaurant Grease Receiving Hopper
Investor and Analyst Forum – Sept. 12, 2012 93 INV Conf 92012 Restaurant Grease Receiving Hopper
Slide 98: Control Room
Investor and Analyst Forum – Sept. 12, 2012 94 INV Conf 92012 Control Room Operator
Slide 99: Control Screen
Investor and Analyst Forum – Sept. 12, 2012 95 INV Conf 92012 Control Screen
Slide 100: Cooker/Feather Hydrolyzer
Investor and Analyst Forum – Sept. 12, 2012 96 INV Conf 92012 Cooker/Feather Hydrolyzer
Slide 101: Dryer
Investor and Analyst Forum – Sept. 12, 2012 97 INV Conf 92012 Dryer
Slide 102: Our Lab
Investor and Analyst Forum – Sept. 12, 2012 98 INV Conf 92012 Our Lab
Slide 103: Tank Farm
Investor and Analyst Forum – Sept. 12, 2012 99 INV Conf 92012 Tank Farm
Slide 104: Protein Storage
Investor and Analyst Forum – Sept. 12, 2012 100 INV Conf 92012 Protein Storage
Slide 105: Shipping Out
Investor and Analyst Forum – Sept. 12, 2012 101 INV Conf 92012 Shipping Out
Slide 106: Nationwide Service Facilities (Newark service area highlighted)
Investor and Analyst Forum – Sept. 12, 2012 102 INV Conf 92012 Nationwide Service Facilities (Newark service area highlighted)
Slide 107: Questions?
Investor and Analyst Forum – Sept. 12, 2012 103 INV Conf 92012 Questions?
Darling International — Investor Day (September 2012) on 6ix