Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Investor Day (October 2018)
10 slides from Darling Ingredients's investor day presentation, Oct 11, 2018
Slide 1: Investor - Analyst Day October 2018
Exhibit - 99.1 Investor - Analyst Day October 2018 Randall C. Stuewe, Chairman and CEO Brad Phillips, EVP Chief Financial Officer John Bullock, EVP Chief Strategy Officer Melissa A. Gaither, VP IR and Global Communications
Slide 2: Global Biofuel Demand
GLOBAL BIOFUEL DEMAND WORLD BIOMASS BASED DIESEL (Biodiesel & Renewable Diesel) USAGE 18 (Billions of annual gallons) 16 15.270 13.993 14.440 14 2.252 3.097 3.832 12 11.530 10 1.862 8 6 11.741 11.343 11.448 9.688 4 2 0 2018 2020 2025 2030 Biodiesel Renewable Diesel ➢ Biomass Based Diesel usage is pr
Slide 3: California LCFS Mandates
CALIFORNIA LCFS MANDATES California Mandated Percentage Reduction in CI 20.00% 18.75% ➢ Mandate for diesel fuel pool still at 3.5%-Poet Litigation ➢ Yet Deficits are outpacing credits and Credit Bank is reducing 17.50% 16.25% 15.00% 13.75% 12.50% 11.25% 10.00% 8.75% 7.50% 6.25% 5.00% 3.50% 2.00% 1.0
Slide 4: Gas Gallon Equivalent Demand/Supply Fuel Scenario
California Air Resource Board Data GAS GALLON EQUIVALENT DEMAND/SUPPLY FUEL SCENARIO (Illustrative Model) Millions of Annual Gallons 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Sugar Ethanol 70 106 106 106 70 35 0 0 0 0 0 35 70 Cellu
Slide 5: Super Diamond Dynamics
SUPER DIAMOND DYNAMICS 275 million gallons annually increased to 675 million gallons annually INCREASE CAPACITY (increase of 400 million gallons-145%) Parallel Independent plant ➢ Ability to market Naphtha to low CI markets + ➢ Capture greater % of LCFS value ➢ Lower CI scores improving sales value
Slide 6: Value of Darling Vertical Integration
VALUE OF DARLING VERTICAL INTEGRATION Upstream & Downstream Darling Annual Sales-Feed Ingredients Segment F/H 2018 (000’s of $) • 37% of Darlings Feed Ingredients Segment Revenue is from sale of fats which are positively impacted by demand created by Super Diamond $365,387 • Darling’s is the ONLY co
Slide 7: Diamond Green Diesel - The Past and the Future
DIAMOND GREEN DIESEL-The Past and the Future (Entity Basis) EBITDA PER GALLON RENEWABLE DIESEL 160.6 Annual Gallons-Millions We believe DGD will have the opportunity to 126.2 improve its $/gallon margin 2019 forward for 156.6 161.0 the following reasons: 2019 FORWARD ➢ 4 year average EBITDA per gall
Slide 8: Accelerating growth through Super Diamond expansion
Accelerating growth through Super Diamond expansion 8 Ingredients Business Historical Free Cash FCF ($ in millions) Projected Darling Pro Forma EBITDA (est.) $ in millions $1,194 3 Year Average (2015 - 2017) $742 $742 $827 Ingredients EBITDA Average: $ 431 CAPEX: Maintenance CAPEX (195) Organic Grow
Slide 9: Safe Harbor Statement
Safe Harbor Statement 9 This presentation contains “forward-looking” statements regarding the business operations and prospects of the Company, including its Diamond Green Diesel joint venture, and industry factors affecting it. These statements are identified by words such as “believe,” “anticipate
Slide 10: Non-U.S. GAAP Measures
Non-U.S. GAAP Measures 10 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 ac