Darling Ingredients Inc. · NYSE:DAR
Darling Ingredients — Darling International — Investor Presentation (October 2006)
25 slides from Darling Ingredients's investor presentation, Oct 19, 2006
Slide 1: Investor Presentation October 18, 2006
Investor Presentation October 18, 2006 CONFIDENTIAL DRAFT: 10/09/06 3:30 pm ET Servicing the food industry
Slide 2: Forward-Looking Language
Forward-Looking Language This presentation contains forward-looking statements regarding the business operations of Darling and the industry in which it operates. These statements are identified by words such as "may," "will," "expect," "believe," "intend," "anticipate," "should," "estimate," "conti
Slide 3: America's leading provider of rendering, recycling and recovery solutions
Over a century old, Darling International Inc. is America's leading provider of rendering, recycling and recovery solutions to the nations food industry. the nations food industry. the nations food industry. the nations food industry. the nations food industry. the nations food industry.
Slide 4: Darling at a Glance
Darling at a Glance Founded in 1882; public since 1994 Corporate headquarters in Irving, Texas 86 locations across the US 1,850 employees nationwide AMEX: DAR Financial metrics: $350 million market capitalization $500 million of annual revenues $57 million, $74 million and $68 million of EBITDA, res
Slide 5: Industry Leader
Industry Leader Largest and only publicly traded US provider of rendering, recycling, and recovery solutions Only rendering company with national footprint Network of 44 processing facilities from coast to coast Established "fee for service" business model in 1999 Exports finished goods to over 35 c
Slide 6: Darling's Value Proposition
Darling's Value Proposition Unmatched capabilities and breadth of service offerings Diversified business model Healthy capital structure with attractive asset and debt mix Uniquely positioned to capitalize on favorable market and regulatory trends Increasing government regulation of waste disposal P
Slide 7: Business Segments
Business Segments Rendering Restaurant Services
Slide 8: Rendering Overview
Rendering Overview Purchase and Collection Pricing Marketing, Sales and Distribution Darling operates a fleet of approx 1,100 trucks to collect raw materials from approx 100,000 food service establishments, butcher shops, grocery stores, and independent meat and poultry processors nationwide "Formul
Slide 9: Macro Factors Impacting Performance
Macro Factors Impacting Performance Raw material supply Fluctuations in demand for proteins Trade constraints Finished product prices Energy costs Legislation
Slide 10: NBP Acquisition Highlights
NBP Acquisition Highlights On May 15, 2006, Darling completed its acquisition of National By-Products (NBP), a top five US independent rendering company based in Des Moines, IA Key benefits from transaction include: Expanded network of facilities, particularly in the Midwest Greater customer and bus
Slide 11: Processing Facilities and Serviced Areas
Processing Facilities and Serviced Areas San Francisco Tacoma Boise Fresno Las Vegas Dallas Tulsa Kansas City (3+ hides) St. Louis Blue Earth Newark Jacksonville Detroit Los Angeles Chicago Tampa Sioux City Turlock Houston(2) Wahoo Coldwater San Antonio Portland Cleveland Cincinnati Pittsburgh San D
Slide 12: Smooth and Successful Integration
Smooth and Successful Integration Implemented operational best practices Completed route optimization Redirected raw material Closed non-essential facilities Administrative improvements ongoing
Slide 13: Rendering Revenues
Rendering Revenues 2001 2002 2003 2004 2005 DAR 179701 176057 214189 201138 192340 NBP 171534 179591 201485 198326 188172 Millions RENDERING REVENUES
Slide 14: Restaurant Services Overview
Restaurant Services Overview Basic cooking oil removal (COR) service Collection of used cooking oil from inside systems or outside corrals Only US provider of collection, storage, transport, and recycling of old grease on a national scale Grease trap maintenance and cleaning service Operates in 20 m
Slide 15: CleanStar
CleanStar Environmentally safe and efficient - Used cooking oil is pumped directly into sealed, insulated CleanStar storage tank with press of button Customer choice - Option of inside or outside storage systems to fit customer needs
Slide 16: Torvac (Trap)
Torvac(Trap) Ongoing maintenance - Provides manpower, equipment and expertise to find and fix grease trap problems Compliance - Removed material is tracked and handled in legal, environmentally sound manner
Slide 17: Cooking Oil Removal (COR)
Cooking Oil Removal (COR) Bundled services - Complete, individualized used cooking oil collection and recycling services nationwide through local providers Environmental compliance - Efficient, reliable pickup and disposal of non-recyclable waste
Slide 18: Restaurant Services Revenues
Restaurant Services Revenues Millions
Slide 19: Key Growth Drivers
Key Growth Drivers Service areas encompass most major metropolitan areas in US Adoption of stringent ordinances to regulate disposal of used cooking oil and animal waste Large national chains prefer to deal with fewer suppliers Superior quality and service Multiple service offerings (Trap & COR) LOC
Slide 20: Renewable Fuels
Renewable Fuels The market US consumption of diesel is over 60 billion gallons annually The current environment Growing consumer demand for affordable alternatives to petroleum-based fuel product The business Since 2001, bio-diesel consumption in US grew from virtually zero to 150 million gallons in
Slide 21: The Opportunity
The Opportunity Darling is uniquely positioned to capitalize on emerging bio-diesel opportunity Animal fats have historically traded at a discount to vegetable oils Largest producer of animal fat and used cooking oil in the country Access to large, stable supply of raw materials is a key competitive
Slide 22: Strong, Experienced Management Team
Strong, Experienced Management Team Name Position Biography Randall Stuewe Chairman and Chief Executive Officer Chairman and CEO since February 2003. EVP at ConAgra Foods from 1996 to 1999; President of Gilroy Foods from 2000 to 2003; prior to that spent 12 years in management, sales and trading pos
Slide 23: Operating Cash Flows
Operating Cash Flows 2001 2002 2003 2004 2005 DAR 28908 37258 42284 45795 31920 NBP 18153 23866 25983 28190 25575 Millions
Slide 24: Well-Positioned for Success
Well-Positioned for Success Market leader National footprint Unmatched capabilities and service offerings Experienced leadership team Favorable industry trends Healthy capital structure Diversified business model ....to drive growth and shareholder value Leveraging our strengths...
Slide 25: Servicing the food industry
Servicing the food industry
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