Randall C. Stuewe, Chairman and CEO Brad Phillips, EVP ...€¦ · Our global presence enables us...

Randall C. Stuewe, Chairman and CEOBrad Phillips, EVP Chief Financial Officer

Melissa A. Gaither, VP IR and Global Communications

This presentation contains “forward-looking” statements regarding the business operations and prospects of Darling Ingredients Inc., including its Diamond Green Diesel jointventure, and industry factors affecting it. These statements are identified by words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “could,” “may,” “will,” “should,”“planned,” “potential,” “continue,” “momentum,” “assumption,” and other words referring to events that may occur in the future. These statements reflect Darling Ingredient’scurrent view of future events and are based on its assessment of, and are subject to, a variety of risks and uncertainties beyond its control, each of which could cause actual resultsto differ materially from those indicated in the forward-looking statements. These factors include, among others, existing and unknown future limitations on the ability of theCompany's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; global demands forbio-fuels and grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available renderingfeedstock and selling prices for the Company’s products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as aresult of higher feed costs, reduced consumer demand or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reducedfinished product prices, including a decline in fat and used cooking oil finished product prices; changes to worldwide government policies relating to renewable fuels andgreenhouse gas emissions that adversely affect programs like the Renewable Fuel Standards Program (RFS2), low carbon fuel standards (LCFS) and tax credits for biofuels both inthe Unites States and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrenceof 2009 H1N1 flu (initially known as “Swine Flu”, highly pathogenic strains of avian influenza (collectively known as “Bird Flu”), bovine spongiform encephalopathy (or "BSE"),porcine epidemic diarrhea ("PED") or other diseases associated with animal origin in the United States or elsewhere; unanticipated costs and/or reductions in raw material volumesrelated to the Company’s compliance with the existing or unforeseen new U.S. or foreign regulations (including, without limitation, China) affecting the industries in which theCompany operates or its value added products (including new or modified animal feed, Bird Flu, PED or BSE or similar or unanticipated regulations); risks associated with therenewable diesel plant in Norco, Louisiana owned and operated by a joint venture between Darling Ingredients and Valero Energy Corporation, including possible unanticipatedoperating disruptions and issues related to the announced expansion project; risks and uncertainties relating to international sales and operations, including imposition of tariffs,quotas, trade barriers and other trade protection measures imposed by foreign countries; difficulties or a significant disruption in our information systems or failure to implementnew systems and software successfully, including our ongoing enterprise resource planning project; risks relating to possible third party claims of intellectual propertyinfringement; increased contributions to the Company’s pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required bylegislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits andregistrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere; uncertainty regarding the likely exit of the U.K. from the European Union;and/or unfavorable export or import markets. These factors, coupled with volatile prices for natural gas and diesel fuel, climate conditions, currency exchange fluctuations, generalperformance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence and discretionaryspending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could negatively impact the Company'sresults of operations. Among other things, future profitability may be affected by the Company’s ability to grow its business, which faces competition from companies that mayhave substantially greater resources than the Company. The Company’s announced share repurchase program may be suspended or discontinued at any time and purchases ofshares under the program are subject to market conditions and other factors, which are likely to change from time to time. Other risks and uncertainties regarding DarlingIngredients Inc., its business and the industries in which it operates are referenced from time to time in the Company’s filings with the Securities and Exchange Commission. DarlingIngredients Inc. is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information,future events or otherwise.

Safe Harbor Statement 2

3

touches the lives of

families around the

world…

every day!

Operations on

5continents…

136+years in business

locations worldwide

10,000employees

internationally

$3.7 billion2017 sales revenue

Irving TXheadquarters in

USA

DAR (NYSE)publicly traded

since 1994

It starts with a GLOBAL presence and diverse platform… 4

~

200+…in 18countries

6

Animal feed ingredientsSupplements for animal health

7

Cellular concrete

Energy bar

Metal mold release

Sunscreen lotions

Surgical spongeX-ray film coatingSoaps, cleansersAntisepticsTextilesInsulin

8Our strategy is to distinguish ourselves as

TH…..thus growing shareholder value and customer, supplier and employee confidence.

the Global Leaderin the production of the highest quality

sustainable protein and nutrient-recovered ingredients

FOOD FEED FUEL

to a growing population.

businesses within geographies

where we can achieve a sustainable Top 3 market position within 5 years…

To accomplish this, we will BUILD, DEVELOP and ACQUIRE

We see a “World of Growth”

Our global presence enables us to grow our FF&F business lines around the world

54% of sales

36% of sales

2% of sales

6%of sales

Food, Feed & Fuel

Food

Food & Feed

Feed

Ingredients produced:

Note: Net Sales from YTD Q3 2018

9

2% of sales

10

As population grows, wealth is created and better nutrition evolves.

Center of the plate dining becomes a staple in the global diet.

With an underlying assumption …

Source: Company, based on multiple population data reports Source: Food & Agriculture Organization of the United

Nations; Organization for Economic Competitionand

Development (forecast)

FORECAST

Africa

India

Latin America

Asia-Pacific

Europe

No. America

11

Feed needed to gain 1 lb. of weight

Time to market

Average weight at slaughter

6 lbs.

Cattle*

1,200-1,400 lbs.

18-22 Months

* For feedlot-fed cattle ** Average for freshwater aquaculture production

2.9 lbs.

Pig

240-270 lbs.

6-7 Months

1.9 lbs.

Chicken

1-2 Months

3-6 lbs.

Source: http://www.nationalrenderers.org

1.0 lbs.

Fish**

5-8 Months

1-2 lbs.

Source: Feedstuffs

12

...generating over 109 million MT of meat by-products globally.(DAR estimate assumes limited rendering in various emerging markets. National Renders Association assumes only 50-60% of animal consumed in mature markets.)

Darling Ingredients processes approximately 10% of the

world’s meat by-products...

creating a tremendous runway for growth!

DAR

Global Meat Production Forecast 2018

While global meat production grows at 2% annually

269 million MT of meat is produced

annually, growing at ~2%...(per USDA)

Source:USDA and http://www.indexmundi.com/agriculture/?commodity=broiler-meat&grafph=production

13Supplying raw materials to create a portfolio of diverse ingredients…

Note: Processed amounts are for raw material in 2017

Represents revenues in U.S. $

* Does not include Diamond Green Diesel volumes

Processed 1.12 million MT

~$1 billion

FOODcompany

~$2 billion

FEEDcompany


Processed 1.19 million* MT

~$580 million

FUELcompany

Note: Includes DGD Revenues

Where acquiring the raw material and managing the spread is key

70%

20%

5%5%

FEED

Spread Managed Margin

Commodity Exposed

Shared Margin

Fee for Service

100%

FOOD


100%

FUEL

Fee for Service

Fee for Service

• Competition

• Government regulations

Commodity Exposed

• Fat price

• Soymeal price

• Corn Price


• Raw material availability

• Food demand

• Pharma demand

SharedMargin

• Fat price

• Poultry meal pet food spread

price

BUSINESS DRIVERS

14

Financials 2018 Q3 YTD

o Net Sales: $847.5 (34% of total)

o Adjusted EBITDA margin: 11.2%

o Adjusted EBITDA: $94.8


~$1 billion

FOODcompany

Note: Processed amounts are for raw material in 2017.

Revenue for Food Segment in 2017

FOOD

Gelatin & Hydrolyzed Collagen Peptides

Argentina, Belgium, Brazil, China, France, Spain, US

Natural CasingsChina, Netherlands, Portugal

Functional ProteinsBrazil, France, Germany, Italy,

Netherlands, US

Food Grade FatsBelgium, Germany, Netherlands

HeparinNetherlands

BoneNetherlands, UK

$100.2

$128.1 $130.4 $131.9

$94.8

8.0%

11.8%12.4%

11.4%11.2%

0%

5%

10%

15%

20%

25%

30%

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

2014 2015 2016 2017 Q3 2018YTD

Strong performance & margin stability

Adj. EBITDA Margin

Adjusted EBITDA

US$ (millions)

Note: Adjusted EBITDA is a Non-GAAP measure (see slide 44)

FOOD segment - Ingredients for living 15


o Net Sales: $1,467.4 (58% of total)

o Adjusted EBITDA margin: 14.4%

o Adjusted EBITDA: $211.7

~$2 billion

FEEDcompany


Note: Processed amounts are for raw material in

2017. Revenue for Feed Segment in 2017

$351.1

$282.3 $297.1$316.5

$211.7

14.5% 13.6% 14.2% 14.1% 14.4%

0%

5%

10%

15%

20%

25%

30%

$0.0

$100.0

$200.0

$300.0

$400.0

2014 2015 2016 2017 Q3 2018YTD

Adj. EBITDA Margin

Adjusted EBITDA

US$ (millions)


FEED

ProteinsCanada, Belgium, Germany, Netherlands, Poland, USA

FatsCanada, Belgium, Germany, Netherlands, Poland, USA

Bakery FeedsUSA

Organic FertilizersNetherlands & USA

Pet Food IngredientsNetherlands, USA

UCO ServicesCanada, USA

Insect Fats & ProteinsUSA

Blood Products USA, Australia, China, Germany,

Italy, Netherlands, Poland


FEED segment – Nutrients for growth16


oNet Sales: $207.2 (8% of total)

oAdjusted EBITDA margin: 19.5%

oAdjusted EBITDA: $40.5

Excludes DGD and 2017 BTC of $12.6

Adj. EBITDA Margin

Adjusted EBITDA

US$ (millions)

Note: Processed amounts are for raw material in 2017.

Revenue for Fuel Segment in 2017


Note: Excludes DGD volumes

~$580 million

FUELcompany

Note: Includes DGD Revenues

Fuel Segment shows blenders tax credit earned each year by Darling’s biodiesel facilities and does not include any earnings or BTC related to Diamond Green Diesel JV. 2017 includes the $12.6 of BTC approved in February of 2018. No BTC in 2018

$49.2$43.9

$57.7 $57.4

$40.5

17.2%19.2%

23.4%21.7%

19.5%

0%

10%

20%

30%

40%

50%

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

2014 2015 2016 2017 Q3 2018YTD


FUEL

Green EnergyNetherlands, Belgium, Germany

Green ElectricityNetherlands

BiogasNetherlands , Belgium

BiodieselCanada, USA

Renewable DieselUSA


FUEL segment – Energy for today’s world17

Creating strong financial performance & predictable margins from our core segments

DAR - Consolidated Core Business

Adj. EBITDA Margin

Adjusted EBITDA

US$ (millions)

Gross Margin %

18

Earnings flat due to deflationary pressure and FX…

…creating optionality for the future!

$444.6

$477.66

$342.89 $331.41 $313.70

$200.00

$400.00

$600.00

2014 2015 2016 2017

Soybean Meal $/ton

39.94

32.1535.35 36.63

20.00

30.00

40.00

50.00

2014 2015 2016 2017

Palm Oil (RBD)US Gulf $/cwt.

$4.23$3.89

$3.70 $3.59

$3.00

$3.50

$4.00

$4.50

2014 2015 2016 2017

Corn - Decatur, IL $/bushel

Source: The Jacobsen Index

19

#1 Producer of Low Carbon Feedstocks in North America

Transforming animal fats and used cooking oils to clean-burning renewable fuel

DGD Renewable DieselDGD reduces greenhouse gas emissions by 85%

Regular Low-Sulfur Diesel

(fossil fuel)

Diamond Green Diesel is a50/50 joint venture between

Darling Ingredients and Valero Energy Corp.

9.68811.741 11.343 11.448

1.862

2.252 3.097 3.832

0

5

10

15

20

2018 2020 2025 2030

WORLD BIOMASS-BASED DIESEL USAGE (Biodiesel & Renewable Diesel)

(Billions of annual gallons)

Biodiesel Renewable Diesel

• Biomass Based Diesel usage projected to increase due to further implementation ofGHG reducing programs

• However, majority of growth is expected to come from Renewable Diesel

• With EU and U.S. key drivers (but not the only) for Renewable Diesel growthSource: LMC International

20

21Approved expansion capacity of DGD – Super Diamond

Super Diamond

phase three expansion

approved

parallel independent

plant to bring total

annual production to

675 million gallons of

renewable diesel plus

additional renewable

Naphtha gallons

➢ Super Diamond expansion project approved to 675 million total annual gallons of renewable diesel plus additional 50–60 million gallons of renewable Naphtha gallons for the green gasoline markets

➢ Super Diamond estimated expansion costs of $1.1 billion for entire project includes:- expansion- improved logistics capability- renewable Naphtha plant

➢ Final cost estimate and detailed engineering funded

➢ 28 acre site adjacent to current DGD facility

➢ Additional rail access

➢ Water access

➢ Start up late 2021

INCREASE CAPACITYParallel Independent plant

+

IMPROVED COMPETITIVE CAPABILITY

275 million gallons annually increased to 675 million gallons annually

(increase of 400 million gallons-145%)

➢ Ability to market Naphtha to low CI markets

➢ Capture greater % of LCFS value

➢ Lower CI scores improving sales value per gallon

➢ Improved feedstock sourcing flexibility

- CN rail unloading (in addition to existing KCS)

- Ability to receive feedstock via water (domestic & int’l)

- Additional truck unloading capability

➢ Expanded ability to load renewable diesel by rail

➢ Reduced operating cost per gallon (fixed cost)

22

Ingredients Business Historical Free CashFCF ($ in millions)

ASSUMPTIONS:• Business operates at current

commodity levels

• Blenders tax credit (BTC) held at

$1.00 through 2022

• DGD EBITDA run rate at historical

$1.26/gal with BTC

• DGD fully de-levered by start up in

back half 2021

2019 2020 2021 2022

DARLING Share DGD BTC $138 $138 $175 $338

DARLING DGD EBITDA-WITHOUT BTC

$173 $173 $221 $425

Darling Non-DGD EBITDA $431 $431 $431 $431

Projected Darling Pro Forma EBITDA

(est.)

$742 $742 $827

$1,194

$347 $347 $441

$851

$-

$200

$400

$600

$800

$1,000

2019 2020 2021 2022

Pro

form

a EB

ITD

A

Projected DGD Entity Pro Forma EBITDA (est.) $ in millions

Note: Assumes $1.26 /gal EBITDA without BTC included

The Super Diamond expansion project is subject to final approval by the Darling and Valero Board of Directors

Note: DAR Ingredients business EBITDA held at $431. through 2022Solid FCF from Ingredients Business alone

3 Year Average (2015 - 2017)

Ingredients EBITDA Average: $ 431

CAPEX:

Maintenance CAPEX (195)

Organic Growth CAPEX (54)

Free Cash $ 182

Gallons in Millions

$ in millions

275 275350

675

0

100

200

300

400

500

600

700

800

2019 2020 2021 2022

Projected Annual Production

Gallons - Renewable Diesel

23

1.6 million metric tons fewer GHG emissions

(RD emits 85% less than fossil diesel) =

a CO2 equivalent of removing ~

390,000 cars from the road for a year

24

AVOIDED GHG EMISSIONS FROM FOSSIL FUEL

1.6 million MT CO2e161 million gallons 2017 production

RENEWABLE DIESEL PRODUCTION

ENERGYMETRICS

Fresh WaterConsumption

Water Production

EnergyConsumption

(Bio) EnergyProduction

(Bio) FuelProduction

GHG Emissions

Raw MaterialCarbon Capture

CONTRIBUTION (Produced)CONSUMPTION (Used)

Note: One gallon of fossil diesel emits 10.21 kg CO2 Source: EPA

Metric figures are for Diamond Green Diesel renewable diesel production in 2017.

NET CARBON FOOTPRINT

3.6 Mln metric tonnes CO2e emissions

avoided


FOSSIL FUEL EMISSIONS

CONTRIBUTION (Produced)


Water Production

EnergyConsumption



CONSUMPTION (Used)


avoided

RAW MATERIAL CARBON CAPTURE

3.6 Mln MT

of net AVOIDED emissions =

a CO2 equivalent of planting

165 million trees

GHG Emissions


GHG EMISSION METRICS

Note: A tree can absorb up to 48 lbs. (21.8 kg) of CO2 per year. Source: EPA

Metric figures are for global Darling Ingredients rendering operations in 2017.

25

26

CONTRIBUTION (Produced)CONSUMPTION (Used)

NET WATER CONTRIBUTION

100 K cubic meters30 Mln gallons

5.8 Mln cubic meters

FRESH WATER CONSUMPTION

1.53 Bln gallons

WATER PRODUCTION

5.9 Mln cubic meters1.56 Bln gallons


Water Production

EnergyConsumption



GHG Emissions


WATERMETRICS

1.56 billion gallons

of water PRODUCED =

equivalent of

2,363 Olympic-sized

swimming pools

Note: One pool has 660,253 gallons of water. Source: www.livestrong.com

Metric figures are for Darling Ingredients Rendering Operations in 2017 (excludes

Rousselot Gelatin Operations)

27

• Relying on our core values of Entrepreneurship, Transparency and Integrity

• Believing in center of the plate dining & meat production growth

• Structuring our business model to generate predictable cash returns

• Maintaining a strong and de-levered balance sheet

• While deploying capital with a 15-20% ROCE

• Investing in new technologies and processes to make world-class, value-added ingredients

• Being socially responsible throughout our journey

• Developing people to support our growth!

For 136 years, we have touched the lives of many and will continue our journey by….

Creating sustainable food, feed and fuel ingredients for a growing population

30

Q3 2018 Overview

Consolidated Earnings

• Total global volumes up 5.0% year over year

• Fat pricing significantly weaker year over year. Ample supplies globally, DGD off line. Seeing improvement in Q4.

• Protein pricing slightly weaker year over year. Trade disruptions due to China tariffs influencing end markets. Seeing improvements coming from non-traditional markets.

• Collagen/Gelatin sales stable year over year with improved margins in Brazil and higher demand for specialty products globally

• Board increases Share Repurchase Program to $200 million of common stock

• Debt paydown of $12 million during the quarter

• Diamond Green Diesel (DGD) completes expansion turnaround and announces phase III growth to 675 million annual gallons of renewable diesel plus renewable Naphtha gallons

US$ (millions) except per share price Q1

2017

Q2

2017

Q3

2017

Q4

2017

Total

2017

Q1

2018

Q2

2018

Q3

2018

Revenue 878.5$ 894.9$ 936.3$ 952.6$ 3,662.3$ 875.4$ 846.6$ 812.6$

Gross Margin 190.5 195.7 193.8 206.8 786.8 197.3 193.6 164.5

Gross Margin % 21.7% 21.9% 20.7% 21.7% 21.5% 22.5% 22.9% 20.2%

SG&A 86.9 84.5 82.1 90.0 343.5 86.9 78.6 67.4

SG&A Margin % 9.9% 9.4% 8.8% 9.4% 9.4% 9.9% 9.3% 8.3%

Restructuring and impairment charges 0.0 0.0 0.0 0.0 0.0 0.0 (15.0) 0.0

Operating Income 32.5 38.2 34.4 36.1 141.2 31.8 22.1 18.2

Adj. EBITDA (2) 103.6 111.2 111.6 116.9 443.3 110.4 115.1 97.0

Adj. EBITDA Margin % 11.8% 12.4% 11.9% 12.3% 12.1% 12.6% 13.6% 11.9%

Interest Expense (21.7) (22.4) (22.5) (22.3) (88.9) (23.1) (23.0) (20.1)

Debt Extinguishment costs 0.0 0.0 0.0 0.0 0.0 0.0 (23.5) 0.0

Foreign Currency loss (0.3) (2.1) (2.1) (2.4) (6.9) (1.5) (3.5) (2.1)

Gain/(Loss) on Disposal of Subsidiaries 0.0 0.0 0.0 0.0 0.0 0.0 (15.5) 3.0

Other Expense (3) (2.0) (4.0) (2.5) (1.3) (9.7) (2.6) 1.2 (2.7)

Equity in net income/(loss) of

unconsolidated subsidiaries0.7 8.3 7.7 11.8 28.5 97.2 15.2 (2.8)

Income Tax (Expense)/Benefit (1.8) (7.7) (6.3) 85.0 69.2 (3.7) 1.7 1.4

Net income attributable to noncontrolling

interests(1.6) (1.2) (0.9) (1.2) (4.9) (0.8) (1.3) (0.9)

Net income/(loss) attributable to Darling 5.8$ 9.1$ 7.8$ 105.7$ 128.5$ 97.3$ (30.0)$ (6.0)$

Earnings per share (fully diluted) 0.04$ 0.05$ 0.05$ 0.63$ 0.77$ 0.58$ (0.18)$ (0.04)$

(1) Includes $12.6M of 2017 BTC in Q1 2018 and revenue recognition for Q1 and Q2 2018

(2) Does not inlcude Unconsolidated Subsidiaries EBITDA.(3) Rounding captured in Other Expense.

31

Note: See slide 16 for information regarding Darling’s use of Non-GAAP measures.

Adjusted EBITDA

(1) The average rates assumption used in this calculation was the actual fiscal average rate for the three months ended September 29, 2018 of €1.00:USD$1.16 and CAD$1.00:USD$0.76 as compared

to the average rate for the three months ended September 30, 2017 of €1.00:USD $1.18 and CAD$1.00:USD$0.80, respectively.

(2) The average rates assumption used in this calculation was the actual fiscal average rate for the nine months ended September 29, 2018 of €1.00:USD$1.20 and CAD$1.00:USD$0.78 as compared to

the average rate for the nine months ended September 30, 2017 of €1.00:USD $1.11 and CAD$1.00:USD$0.77, respectively.

Adjusted EBITDA and Pro Forma Adjusted EBITDA

(US$ in thousands) September 29, September 30, September 29, September 30,

2018 2017 2018 2017

Net income/(loss) attributable to Darling $ (6,037) $ 7,761 $ 60,848 $ 22,739

Depreciation and amortization 78,842 77,202 235,915 221,306

Interest expense 20,080 22,531 66,220 66,657

Income tax expense/(benefit) (1,403) 6,296 3,992 15,856

Restructuring and impairment charges - - 14,965 -

Foreign currency loss 2,106 2,055 7,082 4,430

Other expense, net 2,786 2,533 4,103 8,383

Debt extinguishment costs - - 23,509 -

Loss/(gain) on disposal of subsidiaries (3,038) - 12,500 -

Equity in net (income)/loss of unconsolidated subsidiaries 2,792 (7,703) (109,598) (16,669)

Net income attributable to noncontrolling interests 900 923 2,952 3,671

Adjusted EBITDA $ 97,028 $ 111,598 $ 322,488 $ 326,373

Foreign currency exchange impact 1,055 (1) - (10,844) (2) -

Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) $ 98,083 $ 111,598 $ 311,644 $ 326,373

DGD Joint Venture Adjusted EBITDA (Darling's Share) $ 509 $ 10,570 $ 118,745 $ 28,013

Three Months Ended - Year over Year Nine Months Ended - Year over Year

(US$, in thousands) June 30, 2018

Cash (includes restricted cash of $142)

$104,262

Accounts receivable 371,291

Total Inventories 370,555

Net working capital 338,672

Net property, plant and equipment

1,624,354

Total assets 4,856,916

Total debt 1,695,289

Shareholders' equity $2,238,031

Balance Sheet Highlights

Leverage Ratio

32Balance Sheet Highlights and Debt Summary

Debt Summary

Historical Leverage Ratios 2014 - 2018

(US$, in thousands) September 29, 2018

Cash (includes restricted cash of $103) 81,573$

Accounts receivable 363,312

Total Inventories 361,679

Net working capital 322,174

Net property, plant and equipment 1,631,036

Total assets 4,805,211

Total debt 1,679,229

Shareholders' equity 2,315,303$

(US$, in thousands) September 29, 2018

Amended Credit Agreement

Revolving Credit Facility 23,000$

Term Loan A 78,586

Term Loan B 485,636

5.375% Senior Notes due 2022 494,760

3.625% Senior Notes due 2026 588,013

Other Notes and Obligations 9,234

Total Debt: 1,679,229$

September 29, 2018 Actual Credit Agreement

Total Debt to EBITDA: 3.37 5.50x

Non-GAAP Adj. EBITDA MarginFood

33

Adj. EBITDA Bridge Q3-2017 to Q3-2018(millions)

Food Segment

$34.6 $33.0 $32.7

$0.7

$3.5

0

10

20

30

40

Price / Yield

EBITDA Q3 17

($26.2)

Volumes Cost of Sales

Other FX Impact

Adjusted EBITDA

EBITDA Q3 18

($0.3)

Key Drivers:

Note: Cost of Sales includes raw material costs, collection costs and factory costs.

• Global collagen business showed stable earnings over Q3 2017 with improved margins in Brazil and higher sales volumes in China

• CTH, our natural casings business, reported lower earnings mainly due to decreased sales volumes

• Edible fats show continued margin pressure due to competing weaker palm oil and soybean oil markets

$20.4

11.6% 11.5%10.6% 10.7%

12.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Q32017

Q42017

Q12018

Q22018

Q32018

US$ and metric tons

(millions)

Q3

2017

Q4

2017

Total

2017

Q1

2018

Q2

2018

Q3

2018

Revenue (1) $298.9 $313.5 $1,157.0 $305.5 (2) $276.7 (2) $265.2 (2)

Gross Margin 60.2 63.6 236.6 56.3 51.9 54.5

Gross Margin % 20.1% 20.3% 20.4% 18.4% 18.8% 20.6%

SG&A 25.5 27.4 104.6 23.9 22.2 21.8

SG&A Margin % 8.5% 8.7% 9.0% 7.8% 8.0% 8.2%

Operating Income 15.1 16.4 56.9 11.8 9.3 (3) 13.0

Adj. EBITDA $34.6 $36.1 $131.9 $32.4 $29.7 (3) $32.7

Raw Material Processed(million metric tons)

0.29 0.28 1.12 0.28 0.28 0.29

(1) Revenue adjusted for Brazil VAT reclass(2) Reflects freight revenue reclass(3) Adjusted for restructuring charges of $15.0 million for closure of Argentina gelatin plant

34



Feed Segment

Key Drivers:

$81.1

$59.8 $59.2

$30.3

$5.0

-20

0

20

40

60

80

100

($0.6)

Price / Yield

EBITDA Q3 17

$33.1

($89.7)

Volumes Cost of Sales

Other Adjusted EBITDA

FX Impact

EBITDA Q3 18

• Slaughter volumes remain at record levels with global raw material volumesup 6.1% over Q3 2017.

• Raw material formulas lagging due to lower fat and protein markets throughout the quarter.

• DGD extended downtime affecting N. American fat pricing. Summer quality ultimately lowered sales premiums.

• African Swine Fever (AFS) in China forced $7.2 million inventory devaluation in our 5 blood factories.

• Trade disruptions and large slaughter affecting protein pricing.

US$ and metric tons

(millions)

Q3

2017

Q4

2017

Total

2017

Q1

2018

Q2

2018

Q3

2018

Revenue $575.5 $562.3 $2,239.5 $485.8 (1) $498.8 (1) $482.7 (1)

Gross Margin 126.0 122.0 494.9 116.7 128.0 98.9

Gross Margin % 21.9% 21.7% 22.1% 24.0% 25.7% 20.5%

SG&A 44.8 45.8 178.3 48.3 43.9 39.7

SG&A Margin % 7.8% 8.1% 8.0% 9.9% 8.8% 8.2%

Operating Income 34.2 26.9 132.3 21.7 37.3 11.9

Adj. EBITDA (2) $81.1 $76.2 $316.5 $68.5 $84.1 $59.2

Raw Material Processed (million metric tons)

2.04 2.13 8.24 2.12 2.13 2.17

(1) Reflects freight revenue reclass and deconsolidation of BestHides(2) Does not include Unconsolidated Subsidiaries EBITDA

Non-GAAP Adj. EBITDA MarginFeed

14.1% 13.6% 14.1%

16.9%

12.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Q32017

Q42017

Q12018

Q22018

Q32018

Non-GAAP Adj. EBITDA Margin Fuel

35



Fuel Segment (Does not include Diamond Green Diesel JV)

Key Drivers:

• Ecoson, European bioenergy business, delivered improved performance over Q3 2017 with strong volumes from new operation in Belgium

• N. American biodiesel reports slightly weaker results in Canada due to lower RIN pricing and no BTC

• Rendac, European disposal rendering business, reports stable earnings with strong volumes in the Netherlands and Belgium

$8.1

$14.0 $13.9 $4.8

$1.2 $2.4

0

5

10

15

EBITDA Q3 17

($2.5)

Price /

Yield

EBITDA Q3 18

Cost of

Sales

Volumes Other Adjusted

EBITDA

($0.1)

FX

Impact

Note: Moved $12.6 million of 2017 retrospective blenders tax credit from Q1 2018 approved in February

2018 to total 2017 EBITDA

13.1%

21.6%

15.5%

19.1%21.5%

0%

5%

10%

15%

20%

25%

Q32017

Q42017

Q12018

Q22018

Q32018

US$ and metric tons

(millions)

Q3

2017

Q4

2017

Total

2017

Q1

2018

Q2

2018

Q3

2018

Revenue $61.9 $76.8 $265.8 $84.1 (1) $71.1 (1) $64.6 (1)

Gross Margin 7.6 21.4 55.4 24.2 13.7 11.1

Gross Margin % 12.3% 27.9% 20.8% 28.8% 19.3% 17.1%

SG&A (0.5) 4.7 10.4 (1.4) 0.2 (2.8)

SG&A Margin % -0.8% 6.1% 3.9% -1.7% 0.2% -4.3%

Operating Income 0.2 8.1 14.0 17.2 5.0 4.5

Adj. EBITDA (2) $8.1 $16.6 $57.6 (3) $13.0 (3) $13.6 $13.9Raw Material Processed *

(million metric tons)0.28 0.32 1.19 0.30 0.27 0.29

(1) Reflects freight revenue reclass (2) Does not include DGD EBITDA(3) Reflects move of $12.6 million 2017 retrospective blenders tax credit from Q1 2018 approved in February 2018 to total 2017 EBITDA* Excludes raw material processed at the DGD joint venture.

36

Super Diamond

phase three expansion

approved

parallel independent plant

to bring total annual

production to 675 million

gallons of renewable diesel

plus additional renewable

Naphtha gallons

Diamond Green Diesel (50% Joint Venture)

➢ Super Diamond expansion project approved to 675 million total annual gallons of renewable diesel plus additional renewable Naphtha gallons for the green gasoline markets

➢ Super Diamond estimated expansion costs of $1.1 billion for entire project includes:- expansion- improved logistics capability- renewable Naphtha plant

➢ Expansion to 275 million gallons completed and running at capacity since early October.

➢ Q3 2018 Entity EBITDA of $1.0 million or $.04 per gallon on 23.1 million gallons of sales

➢ Lower volumes, higher operating costs, and hedge losses reflected in lower operating margin

➢ LCFS premium around $189/metric ton or $1.89/gallon (per Jacobsen 10-19-18)

➢ No Blenders Tax Credit in results

➢ Spot margins $1.35 per gallon EBITDA

➢ Expect to produce/sell 65-70 million gallons in Q4

DGD – ENTITY LEVEL

US$ (millions) 2014 2015 2016 2017Q1

2018

Q2

2018

Q3

2018

EBITDA (Entity) $163.3 $177.0 $174.4 * $246.8 $39.7 $36.3 $1.0

EBITDA (Darling's share) 81.6 88.5 87.2 * 123.4 19.9 18.2 0.5

Gallons Produced 127.3 158.8 158.1 161.3 37.1 33.2 17.2

Gallons Sold 126.2 156.6 161.0 160.4 33.4 34.8 23.1

*Includes 2017 retroactive blenders tax credit of $160.4 mi l l ion that was approved in February 2018 and

recorded in Q1 2018

Source: Company Financials

37

Financial:

• U.S. Tax Cuts and Jobs Act plus European tax reform adds $88.9 mm, or $0.53 to EPS

• Blenders Tax Credit passed retroactive in February 2018 for 2017 will add $0.56 per share in 1Q 2018

• Total Debt reduction of $112.5 mm in Fiscal 2017

• Refinanced Term Loan B – lowered borrowing cost and extended terms

• CAPEX of $274.2 mm in 2017

• Improved Working Capital by $61.8 mm in 2017 over 2016

• Total Debt to EBITDA ratio lowered to 3.47

Executing World of Growth Strategy:

New Facilities Under Construction:

• Bovine Blood Processing – Mering, Germany Q1-2018• Ecoson Digester– Denderleuuw, Belgium Q2 2018• Poultry Protein Conversion Facility –Grapeland, Texas, USA Q4 2018• Black Soldier Fly Protein Facility – Maysfield, Kentucky, USA Q3 2018

Approved for Construction:

• Peptan Facility – Angolume, France Q1 2019• Protein Conversion Facility (poultry)—Wahoo, Nebraska Q2 2019

Plant Expansions:

• Protein Conversion Facility – Los Angeles, California, USA Q1 2018• Protein Conversion Facility (beef) – Wahoo, Nebraska, USA Q1 2018• Protein Conversion Facility– Poland – completed 3Q 2017• Rousselot Expansion – Girona Spain – completed Q4 2017

Acquisitions:

• American By-Products Recyclers – New Jersey, USA (asset purchase)• Tallow Masters – Florida, USA (asset purchase)• Sonac China Blood– purchased remaining minority shares – China

S&P Ratings 12/5/2017

Term Loan B – BBB-Corporate Family – BB+Revolver & Term Loan A – BBB-U.S. Bonds – BB+Euro Bonds – BB+

Moody’s Ratings 12/4/2017

Term Loan B – Ba1Corporate Family – Ba2Revolver & Term Loan A – Ba1U.S. Bonds – Ba3Euro Bonds – Ba3

S&P and Moody’s outlook remains stable

Creating sustainable food, feed and fuel ingredients for a growing population

Appendix

(1) Revenue adjusted for Brazil VAT reclass (2) Reflects freight revenue reclass(3) Adjusted for restructuring and impairment charges of $15.0 million for closure of Argentina gelatin plant

Food Segment - Historical 39

US$ and metric tons

(millions)

Q1

2016

Q2

2016

Q3

2016

Q4

2016

Total

2016

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Total

2017

Q1

2018

Q2

2018

Q3

2018

Revenue (1) $246.6 $270.5 $260.2 $278.4 $1,055.7 $266.2 $278.4 $298.9 $313.5 $1,157.0 $305.5 (2) $276.7 (2) $265.2 (2)

Gross Margin 62.4 57.9 50.7 56.6 227.6 56.8 56.0 60.2 63.6 236.6 56.3 51.9 54.5

Gross Margin % 25.3% 21.4% 19.5% 20.3% 21.6% 21.3% 20.1% 20.1% 20.3% 20.4% 18.4% 18.8% 20.6%

SG&A 24.9 20.4 25.3 26.6 97.2 25.0 26.7 25.5 27.4 104.6 23.9 22.2 21.8

SG&A Margin % 10.1% 7.5% 9.7% 9.6% 9.2% 9.4% 9.6% 8.5% 8.7% 9.0% 7.8% 8.0% 8.2%

Operating Income 20.8 19.7 8.0 11.8 60.3 14.3 11.1 15.1 16.4 56.9 11.8 9.3 (3) 13.0

Adj. EBITDA $37.5 $37.4 $25.4 $30.1 $130.4 $31.9 $29.3 $34.6 $36.1 $131.9 $32.4 $29.7 (3) $32.7

Adj. EBITDA Margin % 15.2% 13.8% 9.8% 10.8% 12.4% 12.0% 10.5% 11.6% 11.5% 11.4% 10.5% 10.7% 12.3%

Raw Material

Processed

(millions of metric tons)

0.27 0.27 0.26 0.28 1.08 0.27 0.28 0.29 0.28 1.12 0.28 0.28 0.29

40

(1) Reflects freight revenue reclass and deconsolidation of BestHides(2) Does not include Unconsolidated Subsidiaries EBITDA

US$ and metric tons

(millions)

Q1

2016

Q2

2016

Q3

2016

Q4

2016

Total

2016

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Total

2017

Q1

2018

Q2

2018

Q3

2018

Revenue $476.2 $543.0 $531.4 $538.5 $2,089.1 $552.6 $549.1 $575.5 $562.3 $2,239.5 $485.8 (1) $498.8 (1) $482.7 (1)

Gross Margin 103.5 126.8 117.8 116.2 464.3 120.0 126.9 126.0 122.0 494.9 116.7 128.0 98.9

Gross Margin % 21.7% 23.4% 22.2% 21.6% 22.2% 21.7% 23.1% 21.9% 21.7% 22.1% 24.0% 25.7% 20.5%

SG&A 44.7 42.7 38.4 41.5 167.3 44.8 42.9 44.8 45.8 178.3 48.3 43.9 39.7

SG&A Margin % 9.4% 7.9% 7.2% 7.7% 8.0% 8.1% 7.8% 7.8% 8.1% 8.0% 9.9% 8.8% 8.2%

Operating Income 14.5 42.0 35.8 25.9 118.2 31.5 39.7 34.2 26.9 132.3 21.7 37.3 11.9

Adj. EBITDA (2) $58.9 $84.1 $79.5 $74.6 $297.1 $75.2 $84.0 $81.1 $76.2 $316.5 $68.5 $84.1 $59.2


Raw Material

Processed 1.97 1.97 1.97 2.06 7.97 2.05 2.02 2.04 2.13 8.24 2.12 2.13 2.17

41

(1) Rendering Net Sales- Other category includes hides, pet food, and service charges(2) Other Net Sales category includes trap services and industrial residual services through May 21, 2018 (Sale of TRS)

Feed Ingredients Segment – Net Sales

Change in Net Sales – Year over Year Three Months Ended September 30, 2017 over September 29, 2018

Change in Net Sales – Year over Year Nine Months Ended September 30, 2017 over September 29, 2018

Fats Proteins Other (1)

Total

Rendering

Used

Cooking Oil Bakery Other (2) Total

Net Sales Three Months Ended September 30, 2017 166.0$ 218.8$ 68.7$ 453.5$ 46.6$ 51.9$ 23.5$ 575.5$

Changes:

Increase/(Decrease) in sales volumes 14.3 20.6 - 34.9 2.1 (2.4) - 34.6

Increase/(Decrease) in finished product prices (28.2) (6.3) - (34.5) (6.9) 0.3 - (41.1)

Increase/(Decrease) due to currency exchange rates (0.8) (1.5) (0.1) (2.4) (0.1) - - (2.5)

Freight Revenue (revenue recognition) (8.9) (15.3) (1.3) (25.5) (2.8) (5.1) - (33.4)

Other change - - (39.8) (39.8) - - (10.6) (50.4)

Total Change: (23.6) (2.5) (41.2) (67.3) (7.7) (7.2) (10.6) (92.8)

Net Sales Three Months Ended September 29, 2018 142.4$ 216.3$ 27.5$ 386.2$ 38.9$ 44.7$ 12.9$ 482.7$

Rendering Sales

Change in Net Sales - 3Q17 to 3Q18

Fats Proteins Other (1)

Total

Rendering

Used

Cooking Oil Bakery Other (2) Total

Net Sales Nine Months Ended September 30, 2017 484.4$ 612.7$ 215.8$ 1,312.9$ 136.1$ 159.5$ 68.8$ 1,677.3$

Changes:

Increase/(Decrease) in sales volumes 31.8 41.9 - 73.7 4.7 (11.1) - 67.3

Increase/(Decrease) in finished product prices (71.8) 13.7 - (58.1) (9.1) 3.1 - (64.1)

Increase/(Decrease) due to currency exchange rates 5.9 15.1 0.6 21.6 0.1 - 0.1 21.8

Freight Revenue (revenue recognition) (27.2) (42.2) (3.7) (73.1) (8.2) (15.6) - (96.9)

Other change - - (124.9) (124.9) - - (13.1) (138.0)

Total Change: (61.3) 28.5 (128.0) (160.8) (12.5) (23.6) (13.0) (209.9)

Net Sales Nine Months Ended September 29, 2018 423.1$ 641.2$ 87.8$ 1,152.1$ 123.6$ 135.9$ 55.8$ 1,467.4$

Rendering Sales

Change in Nine Months End Net Sales

Q3 2017 to Q3 2018

42Jacobsen, Wall Street Journal and Thomson Reuters

Historical Pricing

2017 Finished Product Pricing Feed Segment Ingredients January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg.

Bleachable Fancy Tallow - Chicago Renderer / cwt $32.00 $31.68 $30.50 $31.35 $30.74 $33.75 $35.89 $33.61 $36.00 $35.95 $34.38 $35.36 $28.36 $26.80 $27.00 $27.40 $31.93

Yellow Grease - Illinois / cwt $23.42 $23.70 $24.16 $23.78 $24.61 $25.21 $26.93 $25.64 $27.14 $26.96 $27.48 $27.20 $24.05 $23.44 $21.86 $23.18 $24.95

Meat and Bone Meal - Ruminant - Illinois / ton $258.03 $289.74 $273.91 $270.69 $268.82 $243.86 $245.80 $251.91 $282.00 $314.24 $278.50 $292.83 $228.30 $217.50 $220.63 $222.73 $259.54

Poultry By-Product Meal - Feed Grade - Mid South/ton $290.00 $293.68 $280.00 $287.42 $284.74 $285.00 $285.00 $284.90 $285.00 $285.00 $285.50 $285.14 $275.91 $242.50 $235.00 $252.22 $277.42

Poultry By-Product Meal - Pet Food - Mid South/ton $648.68 $615.13 $644.02 $635.89 $699.34 $706.82 $660.80 $688.91 $603.13 $572.50 $557.50 $577.02 $599.55 $565.63 $614.50 $593.74 $623.89

Feathermeal - Mid South / ton $455.00 $431.84 $386.74 $422.94 $383.95 $394.32 $392.05 $390.14 $397.50 $425.43 $401.00 $408.82 $357.50 $364.00 $362.13 $361.46 $395.84

2017 Cash Corn PricingCompeting Ingredient for Bakery Feeds and Fats January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg.

Corn - Track Central IL #2 Yellow / bushel $3.46 $3.49 $3.41 $3.45 $3.38 $3.48 $3.52 $3.46 $3.49 $3.28 $3.16 $3.31 $3.13 $3.14 $3.21 $3.16 $3.35

2017 European Benchmark PricingPalm Oil - Competing ingredient for edible fats in Food Segment

Soy meal - Competing ingredient for protein meals in Feed Segment January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg. Oct. Nov. Dec. Q4 Avg. Year Avg.

Palm oil - CIF Rotterdam / metric ton $804 $772 $719 $765 $672 $732 $666 $690 $665 $673 $723 $687 $716 $719 $670 $702 $711.00

Soy meal - CIF Rotterdam / metric ton $371 $374 $359 $368 $347 $344 $331 $341 $341 $331 $340 $337 $354 $350 $364 $356 $351.00

2017 Average Jacobsen Prices (USD)

2017 Average Wall Street Journal Prices (USD)

2017 Average Thomson Reuters Prices (USD)

2018 Finished Product Pricing

Feed Segment Ingredients January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg.

Bleachable Fancy Tallow - Chicago Renderer / cwt $26.60 $25.57 $26.20 $26.14 $25.31 $24.80 $27.11 $25.72 $28.64 $28.39 $25.82 $27.70

Yellow Grease - Illinois / cwt $20.25 $19.58 $19.00 $19.61 $19.00 $20.94 $22.05 $20.69 $22.38 $22.52 $21.53 $22.19

Meat and Bone Meal - Ruminant - Illinois / ton $222.50 $235.26 $292.62 $250.61 $312.02 $297.16 $291.67 $301.43 $280.00 $263.26 $250.00 $264.77

Poultry By-Product Meal - Feed Grade - Mid South/ton $235.00 $240.92 $273.69 $250.16 $295.00 $286.02 $273.10 $285.56 $262.86 $271.74 $269.61 $268.13

Poultry By-Product Meal - Pet Food - Mid South/ton $700.24 $793.42 $851.31 $781.27 $860.95 $747.73 $597.62 $734.53 $557.14 $557.61 $557.89 $556.48

Feathermeal - Mid South / ton $362.86 $389.87 $473.21 $409.26 $536.19 $542.95 $532.86 $540.50 $520.00 $453.59 $380.53 $453.58

2018 Cash Corn Pricing

Competing Ingredient for Bakery Feeds and Fats January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg.

Corn - Track Central IL #2 Yellow / bushel $3.28 $3.42 $3.53 $3.41 $3.54 $3.74 $3.39 $3.56 $3.23 $3.25 $3.11 $3.20

2018 European Benchmark PricingPalm Oil - Competing ingredient for edible fats in Food Segment

Soy meal - Competing ingredient for protein meals in Feed Segment January February March Q1 Avg. April May June Q2 Avg. July August Sept. Q3 Avg.

Palm oil - CIF Rotterdam / metric ton $676 $668 $681 $675 $664 $656 $632 $651 $589 $560 $549 $566

Soy meal - CIF Rotterdam / metric ton $375 $417 $445 $412 $460 $461 $423 $448 $407 $390 $377 $391

2018 Average Jacobsen Prices (USD)

2018 Average Wall Street Journal Prices (USD)

2018 Average Thomson Reuters Prices (USD)

QTR. Over QTR. Year Over YearComparison Q2-2018 Q3-2018 % Q3-2017 Q3-2018 %

Average Jacobsen Prices (USD) Avg. Avg. Change Avg. Avg. Change

Bleachable Fancy Tallow - Chicago Renderer / cwt $25.72 $27.70 7.7% $35.36 $27.70 -21.7%

Yellow Grease - Illinois / cwt $20.69 $22.19 7.2% $27.20 $22.19 -18.4%

Meat and Bone Meal - Ruminant - Illinois / ton $301.43 $264.77 -12.2% $292.83 $264.77 -9.6%

Poultry By-Product Meal - Feed Grade - Mid South / ton $285.56 $268.13 -6.1% $285.14 $268.13 -6.0%

Poultry By-Product Meal - Pet Food - Mid South / ton $734.53 $556.48 -24.2% $577.02 $556.48 -3.6%

Feathermeal - Mid South / ton $540.50 $453.58 -16.1% $408.82 $453.58 10.9%

Average Wall Street Journal Prices (USD)

Corn - Track Central IL #2 Yellow / bushel $3.56 $3.20 -10.1% $3.31 $3.20 -3.3%

Average Thomson Reuters Prices (USD)

Palm oil - CIF Rotterdam / metric ton $651 $566 -13.1% $687 $566 -17.6%

Soy meal - CIF Rotterdam / metric ton $448 $391 -12.7% $337 $391 16.0%

(1) Reflects freight revenue reclass(2) Q1 2018 Adj. EBITDA contains $12.6 M retroactive 2017 blenders tax credit approved in February 2018(3) Pro forma Adjusted EBITDA assumes blenders tax credit was received during quarters earned in 2017 and 2018 for comparison to 2016 when the blenders tax credit was prospective

Fuel Segment - Historical 43

US$ and metric tons

(millions)

Q1

2016

Q2

2016

Q3

2016

Q4

2016

Total

2016

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Total

2017

Q1

2018

Q2

2018

Q3

2018

Revenue $55.6 $62.3 $60.4 $68.8 $247.1 $59.7 $67.4 $61.9 $76.8 $265.8 $84.1 (1) $71.1 (1) $64.6 (1)

Gross Margin 14.9 15.6 14.2 19.9 64.6 13.7 12.7 7.6 21.4 55.4 24.2 13.7 11.1

Gross Margin % 26.8% 25.0% 23.5% 28.9% 26.1% 22.9% 18.8% 12.3% 27.9% 20.8% 28.8% 19.3% 17.1%

SG&A 1.8 1.8 1.3 1.9 6.8 3.3 2.9 (0.5) 4.7 10.4 (1.4) 0.2 (2.8)

SG&A Margin % 3.2% 2.9% 2.2% 2.8% 2.8% 5.5% 4.3% -0.8% 6.1% 3.9% -1.7% 0.2% -4.3%

Operating Income 6.2 6.6 6.0 10.5 29.3 3.6 2.1 0.2 8.1 14.0 17.2 5.0 4.5

Adj. EBITDA $13.1 $13.8 $12.9 $18.0 $57.8 $10.4 $9.9 $8.1 $16.6 $45.0 $25.6 (2) $13.6 $13.9


Pro forma Adjusted EBITDA (3) $13.1 $13.8 $12.9 $18.0 $57.8 $13.2 $13.1 $11.2 $20.1 $57.6 $14.6 $15.7 $15.8Raw Material Processed *

(millions of metric tons) 0.28 0.30 0.29 0.31 1.18 0.30 0.29 0.28 0.32 1.19 0.30 0.27 0.29

*Excludes raw material processed at the DGD joint venture.

Diamond Green Diesel (50% Joint Venture)

US$ (millions)Q1

2016

Q2

2016

Q3

2016

Q4

2016

Total

2016

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Total

2017

Q1

2018

Q2

2018

Q3

2018

EBITDA (Darling's share) $9.6 $18.3 $22.5 $36.7 $87.2 $5.0 $12.4 $10.6 $15.2 $43.2 $100.1 $18.2 $0.5

Pro forma Adjusted EBITDA (3) $9.6 $18.3 $22.5 $36.7 $87.2 $21.4 $32.7 $32.1 $37.3 $123.5 $36.6 $35.6 $12.0

Total Gallons Produced 28.5 43.8 43.8 42.0 158.1 32.6 43.7 41.7 43.3 161.3 37.1 33.2 17.2

Total Gallons Sold/Shipped 29.1 42.7 42.5 46.6 161.0 32.7 40.5 43.0 44.3 160.4 33.4 34.8 23.1

European categories for rendering of animal by-products:

• C3 – food-grade material, for food, pet food and aquaculture (July 1, 2017 released for export to countries with approving regulations)

• C2 – unfit for food or animal feed, can be used as fertilizer

• C1 – must be destroyed; used to generate green energy

Note: List excludes administrative

and dedicated sales offices.

Locations by continent and process

Process USA Canada Europe China S. America Australia Total:

Feed Ingredients Segment

Rendering - (C3 By-products & UCO) 39 5 18 62

Transfer Stations 54 54

Protein Blending 6 6

Bakery 10 10

Used Cooking Oil (processing only) 8 1 9

Pet Food 3 1 4

Grease Trap Service 3 3

Blood Processing 1 5 5 1 12

Fertilizer 1 1

Hides 2 2

Food Ingredients Segment

Gelatin - Rousselot 2 4 3 2 11

Food Grade Fat Processing 7 7

Casings - CTH 4 1 5

Bone Processing 2 2

Heparin Processing - Hepac 1 1

Fuel Ingredients Sement

Disposal Rendering - Rendac - (C1 & C2) 6 6

Digestion Operation 2 2

Biodiesel 1 1 2

Renewable Diesel (DGD unconsolidated JV) 1 1

131 6 51 9 2 1 200

Under Construction:

Poultry protein operation - Wahoo, NE USA 1

Poultry protein operation - Grapeland, Texas USA 1

Peptan facility - Angolume, France 1

Peptan facility - Brazil 1

Black Soldier Fly Larvae facility - Maysville, KY USA 1

44

Adjusted Non-GAAP EBITDA Reconciliation

Darling Ingredients Inc. Adjusted EBITDA Reconciliation

Total 2014 Total 2015 Total 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Total 2017 Q1 2018 Q2 2018 Q3 2018 YTD Q3 2018

(Dollars in millions)

Net income attributable to Darling $64.22 $78.53 $102.31 $5.83 $9.15 $7.76 $105.73 $128.47 $97.31 ($30.42) ($6.04) $60.85

Depreciation and amortization 269.52 269.90 289.91 71.11 72.99 77.20 80.79 302.10 78.62 78.45 78.84 235.92

Interest expense 135.42 105.53 94.19 21.68 22.45 22.53 22.27 88.93 23.12 23.02 20.08 66.22

Income tax expense/(benefit) 13.14 13.50 15.32 1.82 7.74 6.30 (85.01) (69.15) 3.71 1.68 (1.40) 3.99

Restructuring and impairment charges - - - - - - - - - 14.97 - 14.97

Foreign currency loss/(gain) 13.55 4.91 1.85 0.26 2.11 2.06 2.47 6.90 1.48 3.50 2.11 7.08

Other expense/(income), net (0.30) 6.84 6.53 2.05 3.80 2.53 1.30 9.69 2.52 (1.20) 2.79 4.10

Debt extinguishment costs - - - - - - - - - 23.51 - 23.51

Loss on sale of subsidiary - - - - - - - - - 15.54 (3.04) 12.50

Equity in net (income)/loss of unconsolidated subsidiaries (65.61) (73.42) (70.38) (0.71) (8.26) (7.70) (11.84) (28.50) (97.15) (15.24) 2.79 (109.60)

Net (loss)/income attributable to non-controlling interests 4.10 6.75 4.91 1.57 1.18 0.92 1.22 4.89 0.77 1.28 0.90 2.95

Adjusted EBITDA (Non-GAAP) $434.03 $412.55 $444.64 $103.62 $111.15 $111.60 $116.93 $443.31 $110.37 $115.09 $97.03 $322.49

45

Adjusted Non-GAAP EBITDA Reconciliation by Segment

1 2

1 Excludes 2017 retroactive blenders tax credit of $12.6mm recorded in Q1 20182 Includes 2017 retroactive blenders tax credit of $12.6mm

Adjusted EBITDA Reconciliation - Feed



Segment Income $194.11 $117.97 $118.68 $31.60 $39.82 $34.79 $26.40 $132.61 $21.61 $37.42 $11.71 $70.74

Depreciation & Amortization 158.87 165.85 178.85 43.72 44.35 46.86 49.24 184.17 46.79 46.82 47.32 140.93

Equity in Net Income of Unconsolidated subsidiaries (1.84) (1.52) (0.47) (0.11) (0.13) (0.52) 0.50 (0.27) 0.05 (0.15) 0.16 0.06


Adjusted EBITDA Reconciliation - Food



Segment Income $26.87 $61.24 $60.37 $14.26 $11.16 $15.11 $16.42 $56.94 $11.83 ($5.65) $12.97 $19.16

Restructuring and impairment charges - - - - - - - - - 14.97 - 14.97


Equity in Net Income of Unconsolidated subsidiaries - - - - - - - - - - - -


Adjusted EBITDA Reconciliation - Fuel



Segment Income $85.05 $89.05 $99.08 $4.15 $10.26 $7.37 $20.25 $42.03 $114.36 $20.10 $1.89 $136.35


Equity in Net Income of Unconsolidated subsidiaries (63.77) (71.90) (69.91) (0.60) (8.13) (7.18) (12.33) (28.24) (97.20) (15.09) 2.63 (109.66)


46

Adjusted Non-GAAP EBITDA Reconciliation DGD

1 2

1 Excludes 2017 retroactive blenders tax credit of $160.4mm recorded in Q1 20182 Includes 2017 retroactive blenders tax credit of $160.4mm

Diamond Green Diesel Adjusted EBITDA Reconciliation

Total 2014 Total 2015 Total 2016 Total 2017 Q1 2018 Q2 2018 Q3 2018 YTD Q3 2018


Net Income $127.53 $143.79 $139.82 $56.48 $194.40 $30.17 ($5.26) $219.31

Depreciation and amortization 18.19 19.71 27.82 28.96 6.12 6.25 6.52 18.89

Other (income) (0.08) (0.12) (0.55) (1.34) (0.38) (0.42) (0.56) (1.35)

Interest and debt expense, net 17.64 13.60 7.35 2.31 0.00 0.32 0.32 0.64

Adjusted EBITDA (Non-GAAP) $163.28 $176.99 $174.45 $86.40 $200.14 $36.33 $1.02 $237.49

- - - - - - - -

DGD Joint Venture Adjusted EBITDA (Darling's Share) $81.64 $88.49 $87.22 $43.20 $100.07 $18.17 $0.51 $118.75

47

Adjusted EBITDA is presented here not as an alternative to net income, but rather as a measure of the Company’s operating

performance and is not intended to be a presentation in accordance with GAAP. Since EBITDA (generally, net income plus

interest expenses, taxes, depreciation and amortization) is not calculated identically by all companies, this presentation may not

be comparable to EBITDA or adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated in this

presentation and represents, for any relevant period, net income/(loss) plus depreciation and amortization, goodwill and long-lived

asset impairment, interest expense, (income)/loss from discontinued operations, net of tax, income tax provision, other

income/(expense) and equity in net loss of unconsolidated subsidiary. Management believes that Adjusted EBITDA is useful in

evaluating the Company’s operating performance compared to that of other companies in its industry because the calculation of

Adjusted EBITDA generally eliminates the effects of financing income taxes and certain non-cash and other items that may vary

for different companies for reasons unrelated to overall operating performance.

As a result, the Company’s management uses Adjusted EBITDA as a measure to evaluate performance and for other

discretionary purposes. However, Adjusted EBITDA is not a recognized measurement under GAAP, should not be considered as

an alternative to net income as a measure of operating results or to cash flow as a measure of liquidity, and is not intended to be

a presentation in accordance with GAAP. In addition to the foregoing, management also uses or will use Adjusted EBITDA to

measure compliance with certain financial covenants under the Company’s Senior Secured Credit Facilities and 5.375% Notes

and 4.75% Notes that were outstanding at September 29, 2018. However, the amounts shown in this presentation for Adjusted

EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities and

5.375% Notes and 4.75% Notes, as those definitions permit further adjustments to reflect certain other non-recurring costs and

non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign

exchange on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization.

Non-U.S. GAAP Measures48

Randall C. Stuewe, Chairman and CEO Brad Phillips, EVP ...€¦ · Our global presence enables us...

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