Darling Ingredients Inc Intention to Form New Joint Venture Company with Tessenderlo Tessenderlo Group NV Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Tom Palmer - Citigroup - Analyst : Good morning and thanks for the question. You noted the margin resiliency of the Rousselot business. If I look at, I'm going to pronounce it wrong, Tessenderlo's results, they seem to have come down a bit over the past couple of years, and maybe there's opportunity here for you. But maybe contrast the two businesses in terms of the margin structure, maybe the end markets that they focus on and what that opportunity might be to kind of get the two businesses more in line from a margin standpoint? Thank you.

Question: Tom Palmer - Citigroup - Analyst : Okay, thanks for that. And just quickly on the split the 85-15, if we think about the the revenue base and then the production base, would it be comparable to that split?

Question: Tom Palmer - Citigroup - Analyst : Understood, thank you.

Question: Heather Jones - Heather Jones Research LLC - Analyst : Good morning. Thanks for the question. So you all talk about this transaction in increasing optionality and highlighting value, and potentially, unlocking shareholder value. I am just wondering how do you do that? So Bob, you mentioned that you can't give us the details between the 85-15 split. And also, how is this going to unlock shareholder value? Is there -- do you all intend to IPO this or provide details regarding how you got to the 85-15 to help us to understand how your collagen business is being value just? If you could just help us understand that more.

Question: Heather Jones - Heather Jones Research LLC - Analyst : Okay, thank you for that. And my follow up question is wondering, so Randy, you mentioned that they have a French and Spanish renderer operation. Are they 100% vertically integrated on the gelatin collagen side like Darling is, or do they have to out -- do they do outside sourcing of the raw material?

Question: Derrick Whitfield - Texas Capital Securities - Analyst : Good morning. Congrats on the announcement. And I agree with you, Randy, on your value recognition comments on the food segment. Perhaps, starting with slide 4, could you speak to how the combination increases your reach into the pharma industry from the perspective of PB Leiner?

Question: Derrick Whitfield - Texas Capital Securities - Analyst : As my follow up as we think about the combined entity and how to value it in the future, who would you or who do you guys think is the closest comp to this combined entity? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 12, 2025 / 1:00PM, DAR.N - Darling Ingredients Inc Intention to Form New Joint Venture Company with Tessenderlo Tessenderlo Group NV

Question: Ryan Todd - Piper Sandler - Analyst : Good, thanks. I guess as we think about the maybe some of the tangible benefits of the JV is, I mean, should we be thinking of initially it's primarily lower costs and improved efficiencies on that side of the business that are driving kind of the incremental value creation? And if it's on the cost and efficiency side, any estimate on what that number looks like either from a dollar basis or traditionally, you guys have been in kind of the mid to high 20% margin range, maybe any thoughts on where that could go?

Question: Ryan Todd - Piper Sandler - Analyst : Okay, thanks. And maybe just quick would you expect this to have an impact on -- as we think of like allocation of capital going forward, will you -- well, I mean if we change, the, I guess the amount of capital that you may look to put into this business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 12, 2025 / 1:00PM, DAR.N - Darling Ingredients Inc Intention to Form New Joint Venture Company with Tessenderlo Tessenderlo Group NV

Question: Andrew Strelzik - BMO Capital Markets - Analyst : Hey, good morning. Thanks for taking the question. My first one, I'm just curious about the process and why you think this is the right partner for you guys. Did you talk to other folks out there? Is there something specific about Tessenderlo and this business that makes it particularly attractive from a combination perspective?

Question: Andrew Strelzik - BMO Capital Markets - Analyst : Okay, that's great perspective. And then maybe just following up on that. If I think about the financial implications of the 15 that you've put out there today, should we just interpret that as, well, that's what we know this is? And as I understand that it becomes REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 12, 2025 / 1:00PM, DAR.N - Darling Ingredients Inc Intention to Form New Joint Venture Company with Tessenderlo Tessenderlo Group NV public if, when you have the MOU and as we get further details, that number evolves and we get better visibility on the on the synergies and how that evolves or or how should we think about that 15, which is basically your food segment as we roll forward?

Question: Dushyant Ailani - Jefferies LLC - Analyst : Hi, yeah, thanks for taking my question. I just have, one, I guess on margins, Randy. I think you talked about the high 20s, low 30s. I know that this thing is still evolving, but how do we kind of think about that progression, in '26, '27?

Question: Dushyant Ailani - Jefferies LLC - Analyst : Got it, thank you.

Question: Matthew Blair - Tudor, Pickering, Holt & Co. - Analyst : Great, thank you and good morning. Can you tell us what percentage of the global collagen market that JV would control? And what are the regulatory considerations here and next steps on the regulatory front? Thanks.

Question: Matthew Blair - Tudor, Pickering, Holt & Co. - Analyst : Sounds good. And then if I could clarify the answer from a previous question, is this JV going to hold 100% of your food segment or only three fourth? And can I also ask what kind of capital needs for this JV have, like is there a maintenance or a growth CapEx number that that you can share at this time?

Question: Betty Zhang - Scotiabank - Analyst : Thank you. Good morning. My question is so in the past you've talked about, working with CPG companies to get them to pick up your next item of product and bring it to market? How does this new JV improve your go to market strategy and progress? Does Tessenderlo have any relationships on that side that you could leverage? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 12, 2025 / 1:00PM, DAR.N - Darling Ingredients Inc Intention to Form New Joint Venture Company with Tessenderlo Tessenderlo Group NV

Question: Betty Zhang - Scotiabank - Analyst : Great, thank you. And for my follow-up, clearly a lot of growth potential here. But I'm wondering on the feedstock side, do you see any bottlenecks there or do you have sufficient supplies to support this growth?