2

• A short introduction to Darling Ingredients International

• Production and supply of Animal By-products

• Valorisation of by-products © i s t o c k . c o m • Demand drivers from the food industry

• Future opportunities 3

• Gelatin Global footprint: 5 continents • Casings Production facilities: Over 200 Food • Food Grade Fats Founded: 1882 • Heparin Listed: 1994 • Proteins • Fats Publicly traded: NYSE: DAR • Functional Proteins Principal segments: Three • Bone China Bodies Products: 400+ Feed • Bakery Feeds • Glue Industries served: Food, pet food, • Organic Fertilizers

restaurant, feed, pharmaceutical, • Plasmas • Hides fuel, fertilizer • Biofuels Employees: Approx. 10,000 Fuel • Green Gas Headquarters: Irving, Texas, USA • Green Electricity 4 5

• A short introduction to Darling Ingredients International

• Production and supply of Animal By-products

• Valorisation of by-products © i s t o c k . c o m • Demand drivers from the food industry

• Future opportunities 6 7

7

60% 66% 58% Meat Meat 40% 34% 42% POULTRY SWINE BEEF By- By- By- products products products

Out of the 258 million mt of meat produced globally, Darling Ingredients – the global leader in converting meat protein by-products into sustainable ingredients for Food, Feed, and Fuel – processes ~ 9 million mt of DAR the world’s meat by-products

...creating a tremendous opportunity for growth!

7 8

Slaughter co-products and - : Food (R 853/2004)

Slaughter by-products 3 categories: (R1069/2009)

 Cat 1 = related to BSE (including SRM*)  Cat 2 = not fit for human consumption  Cat 3 = derived from animals fit for slaughtering

* SRM = specified risk material => as defined in the TSE regulation 999/2001 Development of ABP Processing 2000-2015 (EU-20 + NO/CH)

EFPRA Congress, Messinia, 3.6.2015/ Dirk Dobbelaere Folie 9/23 • June 2016 Volumes processed in member states

EFPRA Congress, Messinia, 3.6.2015/ Dirk Dobbelaere Folie 10/23 • June 2016 Destination of edible and category 3 fat

EFPRA Congress, Messinia, 3.6.2015/ Dirk Dobbelaere Folie 11/23 • June 2016 PAP and food grade protein destination Note: Gelatin not included

EFPRA Congress, Messinia, 3.6.2015/ Dirk Dobbelaere Folie 12/23 • June 2016 13

• A short introduction to Darling Ingredients International

• Production and supply of Animal By-products

© • Valorisation of by-products i s t o c k . c o m • Demand drivers from the food industry

• Future opportunities Creating the highest value product

For animal consumption

Cat. 3

4 categories of animal- by-products

For human For disposal consumption only (Cat. 1 & 2) Food grade

Optimizing raw material selection & processing Optimal valorisation 15

NVWA February 2012 16

NVWA February 2012 17

NVWA February 2012 18

NVWA February 2012 19

NVWA February 2012 20

NVWA February 2012 21

NVWA February 2012 22

NVWA February 2012 23

NVWA February 2012 24

NVWA February 2012 25

NVWA February 2012 26

NVWA February 2012 27

NVWA February 2012 Everything is used and not only as meat

But also as ingredients with: • Techno-functional • Bio-functional • Nutritional properties 29

Bones Lard Blood Skin Guts Hair Byproducts Rejects Manure Gelatin Purified fat Hemoglobin Gelatin Casings Protein Protein Meal Biogas Ash Protein Plasma Fat Heparin Fat Fat Biophospate Fat Fibrin Peptones 30

The gut room

1 metric ton  60 kg Mucopro powder and 250 gr heparin 31

• A short introduction to Darling Ingredients International

• Production and supply of Animal By-products

• Valorisation of by-products © i s t o c k . c o Demand drivers from the food

m • industry

• Future opportunities 32

• Clean and Clear replacing E-numbers label and allergens

• Sustainability Nose to tail approach

• Convenience easy preparing, portioning

• Healthy ageing joint health, bone health

• Quality sensory features & processing convenience 33 Clear labelling

Pork roulade 2 pieces Spiced pork (formed meat)  EU Regulation 1169/2011 34 35

Cat 3 poultry meal

Cat 3 mixed meal

Carbonfootprint cat 3 meal Soybean meal Carbon footprint vegetable meal

Palm kernel meal LULUC emissions cat 3 meal LULUC emissions vegetable meal

Rapeseed meal Ponsioen&Blonk 0 1 2 3 4 2010

Carbon footprint (kg CO2eqper kg protein)

Figure 4.2: Carbon footprints of cat 3 poultry and mixed meal and three different vegetable meals per kg protein The carbon footprint of cat 3 mixed meal is much lower than the vegetable meals’ footprints and the carbon footprint of cat 3 poultry meal is in the same range of the vegetable meals’ The emissions related to land use and land use change (LULUC) are higher for the vegetable meals 36

Food grade fat Ponsioen&Blonk 2010 Cat 3 poultry fat

Cat 3 mixed fat Carbon footprint of fat

Soybean oil Carbonfootprint of oil LULUC emissions of fat Palm oil LULUCemissions of oil

Rapeseed oil

0 1000 2000 3000 4000 5000 6000

Carbon footprint (kg CO2eqper tonne)

Figure 4.1: Carbon footprints of cat 3 poultry and mixed fat and food grade fat and three different vegetable oils per tonne of product The carbon footprints of cat 3 poultry and mixed fat and food grade fat are much lower than the vegetable oils’ The emissions related to land use and land use change (LULUC) are higher for the vegetable oils NB. The comparison is only to provide indicative information. The figures of the vegetable oils are based on average situations or on hypothetical situations Sustainability: the “nose-to-tail” approach: 37 where nothing is wasted and everything from the animal is celebrated.

Examples:

• Rind used in

• Blood used in black pudding 38

2009 2011 2013 Processed meat market per region (2009-2013) 2010 2012 50 +3%

) 43 b 42

€ 4041 (

39

t 40 e k r Food a m 30 +8% * t

a +6%

e 22 22

m 19 20 18 19 18 d 16 15 1717 e +7% s +13% s

e 8 9 9 10 c 10 7 7 +15% o 6 6 r 4 5 P 2 2 2 2 3 0 Western Asia North Eastern Latin ME and Africa Europe Pacific America Europe America

* Processed meat includes: bacon, boiled sausages, , cold meat, ham, jellied meat, kochwurst, meat pies, , processed poultry, paté, burgers and Source Euromonitor 39

. Portion control, standardization . Manufacture of high added value products . Upgrading of raw materials . Reduction of slicing losses

www.combinedmeat.com 40 Key drivers convenience & health: Rousselot’s gelatin range evolution

The approach is targeting 2 axes :

Functionality Reformulation

 Bloom  Reduction of fats, sugar,  Viscosity calories in food  Foaming properties  Adjust food to target  Specific gelling specific groups, ex:  Texture  kids  elderly

Functionality for typical Reformulation of typical and innovative foods to answer issues with applications food texture and preservation 41 Healthy ageing

 Peptan has proven benefits on bone health (in-vitro, in-vivo studies)

• Bone Reconstruction Factor • Osteoblast Stimulation • Bone Mineral Density Improvement

In vitro studies + 2 clinical studies (France, China) 42 Rousselot’s publication in peer-reviewed “Bone” journal Claim support 43

 Lard, refined lard and packers lard

 Tallow and refined tallow

 Premier jus

 Chicken and refined chicken 44 45 Impression of Raw materials for edible fats 46

In the Dutch Financial newspaper from the 11th of January 2014 “To create the French meat dish ‘rillettes’ lard is a indispensable ingredient.”

“I love fat” is how Jennifer McLagan’s starts in her new cookery book.

And in an article in “the Independent” from Sophie Morris: “Fat is back: Rediscover the delights of lard, dripping and suet”

Dishes rich in fat, like rillettes from duck are delicious 47 48 49 50 51 52

• A short introduction to Darling Ingredients International

• Production and supply of Animal By-products

• Valorisation of by-products © i s t o c k . c o m • Demand drivers from the food industry

• Future opportunities 53

Darling Ingredients Main components

Proteins Fats Minerals

Technical functional properties Bio-functional properties Nutritional properties

Projects Research Development Application

Pharma-Food-Pet Food-Feed-Technical-Fertilizer-Energy 54 Darling Ingredients R&D program at a glance

Techno-functional Bio-functional Nutritional • Development of new • Development of active techno-functional proteins / ingredients, such as bio- • Marketing support (Feed, ingredients with new or active peptides, and gut Pet food) improved functionalities health promotors that can (water binding, gelling, replace antibiotics • Target group specific foaming, emulsifying) developments: • New hydrolysates / new or •Elderly • Understanding the techno- improved bio- •Sports functionality to replace functionalities, such as •Pets other ingredients by joint, bone and skin health •Animal species Darling ingredients, e.g. other hydrocolloids, sugar & fat replacement, reformulation Food is culture!