Balchem Corporation · NASDAQ:BCPC
Balchem — Investor Presentation (June 2016)
35 slides from Balchem's investor presentation, June 2016
Slide 1: Balchem Corporation Investor Relations
Balchem Corporation Investor Relations June 2016
Slide 2: Balchem Corporation Highlights
Balchem Corporation Balchem delivers trusted solutions that improve and enhance the health and well being of life on the planet. Highlights • NASDAQ: BCPC • Founded in 1967 • Headquarters: New Hampton, NY • Approximately 1,000 Employees • 17 Manufacturing Sites: • 16 – North America • 1 – Europe 2
Slide 3: Key Investment Highlights
Key Investment Highlights Creating Demand Through Innovation Strong Margin Profile Core Businesses are Well Positioned for Growth Solid Free Cash Flow Available for Reinvestment Dynamic Management Team with Successful Track Record 3
Slide 4: Balchem at a Glance
Balchem at a Glance HUMAN NUTRITION & HEALTH ANIMAL NUTRITION & HEALTH Leading global supplier of customized, technology- Leader in specialty animal nutrition products driven food and beverage solutions, consisting of derived from our novel encapsulation and novel microencapsulation, chelation, and
Slide 5: Acquisition of Albion Minerals
Acquisition of Albion Minerals Balchem acquired Albion International in February 2016 Highlights Human Nutrition Key products include: • Synergistic with our Human Nutrition and Health • Magnesium segment, delivering customized food and beverage • Iron ingredient systems, and essential nutrients thr
Slide 6: Sales / Adj. EBITDA / Net Earnings
Balchem Corporation Sales / Adj. EBITDA / Net Earnings (Dollars in Millions, except per share data) 2015 2011 CAGR Sales $552.5 $291.9 17.3% Adjusted EBITDA 140.5 69.2 19.4% As a percent of sales 25.4% 23.7% Net Earnings 59.7 38.8 11.4% Diluted Net Earnings/Share $1.89 $1.28 10.2% FY 2015 Sales By R
Slide 7: Balchem Today Q1 2016 Results
Balchem Today Q1 2016 Results (Dollars in Millions, except per share data) Q1 2016 Q1 2015 REVENUE $ 135.1 $144.9 NET EARNINGS $ 11.9 $ 15.2 ADJUSTED EBITDA $ 35.5 $ 36.1 ADJUSTED EBITDA % 26.2% 24.9% ADJ EARNINGS PER SHARE $ 0.58 $ 0.62 ADJUSTED EBITDA PER SHARE $ 1.11 $ 1.15 7
Slide 8: Net Revenue
Balchem Corporation Net Revenue (Dollars in Millions) $600 $500 $400 $300 $541 $553 $200 $310 $337 $292 $100 $135 $0 2011 2012 2013 2014 2015 Q1 16 Twelve consecutive years of sales growth 8
Slide 9: Adjusted EBITDA
Balchem Corporation Adjusted EBITDA (Dollars in Millions) $160 $140 $120 $100 $80 $140 $60 $122 $40 $73 $80 $69 $20 $35 $0 2011 2012 2013 2014 2015 Q1 16 • Adjusted EBITDA is defined as EBITDA plus Stock Based Compensation, transaction and integration costs, and the FV of inventory. 9
Slide 10: Adjusted Net Earnings
Historical Consolidated Results Adjusted Net Earnings (Dollars in Millions) $90 $80 $70 $60 $50 $40 $80 $69 $30 $48 $20 $41 $43 $10 $18 $0 2011 2012 2013 2014 2015 Q1 16 Twelve consecutive years of earnings growth 10
Slide 11: Adjusted Earnings Per Common Share
Historical Consolidated Results Adjusted Earnings Per Common Share $3.00 $2.51 $2.50 $2.21 $0.66 $2.00 $1.54 $0.67 $1.37 $1.41 $1.50 $0.61 $0.37 $0.34 $0.35 $0.65 $1.00 $0.40 $0.62 $0.38 $0.38 $0.40 $0.53 $0.50 $0.34 $0.35 $0.38 $0.62 $0.58 $0.32 $0.33 $0.34 $0.00 2011 2012 2013 2014 2015 2016 11
Slide 12: Human Nutrition & Health
12 Human Nutrition & Health BALCHEM
Slide 13: Human Nutrition & Health Highlights
Human Nutrition & Health HIGHLIGHTS ($ in MM’s) 2013 2014 2015 Q1 16 Sales $48 $206 $278 $72 Op. Income $11 $21 $38 $8 As % of sales 23% 10% 14% 12% Leading global supplier of customized, technology-driven food and beverage solutions, consisting of novel microencapsulation, chelation and powder, fla
Slide 14: Human Nutrition & Health Revenue and Operating Income
Human Nutrition & Health ($ in millions) ($ in millions) Revenue Operating Income $300 $50 $278 $38.3 $250 $70 $70 $40 $200 $9.9 $30 $73 $73 $150 $11.6 $11.6 $20 $100 $206 $67 $9.1 $10 $21.3 $50 $11.1 $11.3 $11.2 $68 $72 $7.7 $8.4 $43 $44 $48 $0 $0 2011 2012 2013 2014 2015 Q1 16 2011 2012 2013 2014
Slide 15: Human Nutrition & Health Division Platforms
Human Nutrition & Health Division Platforms INGREDIENT SOLUTIONS NUTRITION & PHARMA CEREAL SYSTEMS Food Ingredient Solutions delivers customized, Nutrition and Pharma manufactures and sells Albion Customized manufacturing of grain based systems technology-driven food and beverage solutions Minerals,
Slide 16: Human Nutrition & Health Growth Platforms
Human Nutrition & Health Growth Platforms Attractive Growth Markets Recommended Daily Intake Curemark Agglomeration Technology Leveraging Growth Opportunities Across The Segment 16
Slide 17: Animal Nutrition & Health
17 Animal Nutrition & Health BALCHEM
Slide 18: Animal Nutrition & Health Highlights
Animal Nutrition & Health HIGHLIGHTS ($ in millions) 2013 2014 2015 Q1 16 Sales $156 $176 $166 $39 Op. Income $18 $24 $28 $7 As % of sales 12% 13% 17% 17% Leader in specialty animal nutrition products derived from our novel encapsulation and chelation technologies. These products boost milk producti
Slide 19: Animal Nutrition & Health Revenue and Operating Income
Animal Nutrition & Health ($ in millions) ($ in millions) REVENUE OPERATING INCOME $200 $30 $27.9 $166 $25 $6.2 $150 $41 $20 $5.6 $5.6 $100 $40 $15 $176 $23.7 $7.5 $142 $148 $156 $42 $10 $18.2 $16.1 $50 $14.8 $5 $8.5 $6.5 $43 $39 $0 $0 2011 2012 2013 2014 2015 Q1 16 2011 2012 2013 2014 2015 Q1 16 19
Slide 20: Animal Nutrition & Health Divisional Platforms
Animal Nutrition & Health Divisional Platforms MONOGASTRIC RUMINANT POULTRY DAIRY COWS Balchem products ensure that producers get Balchem offers a variety of solutions to the best possible advantage out of their feed meet Dairy Cows’ unique nutritional needs: formulations. Products Include: SWINE •
Slide 21: Animal Nutrition & Health Growth Platforms
Animal Nutrition & Health Growth Platforms Developing solutions for the increasing protein demand Science based nutritional efficiency Companion Animal & Aquaculture National Research Council Recommendation BASF Collaboration 21
Slide 22: Specialty Products
22 Specialty Products BALCHEM
Slide 23: Specialty Products Highlights
Specialty Products HIGHLIGHTS ($ in MM’s) 2013 2014 2015 Q1 16 Sales $51 $54 $54 $17 Op. Income $20 $21 $24 $5 As % of sales 40% 39% 44% 31% Specializes in repackaging and distribution of ethylene oxide, used in the healthcare industry for sterilization of medical devices, and propylene oxide, used
Slide 24: Specialty Products Revenue and Operating Income
Specialty Products ($ in millions) ($ in millions) REVENUE OPERATING INCOME $60 $54 $35 $30 $48 $13 $25 $24.0 $36 $14 $20 $6.2 $51 $54 $15 $6.0 $24 $48 $50 $14 $10 $20.3 $20.2 $21.3 $18.6 $6.1 $12 $14 $17 $5 $5.7 $5.3 $0 $0 2011 2012 2013 2014 2015 Q1 16 2011 2012 2013 2014 2015 Q1 16 • Q1 16 includ
Slide 25: Specialty Products Divisional Platforms
Specialty Products Divisional Platforms ARC SPECIALTY PRODUCTS PLANT NUTRITION ARC Specialty Products is a leader in packaging Albion Plant Nutrition has been in business for and distributing hazardous chemicals. We are the over 55 years and is the innovator and leader of the leading supplier of pac
Slide 26: Specialty Products Growth Platforms
Specialty Products Growth Platforms Health Sterilization growth with aging population New Applications Geographic Expansion of Plant Nutrition Home & Garden; Turf Solutions 26
Slide 27: Industrial Products
27 Industrial Products BALCHEM
Slide 28: Industrial Products Highlights
Industrial Products HIGHLIGHTS ($ in millions) 2013 2014 2015 Q1 16 Sales $83 $105 $54 $7 Op. Income $16 $17 $6 $0.2 As % of sales 19% 16% 10% 3% World’s largest producer of choline and choline derivatives for various industrial applications, including components of hydraulic fracking fluids for sha
Slide 29: Industrial Products Revenue and Operating Income
Industrial Products ($ in millions) ($ in millions) REVENUE OPERATING INCOME $125 $100 $15 $75 $10 $54 $15.9 $16.5 $50 $105 $8 $0.2 $5.6 $83 $13 $11.7 $12.0 $1.1 $59 $69 $5 $25 $12 $1.1 $21 $3.1 $0.2 $7 $0 $0 2011 2012 2013 2014 2015 Q1 16 2011 2012 2013 2014 2015 Q1 16 29
Slide 30: Industrial Products Oil and Gas, Specialty
Industrial Products OIL AND GAS SPECIALTY Balchem Corporation manufactures and Through its European operations, Balchem sells choline and certain derivatives into is a leading producer of Methylamines. various industrial applications, These products, Monomethylamine (MMA), predominately as a compone
Slide 31: Looking Ahead
Looking Ahead BALCHEM
Slide 32: Future
Future • Creating demand through innovation • Acquisition of Albion adds key technologies, international reach and synergistic opportunities • Positioned for growth – Organic – Acquisitions – Partnerships • Building a global Animal Nutrition and Health business • Expanding Human Nutrition and Health
Slide 33: Public Recognition
Public Recognition Balchem Corp., up 107,099% since the end of 1985 according to FactSet….Since the end of 1985, Balchem has gained an average of 26.2% annually, compared with 10.3% for the S&P 500 and 15.7% for Warren Buffet’s Bershire Hathaway Inc. “…[O]ver the past 30 years, 44 U.S. stocks genera
Slide 34: Public Recognition
Public Recognition Forbes 200 - Best Small Companies: 1996, 1997, 2001, 2005, 2006, 2007 & 2009-2014 Business Week - 100 Hot Growth Companies: #16 June 2003 and #80 Jun. 2007 Fortune Small Business - 100 Fastest Growing Companies: 2003, 2004, 2005, 2007, 2008 & 2009 S & P 600 - Balchem named to S&P
Slide 35: At our core, we are a health and wellness company
“At our core, we are a health and wellness company.” Ted Harris, CEO 35