Slide 1: Investor Presentation Q2 2025
Investor Presentation Q2 2025. 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement • During the course of this presentation, management may make forward-looking statements regarding financial performance and future events. • These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "foreca
Slide 3: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliations 3
Slide 4: Balchem Corporation At a Glance
Balchem Corporation BCPC At a Glance NASDAQ 2024 Sales $954 Million Approximate number of employees 1,400 2024 Adjusted EBITDA $250 Million Founded in 2024 Adjusted EBITDA margin 1967 26.3% 4
Slide 5: Three Business Segments – 2024 Revenue
Three Business Segments – 2024 Revenue Human Nutrition & Health Animal Nutrition & Health Specialty Products Human Nutrition & Health Animal Nutrition & Health Specialty Products 63% 23% 14% Provides a range of branded specialty Supplies science-based animal feed Provides critical sterilization tech
Slide 6: Balchem Corporation
Balchem Corporation Balchem develops, manufactures, and markets specialty ingredients that help make the world a healthier place. Corporate Headquarters: Montvale, NJ 22 Manufacturing Sites 8 Technology Centers 8 Regional Offices 6
Slide 7: Executive Leadership
Executive Leadership Ted Harris Chairman, President, and CEO • Joined Balchem in May 2015 • Prior to Balchem was a Senior VP of Ashland Inc. where he held a series of senior leadership roles over 10+ years • Independent director on the Board of Directors of Pentair plc. • MBA from Harvard University
Slide 8: Value Proposition
Value Proposition Technologies Value to our customers • High efficacy nutrients essential for life • Enhanced animal health and feed productivity • Functional ingredient systems formulations and applications expertise • Crop protection and yield improvement • Complete supply chain capabilities and a
Slide 9: Segment Overview
Segment Overview Leveraging Solutions Across Segments Segment Markets Served Solutions 14% Human Nutrition • Nutritional Supplements • Microencapsulation 2024 & Health • Food and Beverage • Choline and Vitamin K2 23% Revenue • Infant and Toddler Formula • Chelated Minerals by • Organic Cereal • Powd
Slide 10: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 10
Slide 11: Our Vision and Mission
Our Vision Our Mission is clear – to make is focused – to build a global the world a healthier nutrition and health company place. delivering trusted, innovative and science-based solutions to our customers. Our Core Values Always Collaborating Playing Staying Doing the and Growing to and Acting on
Slide 12: How Do We Make the World a Healthier Place?
How Do We Make the World a Healthier Place? Provide food, beverage, and Improve nutrient bioavailability Support prenatal, infant, and Help farmers grow crops that Provide nutritious foods for dietary supplement ingredients for animals, reducing feed inputs toddler health with targeted are hardier w
Slide 13: Strategic Focus
Strategic Focus 01 02 03 04 Strengthening Driving Organic Strategic M&A Excellence in Positions in Attractive, Growth Execution Growing Markets Building scale, adding Creating new demand Augmenting organic Maintaining a strong adjacent capabilities, through innovation, market growth and accelerating
Slide 14: Growth Platforms
Growth Platforms Multiple Platforms to Drive Growth Human Nutrition & Health Animal Nutrition & Health Specialty Products • VitaCholine® and K2Vital market • Rumen-protected nutrients for dairy • Metalosate® plant micronutrients penetration • ReaShure® market penetration penetration and application
Slide 15: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 15
Slide 16: Q2 2025 Financial Summary
Q2 2025 Financial Summary Sales growth, margin expansion, and profit growth Sales Adj. EBITDA Adj. Net Earnings Adj. EPS $M $M $M $/share ↑ 9.1% ↑ 11.2% ↑ 16.8% ↑ 16.5% 255.5 69.2 41.6 1.27 234.1 62.3 35.6 1.09 2Q24 2Q25 2Q24 2Q25 2Q24 2Q25 2Q24 2Q25 Strong growth in all three Driven by sales growth
Slide 17: YTD 2025 Financial Summary
YTD 2025 Financial Summary Sales growth, margin expansion, and profit growth Sales Adj. EBITDA Adj. Net Earnings Adj. EPS $M $M $M $/share ↑ 6.8% ↑ 10.1% ↑ 18.0% ↑ 17.5% 506.0 135.5 2.49 81.6 473.7 123.1 69.2 2.12 YTD24 YTD25 YTD24 YTD25 YTD24 YTD25 YTD24 YTD25 Strong growth in all three Driven by s
Slide 18: Historical Financials
Historical Financials Consistent performance over the years Sales Adj. EBITDA $M +8.2% $M +9.4% 250 CAGR 942 922 954 CAGR 231 216 799 190 704 174 644 160 136 506 2019 2020 2021 2022 2023 2024 YTD 2025 2019 2020 2021 2022 2023 2024 YTD 2025 Adj. Net Earnings Adj. EPS $M $/share +6.6% CAGR 143 131 130
Slide 19: Capital Allocation Strategy
Capital Allocation Strategy Capital Allocation Priorities Annual Cash Flow and Net Debt Leverage Ratio • Support organic growth opportunities 2.3 • Augment growth with targeted M&A • Diligent debt service 1.6 1.7 1.5 • Continue to pay and grow dividend 1.2 1.1 1.1 • Stock buy-backs for anti-dilution
Slide 20: Free Cash Flow Conversion
Free Cash Flow Conversion Translating profits into cash Free Cash Flow as % of Non-GAAP Net Earnings 116% 109% 107% 105% 103% 102% 102% 99% 93% 100% 79% 69% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 2025 TTM* * TTM: Trailing Twelve Months 20
Slide 21: Key Acquisitions
Key Acquisitions Augmenting Organic Growth with Targeted Acquisitions Close to Core Kappa Bioscience • Portfolio extension in high growth specialty vitamin market • Vitamin K2 and MK-7 Albion Minerals Bioscreen • Adjacent product offering • Geographic expansion and Bergstrom Nutrition in high growth
Slide 22: Dividends
Dividends Consistent dividend policy ($/share) 0.87 +11.2% 0.79 Annual double-digit dividend growth for CAGR 0.71 the last decade 0.64 0.58 0.52 0.47 0.42 Consistency in 0.38 0.34 0.30 execution 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 22
Slide 23: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 23
Slide 24: Sustainability: Making the World a Healthier Place
Sustainability Our Sustainability Objectives & Framework Company Provide innovative solutions for the health 1.2 billion people Making & nutritional needs of the world reached in 2024 the The total number of people impacted is calculated by world a measuring the annual consumption of protein and the
Slide 25: Recent Sustainability Progress
Recent Sustainability Progress Scope 3 Learn more 7th about our sustainability GHG emissions successfully programs: measured and reported sustainability report released in April 2025 4th anniversary of UN Global Compact Surpassed our 2030 GHG emissions reduction goal, by reducing Scope 1 and 2 commi
Slide 26: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 26
Slide 27: Balchem Summary
Balchem Summary A global nutrition and health company delivering trusted, innovative and science-based solutions to our customers Leading positions Creating new Strong financial Proven track in attractive demand through performance, record and markets innovation delivering healthy well positioned ma
Slide 28: Agenda
Agenda 01 Balchem Overview 04 Corporate Social Responsibility 02 Vision and Strategic Focus 05 Wrap Up 03 Financial Performance & Capital Allocation 06 Appendix GAAP to Non-GAAP reconciliation 28
Slide 29: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to disclosing financial results in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains non-GAAP financial measures that we believe are helpful in understanding and comparing our past financial
Slide 30: Non-GAAP Financial Information
Non-GAAP Financial Information Reconciliation of Non-GAAP Measures to GAAP (Dollars in thousands, except per share data; unaudited) Three Months Six Months Ended June 30, Ended June 30, Reconciliation of adjusted earnings from operations 2025 2024 2025 2024 GAAP earnings from operations $51,442 $45,
Slide 31: Non-GAAP Financial Information
Non-GAAP Financial Information Reconciliation of GAAP Net Earnings to EBITDA and to Adjusted EBITDA (Dollars in thousands; unaudited) Three Months Six Months Ended June 30, Ended June 30, 2025 2024 2025 2024 Net earnings – as reported $38,278 $32,069 $75,331 $61,055 Add back: Provision for income ta
Slide 32: Non-GAAP Financial Information
Non-GAAP Financial Information Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Effective Income Tax Rate (Dollars in thousands; unaudited) Three Months Six Months Ended June 30, Ended June 30, 2025 2024 2025 2024 GAAP Income Tax Expense $10,733 $9,157 $21,620 $17,021 GAAP Effective Tax
Slide 33: Non-GAAP Financial Information
Non-GAAP Financial Information (1) Amortization of intangible assets and finance leases: Amortization of intangible assets and finance leases consists of amortization of customer relationships, trademarks and trade names, developed technology, regulatory registration costs, patents and trade secrets
Slide 34: Balchem
balchem lve Today. Shape Tomorrow.