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Investor Presentation Q1 2025. 1
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Safe Harbor Statement 2 • 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," "forecast," "outlook," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements. You should understand that, even though our forward-looking statements are based on assumptions we believe are reasonable when made, they are still subject to uncertainties that could cause actual results to differ materially from those in the forward-looking statements. • Important factors and other risks that may affect the Company's business or that could cause actual results to differ materially are included in filings the Company makes with the U.S. Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K, and in its other SEC filings. • Forward-looking statements made herein are summaries of previous public disclosures, do not represent revised guidance, and we do not undertake to revise or update them from the date or dates of previous disclosure. • In the case of any presentation delivered during the company’s prescribed black-out periods, there will be no discussion or questions addressed regarding the current quarter’s expected performance.
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Agenda Balchem Overview Vision and Strategic Focus Financial Performance & Capital Allocation Corporate Social Responsibility Wrap Up Appendix GAAP to Non-GAAP reconciliation 01 02 03 04 05 06 3
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BCPC Balchem Corporation At a Glance 1967 Founded in 4 2024 Adjusted EBITDA 2024 Adjusted EBITDA margin 26.3% $250 Million Approximate number of employees 1,400 $954 Million 2024 Sales NASDAQ
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5 Balchem Corporation Three Business Segments – 2024 Revenue Animal Nutrition & Health Specialty ProductsHuman Nutrition & Health Provides a range of branded specialty minerals, nutrients, and vitamins as well as micro-encapsulation technologies and food ingredient formulation systems for the supplement, beverage, cereal, meat, and bakery markets. Supplies science-based animal feed nutritional ingredients and proprietary micro- encapsulation technologies for production animal productivity and ruminant and companion animal wellness. Provides critical sterilization technologies to the medical device and food industries and supplies specialized chelated minerals to the micronutrient agricultural market. 63% 23% 14% Human Nutrition and Health Animal Nutrition and Health Specialty Products
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Balchem Corporation Balchem develops, manufactures, and markets specialty ingredients that help make the world a healthier place. 6 Corporate Headquarters: Montvale, NJ 22 Manufacturing Sites 8 Technology Centers 8 Regional Offices
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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 and member of the Board of Directors of Pentair plc. • MBA from Harvard University and bachelor’s degree from Lehigh University in chemical engineering Martin Bengtsson CFO • Joined Balchem in February 2019 • Prior to Balchem had a 15-year career at Honeywell and most recently was CFO for the $11B Performance Materials & Technologies segment • Bachelor’s degree from Northwestern University in economics and began career as Senior Auditor for Deloitte 7
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Value to our customers • High efficacy nutrients essential for life • Enhanced animal health and feed productivity • Functional ingredient systems formulations and application expertise • Crop protection and yield improvement • Complete supply chain capabilities and assurance Value to society • Increased health and well-being of humans and animals • Enhanced food chain productivity to give a growing population sustainable access to food Balchem’s Technologies 8 Balchem’s Value Proposition
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Human Nutrition & Health Animal Nutrition & Health Specialty Products Segment Markets Served Solutions Human Nutrition & Health • Nutritional Supplements • Food and Beverage • Infant and Toddler Formula • Organic Cereal • Microencapsulation • Choline and Vitamin K2 • Chelated Minerals • Powder, Flavor, and Cereal Systems Animal Nutrition & Health • Dairy • Poultry and Swine • Companion Animal • Aquaculture • Microencapsulation • Choline • Chelated Minerals • Amino Acids and Other Nutrients Specialty Products • Medical Device Sterilization • Nut and Spice Fumigation • Plant Nutrition • Chelated Minerals • Performance Gases re-packaging and supply chain capabilities 63% 23% 14% Segment Overview 9 Leveraging Solutions Across Segments
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Agenda Balchem Overview Vision and Strategic Focus Financial Performance & Capital Allocation Corporate Social Responsibility Wrap Up Appendix GAAP to Non-GAAP reconciliation 01 02 03 04 05 06 10
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Our Vision is clear – to make the world a healthier place. Our Mission is focused – to build a global nutrition and health company delivering trusted, innovative and science-based solutions to our customers. Our Core Values Always Doing the and Acting Small Collaborating and Growing Playing to Staying on the 11
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How Do We Make the World a Healthier Place? Provide food, beverage, and dietary supplement ingredients that support cognitive, emotional, and physical well- being across generations Improve nutrient bioavailability for animals, reducing feed inputs and land required to produce high quality animal protein Support prenatal, infant and toddler health with targeted nutritional ingredients Help farmers grow crops that are hardier when faced with stressors like disease and pests Provide nutritious foods for companion animals Improve nutrient bioavailability to reduce animal waste excreted into the environment Power the day with plant & animal proteins, healthy fats, minerals, nutrients, and specialty nutraceuticals Create higher yields and higher quality crops with fewer inputs Decrease food waste from farm to table via natural technologies Provide products and services to medical device sterilizers 12
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Strategic Focus Strengthening Positions in Attractive, Growing Markets Building scale, adding adjacent capabilities, expanding market and geographic reach, broadening our portfolio of solutions, investing in new science, enabling market awareness Driving Organic Growth Creating new demand through innovation, market penetration, new product launches, geographic expansion, and expanding addressable markets Strategic M&A Augment organic growth and accelerate strategic initiatives 01 02 03 Excellence in Execution Maintaining a strong margin profile, efficient cash flow conversion, and a solid balance sheet 04 13
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Market Growth Growth Platforms M&A G r o w t h Growth Platforms Animal Nutrition & Health • Rumen-protected nutrients for dairy • ReaShure® market penetration • Next generation rumen by-pass and release technology • Pet and aquaculture expansion • Geographic expansion and M&A Human Nutrition & Health • VitaCholine® and K2Vital market penetration • Transition from low to high bioavailable Mineral Nutrition • Systems for Nutritional Beverages • Microencapsulation for food safety and preservation • Geographic expansion and M&A 14 Specialty Products • Metalosate® plant micronutrients penetration and application • Global Performance Gases platform • Geographic expansion and M&A Multiple Platforms to Drive Growth
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Agenda Balchem Overview Vision and Strategic Focus Financial Performance & Capital Allocation Corporate Social Responsibility Wrap Up Appendix GAAP to Non-GAAP reconciliation 01 02 03 04 05 06 15
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239.7 250.5 1Q24 1Q25 60.9 66.3 1Q24 1Q25 33.6 40.0 1Q24 1Q25 1.03 1.22 1Q24 1Q25 Q1 2025 Financial Summary Sales growth, margin expansion, and profit growth 16 Sales $M 4.5% Adj. EBITDA $M 8.9% Adj. Net Earnings $M 19.2% Adj. EPS $/share 18.4% Higher operating income and lower interest expense, partially offset by a higher tax rate Adj. EBITDA growth driven by sales growth, favorable portfolio mix, and volume leverage Growth in earnings slightly offset by an increase in diluted outstanding shares Growth in all 3 segments
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Historical Financials 160 174 190 216 231 250 66 2019 2020 2021 2022 2023 2024 Q1 2025 644 704 799 942 922 954 251 2019 2020 2021 2022 2023 2024 Q1 2025 104 108 117 131 130 143 40 2019 2020 2021 2022 2023 2024 Q1 2025 3.19 3.32 3.57 4.03 4.00 4.37 1.22 2019 2020 2021 2022 2023 2024 Q1 2025 +8.2% CAGR +6.6% CAGR +9.4% CAGR Sales $M Adj. EBITDA $M Adj. Net Earnings $M Adj. EPS $/share 17 Consistent performance over the years +6.5% CAGR
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Balchem’s Capital Allocation Strategy Capital Allocation Priorities • Support organic growth opportunities • Augment growth with targeted M&A • Diligent debt service • Continue to pay and grow dividend • Stock buy-backs for anti-dilution M&A • Seven key acquisitions since 2016 to augment organic growth • Focus on nutrition and health • Adding geographic reach and adjacent products/ technologies Annual Cash Flow and Net Debt Leverage Ratio 85 104 108 111 119 124 150 161 139 184 182 185 2.3 1.5 1.6 1.2 0.6 1.1 0.5 0.0 1.7 1.1 0.6 0.5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 TTM* Cash Flow From Operations Net Debt divided by TTM* Adj. EBITDA 18 * TTM: Trailing Twelve Months
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Free Cash Flow Conversion 79% 105% 102% 102% 93% 109% 107% 69% 116% 103% 101% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 TTM* Free Cash Flow as % of Non-GAAP Net Earnings 100% 19 Translating profits into cash * TTM: Trailing Twelve Months
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Key Acquisitions Augmenting Organic Growth with Targeted Acquisitions Close to Core Albion Minerals • Adjacent product offering in high growth market • Chelated Magnesium, Iron, Calcium, Zinc, etc. 2016 Chemogas • Geographic expansion of market leadership to Europe • Performance gas solutions Zumbro River Brand • Consolidation and portfolio extension • High protein extrusion and agglomeration 2019 Kappa Bioscience • Portfolio extension in high growth specialty vitamin market • Vitamin K2 and MK -7 Bergstrom Nutrition • Portfolio extension in high growth specialty mineral market • Specialty sulfur for supplements 2022 Bioscreen • Geographic expansion and processing technology • Microencapsulation and fermentation 2018 IFP • Market consolidation and processing technology • Microencapsulation and agglomeration 2017 20
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Dividends Consistent dividend policy 0.30 0.34 0.38 0.42 0.47 0.52 0.58 0.64 0.71 0.79 0.87 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ($/share) +11.2% CAGR Annual double-digit dividend growth for the last decade Consistency in execution 21
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Agenda Balchem Overview Vision and Strategic Focus Financial Performance & Capital Allocation Corporate Social Responsibility Wrap Up Appendix GAAP to Non-GAAP reconciliation 01 02 03 04 05 06 22
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Sustainability at Balchem Our Sustainability Objectives & Framework 1.2 Making the world a healthier place Company Provide innovative solutions for the health & nutritional needs of the world. Culture Operate with excellence as strong stewards of our employees, customers, shareholders & communities People Planet Profit billion people reached in 2024 The total number of people impacted is calculated by measuring the annual consumption of protein and the daily recommended doses of minerals, essential nutrients and vitamins. 23
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7th sustainability report released in April 2025 4th anniversary of UN Global Compact commitment is marked Enhanced transparency reported to EcoVadis and CDP Scope 3 GHG emissions successfully measured and reported Surpassed our 2030 GHG emissions reduction goal, by reducing Scope 1 and 2 emissions by 32%. Reduced our water withdrawal by 15% from baseline and remain on track to meet 2030 goal. ~70% of our product revenue aligns with at least one UN SDG (SDGs 2, 3, and 12). Recent Sustainability Progress 24 Learn more about our sustainability programs:
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Agenda Balchem Overview Vision and Strategic Focus Financial Performance & Capital Allocation Corporate Social Responsibility Wrap Up Appendix GAAP to Non-GAAP reconciliation 01 02 03 04 05 06 25
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Leading positions in attractive markets Creating new demand through innovation Strong financial performance, delivering healthy margins and cash flows available for reinvestment Proven track record and well positioned for the future Balchem Summary A global nutrition and health company delivering trusted, innovative and science-based solutions to our customers 26
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Agenda Balchem Overview Vision and Strategic Focus Financial Performance & Capital Allocation Corporate Social Responsibility Wrap Up Appendix GAAP to Non-GAAP reconciliation 01 02 03 04 05 06 27
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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 performance and our future results. The non-GAAP financial measures in this press release include adjusted gross margin, adjusted earnings from operations, adjusted net earnings and the related adjusted per diluted share amounts, EBITDA, adjusted EBITDA, adjusted income tax expense, and free cash flow. The non-GAAP financial measures disclosed by the company exclude certain business combination accounting adjustments and certain other items related to acquisitions, certain equity compensation, nonqualified deferred compensation plan expense (income), and certain one-time or unusual transactions. Detailed non-GAAP adjustments are described in the reconciliation tables below and also explained in the related footnotes. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Investors should not consider non-GAAP measures as alternatives to the related GAAP measures. 28
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Non-GAAP Financial Information 29 Reconciliation of Non-GAAP Measures to GAAP (Dollars in thousands, except per share data; unaudited) Three Months Ended March 31, Reconciliation of adjusted earnings from operations 2025 2024 GAAP earnings from operations $51,015 $41,676 Amortization of intangible assets and finance leases (1) 4,112 6,402 Transaction and integration costs (2) 489 440 Nonqualified deferred compensation plan expense (3) 34 403 Adjusted earnings from operations $55,650 $48,921 Reconciliation of adjusted net earnings 2025 2024 GAAP net earnings $37,053 $28,986 Amortization of intangible assets and finance leases (1) 4,184 6,474 Transaction and integration costs (2) 489 440 Income tax adjustment (4) -1,709 -2,316 Adjusted net earnings $40,017 $33,584 Adjusted net earnings per common share - diluted $1.22 $1.03
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Non-GAAP Financial Information 30 Reconciliation of GAAP Net Earnings to EBITDA and to Adjusted EBITDA (Dollars in thousands; unaudited) Three Months Ended March 31, 2025 2024 Net earnings – as reported $37,053 $28,986 Add back: Provision for income taxes 10,887 7,864 Interest and other expenses 3,075 4,826 Depreciation and amortization 10,942 13,597 EBITDA 61,957 55,273 Add back: Non-cash compensation expense related to equity awards 3,810 4,750 Transaction and integration costs (2) 489 440 Nonqualified deferred compensation plan expense (3) 34 403 Adjusted EBITDA $66,290 $60,866
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Non-GAAP Financial Information 31 Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Effective Income Tax Rate (Dollars in thousands; unaudited) Three Months Ended March 31, 2025 2024 GAAP Income Tax Expense $10,887 $7,864 GAAP Effective Tax Rate 22.7% 21.3% Impact of ASU 2016-09 (5) 590 708 Adjusted Income Tax Expense $11,477 $8,572 Adjusted Effective Tax Rate 23.9% 23.3% Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Dollars in thousands; unaudited) Three Months Ended March 31, 2025 2024 Net cash provided by operating activities $36,457 $33,388 Capital expenditures and proceeds from the sale of assets (5,421) (6,573) Free Cash Flow $31,036 $26,815
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Non-GAAP Financial Information - Continued (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, capitalized loan issuance costs, other intangibles acquired primarily in connection with business combinations, and finance leases. We record expense relating to the amortization of these intangibles and finance leases in our GAAP financial statements. Amortization expenses for our intangible assets and finance leases are inconsistent in amount and are significantly impacted by the timing and valuation of an acquisition. Consequently, our non-GAAP adjustments exclude these expenses to facilitate an evaluation of our current operating performance and comparisons to our past operating performance. (2) Transaction and integration costs: Transaction and integration costs related to acquisitions and divestitures are expensed in our GAAP financial statements. Management excludes these items for the purposes of calculating Adjusted EBITDA and other non-GAAP financial measures. We believe that excluding these items from our non-GAAP financial measures is useful to investors because these are items associated with transactions that are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult. (3) Nonqualified deferred compensation plan (income) expense: Gains and losses on rabbi trust assets related to our nonqualified deferred compensation plan are recorded in other (income) expense while the offsetting increases or decreases to the deferred compensation liability are recorded within earnings from operations. The increases and decreases in the deferred compensation liability are driven by market volatility and are not a true reflection of company performance. We believe excluding these amounts from our non-GAAP financial measures is useful to investors because these items are inconsistent in amount based on market conditions causing comparison of current and historical financial results to be difficult. (4) Income tax adjustment: For purposes of calculating adjusted net earnings and adjusted diluted earnings per share, we adjust the provision for (benefit from) income taxes to tax effect the taxable and deductible non-GAAP adjustments described above as they have a significant impact on our income tax (benefit) provision. Additionally, the income tax adjustment is adjusted for the impact of adopting ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” and uses our non-GAAP effective rate applied to both our GAAP earnings before income tax expense and non-GAAP adjustments described above. See Table for the calculation of our non-GAAP effective tax rate. (5) Impact of ASU 2016-09: The primary impact of ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), was the recognition during the three months ended March 31, 2025 and 2024, of excess tax benefits as a reduction to the provision for income taxes and the classification of these excess tax benefits in operating activities in the consolidated statement of cash flows instead of financing activities. Management excludes this item for the purpose of calculating Adjusted Income Tax Expense. We believe that excluding the item in our non-GAAP financial measures is useful to investors because it is inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult. 32
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