Balchem Corporation · NASDAQ:BCPC
Balchem — Investor Presentation (November 2013)
35 slides from Balchem's investor presentation, November 2013
Slide 1: November 2013
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Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date of this prese
Slide 3: Balchem Corporation
Balchem Corporation • Founded in 1967 • NASDAQ: BCPC • Headquarters: New Hampton, NY • Manufacturing Sites: • Slate Hill, New York • Green Pond, South Carolina • Verona, Missouri • Salt Lake City, Utah • St. Gabriel, Louisiana • Marano Ticino, Italy • Covington, Virginia - New 3
Slide 4: Balchem at a Glance
SS) > CS aee Balchem at a Glance BA LG H E M | ARC Specialty Products eEncapsutates Food, Pharma & Nutrition Me Lies Providing sterilization of medical devices, pasteurization & x fumigation of nuts & spices. Microencapsulation — Control, taste | | | -mask, fortify, protect and deliver! ‘SPECIALTY,
Slide 5: Business overview
LTM Sales by segment ARC Specialty Products 15% Animal 14% Nutrition & Business overview Food, Pharma & Nutrition 71% Health0% Total LTM Sales $335mm Segment breakdown1 LTM Sales Segment Key products / chemistry Commentary Choline $110mm LTM sales Industrial Feed Aqueous solution Global lead
Slide 6: Balchem Today
Balchem Today…. 32% 87 287 68% Total Headcount = 374 Revenue - North American Headcount - North American Revenue - ROW Headcount - ROW 6
Slide 7: Segment Revenue
Segment Revenue (In millions) 2012 September 2013 TTM $310M $335M Animal $44 Nutrition and $46 Health ARC $50 $51 Specialty Products $216 Food, $238 Pharma and Nutrition 7
Slide 8: Historical Consolidated Results
Historical Consolidated Results (In millions) Net Revenue Net Earnings 7.5% CAGR 20.6% CAGR $400 $50 $310 $300 $255 $292 $256 $38.8 $40.0 $40 $33.3 $34.1 $219 $30 $26.8 $200 $20 $100 $10 $0 $0 2009 2010 2011 2012 YTD 2009 2010 2011 2012 YTD 2013 2013 8
Slide 9: Fully Diluted Earnings Per Common Share
Fully Diluted Earnings Per Common Share $1.50 $1.28 $1.32 $1.11 $1.25 $1.12 $0.33 $0.93 $1.00 $0.38 $0.36 $0.75 $0.38 $0.50 $0.33 $0.25 [VALUE] $0.36 $0.00 2009 2010 2011 2012 2013 YTD CAGR = 15.5% 9
Slide 10: Annual Cash Dividend Per Share
Annual Cash Dividend Per Share $0.40 $0.35 $0.30 •5-Year Cash Dividend Growth Rate – 29.7% $0.25 $0.20 •Current dividend yield ≈ 0.5% $0.15 $0.10 •$6.5M paid in 2012 $0.05 $0.00 10
Slide 11: Nutritional products for ruminants and choline chloride
• Nutritional products for ruminants, predominately dairy cows, to boost health and milk production. • Feed grade choline chloride - an essential nutrient for the poultry and swine industries. • Choline chloride and derivatives of choline chloride for numerous industrial applications. 11
Slide 12: Animal Nutrition and Health
Animal Nutrition and Health Highlights 2012 2013 YTD Sales $216.3M $ 181.6M Op. Income $ 28.1M $ 25.9M Targeting monogastric and ruminant production. Growing sales into industrial applications, particularly O&G fracking. Operational Excellence #1 supplier globally of choline chloride. Multi-
Slide 13: ANH Division Platforms
ANH Division Platforms September 2013 TTM Revenue - $238M Protected Ingredients Base Ingredients (Shure™ Technology) ($45MM; 19% of ANH) ($193MM; 81% of ANH) Choline Industrial Ruminant Ruminant Chelated Feed Products Health Protein Minerals ($110MM; ($83MM; 35% 46% of ANH) of ANH) Nutritional Produ
Slide 14: Animal Nutrition and Health
Animal Nutrition and Health 2012 Revenue - $216M Sep. 2013 TTM Revenue - $238M Feed Grade Choline 32% 35% Ruminant 46% 48% Products 20% Industrial Grade 19% Products 14
Slide 15: Animal Nutrition and Health
Animal Nutrition and Health (In millions) Net Revenue Operating Income 7.7% CAGR 25.9% CAGR $28.1 $250 $216.3 $30 $24.1 $26.5 $25.9 $201.5 $181.6 $21.4 $200 $170.8 $147.7 $20 $150 $100 $10 $50 $0 $0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 YTD YTD 15
Slide 16: Growing Industrial Opportunities
Growing Industrial Opportunities Sep. 2013 TTM ANH Revenue - $238M Sep. 2013 TTM Industrial Revenue - $83M Current Industrial Products Feed Grade • Methyl Amines Choline 35% • Metam Sodium 46% • Choline and choline Specialty Animal derivatives for oil and gas Nutrition and 19% Health Products applic
Slide 17: Growth Market For Balchem
Growth Market For Balchem Horizontal drilling and multi- stage fracturing has facilitated development of many shell formations. 17
Slide 18: Food, Pharma and Nutrition
Food, Pharma and Nutrition 18
Slide 19: Food, Pharma and Nutrition
Food, Pharma and Nutrition Highlights 2012 2013 YTD Sales $44.1M $35.5M Operating $11.3M $8.5M Income Human grade Choline positioned for double digit revenue growth Operational Excellence Premier specialty ingredient business utilizing microencapsulation and application expertise. Organic develo
Slide 20: Food, Pharma and Nutrition
Food, Pharma and Nutrition (in millions) Net Revenue Operating Income 5.4% CAGR 20.1% CAGR $50 $42.0 $42.5 $44.1 $15 $40 $35.4 $35.5 $11.1 $11.3 $9.7 $30 $10 $8.5 $20 $5.0 $5 $10 $0 $0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 YTD YTD 20
Slide 21: FPN Division Platforms – TTM Sep. 2013
FPN Division Platforms – TTM Sep. 2013 Protected Food Ingredients Choline Ingredients ($27MM; 59% of FPN) ($19MM; 41% of FPN) Series 1 Choline Series 1 Vitashure Confecshure Meatshure Bakeshure Nutrients Nutrients Total TTM Sales = $46MM 21
Slide 22: Choline... Essential for Every Body
“Choline... Essential for Every Body”
Slide 23: Choline In the Diet
Choline In the Diet Key Target Messages Audience Liver Health People of all ages People of all ages Synergy with Folic Acid Especially Pregnant Women Improve Life Long Memory Pre-natal, infant, children Athletic Performance/Recovery Age 18+ Improve cognitive function People of all ages CV Health 23
Slide 24: VitaCholine Scientific Summaries
VitaCholine Scientific Summaries 24
Slide 25: VitaCholine in National Brand Foods
VItaCholine in National Brand Foods
Slide 26: Press Releases
PRESS RELEASES Press Releases GNC Expands Boundaries of Innovation in Sports Nutrition Latest technology breakthroughs, exclusive formulations, and stronger products boost workout performance and recovery for athletes of all levels . BURGH, Feb. 28, 2013 /PRNewswire/ -- GNC Holdings. Inc. Gs INI | (
Slide 27: GNC products containing our technology
GNC products containing our technology ! 27
Slide 28: ARC Specialty Products
BALCHEM CORPORATION A{ | aserco SPECALTY PRODUCTS Total Fumigation Solutions 2 Ethylene Oxide ® Propylene Cae
Slide 29: ARC Specialty Products
ARC Specialty Products Highlights 2012 2013 YTD Sales $50.0M $38.4M Op. Income $20.3M $15.0M Steady revenue and income growth Operational Excellence Top provider of specialty gases Top standards for safety, packaging, distribution Manage customer inventory with just-in-time delivery. 29
Slide 30: ARC Specialty Products
ARC Specialty Products (in millions) Net Revenue Operating Income 8.7% CAGR 12.8% CAGR $60 $50.0 $47.9 $25 $50 $42.2 $18.6 $20.3 $38.4 $20 $36.4 $15.9 $15.0 $40 $14.3 $30 $15 $20 $10 $10 $5 $0 $0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 YTD YTD 30
Slide 31: Ethylene Oxide Market
Ethylene Oxide Market Overall medical device market continues to grow. Ethylene Oxide sterilization market continues to grow as well. EO shipments have historically increased 2%-3% per year. 31
Slide 32: Medical Device Sterilization Market Share
Medical Device Sterilization Market Share Sterilization by Method Other Steam 1% 2% Radiation 40% EO 57% 32
Slide 33: Public Recognition
Public Recognition Nov. 1996 Forbes 200 Best Small Companies #193 Nov. 1997 Forbes 200 Best Small Companies #116 Oct. 2001 Forbes 200 Best Small Companies #128 Jun. 2003 Business Week 100 Hot Growth Companies #16 Sep. 2003 Fortune Small Business 100 Fastest Growing Companies #86 Jul. 2004 Fortune Sm
Slide 34: The Future
The Future • Positioned for growth • Organic • Acquisitions / JV’s / Partnerships • Highly skilled management team in place • Focusing our research efforts • Stability of ARC Specialty Products • Building Global Animal Nutrition and Health Business • Food, Pharma and Nutrition continues as growth en
Slide 35: Balchem
BALCHEM