September 2014

BALCHEM CORPORATIONMay 2015

2

Founded in 1967, Balchem is engaged in the development, manufacturing and marketing of

specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical

and medical sterilization industries.

NASDAQ: BCPC

Headquarters: New Hampton, NY

Manufacturing Sites:

Slate Hill, NY

Green Pond, SC

Verona, MO

Salt Lake City, UT

St. Gabriel, LA

Covington, VA

Marano Ticino, Italy

Approximately 845 Employees

Bridgeton, MO

Defiance, OH

Reading, PA

Marshfield, WI

Lincoln, NE

Sleepy Eye, MN

BALCHEM CORPORATION

760

85

North America Rest of World

3

BALCHEM AT A GLANCE

Food, Pharma & NutritionA technology-driven, food and beverage

solutions company developing complete

systems, including ingredients, flavor

bases and microencapsulation to control,

mask, fortify, protect and deliver

technologies, into finished products.

Animal Nutrition & HealthCholine, Microencapsulation,

Chelation – delivering optimal

Animal Nutrition and Health.

Medical Devices

ARC Specialty ProductsProviding sterilization of medical

Devices, pasteurization &

Fumigation of nuts & spices.

Industrial ProductsIndustrial Choline Chloride –

Biodegradable, Environmentally

Responsible, Reduced or Chloride

Free.

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BALCHEM TODAY

REVENUE $ 541.4

EBITDA $ 112.2

NET EARNINGS PER SHARE $ 1.69

EBITDA PER SHARE $ 3.60

2014 Results

(Dollars in millions, except per share data)

NET EARNINGS $ 52.8

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BALCHEM TODAY

REVENUE $ 144.9

ADJUSTED EBITDA $ 36.1

NET EARNINGS PER SHARE $ 0.48

EBITDA PER SHARE $ 1.15

2015 YTD Results

(Dollars in millions, except per share data)

NET EARNINGS $ 15.2

Animal Nutrition and

Health30%

Industrial Products

14%ARC Specialty Products

9%

SensoryEffects47%

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2015 1st Qtr.

Net Revenue

$145

Net Revenue (dollars in millions)

$0

$100

$200

$300

$400

$500

$600

2011 2012 2013 2014 2015

$292 $310 $337

$541

$145

BALCHEM CORPORATION

1 Reflects certain one time pre-tax charges of $5.4 million relating to the May 2014 acquisition of SensoryEffects

$0

$10

$20

$30

$40

$50

$60

2011 2012 2013 2014 2015

$39 $40

$15

$45

$0.00

$0.50

$1.00

$1.50

$2.00

2011 2012 2013 2014 2015

$1.28 $1.32

$0.48

$1.45$1.691$531

Net Earnings Fully Diluted Earnings Per Common Share

HISTORICAL CONSOLIDATED RESULTS (Dollars in millions, except per share data)

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SENSORYEFFECTS

Growth Platforms Products Strategy

SENSORYEFFECTS

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HIGHLIGHTS

($ in MM’s) 2013 2014 2015 YTD

Sales $48 $206 $68

Op. Income $11 $ 21 $ 8

• SensoryEffects acquired May 7, 2014

SensoryEffects (Acquisition)($54.5 MM YTD; 80% of segment)

Powders Flavors Cereal

Nutritional Ingredients($5.8 MM YTD 9% of segment)

CholineNutrients

Vitashure Nutrients

$11.1 $11.3 $11.2

$21.3

$7.7

$0

$5

$10

$15

$20

$25

2011 2012 2013 2014 2015 YTD

$43 $44 $48

$206

$68

$0

$50

$100

$150

$200

$250

2011 2012 2013 2014 2015 YTD

Revenue Operating Income

($ in millions) ($ in millions)

Protected Food Ingredients($7.5 MM YTD; 11% of segment)

Confecshure Meatshure Bakeshure

SENSORYEFFECTS DIVISION PLATFORMS (2011-2013 is PRE-ACQUISITION)

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Chocolate systems

Juice and other drink bases

Ice cream bases and variegates

Low-Melt Point Inclusions

Specialty non-dairy and dairy creamers

Whipped toppings

Nutritional beverage bases

Specialty powders including baby formula and medical food

Dough's & Batters

Shelf-Stable Breads

Bakery Mixes

Tortillas

Cookies

Cakes

Customized wet- and dry-based flavor systems.

Encapsulates improve the texture, taste, economics and shelf life of food products via controlled released technology.

SENSORYEFFECTS INGREDIENT SOLUTIONS

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Specialty spray-dried emulsified powders and formulated dry-blended systems.

FLAVOR SYSTEMS POWDER SYSTEMS ENCAPSULATES

& INCLUSIONS

Ready-to-eat cereals

Baby cereal food

Cereal snacks

Cereal ingredients

Customized manufacturing of cereal

based systems.

SENSORYEFFECTS

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Development and manufacturing

Infant and Toddler formulas.

Custom blends

Nutritional bases

Fortified Nutritional bases

All-in wet mixes

SPECIALTY BEVERAGE CEREAL SYSTEMS INFANT & TODDLER

NUTRITIONSpecialty Beverage delivers the

formulation of applications for

single serve consumer convenience

technologies including dry blends,

spray drying and agglomeration.

Innovation for convenience

Evolution of Single Serve:- Consumer choice flavor- Functionality

NUTRIENT APPLICATIONS

Choline: a nutrient for general well-being, with importance in:

Prenatal development

Lifelong cognitive function

Metabolism, liver and cardiovascular function

Support of active, athletic lifestyles

Included in a variety of supplement forms, including tablets, capsules and chewables

Easy to formulate into foods and beverages

Recipient of nutrient health claims in multiple markets worldwide

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US Gov’t. recognizing that choline nutrition is important!

• The newest edition of a key national dietary intake survey confirms that 90% of Americans are still not getting the choline they should be.

• March 2014: FDA Proposed Rule includes provisions for an RDI for choline and its voluntary inclusion on the Nutrition Facts panel, an important first

• If adopted in the Final Rule (extremely likely), the full compliance date is 1/1/18

• Expect early adopters

• March 2015: USDA Dietary Guidelines for Americans committee notes choline as a shortfall nutrient

• Industry and association comments support its further consideration, urge mitigation of the intake gap

CHOLINE – “RDI” Pending

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proposed new label

ANIMAL NUTRITION & HEALTH

Growth Products Highlights

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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.

NUTRITIONAL PRODUCTS

ANIMAL NUTRITION AND HEALTH

HIGHLIGHTS

($ in millions)2013 2014 2015 YTD

Sales $156 $176 $43

Op. Income $18 $24 $9

• #1 supplier globally of choline chloride.

• Multi-Plant Operational Benchmarking & Logistics.

• Focused R&D, novel product introduction/ commercialization has increased market penetration in ruminants.

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18

Protected Ingredients(Shure™ Technology) ($60 MM; 34% of ANH)

RuminantHealth

RuminantProtein

ChelatedMinerals

Base Ingredients($116 MM; 66% of ANH)

CholineFeed

2014 Revenue - $176 million

ANH HEALTH PLATFORMS

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$14.8 $16.1$18.2

$23.7

$8.5

$0

$5

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$15

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$25

$30

2011 2012 2013 2014 2015YTD

$142 $148 $156$176

$43

$0

$50

$100

$150

$200

2011 2012 2013 2014 2015YTD

($ in millions) ($ in millions)

REVENUE OPERATING INCOME

ANIMAL NUTRITION & HEALTH

ARC SPECIALTY PRODUCTS

Growth Products Market

ARC SPECIALTY PRODUCTS

HIGHLIGHTS

($ in MM’s)2013 2014 2015 YTD

Sales $51 $54 $13.6

Op. Income $20 $21 $5.7

• Top provider of specialty gases.

• EO – Medical Device Sterilization

• PO – Spice & Nutmeat Fumigation

• Top standards for safety, packaging, distribution.

• Manage customer inventory with just-in-time delivery.

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$18.6$20.3 $20.2 $21.3

$5.7

$0

$10

$20

$30

$40

$50

2011 2012 2013 2014 2015 YTD

$48$50 $51

$54

$14

$0

$12

$24

$36

$48

$60

2011 2012 2013 2014 2015 YTD

REVENUE OPERATING INCOME

($ in millions) ($ in millions)

42% of

Sales

ARC SPECIALTY PRODUCTS

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Overall medical device market continues to

grow with aging demographics

Ethylene Oxide utilization has historically

increased 3%-4% per year

ARC repackages hazardous chemicals safely

and responsibly, from bulk tanks to aerosol

size cans

Ethylene Oxide 57%

Radiation 40%

Steam 2%

Other 1%

Sterilization by Method

MEDICAL DEVICE MARKET

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INDUSTRIAL PRODUCTS

Growth Products Joint Venture

Industrial Products

HIGHLIGHTS

($ in millions)2013 2014 2015 YTD

Sales $83 $105 $21

Op. Income $16 $17 $3

• Choline chloride and derivatives of choline chloride for numerous industrial applications.

• Multi-Plant Operational Benchmarking & Logistics.

• Focused R&D, novel product introduction/ commercialization has increased market penetration.

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Products

• Methylamines

• Metam Sodium

• Choline and choline

derivatives

for oil and gas

applications

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$11.7 $12.0$15.9 $16.5

$3.1

$0

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$20

$30

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$50

2011 2012 2013 2014 2015YTD

$59$69

$83

$105

$21

$0

$50

$100

$150

2011 2012 2013 2014 2015YTD

($ in millions) ($ in millions)

REVENUE OPERATING INCOME

Industrial Products

LOOKING AHEAD

Future GrowthLooking Ahead 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 Small Business 100 Fastest Growing Companies #44

Jul. 2005 Fortune Small Business 100 Fastest Growing Companies #62

Jul. 2005 Balchem named to Russell 3000 and Russell 2000

Oct. 2005 Forbes 200 Best Small Companies #72

Oct. 2006 Forbes 200 Best Small Companies #116

Jun. 2007 Business Week 100 Hot Growth Companies #80

Jul. 2007 Fortune Small Business 100 Fastest Growing Companies #95

Oct. 2007 Forbes 200 Best Small Companies #51

Jun 2008 Balchem named to S&P 600

July 2008 Fortune Small Business 100 Fastest

Growing Companies #60

Oct. 2008 Forbes 200 Best Small Companies #31

July 2009 Fortune Small Business 100 Fastest

Growing Companies #62

Oct. 2009 Forbes 200 Best Small Companies #64

Oct. 2010 Forbes 200 Best Small Companies #24

Oct. 2011 Forbes 200 Best Small Companies #29

Oct. 2012 Forbes 200 Best Small Companies #71

Oct. 2013 Forbes 200 Best Small Companies #82

Oct. 2014 Forbes 200 Best Small Companies #83

PUBLIC RECOGNITION

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• SensoryEffects is a growth engine

• Positioned for growth

– Organic

– Acquisitions / JV’s / Partnerships

• Highly skilled management team in place

• Building Global Animal Nutrition and Health Business

• Stability of ARC Specialty Products

• Positioning ourselves for participation in

emerging technologies

• Strong balance sheet

FUTURE

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September 2014