1. K+S Group /
Family Farm & Home 2015-2016 Overview
Date: March 11, 2016
Presented By: Patrick Olszewski
Title: Regional Distributor Account Executive
MORTON®
Water Softening

2. K+S Group /
Family Farm & Home’s 2015 Volume Results
2
• Excellent results for System Saver up 29% vs. 2014
• Added sales of Valu-Soft added nice boost as well
 Unfortunately we have discontinued Valu-Soft
• Ice Melt products flat to 2014
• Opportunity for additional items – Cover in more detail in following pages
Sales
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Dollars
Product # Products 2015 2014
PY
VAR
PY
PCT
2015 2014
PY
VAR
PY
PCT
2015 2014 PY VAR
PY
PCT
F115000000G 40Lb Pellets System Saver 942 728 214 129.4 47,124 36,414 10,710 129.4 % $180,956 $141,404 $39,552 128.0
F115340000G 40Lb Valu-Soft Pellets 214 214 10,710 10,710 $34,808 $34,808
F178340000B 4/8Lb Safe-T-Pet Translucent Jug 5 -5 288 -288 $7,523 -$7,523
F178340000G 4/8Lb Safe-T-Pet Translucent Jug 5 5 324 324 $9,137 $9,137
F178700000B 4/12Lb Action Melt Jug 36/Pallet 10 10 -1 91.7 396 432 -36 91.7 % $7,112 $7,638 -$526 93.1
1,171 743 428 157.6 58,554 37,134 21,420 157.7% $232,013 $156,564 $75,448 148.2
Family Farm & Home Results FY 2015
Overall Result

3. K+S Group /
Morton Is Family Farm & Home’s Partner
For Water Softening Salt Sales Growth
• Water softening is highly brand-centric
category with loyal consumers likely to
skip a purchase if their preferred product
is not available
• Family Farm & Home can address the
needs of most consumers to maximize
sales with:
 Right Product Form
 Consumer Preferred Brand
 Education to encourage consumer trade-up
• Morton delivers the consumer
preferred water softening salt with
product benefits & features that
drive consumer loyalty and
grow category dollars.
3

4. K+S Group /
Shoppers Are Loyal To Retailers
That Carry Their Preferred Products
Consumers know what
product and brand they’re
going to buy before they
get to the store.
4
The right assortment in the preferred brand can maximize
consumer satisfaction to grow category dollars.
“I am brand-loyal! If my
preferred product isn’t
available, I’ll most likely skip
that purchase occasion or buy
the same brand in a different
form.”
But if their preferred item
is not available,
consumers are more
likely to leave the store
than switch to another
item.
•
82% of consumers plan purchase
and buy the same product
routinely
•
64% purchase Water Softening
Salt on a routine trip
•
62% choose where to buy based
on outlet
•
31% skip occasion if their
preferred product isn’t available
•
20% go to another store if their
preferred product isn’t available

5. K+S Group /
Category Shoppers Segment Into
“Planners” And “Procrastinators”
82% of category
shoppers are:
“Planners”
Pre-planned and relatively routine
purchasers
5
Procrastinators tend to be:
•Less Brand Loyal
•More price aware
•Likely to make purchases based on
shopping convenience and price
•More interested in education and
comparison
Offering products that
“Planners” prefer will
maximize unit
velocity and grow
category dollars
Product benefits can
encourage
“Procrastinators” to
switch to premium
products; offering a
limited quantity of
low priced products
can help increase
category volume.
“I would consider trying a new
unfamiliar brand if someone
demonstrated product benefits to me.
”
“I preplan my Water Softener
purchase and gather coupons (print
and online), I seek out sales and look
at print ads”.
Consumers may look for promotions in-store, but ultimately purchase their
preferred item.
Only 9% of category consumers change a purchase based on price.
Planners tend to be:
• Brand Loyal
• Larger Families
• 55+ yrs
• $70k+ income
• Choose store based on selection
18% of category
shoppers are:
“Procrastinators”
Put off purchases until they notice
hard water effecting their home.

6. K+S Group /
Both Planners & Procrastinators are
Loyal To Form First
6
Procrastinators, 18% Planners, 82%
Particular Softening, 3%
Sodium-Based Softening, 97%
Potassium
Chloride,
2%
Blocks, 1%
Crystal Users,
21%
Pellet Loyalists, 76%
Morton,
10%
Diamond
Crystal, 8%
Private
Label, 3%
High Iron
Water,
13%
Average Hard Water,
63%
Morton
Rust
Remover,
9%
All Others,
4%
Morton
System
Saver II,
44%
All
Others,
19%
Whether “Procrastinator” or “Planner” a
consumer knows what type of WSS they are
going to buy before getting to the store.
97% of the category falls into
“sodium-based” softening.
Blocks and Potassium users make up
a only a small, and declining, portion
of category consumers.
Consumers with high iron water
look specifically for products
with rust removal properties.
Sodium-based shoppers tend to
purchase the “form” of salt they
were told to use by an expert or
what they’ve always used –
typically “pellets” or “crystals”
Consumer view morton
water softening products as
more differentiated and
less substitutable than
any other brand.
Most Pellet users prefer the
Morton brand and separate
products into “Morton” and
“All the Others”.
Highly Essential
Less Essential
Not Essential

7. K+S Group /
Key Performance Indicators for
Selecting the Superior Brand of Water Softening Salt
7
KPI System
Saver II
Diamond
Crystal Comparison1
Patented Formula for
Effective Softener
Cleaning

System Saver II has the only patented water softening formula,
designed to effectively clean the softener during regeneration, thereby
extending the life of the softener and helping save the consumer
money on maintenance and repairs.
Extends Softener Life2  System Saver II extends softener life2.
Preferred Brand with
Good Housekeeping
Seal of Approval

System Saver II is the most recognized and preferred brand in the
category. Based on Nielsen Scan and Salt Institute data, System Saver
II is America’s #1 Brand. System Saver II is the only water softening
brand to receive the Good Housekeeping Seal of Approval.
Endorsed by
Manufacturers
 System Saver II is endorsed by the leading softener manufacturers,
Kenmore®, WaterBoss®, Northstar®, Whirlpool® and Ecopure™.
Reduces Iron Build-up  System Saver II has a proprietary additive to fight iron build-up on resin
beads, thereby reducing iron build-up in pipes and appliances.
Reduces Softener Maintenance  Morton’s System Saver II pellets resist bridging and mushing in all
softeners, which means less clean up and brine tank maintenance.
Phosphate-Free  Morton’s System Saver II is free of phosphates which can be harmful to
the environment.
Convenient and Comfort
Packaging
 Morton’s comfort grip handle and easy open bag are consumer
preferred and help make the process less cumbersome.
Durable and Long Lasting
Handle
 Morton’s hard handle surpasses the Diamond Crystal patch handle in
jolt testing, going well over 25 jolts.
Third Party Tested  In 2011, Morton utilized a well-known third party laboratory to test and
validate superior product performance.
1. The comparison is made versus Cargill Diamond Crystal bag claims.
2. Based on external laboratory testing of continuous use of System Saver II versus plain salt over the life of the softener, using hard water with an average
clear-water (ferrous) iron content of 1.1 ppm. Individual results may vary.

8. K+S Group /
Advantages of System Saver II
Softener Resin Tank
After 10 years of Continuous Use*
Competitive
Product
System
Saver II
New Resin Plain
Salt
Extended
Use*
High Resolution Resin Photos
Resin from a softener using System Saver II
retains near original condition after 10 years of
continuous use*
Competitive
Product
System
Saver II
Plain
Salt
Top View Into Brine Tank
Using System Saver II, the brine tank remains
cleaner when compared to plain salt or
competitive product.
*Based on accelerated external laboratory testing simulating 10 years of
continuous use, using hard water with an average clear-water (ferrous)
iron content of 1.1 ppm. Individual results may vary.

9. K+S Group /
Value of System Saver II Over the
Cost of Other Water Softening Salts
System Saver II is a cost-effective way to help keep a water softener running longer. Results
from a third party research test show that a softener using Competitive Product A WSS pellets
will reach a certain loss of efficiency after 10 years, whereas a softener using System Saver II
will take 17 years to reach that same loss level.*
0
2
4
6
8
10
12
# of years of Softener Life*
70% Increase
with Morton
*Based on accelerated external laboratory testing simulating 10
years of continuous use of softener, using hard water with an
average clear-water (ferrous) iron content of 1.1 ppm. Individual
results may vary.
**Calculation Assumptions: (i) average household size of 4, using
150 gallons of water per day with a range of 10 to 30 grains of
hardness; (ii) purchase of 12 bags of water softening pellets per
year; and (iii) replacement cost of the softener is $450 .
Annual Cost of Softener
Using Product A
($450/10 yr replacement rate)
$45
Annual Cost of Softener
Using System Saver II
($450/17 yr replacement rate)
$27
Cost Difference/Year $18
Savings/Bag of
System Saver II
($18/12 bag s year)
$1.50
Average Price Premium
of System Saver II
(Product A $5.18 & Morton $5.48)
$0.30
Long Term
financial
benefits of
using SSII
far outweigh
retail price
premium
Cost Calculations**

10. K+S Group /
To Drive Category Sales Family Farm & Home Should
Reach Consumers Throughout Path to Purchase
10
In-Store
“I know what I want to buy…
and I’ll leave if it’s not
there.”
Morton’s portfolio
addresses the full
range of consumer
preferences and
maximizes consumer
satisfaction.
Out of Home
“I’ll try a different product if
there’s a benefit.”
Morton’s packaging,
advertising and point
of purchase displays
help educate
consumers on the
benefits of Morton to
grow category dollars.
10
At Installation
“I take recommendations on
what’s best for my
softener.”
Morton is the trusted
name in salt,
recommended by
more softener
manufacturers than
any other softening
salt.
At Home
“I trust it to work.”
Morton out-
performs
competition to
keep softeners
running better,
longer and drive
consumer loyalty &
recommendation.
Consumers form product
preferences and loyalty
based highly on
recommendations from
trusted experts and
softener manufacturers.
51% of consumers will
exit without purchasing if
their preferred
brand/product is not
available.
Consumers want to
protect their
investment and their
home with products
they can trust to work.
Consumers are more likely
to “trade up” to new
products if they are told
the benefits.
Morton addresses key purchase drivers throughout the water softening salt
purchase process to maximize category sales and profit.

11. K+S Group /
Morton Leads The Category In
Innovation & Consumer Convenience
11
Water Softening Salt Pellet Retail Share
By Manufacturer
(tons)*
• 1st to Engineer Water Softening Salt Pellets
• 1st to Develop & Patent a Rust Remover formula
• 1st to Develop & Patent Softener Cleaning Agents
• 1st to Provide a convenient Easy Tear opening
• 1st (and only) to Offer an easy-to-carry Hard Handle
• 1st to Earn the Good Housekeeping Seal
Innovation has helped secure Morton’s
share leadership and high loyalty
among category shoppers.
72% of Morton WSS Consumers
Are Brand Loyal

12. K+S Group /
Morton Performance Drives Consumer
Satisfaction, Recommendation and Loyalty
12
Morton
users are
highly
satisfied.
Future Repurchase Intent
Recommendation Intent
96%
72%
No-Dislikes With Morton
Water Softening Products
88%
Consumer satisfaction drives strong repurchase &
recommendation intent for Morton Water Softening Salt.

13. K+S Group /
Only Morton Delivers The Portfolio, Branding And
Support To Drive Family Farm & Home’s Sales
13
Morton’s consumer-centric portfolio addresses the
needs of Family Farm & Home’s consumers
Morton delivers the PREFERRED CONSUMER BRAND
that increases loyalty and traffic for Family Farm & Home
PROGRAMMING &
SALES SUPPORT
initiatives in 2016 build
awareness to grow
Family Farm & Home
category dollars.
Contact Your Morton Sales Representative Today!

14. K+S Group /
Family Farm & Home’s Pricing
14
• Continue funding support on 40lb Rust Remover and System Saver Pellets
• Discuss promotional opportunities moving forward
 New stores for grand opening
 Consideration for additional funding for advertising and promotions
Family Farm and Home Morton Salt Pricing
Material Material Name
Primary
Plant Name
Current
Pickup
Price
F114700000G 40Lb Pellets Rust Remover MANISTEE 4.63$
F115000000B 40Lb Pellets System Saver MANISTEE 3.84$
F116010000G 50lb White Block MANISTEE 4.22$
F116050000G 50Lb TM Block 48/Pallet MANISTEE 5.52$
F139830000G 40Lb Solar WC Poly MANISTEE 3.60$