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Family Farm & Home 2015-2016 OverviewDate: March 11, 2016Presented By: Patrick OlszewskiTitle: Regional Distributor Account Executive

MORTON®Water Softening

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Family Farm & Home’s 2015 Volume Results

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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 Vol.

Tons

Sales Vol.

Tons

Sales Vol.

Tons

Sales Vol.

Tons

Sales Vol.

Units

Sales Vol.

Units

Sales Vol.

Units

Sales Vol.

Units

Sales Dollars

Sales Dollars

Sales Dollars

Sales Dollars

Product # Products 2015 2014 PY VAR

PY PCT 2015 2014 PY

VARPY PCT 2015 2014 PY VAR PY

PCTF115000000G 40Lb Pellets System Saver 942 728 214 129.4 47,124 36,414 10,710 129.4 % $180,956 $141,404 $39,552 128.0F115340000G 40Lb Valu-Soft Pellets 214 214 10,710 10,710 $34,808 $34,808F178340000B 4/8Lb Safe-T-Pet Translucent Jug 5 -5 288 -288 $7,523 -$7,523F178340000G 4/8Lb Safe-T-Pet Translucent Jug 5 5 324 324 $9,137 $9,137F178700000B 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

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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.

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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.

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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

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Category Shoppers Segment Into “Planners” And “Procrastinators”

82% of category shoppers are:

“Planners”Pre-planned and relatively routine

purchasers

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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.

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Both Planners & Procrastinators are Loyal To Form First

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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%

PrivateLabel, 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

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Key Performance Indicators for Selecting the Superior Brand of Water Softening Salt

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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 LastingHandle 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.

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Advantages of System Saver II

Softener Resin Tank After 10 years of Continuous Use*

Competitive Product

System Saver II

New Resin Plain Salt

ExtendedUse*

High Resolution Resin PhotosResin 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.

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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% Increasewith 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**

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To Drive Category Sales Family Farm & Home Should Reach Consumers Throughout Path to Purchase

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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.

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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.

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Morton Leads The Category In Innovation & Consumer Convenience

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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

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Morton Performance Drives Consumer Satisfaction, Recommendation and Loyalty

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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.

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Only Morton Delivers The Portfolio, Branding And Support To Drive Family Farm & Home’s Sales

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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!

K+S Group /

Family Farm & Home’s Pricing

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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$