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Morton Ice Melt ReviewWALLACE HARDWARE

2016/17 Season Planning

Date: April 6, 2016Sales Contact: Patrick OlszewskiPresented to: Wallace Sales Team

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Agenda

Morton is Driving the Ice Melt Category - Morton ice melt facility footprint- The Morton brand that consumers know and trust

Morton Leads in Consumer Understanding- Investment in consumer education- Morton’s premier packaging- Consumer needs

2016-2017 Season Recommendations

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Morton Facilities Have The Snowbelt Covered

MAP KEY

Morton is optimizing its network of co-packers and suppliers to build the right partnerships to provide quality and reliable service to customers

Plant or Packaging Facility

Warehouse

MAP KEY

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A&P Investments For The 2016-2017 Season

Investment Comments30 Second Educational Videos

and InfographicsCreates an emotional connection with consumers through engaging

content that educates and drives early season preparation

“Neighbors” :90 Animated Short An engaging :90 animated short featuring the story of two best friends. The media plan is estimated to deliver 7MM++ views

New Website Design Creates a home for the digital media content. The user-friendly website provides product information, as well as an updated where to buy feature

Designing Spaces Two episodes about “preparing for winter” and “choosing the right ice melt for you” aired on Lifetime channel. Estimated reach of 784MM HHs

Ice Melt Displays Morton displays drive sales both in season and before the first storm

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Morton® Ice Melt: Driving Consumer Education and Behavior in a New Way

5

BE SMARTER THAN WINTER:30 educational animations

Who says educational videos have to be dry and boring? These animated chapters star a lovable penguin family and a menacing yeti. In each scenario, they encounter an ice and snow situation and demonstrate how to best prepare for winter. These are more informational and product forward, yet still entertaining. Three chapters educate consumers on the product line in general, and an additional three chapters highlight the benefits of each individual product.

Media Plan: Generated over 4MM video views Included digital content advertising Geographically targeted and tied

to product benefits Led consumers to purchase online

or to MortonSalt.com to learn more about which Morton® premium product is right for them

Planning vs. Panicking Choosing The Right Ice Melt

How To Apply

Safe-T-PetAction Melt Safe-T-Power

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Large Category Callout And Color Coding For Quick Identification

Using Packaging To Guide User Decisions

Clear Product Benefit Detail

Clear and Simple Temperature Coding

Trusted Brand Name

Morton’s premiere packaging educates users through simple communication - empowering them select product that best meets their needs

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Professional Grade Calcium Chloride

• 100% Calcium Chloride

• Generates heat to melt fast

• Melts faster and longer than plain rock salt in extreme temps

• Melts down to -25°F

Professional Grade Pro Speed & Pro Speed Blue

• High Performance Blend of rock salt and calcium chloride

• Generates heat to melt fast

• Melts faster and longer than plain rock salt in extreme temperatures

• Available in blue for application visibility

• Melts down to -15°F

Fast Acting

Professional Grade Safe-T-Salt

• 100% Rock Salt

• Economical Solution

• Melts down to 5°F

Morton Knows What Snow Professionals Need

Low Temperatures Basic Temperatures

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2016 – 2017 Season Recommendations

Stock up early and take advantage of summer and early buy programs to capture demand from customers who plan to stock up on ice melt before the season begins

Encourage consumers to trade up to premium blended ice melt products

Carry the optimal mix of Morton bag products to meet the unique needs of your customer

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Morton Is Your Partner For Stronger Ice Melt Sales

Our Winning Combination Of Supply Management, Category Understanding, Product Offerings And Sales Support Are What You Need And What Will Drive Sales In 2016-2017!

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Morton Research Uncovered Key To Profit Optimization For Snow Professionals There is a large variation in application guidelines and product claims that is driving

confusion in the ice melt category

In an effort to provide our customers with the best information, Morton partnered with Michigan Technological University to test different ice melt products in real world conditions to understand:

1. How to select the optimal product type for different conditions

2. What application rate provides optimal melting performance

The study covered key variables in the melting of ice and snow:

Melter Type Application Amount Surface Temperature

• Rock Salt• Calcium Chloride• Magnesium Chloride• Blend (10% CaCl2)

• 60lb/1,000 ft2• 30lb/1,000 ft2• 15lb/1,000 ft2

• 0°F and below• 1°F – 10°F• 11°F – 20°F• 21°F and above

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Example Data Collection: Calcium Chloride @ 3°F-10°F

Calcium Chloride at 60 minutes

60lb/1,000ft2

30lb/1,000ft2

15lb/1,000ft2

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Image Analysis with ImageJ Software *

* Rasband, W.S., ImageJ, U. S. National Institutes of Health, Bethesda, Maryland, USA, http://imagej.nih.gov/ij/,1997-2011

Test Area Image Test Area Image With Bare Pavement Defined by ImageJ

Sample output:

28-Jan-1130 Minutes Picture # # Pixels - ROI # Pixels - Bare Pavement Area Fraction

A2 IMG_5874.JPG 8525862 393608 5%

Team used state-of-the-art image analysis to calculate surface area after melting had occurred.

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Application Recommendation Summary

Surface Temp. Range Rock Salt Blend Rock Salt &

10% CaCl2 Calcium Chloride Magnesium Chloride

< 0°FNot

RecommendedNot

Recommended >60 Not Recommended

0°F - 10°FNot

Recommended 60 60 Not Recommended

11°F - 20°F > 70 50-60 30-60 Not Recommended

>20°F 45-60 40-60 30-60 30-60

Application (lb/1,000ft2)

- Recommended Product

Findings were incorporated into a recommendation chart:

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Morton Is The Only Company to Sponsor 3rd Party Field Melting Tests to Validate Product Claims

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WALLACE HARDWARE Morton Water Softening Product Details

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

16

KPISystem 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

Total Saving on Lifetime(10 years) of Softener using System Saver II Pellets

$180

Long Term financial

benefits of using SSII

far outweigh retail price premium

Cost Calculations**