CapitalCapital MarketsMarkets DayDay MortonMorton SaltSalt

MarkMark RobertsRoberts CEOCEO ofof MortonMorton SaltSalt Berlin,Berlin, 88 DecemberDecember 2010 2010

Experience growth. Morton Corporate Overview z The K+S salt presence in North America consists of two highly efficient and profitable entities: and International Salt Company (ISCO). z Together with our sister company ISCO, we are the North American market leader in consumer and speciality salt, industrial salt, and de-icing salt. z North America’s favourite consumer salt brands “The Morton Umbrella Girl” & “Windsor Castle”.

z 6 rock salt mines, 7 solar evaporation facilities and 10 vacuum pan operations as well as 62 salt stockpiles and 61 distribution centres. z Annual salt production capacity of 13.1 million tonnes. z 2,900 employees – Average tenure ~19 years. z Headquartered in ; founded in 1848.

December 2010 K+S Group 1 Morton Salt Business Overview

z The only North American salt producer with an evenly Revenues by Market balanced product & geographic portfolio. 2009

Ice z The Consumer business is divided into three product Control Consumer 31% groups: 46% • Table and Speciality • • Packaged Ice Melt z The Ice Control business is divided fairly evenly between

the U.S. and Canada and services the markets from over Industrial 60 strategically placed stockpile sites. 23% z The Industrial business services dozens of end-use Distribution of business into markets and relies on Quality, Reliability and Service to three significant parts support our value proposition. provides a “three legged stool”, unmatched by any z The overall business is recession-resistant. N.A. salt competitor.

December 2010 K+S Group 2 Morton Salt Production Sites in North America

Lindbergh, AB

Regina, SK Mines Seleine, QC

Manistee, MI Pugwash, NS Ojibway, ON Windsor, ON Silver Springs, NY Perth Amboy, NJ Grantsville, UT Fairport,OH Newark, CA Rittman, OH

Long Beach, CA

Glendale, AZ Hutchinson, KS

Grand Saline, TX Production method Port Canaveral, FL Weeks Island, LA Rock salt (6) Inagua, BH Solar evaporation salt (7) Vacuum salt (10)

December 2010 K+S Group 3 Morton Salt Safety

z Morton Salt is the industry leader when it Occupational Illness & Injury (OII) Rates* comes to safety in the workplace. 1,9 z Our credo - “Nothing is more important to 1,8

Morton Salt than health and safety, not 1,7 production, not sales, not profits.” 1,6 z Morton is one of only seven companies with 1,5 corporate OSHA VPP (Voluntary Protection Morton (YTD Oct.) N.A. Salt Industry (Jan-Jun) Program) status – an employee-led safety initiative: Lost Time Injury (LTI) Rates* • Morton Salt 0,35 • Delta Airlines 0,34 • General Electric • Dow Chemical 0,33 • Jacobs Engineering Group, Inc. 0,32 • Fluor Corporation 0,31 • Parsons Corporation 0,30 • The Washington Division of URS Corporation 0,29 Morton (YTD Oct.) N.A. Salt Industry (Jan-Jun) * per 200,000 working hours

December 2010 K+S Group 4 Morton Salt The Brand

The Morton brand is an American Icon z The Morton Umbrella Girl is nearly 100 years old.

z Virtually universal awareness (95%) among American consumers.

z Evokes feelings of quality, trust and purity.

z 87% of consumers attribute high quality and reliability to the brand.

z 75% of shoppers at a leading mass merchan- diser prefer to buy System Saver II vs. 4% for next leading brand.

Î Provides a strong foundation for price premium, product innovation and product line extensions.

Sources: Morton Tracking Study Wave 3, DDB 2004; Water Softener Salt Channel Assessment Report, Market Tools May, 2010. December 2010 K+S Group 5 Morton Salt The Brand

The Morton brand is an American Icon z The Morton Umbrella Girl is nearly 100 years old.

z Virtually universal awareness (95%) among American consumers.

z Evokes feelings of quality, trust and purity.

z 87% of consumers attribute high quality and reliability to the brand.

z 75% of shoppers at a leading mass merchan- diser prefer to buy System Saver II vs. 4% for next leading brand.

Î Provides a strong foundation for price premium, product innovation and product line extensions.

Sources: Morton Tracking Study Wave 3, DDB 2004; Water Softener Salt Channel Assessment Report, Market Tools May, 2010. December 2010 K+S Group 6 Morton Salt Consumer Products – Advertising & Promotion

z New, overarching ad/promotional campaign will further build up the brand across all product lines.

z Utilize the Umbrella Girl & Morton name as a true differentiator.

z Underlying theme – “She Makes Everything Better”.

z Unexpected events with The Girl will generate interest, conversation, and buzz.

z Increased focus on social media space will help connect with younger consumers.

z Integrated advertising, promotion, web and social media will work harder to make The Girl relevant.

December 2010 K+S Group 7 Morton Salt Consumer Products: Clear Market Leader in Table and Speciality

Market Leader in Table & Speciality Table & Speciality (Dollar shares) z Morton Salt with 35% share Other 16% • Morton is #1 in the high-growth / high-margin Cargill category. 4% Morton Salt • Morton is #1 in the high-growth / high-margin 35%

category. P/L 16%

MCCormick Shift towards higher profitability products 30% Source: The Nielsen Company, Grocery Channel, % of Sales Dollars Round Cans Sea Salt Kosher Salt 4 wks ending, 10/9/10. 100% 17% 22% 23% 24% 80% 3% 14% 60% 21% 22% Salt for 40% 80% chemical use 6% 64% 56% 54% 20%

0% 2005 2009 2010e 2011e December 2010 K+S Group 8 Morton Salt Consumer Products: Clear Market Leader in Water Softening

Market Leader in Water Softening Water Softening (Dollar shares)

z Morton is the market leader in water P/L 6% Other 1% softening with 52% share of pellets. Compass 4% z Morton outperformed competition on all top Morton Salt drivers of brand loyalty. 52% • Morton water softening salt commands 84% Cargill loyalty. 31% • 73% of users agree that Morton is the authority on water softening salt. • 71% are satisfied that Morton has the most advanced formula. • 68% say that Morton is the leader and the most popular brand.

Sources: 2008 McKinsey Study on Water Softening; AC Nielsen Homescan 2009 Share of Requirements; Salt Institute C’10 Jan-June $ share; Morton estimate of competitive breakdown. December 2010 K+S Group 9 Morton Salt Consumer Products: Packaged Ice Melt Growth

Ice Melters Ice Melters (Dollar shares)

z Consumers prefer Morton branded ice melters Other 19% 2 to 1 over other leading brands. Morton Salt 25% z Service is paramount – Morton awarded the Walmart “Supplier Collaboration Award of the Cargill 12% Year” for service performance in ’09/’10 season. z Great synergies with ISCO. Scotwood Compass 13% 31% Morton Ice Melt Blend Volume Growth (tonnes)

5% 14 GR CA

C'07 C'08 C'09 C'10 (plan) Sources: Internal Estimates Based on BCG Analysis 2009 and The Nielsen Company Data; Understanding the Purchase Dynamics of Ice Melting Products, DDB 2007 December 2010 K+S Group 10 Morton Salt Governmental De-icing Market – North America

The public safety and economic benefits of road salt use are clear. z Winter weather congestion affects 70% of U.S. roadways. z Roadway de-icing reduces crash frequency by 88.3 percent. z De-icing decreases the average cost of each crash by 10 percent. z During the first four hours after salt is applied, the direct road users’ benefits (i.e. increased mobility, productivity & hourly worker compensation) are $6.50 for every $1.00 spent on direct maintenance costs for the operation. z A one-day major snowstorm can cost a state $300-$700 million in both direct and indirect costs (i.e. reduction in commerce & associated tax revenue).

Morton/ISCO – Even distribution of volume between three key markets. Long-term average ice control shipments 35% Midwest Canada USEC

28% 37%

Sources: Marquette University and Global Insight Studies / Salt Institute December 2010 K+S Group 11 Morton Salt Governmental De-icing Market – North America

z Morton & ISCO’s combined broad production & stockpile footprint is geographically attractive to high snowfall / high population density markets. z With the addition of SPL’s high capacity & low fixed cost supply sources (from Chile and Brazil), there is now ample capacity to meet the near-term needs of a bulk de-icing market which is growing at 1-2% per year. z The newly combined production footprint will be re-balanced annually to meet the anticipated seasonal market demand.

December 2010 K+S Group 12 Morton Salt Governmental De-icing Market – North America

Seasonal governmental ice control sales volumes compared with 9-year normalized volumes % 50

40 30 20 21

10 10 11 10 7 US East Coast 0 Midwest -7 Canada -10 Weighted Average -14 -16 -20 -22 -30 -40

-50 '01/'02 '02/'03 '03/'04 '04/'05 '05/'06 '06/'07 '07/'08 '08/'09 '09/'10 z The three North American regions served by K+S provide a nice winter business balance with a high chance to balance each other out. No other North American salt company has the same presence. z On the basis of the whole salt division, the European de-icing region adds even further diversification. z Less overall volatility provides a more predictable cash flow. z The broad K+S production network ensures supply in order to capitalize on the ‘up’ winter regions.

December 2010 K+S Group 13 Morton Salt Business Weather Intelligence z Morton takes a unique, pro-active approach towards the weather impact on business by partnering with Planalytics. • Provides timely, actionable insights into impending winter

weather demand patterns – 2-week view. 2007-2008 Monthly Snowfall 2008-2009 Monthly Snowfall 96 Metro Areas Normal Monthly Snowfall LR 2009-2010 Snowfall Accumulated Season 2007-2008 Accumulated Season 2008-2009 Comparison Accumulated Normal Season LR 2009-2011

OCT NOV DEC JAN FEB MAR • Facilitates production and logistics planning adjustments. 3000 1200 2500 1000

2000 800

• Adds value to our product offering. 1500 600 (Inches) Bar Graphs

1000 400 Accumulated Amounts Amounts Accumulated Monthly Amounts (Inches) • Planalytics forecast accuracy up to 90% over 1-2 week view. 500 200 0 0 z Utilizing BWI • Planalytics automated daily snow alerts provide projected snowfall by day AND a detailed listing of when and how much by customer location – driving replenishment orders. • Alerts sent to our sales group and key customers who then make decisions on pushing product to highest impact locations. • Increases sales, minimizes unsold inventory costs, speeds replenishment, sets Morton apart from competition as superior vendor.

December 2010 K+S Group 14 Morton Salt Industrial Products

Food Processing z Diverse group of markets served. Distributor Chemical Oil Health Care z Focus on Quality, Reliability and AG Service to support value proposition. Gov. Muni. & Inst. Utilities • Every industrial product produced at a Salt Companies Other minimum of 2 plants. Detergent Ice Melters • Broad production footprint provides unmatched Paper Hide Processing service levels. Misc. Industries Textile z Highly skilled sales force, most with technical degrees. z Recently added Kosher salt capacity will allow the Industrial sales team to recapture market share previously shed

to support CPG growth. Dendritic Solar Rock Pretzel z Morton offers the broadest industrial salt product range in the salt industry.

HG Blending KCl Kosher

December 2010 K+S Group 15 Morton Salt Industrial Products

z Industrial Products group focused on obtaining a price premium for providing the Industrial Products Quality, Reliability and Service that support 2004 -2010e Gross Profit Contribution 300 value proposition. 2004 = 100% % 250 z Future profitability will be bolstered by the same shift to higher-margin sea salt and 200 kosher salt as seen in the consumer 150 business.

100 z Although dietary sodium reduction is a pressing topic, many processors have 50 already made formulation changes without 0 fanfare as low-sodium means “low-taste” to 2004 2005 2006 2007 2008 2009 2010e consumers.

December 2010 K+S Group 16 Morton Salt Low Sodium Discussion z Beyond providing flavour, salt plays a key role in food – ensuring texture and preservative properties. z The science behind the push for lowered dietary sodium levels is mixed: • USDA is contemplating a reduction in the recommended daily sodium consumption levels from 2,300 mg/day to 1,500 mg/day. • However, recent medical studies including one from the Harvard School of Public Health (November 2011) suggest that humans consume a very consistent level of sodium regardless of the sodium content in processed . z Regardless of the science, Morton is playing a pro- active role in providing information and solutions, both to industry and consumers. • Morton is offering and Potassium Chloride blends, and will continue to work with K+S KALI to combine efforts in this area. • Morton is offering “salt savvy” messaging on table salt products – suggesting responsible while offering product alternatives.

December 2010 K+S Group 17 Morton Salt Post-Closing Business Integration Issues z Post-Closing Integration Steps & Projects • Timely financial reporting in keeping with K+S & IFRS reporting standards. • Inclusion of Morton into K+S scheduling and budgeting structures/processes. z Business Integration • Reorganization of roles/responsibilities between ISCO and Morton in North America. • Identification and implementation of best practices between the various salt companies. z Carve-Out of “non-salt“ activities • Establishment of necessary legal entities as prerequisite for the transfer and ultimate elimination of former Morton “non-salt“ activities. • Return of shell company with environmenal risks to Dow Chemical, occurred on 1 November 2010. z IT-Integration • Integration of Morton into K+S IT platform will bring benefits. • Easier flow of financial data for consolidation and budgeting purposes. Ongoing • Improved back-end reporting will provide more timely information for management of business. • Platform “go-live“ for Morton Canada expected mid-2011, Morton USA mid-2012. December 2010 K+S Group 18 Morton Salt Business Synergies

Morton Salt valuation was made assuming no synergy savings; however, there are in fact considerable and sustainable synergies. z Quick wins. • Joint purchase of . • Morton supplying ISCO water softening and other specialities. ~ $4 million • Morton (Inagua) supply to ISCO in winter ‘09/’10. z Identified, in synergy realization phase. • Optimization of logistics flow for U.S. East Coast. ~ $5 million • Earnings potential due to reorganization of salt in North America. z Earnings potential from other efficiency projects mid-term view. • Best Practices (mining/technology). • Procurement synergies (i.e. bags, pallets, ingredients). ~ $15-$20 million • Energy (gas/coal). • Transportation (truck / barge / container / vessel).

December 2010 K+S Group 19 Morton Salt Promising Outlook ahead within the K+S Group z From a global perspective, Morton Salt broadens the geographic footprint of a weather- impacted salt business. z In keeping with the K+S Vision and Mission, Morton Salt will integrate its long-term strategic plan into that of the Business Unit Salt. z There are real, as yet unexplored synergy opportunities. • Best practice sharing. • Mining techniques. • Safety programs. • R&D - new product development. • Food and Pharma grade KCl sales – leverage for Morton’s sales force & market knowledge. • Health & Beauty market – leverage for Morton’s strong brand identity. z K+S’ Salt business creates a strong North American platform and knowledge base from which other growth opportunities can be launched. We have a high level of regional competence in transportation, solution mining, regulatory issues, etc. z The traditional Morton Brand has a bright future …

December 2010 K+S Group 20 K+S Group Forward-Looking Statements

This presentation contains facts and forecasts that relate to the future development of the K+S Group and its companies. The forecasts are estimates that we have made on the basis of all the information available to us at this moment in time. Should the assumptions underlying these fore- casts prove not to be correct or should certain risks – such as those referred to in the recent Risk Report – materialise, actual developments and events may deviate from current expectations. The Company assumes no obligation to update the statements contained in this presentation, save for the making of such disclosures as are required by the provisions of statute.

K+S GruppeK+S Group 21 K+SK+S AktiengesellschaftAktiengesellschaft Bertha-von-Suttner-StraßeBertha-von-Suttner-Straße 7 7 3413134131 KasselKassel || GermanyGermany phone:phone: +49 +49 (0)561(0)561 // 9301-09301-0 fax:fax: +49 +49 (0)561(0)561 // 9301-17539301-1753

InvestorInvestor RelationsRelations phone:phone: +49 +49 (0)561(0)561 // 9301-11009301-1100 fax:fax: +49 +49 (0)561(0)561 // 9301-24259301-2425 email:email: [email protected] [email protected] Internet:Internet: www.k-plus-s.com www.k-plus-s.com

Experience growth. K+S Gruppe 22