TESSENDERLO KERLEY Jordan Burns EVP Tessenderlo Kerley

Because every molecule counts

• World’s largest producer of sulfur-based

thiosulfate fertilizers with clear growth potential as

well as sound business drivers

• Our cutting-edge liquid fertilizers are well-suited for

drip irrigation applications and are sustainable due to

water availability constraints

• Lowest cost-to-serve producer

• Enhanced market position through innovative

products and business practices

TKI’s unique attributes

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MEGA-CHALLENGES OFFER OPPORTUNITIES FOR TKI

Tessenderlo Kerley

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“ 7 billion people to feed today with

2 billion more to join by 2050

70% more food needed ”

Source: UN

The Challenge

The Opportunity

“ More food production with less

arable land and less water ”

The Solution

“ We support food production in

the drought prone regions of the world

through the production and sale of liquid

fertilizers which can be applied

via fertigation ”

Tessenderlo Kerley

HOW KERLEY CORE IS SEIZING OPPORTUNITIES

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Raw Materials

• Hydrogen sulfide, sulfur

and a small percentage of

ammonia are sourced

through the environmental

service that TKI provides

to the refinery

Tessenderlo Kerley

• Strong relationships with

suppliers ensure low cost

and sustainable supply

• Raw materials are managed

by long-term contracts

• Integrated players

(combining raw materials

and fertilizer production)

have a competitive

advantage

TKI produces sulfur-based liquid fertilizers

Refinery Services

Key Products

Distribution End-use

• Extensive terminals

(60+) and transporters

(truck and rail) ensure

supply continuity

• Proper plant nutrition

leads to higher plant

yields and added

nutritional

consumption benefit

to humans and

livestock

8 Source: Kerley

• Liquid thiosulfates

• Slow release

nitrogen

(Triazone®)

Replace photo

(RS2)

Replace photo

(RS3)

Replace photo

(RS4)

Replace photo

(RS6)

Replace photo

(RS7)

Tessenderlo Kerley footprint

Plant New project Tolling Admin

2011 Net Sales

€ 271 m REBITDA

€ 66.5 m

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Ham, Belgium

Bahrain joint venture

Izmir, Turkey

Finley, WA

Billings

Burley, ID ATS (under const)

Phoenix, AZ Corporate

Tucson, AZ R&D Lab

Carlsbad, NM TKS Office

Eufaula, AL

Coffeyville

Fresno, CA

Garry Williams Wynnewood

ATS expansion

Agriphos

Mc Pherson

Ponca City

Mining

Markets: agrochemicals, industrial

Refineries

H2S, SO2 recovery production and distribution of S-derivatives

Regeneration

service steam

improved compliance

Sell products

Waste

streams

containing

H2S

Service

fee

capital

Revenue

Unique business model giving strong competitive advantage Value proposition

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• Backward integrated into raw materials

• Economies of scale

• Largest North American non-integrated KOH consumer

Low cost

producer

• Unparalleled range of sulfur-based liquid fertilizers

Product

portfolio

• Kerley is the market leader Image

• Refinery Services – Kerley's strength is its operating history and the

Tail Gas Technology that provides regulatory compliance

• Niche liquid fertilizer know-how

Know-how

• Strategically located distribution terminals

• Extensive rail and truck networks

Logistics

set-up

Source: Kerley

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Competitive strengths

• Liquid fertilizer, primarily used

on broad acre crops, e.g., corn & wheat

• Potassium thiosulfate specialty fertilizer, used on e.g., corn,

wheat, vegetables, grapes, almonds, citrus

• Calcium thiosulfate specialty fertilizer, used on e.g.,

almonds, vegetables, citrus

• Family of urea-triazone based, slow release nitrogen, clear liquid

fertilizers applicable as a foliar and/ or soil-applied solution,

used on e.g., corn, cotton, row crops, orchards

• Magnesium thiosulfate fertilizer used on e.g., grapes,

citrus, some vegetables

• Applications in both agriculture

and industry

• Used in coloring in soda industry and beet processing;

also effective in cyanide destruction in gold recovery

• Ammonium sulfide solution, generally an

intermediate used to make other Kerley products

• Potassium sulfur-based nutrient that is placed next

to the seed safely, used on e.g. corn & wheat

Description Name

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Products & applications

Source: Kerley

13 Source: Kerley

ATS KTS CaTS MgTS Triazones

Barley

Corn

Grapes

Oats

Peanuts

Potatoes

Nuts

Soybeans

Wheat

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

Products & applications

14 Source: Kerley

ATS KTS CaTS MgTS Triazones

Flowers

Cotton

Orchards

Sorghum

Sugar Beets

Tobacco

Tomatoes

Vegetables

Watermelons

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

x

Products & applications

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Long-term growth and sustainability

• Further focus on the Americas and expand

into Europe, Middle East and Australia

• Expand product portfolio to broaden offering into

specialty niche markets

• Remain lowest cost-to-serve producer

• Continue to collaborate with stakeholders to

optimize supply chain

• Expand mining and industrial pillar

Strategy - Kerley

Tessenderlo Kerley

HOW NOVASOURCE IS SEIZING OPPORTUNITIES

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• Business model: the efficient exploitation of

established crop protection labels

• Niche player with above industry average

profitability thanks to focus and cost efficiency

• Registration requirements and need for ongoing

studies create barriers to entry

• Lean organization – focused on sales,

marketing & distribution

• Global #1 in Metam sodium soil fumigant production

NovaSource expertise & excellence

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NovaSource core activities

Regulation ensures control across value chain

Raw materials

Sourcing of basic raw materials

Activity

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The ownership of registered labels and regulatory dossiers creates barriers to

entry and allows NovaSource to support and expand uses (create value)

Intermediate production

Processing basic raw materials into key building blocks

Commer- cialization

• Sales • Marketing • Development • Registration • Regulatory

defense

Finished good production

• Formulating end use products (Mixing ai’s with diluents and carriers)

• Packaging

Distribution & End-use

• Distribution • Warehousing • Pest control advice • Application of

products

Finished active ingredient prod.

Synthesizing finished active ingredients (AI’s)

Crop protection product value chain

• Fumigants

• Low-cost integrated model

• Recognized brand

• Sold through distributors

• Toll manufacture for competitors

• Strong logistical advantages

• One of 3 players in the US

• Niche Pesticides

• Low cost structure

and streamlined supply chain

• High value in use niche market products

• Registrations and regulatory dossiers

create barriers to entry

• Plant Health

• High value niche market products

• Some products registered for use on

organic crops

• Protected through registrations and

patents

Competitive Position

Manufacturing Locations

Region Product

Burley, Idaho, US Metam Sodium (soil fumigants)

Finley, Washington, US Metam Sodium / Metam Potasium

Tolling Sites

US (5 Sites) Niche pesticides

Germany Niche pesticides

Israel Niche pesticides

India Niche pesticides

China Niche pesticides

Mark

et

Att

racti

ven

ess

Competitive Positioning

Niche

Pesticides

Plant

Protection

Soil

Fumigants

NovaSource’s markets and locations

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2010 2011 2009 2007 2008 2006 2005 2000 1999

Niche Pesticides

Plant Health/Pesticides

Soil Fumigants

• Registration

of Sectagon®

- K54

• Acquisition of

Surround®

from BASF

• Acquisition of

Sectagon

42®

• Acquisition of

Sinbar® WDG

from DuPont

• Fosetyl aluminum

(Linebacker®,

Autograph®

and Flanker®)

registered for

the US market

• Fluridone

(Whitecap®)

registered for

the US market

• Acquisition

of Linuron

(Lorox®,

Linex®),

from DuPont

• Acquisition of

Carbaryl®

from Bayer

Cropscience

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Significant growth in the NovaSource product portfolio since 2007…

Source: NovaSource

NovaSource product line introduction/acquisition overview

• Acquisition of

Purshade®

from Purfresh

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• Demonstrated ability to execute stated strategy

• Above industry profitability due to focus and cost efficiency

• Global leader in several product lines

• Lean structure with industry experienced staff, proficient

in the disciplines necessary to fulfill company objectives

• Building organizational depth to manage portfolio growth

and continue the pace of product acquisitions

NovaSource Competitive strengths

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• Acquire established crop protection product lines from

the large multinational companies who dominate this

38 billion EUR market

• Products that serve niche markets

• Products with significant barriers to entry

• Add value to the products in the portfolio by:

• Reducing costs and improving the responsiveness of the supply chain

• Expanding sales through new uses and adding new geographies

• Representing the products in regulatory reviews and performing new

regulatory studies to assure continued safe use of these products

Strategy - NovaSource Long-term growth and sustainability

POSITIONED FOR GROWTH

Tessenderlo Kerley

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A strong growth momentum

REBITDA

Revenue

Sustained profit growth from executing focused strategy

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24.6%

194.1 180.0

231.4

270.8

33.5 38.0 47.6

66.5

2008 2009 2010 2011

20.6% 21.1% 17.3%

Million Eur

REBITDA

Margin

Complementary expansion opportunities exist in new products, services and regions

• Other sulfur-based liquid fertilizers

• Complementary technologies to treat hydrocarbon

streams delivering marketable by-products

Global

expansion

in existing

products

Adjacent

products

and

services

25

• Replication of Kerley’s current business model in

international markets

• Initial focus in regions that have similar crops and

infrastructure to North America

HIGHLIGHTS Tessenderlo Kerley

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• Clear leadership position with a unique

value proposition

• Solid macro fundamentals underpin a

significant multi-decade growth

• Exceptionally well-positioned along

the entire value chain

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Highlights

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This document may contain forward-looking statements and

information. Tessenderlo Group neither intends to, nor assumes any

obligation to, update or revise these forward-looking statements in light

of developments which differ from those anticipated.

Tessenderlo Group does not accept any liability for the correctness

or completeness or the use of such possible forward-looking

statements, nor any obligation to keep the information in this

presentation or on the website up to date. Any such information may not

be considered as an advice or a recommendation and cannot be relied

upon as the basis for any decision or action.

www.tessenderlo.com

THANK YOU Tessenderlo Kerley

Jordan Burns EVP Tessenderlo Kerley

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