1

Evolution of the Scotts Turf Builder Line

University Recommendations for Growing Lawns:• 3 to 5 lbs N 1 lb P2O5 2 lbs K2O per year• Apply ~ 1 lb N/application to avoid adverse effects• Each application will last ~ 2 months• Regular feeding gives the best results

Scotts Turf Builder Line Design Criteria:• Science Plus Scotts Technology• Consumer Focus (Convenience, Simplicity, Flexibility)• Economics

Consumer Behavior:• What are people willing to do?

2

Current State

Use Time Early Spring Late Spring Summer Early Fall / Any Time Late Fall

Coverage 5,000 Sq. Ft. 5,000 Sq. Ft. 5,000 Sq. Ft. 5,000 Sq. Ft. 5,000 Sq. Ft.

Net Weight (lbs) 14.06 14.29 13.35 15.52 14.23/14.29

Fertilizer N-P-KAnalysis 30-3-4 28-3-3 28-3-8 29-3-4 22-3-14/26-3-12

N (lbs) 0.84 (36.7)* 0.80 (34.9) 0.75 (32.6) 0.90 (39.2) 0.63 (27.3) N 3.92 (171)

P2O5 (lbs) 0.08 (3.7) 0.09 (3.7) 0.08 (3.5) 0.09 (4.1) 0.09 (3.7) 0.43 (19)P (lbs) 0.04 (1.6) 0.04 (1.6) 0.04 (1.5) 0.04 (1.8) 0.04 (1.6) P 0.19 (8)

K20 (lbs) 0.11 (4.9) 0.09 (3.7) 0.21 (9.3) 0.12 (5.4) 0.40 (17.4) 0.93 (41)K (lbs) 0.09 (4.1) 0.07 (3.1) 0.18 (7.7) 0.10 (4.5) 0.33 (14.4) K 0.78 (34)

5M Equivalent 5.2 (11%) 13.7 (28%) 2.8 (6%) 4.3 (9%) 5.8 (12%)Unit Sales (Millions, Total USA)

* Pounds per 1,000 square feet (or pounds per acre ).

Turf BuilderWinterGuard and WinterGuard+2

Turf Builder Product Line - Northern Lawns

Annual Totals

Turf BuilderHalts Crabgrass

Preventer

Turf BuilderPlus 2

Weed Control

Turf BuilderSummerGuard

Turf BuilderLawn Fertilizer

3

Home Lawn CareNumber of Home Lawns (millions)

40 50% DoNothing

None 1 2 3 4- - - D.I.Y. Applications Per Year - - -

Mill

ions

of H

ome

Law

ns

30

20

10

Lawn Service

1011

10

18

40

4

Home Lawn Care – 2Total Number of Applications (millions)

25

None 1 2 3 4- - - D.I.Y. Applications Per Year - - -

Mill

ions

of A

pplic

atio

ns

20

15

10

43

2018

50

5

Scotts Lawn Product Sales

National Bag Sales: 35 millionAvg.# Applications: 1.8 per yearUnit Sales by State:

Maryland --- 1 million bagsPennsylvania --- 2 million bagsVirginia --- 0.9 million bagsDelaware --- 0.1 million bags

6

Scotts Lawns Fertilizer Sold

% Sales inCB Watershed Nitrogen* Phosphorus**

Millions of Pounds Millions of Pounds Millions of Pounds

Pennsylvania 47.16 50 6.84 0.71Maryland 22.67 100 6.57 0.68Virginia 19.90 100 5.77 0.60

New York 33.22 10 0.96 0.10Delaware 2.95 50 0.43 0.04

West Virginia 2.20 5 0.03 0.00District of Columbia 0.06 100 0.02 0.00

Total 128.16 20.62 2.13

* 29% average nitrogen concentration in fertilizers sold.** 3% average phosphorus (P2O5) concentration in fertilizers sold.

64,000 cu ft /sec Annual Mean Flow Into Chesapeake Bay (USGS)

1.26003E+14 pounds water/yr Total Water Flow Into Chesapeake Bay(126 trillion)

0.16 PPM per Year Nitrogen

0.02 PPM per Year Phosphorus

Chesapeake BayWatershed

Fertilizer Sales

State

Impact to Chesapeake Bay water qualityif all Scotts fertilizers went directly into the water.

7

Future State

Use Time Early Spring Late Spring Summer Early Fall / Any Time Late Fall

Coverage 5,000 Sq. Ft. 5,000 Sq. Ft. 5,000 Sq. Ft. 5,000 Sq. Ft. 5,000 Sq. Ft.

Net Weight (lbs) 14.06 14.29 13.35 15.52 14.23/14.29

Fertilizer N-P-KAnalysis 30-3-4 28-3-3 28-3-8 29-3-4 22-3-14/26-3-12

2007 N-P-K 30-0-4 28-3-3 28-0-8* 29-2-4 22-2-14/26-3-12

2008 N-P-K 30-0-4 28-2-3 28-0-8 29-2-4 22-2-14/26-2-12

Goal: 50% Reduction in Phosphorus Applied by 2009 Sales Year

* May not change until 2008 dependent upon formulation plans for 2007.Note: TB+Halts requires ~ 0.5% phosphorus for formulation stability. The reduction calculation will take that into account.

Turf BuilderWinterGuard and WinterGuard+2

Turf Builder Line - Phosphorus Reduction Plan

Turf BuilderHalts Crabgrass

Preventer

Turf BuilderPlus 2

Weed Control

Turf BuilderSummerGuard

Turf BuilderLawn Fertilizer

8

Products 2005 5M Equiv Units

Units%

WeightLbs.

P2O5

%P2O5

Lbs.New P2O5

%New P2O5

Lbs.P2O5

Reduction

TB Halts 5,201,068 10.5 14.06 3 2,193,810 0 0TB +2 13,667,899 27.7 14.29 3 5,859,428 2 3,906,285TB Summerguard 2,802,706 5.7 13.35 3 1,122,484 0 0TB Wint 2,658,359 5.4 14.23 3 1,134,853 2 756,569TB Wint +2 3,161,600 6.4 14.29 3 1,355,378 2 903,585TB North 4,340,892 8.8 15.52 3 2,021,120 2 1,347,413

TB Subtotal 31,832,524 64.5 13,687,073 6,913,853 6,773,22049%

TB Moss 161,114 0.3 25.00 2 80,557 2 80,557Bonus S 3,740,694 7.6 20.69 3 2,321,849 2 1,547,899TB FAK 203,224 0.4 15.63 3 95,292 0 0TB South 2,197,067 4.5 19.23 2 844,992 2 844,992Lawn Pro 6,312,715 12.8 14.92 3 2,825,571 2 1,883,714Private Label 2,533,547 5.1 14.29 3 1,086,132 2 724,088Zero P TB Line 625,734 1.3 14.29 0 0 0 0

Other Subtotal 15,774,095 32.0 7,254,392 5,081,250 2,173,14230%

Starter 1,750,412 3.5 17.78 27 8,403,028 27 8,403,028

Total w/ Starter 49,357,031 100.0 29,344,493 20,398,131 8,946,36330%

Total w/o Starter 47,606,619 96.5 20,941,465 11,995,103 8,946,36343%

Product Lines - Phosphorus Reduction Plan