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					                                                                                                              North America Equity Research
                                                                                                              10 February 2010



Compass Minerals International,
                                                                                                              Overweight
Inc.                                                                                                          CMP, CMP US
                                                                                                              Price: $71.99
We Raise Estimates
                                                                                                          ▲ Price Target: $76.00
                                                                                                              Previous: $69.00


We raise our 2010 EPS forecast for Compass from $5.70 to $5.90, mainly to reflect                             Specialty and Major Chemicals
higher profits in the SOP (fertilizer) segment as a result of stronger demand and better                                                       AC
                                                                                                              Jeffrey J. Zekauskas
prices. Our EPS estimates may prove conservative if there is normal or heavier than
                                                                                                              (1-212) 622-6644
normal snowfall in the remaining winter months. We raise our December 2010 price                              jeffrey.zekauskas@jpmorgan.com
target from $69 to $76. Our initial EPS forecast is $6.65 for 2011 and $7.60 for 2012.
                                                                                                              Olga Guteneva
• The fertilizer business seems to be improving. Compass expects Q1:10 sales                                  (1-212) 622-6488
  volumes to double over the depressed year-ago quarter and 2011 volumes to return                            olga.v.guteneva@jpmorgan.com

  to more normal levels. SOP sales were 153,000 st in 2009 compared to 391,000 st in                          Silke Kueck
  2008 and 423,000 in 2007. We forecast sales of 319,000 st in 2010 and 367,000 in                            (1-212) 622-6503
  2011, which would benefit EPS by $0.80 in 2010 and $0.20 in 2011. The cost                                  silke.x.kueck@jpmorgan.com

  structure should also improve over time as Compass brings additional lower cost                             Ben Richardson
  solar-pond SOP capacity at Great Salt Lake, Utah: The company is increasing                                 (1-212) 622-6455
  capacity from ~275,000 st currently to ~350,000 st by 2011 (or +25%). The capacity                          ben.richardson@jpmorgan.com

  expansion should reduce dependence on sourced MOP and improve profit margins.                               J.P. Morgan Securities Inc.
  Compass currently has about six months of SOP inventories, which should lead to
                                                                                                              Price Performance
  lower working capital as sales pick up (we expect $34M, or ~$1.00/sh of working
                                                                                                                   75
  capital benefit in 2010). There is also less uncertainty over SOP pricing now, in our
  view. Prices on the larger MOP market appear to have touched bottom, and                                         65
  producers are announcing price increases going into the spring planting season:                              $
                                                                                                                   55
  POT, BPC, and K&S announced price increases of $22-33/st effective March, and
  Compass announced a $30/st price increase effective April. We forecast Q1:10 SOP                                 45
  price of $510/st and $535/st price going forward, which represents an about $145/st                               Feb-09   May-09   Aug-09    Nov-09      Feb-10

  premium over projected MOP price vs. a $150-200/st historical range.
                                                                                                                              YTD         1m          3m        12m
• The Salt business continues to generate strong profits despite milder than                                  Abs             5.2%     -2.5%        11.4%     14.3%
  normal weather. Compass is benefiting from 8% yoy higher prices for the 2009-
  2010 winter season and 750,000 (or ~12%) additional capacity, which should more
  than offset negative effects from milder than normal winter weather. We expect Salt
  profits of $274M in 2010 (or 18% growth). Our 2011 profit estimates for Salt may
  underestimate EPS by as much as $0.20 as we do not give the company full benefit
  from the planned one million ton capacity addition for the 2010-2011 winter season.
• We rate Compass shares Overweight. The shares sell currently at 12.2x EPS and
  7.3x EBITDA on our 2010 forecast compared to 21.8x and 6.8x, respectively, for
  POT and 14.5x and 6.4x for the small/mid-cap specialty chemical peers. We expect
  the company to generate an 8% free cash flow yield in 2010.
Compass Minerals International, Inc. (CMP;CMP US)
                                2009A      2010E                   2010E         2011E          2012E        Company Data
                                                      (Old)         (New)                                    Price ($)                                      71.99
EPS Reported ($)                                                                                             Date Of Price                             09 Feb 10
 Q1 (Mar)                               1.85          1.82           1.85           2.32                     52-week Range ($)                      74.00 - 45.64
 Q2 (Jun)                               0.42          0.41           0.49           0.54                     Mkt Cap ($ mn)                             2,400.43
 Q3 (Sep)                               0.77          1.01           1.09           1.19                     Fiscal Year End                                 Dec
 Q4 (Dec)                               1.88          2.46           2.46           2.60                     Shares O/S (mn)                                   33
 FY                                     4.92          5.70           5.90           6.65          7.60       Div. Yield                                     2.2%
Bloomberg EPS FY ($)                    5.36                         5.91           6.95                     Price Target ($)                               76.00
Source: Company data, Bloomberg, J.P. Morgan estimates. 'Bloomberg' above denotes Bloomberg                  Price Target End Date                     31 Dec 10
consensus estimates.



See page 8 for analyst certification and important disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their
investment decision.
  Jeffrey J. Zekauskas                                       North America Equity Research
  (1-212) 622-6644                                           10 February 2010
  jeffrey.zekauskas@jpmorgan.com




                                                             Details
                                                             We raise our 2010 pro forma EPS estimate for Compass Minerals to $5.90 from
                                                             $5.70 to reflect higher SOP profits of 71.3M vs. $59.7M prior due to higher sales
                                                             volumes and higher prices.

                                                             We increase our 2010 SOP volume forecast to 319,000 st versus 297,000 st prior
                                                             to reflect more normal sales volumes. We raised our average annual SOP price
                                                             expectation to $529/st from $500/st before to reflect recent developments in the MOP
                                                             market. Prices on the larger MOP market appear to have touched bottom, and
                                                             producers are announcing price increases going into the spring planting season: POT,
                                                             BPC and K&S announced price increases of $22-33/st effective March; and Compass
                                                             announced a $30/st price increase effective April. We forecast Q1:10 SOP price of
                                                             $510/st and $535/st price going forward, which represents an about $145/st premium
                                                             over projected MOP price vs. a $150-200/st historical range.

                                                             We inched up our Q1:10 EPS forecast to $1.85 from $1.82 prior to reflect higher
                                                             SOP profits as a result of stronger volumes and better pricing: we now expect sales
                                                             volumes of 72,000 st vs. 57,000 st prior; our new SOP price assumption is $510/st
                                                             vs. $500/st before.

                                                             Our initial EPS forecast is $6.65 for 2011 and $7.60 for 2012.

  Table: Compass Minerals: Earnings Review and Outlook
  $ in millions, except EPS
                                                   4Q:09           1Q:09           1Q:10E       1Q;10E      2009       2010E      2010E       2011E      2012E
                                                   Actual          Actual         Previous      Current               Previous    Current
  Net sales                                         $312.2          $309.1           $329.5       $329.7    $963.1     $1,052.5   $1,088.4    $1,198.4   $1,281.3
  Shipping and handling                                79.8            91.0            95.3         92.3     249.3        268.4      274.9       300.7      310.1
  Operating costs and expenses                        115.2           102.8           107.6        106.4     359.7        350.6      365.0       417.8      457.0
   Gross profit                                       129.2           125.5           126.6        131.0     397.8        433.4      448.5       479.9      514.3

  Selling, development & administrative                 21.1            20.7            21.3        21.3      83.8         90.6       86.3       88.9       91.6
   EBITDA                                              108.1           104.8           105.3       109.7     313.9        342.8      362.2      391.0      422.8

  D&A                                                   12.0            10.2            10.9        13.8      43.7         43.6       55.2        55.2       55.2

  Operating Income By Segment
  Salt                                                 $92.5           $77.4           $93.8       $91.4    $232.4      $277.5      $273.7     $305.0     $324.3
  Specialty Potash                                      12.6            26.8            10.0        14.0       76.0        59.7        71.3       68.7       81.3
  Eliminations                                          (9.0)           (9.6)           (9.5)       (9.5)    (38.2)      (38.0)      (38.0)     (38.0)     (38.0)
     Operating income                                  $96.1           $94.6           $94.4       $95.9    $270.2      $299.2      $307.0     $335.8     $367.6
     Operating Margin                                 30.8%           30.6%           28.6%       29.1%     28.1%       28.4%       28.2%      28.0%      28.7%

  Interest expense - net                                (5.7)           (7.5)           (6.6)       (6.6)    (25.8)      (22.9)      (21.3)     (13.1)       1.1
  Net other income (expense)                            (1.0)             1.1             0.0       (0.5)     (2.3)         0.0       (0.5)        0.0       0.0
  Pretax income                                         89.4            88.2            87.7        88.8     242.1       276.3       285.2      322.7      368.7

  Taxes (accrual)/ benefit                            (26.9)          (26.6)           (26.8)      (27.1)    (75.2)      (85.1)      (88.6)    (100.8)    (114.9)
    Tax Rate                                            30%             30%              31%         31%       31%         31%         31%        31%        31%

  Net Income                                            62.5            61.6            61.0        61.7     166.9        191.2      196.6      221.9      253.8

  Diluted EPS, adjusted                                $1.88           $1.85           $1.82       $1.85     $5.01        $5.70      $5.90      $6.65      $7.60
  Non-recurring items                                   0.00            0.00            0.00        0.00     (0.09)        0.00       0.00       0.00       0.00
  EPS, GAAP                                            $1.88           $1.85           $1.82       $1.85     $4.92        $5.70      $5.90      $6.65      $7.60

  Diluted Common Shares                                 33.3            33.2            33.5        33.3      33.3         33.5       33.3        33.4       33.4
Source: Company reports and J. P. Morgan estimates. EPS excludes all non-recurring items.


  2
Jeffrey J. Zekauskas                                     North America Equity Research
(1-212) 622-6644                                         10 February 2010
jeffrey.zekauskas@jpmorgan.com




Table: Compass Minerals: Key Segment Operating Data
Shipments in -000 short tons Selling prices in dollars per short ton
Shipments and Selling Prices                    4Q:09        1Q:09       1Q:10E     1Q;10E         2009       2010E     2010E      2011E     2012E
                                                Actual       Actual     Previous    Current                  Previous   Current
Salt (000 tons)
Highway Deicing                                    3,127        3,729       3,953         3,759      9,608      9,977     10,293    11,188    11,412
General Trade                                        732          630         643           643      2,463      2,571      2,512     2,563     2,614
Total                                              3,859        4,359       4,595         4,402     12,071     12,547     12,806    13,750    14,025
% change y-o-y                                   (23.3%)      (26.1%)       5.4%          1.0%     (20.0%)      3.2%       6.1%      7.4%      2.0%

Average Price ($/st)
Highway Deicing                                   $51.38       $46.80      $50.08     $50.08        $46.64     $48.98     $49.14    $50.77    $52.58
% change y-o-y                                     8.1%         5.2%        7.0%       7.0%          7.0%       5.1%       5.3%      3.3%      3.6%
General Trade                                    $167.23      $149.58     $155.56    $158.55       $153.32    $157.11    $160.22   $165.03   $169.98
% change y-o-y                                    12.2%        13.1%        4.0%       6.0%         12.1%       4.0%       4.5%      3.0%      3.0%
Total Shipments ($/st)                            $73.36       $61.67      $64.83     $65.91        $69.19     $72.35     $71.64    $73.21    $75.48
% change y-o-y                                    12.5%        10.5%        5.1%       6.9%         11.3%       4.8%       3.5%      2.2%      3.1%

Specialty Potash (000 tons)
Shipments                                             41           37          57             72       153        297       319       367       422
% change y-o-y                                   (30.5%)      (69.9%)      55.0%          95.0%    (60.9%)      90.1%    108.6%     15.0%     15.0%

Average Price ($/st)                              $640.0     $1,020.0      $500.0         $510.0    $828.0     $500.0     $529.3    $535.0    $535.0
% change y-o-y                                   (34.4%)      162.6%      (51.0%)        (50.0%)    39.0%     (39.6%)    (36.1%)     1.1%      0.0%
Source: Company reports and J. P. Morgan estimates.


                                                         4Q:09 Review
                                                         Compass Minerals reported 4Q:09 pro forma EPS of $1.88 versus $2.44 in
                                                         4Q:08, and our estimate of $2.11. The Street consensus estimate was $2.14. The
                                                         (-$0.23/sh) difference between the reported results and our forecast was due to lower
                                                         than expected Salt profits of $92.5M vs. our estimate of $102.7M (or -$0.22/sh) as a
                                                         result of lower than expected profit margin (32.7% vs. our forecast of 35.8%). Salt
                                                         sales volumes and prices were consistent with our estimates. Specialty Potash
                                                         segment reported profit of $12.6M vs. our estimate of $13.2M.

                                                         CMP's 4Q:09 consolidated revenues decreased (20%) to $312.1M, reflecting
                                                         (24%) lower volumes, partly offset by 2% higher prices and 2% currency
                                                         benefit. Consolidated operating income declined (21%) to $96.1M due to weak
                                                         fertilizer demand and lower fertilizer prices, and lower salt volumes as a result of
                                                         milder than normal weather, partly offset by positive pricing for salt products. Salt
                                                         profits were (2%) lower in the quarter at $92.5.M. Specialty Fertilizer segment
                                                         profits declined sharply to $12.6M from $36.6M in the year-ago quarter due to weak
                                                         demand and negative pricing.

                                                         Interest expense in Q4:09 was ($3.4M) lower year-over-year (or +$0.07/sh) at
                                                         $5.7M, reflecting lower interest rates as a results of the refinancing of $90M of 12%
                                                         notes by issuing $100M of 8% notes in June 2009. Tax rate was 30.1% in the quarter
                                                         versus 28.6% in the prior-year period, affecting EPS by (-$0.04/sh).




                                                                                                                                                     3
Jeffrey J. Zekauskas             North America Equity Research
(1-212) 622-6644                 10 February 2010
jeffrey.zekauskas@jpmorgan.com




                                 Salt Segment
                                 Salt segment sales declined (14%) to $283M from $328M in the year-ago period.
                                 Highway deicing salt prices increased 8.1% year-over-year due to favorable results in
                                 the annual bid process, while Consumer & Industrial salt prices rose 12.2% versus
                                 the prior-year period. Salt volumes for the highway deicing application declined
                                 (25%) to 3.127 million short tons in the quarter reflecting milder than normal
                                 weather conditions and on very strong comparisons. Compass estimates that milder
                                 than normal winter reduced Q4:09 sales by ($26-28M) and lowered profits by ($13-
                                 16M) while more severe than normal weather benefited last year sales by $45-50M
                                 and added $16-18M to operating earnings. General Trade volumes declined (17%)
                                 mostly due to milder winter weather.

                                 Table: Compass Minerals: Historical Annual Winter De-icing Salt Shipments
                                 In -000 short tons
                                                                                       Fourth         First     Full
                                 Winter                                                Quarter       Quarter   Winter
                                 2011-12E                                               3,842         4,613    8,455
                                 2010-11E                                               3,767         4,523    8,290
                                 2009-10E                                               3,127         3,759    6,886
                                 2008-09                                                4,154         3.729    7,883
                                 2007-08                                                4,034         5,138    9,172
                                 2007-08                                                4,034         5,138    9,172
                                 2006-07                                                2,601         4,112    6,713
                                 2005-06                                                4,579         3,584    8,163
                                 2004-05                                                3,589         4,861    8,450
                                 2003-04                                                3,308         4,679    7,987
                                 2002-03                                                2,699         4,378    7,077
                                 2001-02                                                3,047         3,298    6,345
                                 Source: Company reports and J. P. Morgan estimates.


                                 Operating profit in the Salt segment declined (2%) to $92.5M versus $94.2M in
                                 the year-ago period. Shipment volumes were (23%) lower at 3.859 million short
                                 tons versus volumes of 5.031 million short tons in the year-ago period, and our
                                 estimate of 3.946 million short tons. Average selling price for highway deicing salt
                                 increased 8.1% to $51.38/st, while selling prices for Consumer & Industrial Salt
                                 products improved 12.2% to $167.23/st.

                                 Specialty Fertilizer (Potash)
                                 The Specialty Fertilizer segment net sales decreased (55%) to $26.3M from
                                 $57.8M in the year-ago period, reflecting lower prices and lower sales volumes.
                                 Average selling prices declined to $640/st versus an average of $975/st in 4Q:08 and
                                 $706 in 3Q:09. Volumes declined (31%) in the quarter to 41,000 st versus 59,000 st
                                 in the prior-year period, reflecting weak fertilizer demand. Operating profit in the
                                 Specialty Fertilizer segment shrunk from $36.6M to $12.6M.

                                 We estimate that CMP will realize an average SOP selling price of $529/st in
                                 2010 versus $828/st in 2009 and $596/st in 2008. We note that our current price
                                 forecast assumes an SOP price increase from $510/st in Q1:10 to $525/st in Q2-
                                 Q4:10 due to the announced price increase of $30/st effective April 1. We forecast
                                 SOP average cash margins of $261/st in 2010 versus $557/st in 2009 and $327/st in
                                 2008.


4
Jeffrey J. Zekauskas             North America Equity Research
(1-212) 622-6644                 10 February 2010
jeffrey.zekauskas@jpmorgan.com




                                 Valuation and Rating Analysis
                                 We rate CMP shares Overweight. We view the stock as inexpensive at the current
                                 price: CMP trades at 7.3x our 2010 EV/EBITDA estimate compared to 6.8x for
                                 Potash Corp, and to a range of 3.6-9.3x for many small/mid-cap specialty chemical
                                 companies with strong balance sheets and favorable growth prospects. We expect
                                 Compass to generate 8% of its stock price in free cash flow in 2010 before payment
                                 of an annual dividend of $1.56 per share (2.2% yield).

                                 We raise our December 2010 price target for Compass Minerals from $69.00 to
                                 $76.00, or a 12.9x P/E multiple and a 7.9x EV/EBITDA multiple on our 2010
                                 estimates. We believe that these multiples reflect a fair value for CMP shares given
                                 multiples of 14.5x and 6.4x, respectively, for the small/mid-cap specialty peer group,
                                 and 21.8x and 6.8x, respectively, for Potash Corp. We believe Compass deserves a 1-
                                 1.5x premium to the specialty peer group given its high return on capital and a
                                 leading market position on the Salt market. Our prior price target of $69.00
                                 represented a P/E multiple of 12.1x and an EV/EBITDA multiple of 7.5x based on
                                 our prior 2010 estimates.

                                 Risks to Our Rating
                                 Sales and profitability in the highway de-icing salt business are seasonal and weather
                                 dependent. Timing issues as well as the duration and severity of the de-icing season
                                 weather could cause results in the Salt segment to differ significantly from our
                                 expectations. Accordingly, a short or warm winter period could lead to Salt operating
                                 profits below our forecast and the shares could trade lower.

                                 Should SOP volumes rebound slower than we project, profits would be lower than
                                 we expect and the share price could come under pressure.



                                 Company Description




                                 Source: Company data.


                                 Compass Minerals is one of the largest producers of salt in North America and
                                 the United Kingdom and a leading producer of specialty potash fertilizer, with
                                 2009 revenues of $963 million and operating income of $270 million. CMP operates
                                 in two main segments, (1) Salt and (2) Specialty Potash. The company’s Salt
                                 segment shipped 12.1 million short tons of products in 2009, accounting for

                                                                                                                      5
Jeffrey J. Zekauskas             North America Equity Research
(1-212) 622-6644                 10 February 2010
jeffrey.zekauskas@jpmorgan.com




                                 approximately 86% of company revenues and approximately 86% of operating
                                 income (before corporate expenses). Specialty Potash is the largest marketer of
                                 sulfate of potash (SOP) in the US. Compass became a public company in December
                                 2003 via the sale of 16.7 million shares from existing shareholders at $13 per share.
                                 A group led by Apollo Management originally purchased the salt business in
                                 addition to the Great Salt Lake specialty potash assets from IMC Global in late 2001
                                 for approximately $640 million.

                                 The Salt segment is the second-largest marketer of salt in the US and Canada
                                 and the largest in the UK, with 2009 shipments of 12.1 million short tons.
                                 Approximately 54% of 2009 revenues come from its high-margin highway de-icing
                                 business for state and local governments, where it is the largest marketer in both the
                                 US and UK. We believe CMP operates the largest and lowest-delivered cost rock salt
                                 mines in its prime markets in the US Midwest and UK. The remaining 46% of 2009
                                 revenues come from sales into General Trade markets, including table salt, water
                                 softening, consumer de-icing, agricultural, and chemical feedstock. During 2009,
                                 total Salt revenues were $826 million with operating income of $232 million and
                                 EBITDA of $262 million.

                                 The Specialty Fertilizer segment is the largest marketer of sulfate of potash
                                 (SOP) in the US, with 2009 shipments of 153,000 short tons. SOP is a specialty
                                 fertilizer utilized instead of commodity potash (i.e., potassium chloride) in a number
                                 higher value crops where chloride sensitivity is a concern, including nuts, vegetables
                                 and fruits, tea, tobacco, and turf grass. We estimate the global market for specialty
                                 potash fertilizer is approximately 8-9% of the 55 million short ton global potash
                                 market. Approximately 75% of 2009 sales were sold domestically to fertilizer
                                 distributors, manufacturers, and dealers with the balance sold offshore. Compass co-
                                 produces SOP along with salt at its low-cost Great Salt Lake (GSL) Minerals
                                 complex in Ogden, Utah, the largest in North America with production capacity of
                                 approximately 450,000 short tons. GSL production benefits from large-scale, use of
                                 solar evaporation, and manufacturing cost savings from extracting multiple products
                                 (i.e., salt, SOP, and magnesium chloride) from a single production process. In late
                                 2003, CMP purchased the intangible assets of the SOP business of the former IMC
                                 Global, North America’s second largest SOP producer, for approximately $24.5
                                 million, including customer lists and production rights (i.e., no production assets).
                                 The segment recorded 2009 revenues of $127 million with operating profit of $76
                                 million and EBITDA of $85 million.




6
Jeffrey J. Zekauskas                                    North America Equity Research
(1-212) 622-6644                                        10 February 2010
jeffrey.zekauskas@jpmorgan.com




    Compass Minerals International, Inc.: Summary of Financials
    Income Statement - Annual                     FY09A FY10E FY11E FY12E Income Statement - Quarterly                    1Q10E 2Q10E 3Q10E         4Q10E

    Revenues                                         963    1,088       1,198   1,281 Revenues                               330      168     208     382
    Cost of products sold (ex. D&A)                  609      640         719     767 Cost of products sold (ex. D&A)        199      101     115     225
    Gross profit                                     354      449         480     514 Gross profit                           131       67      94     157

    SG&A                                              84       86         89      92 SG&A                                     21       21      23      22
    D&A                                               44       55         55      55 D&A                                      14       14      14      14
    Operating Income                                 270      307        336     368 Operating Income                         96       32      57     121

    EBITDA                                           314      362        391     423 EBITDA                                  110       46      71     135

    Net interest income / (expense)                  (26)     (21)       (13)      1 Net interest income / (expense)          (7)     (7)     (5)      (3)
    Other income / (expense)                          (2)      (0)          0      0 Other income / (expense)                 (0)       0       0        0
    Pretax income                                    242      285        323     369 Pretax income                            89      26      53      118

    Income taxes                                     (75)     (89)      (101)   (115) Income taxes                           (27)     (9)    (16)     (36)
    Net income - GAAP                                167      197         222     254 Net income - GAAP                        62     16       36       82
    Net income - recurring                           167      197         222     254 Net income - recurring                   62     16       36       82

    Diluted shares outstanding                        33       33         33      33 Diluted shares outstanding               33       33      33      33

    EPS - GAAP                                      4.92     5.90        6.65    7.60 EPS - GAAP                            1.85     0.49    1.09    2.46
    EPS - recurring                                 5.01     5.90        6.65    7.60 EPS - recurring                       1.85     0.49    1.09    2.46

    Balance Sheet and Cash Flow Data              FY09A FY10E FY11E FY12E Ratio Analysis                                  FY09A FY10E FY11E         FY12E

    Cash and cash equivalents                         14      159         484     620   Sales growth                      (17.5%) 13.0% 10.1%        6.9%
    Accounts receivable                              168      205         218     233   EBIT growth                        (1.5%) 13.6% 9.4%         9.5%
    Inventories                                      273      213          63      58   EPS growth                           1.7% 17.6% 12.8%       14.3%
    Other current assets                              29       29          29      29
    Current assets                                   483      607         795     941 Gross margin                         41.3%    41.2%   40.0%   40.1%
    PP&E                                             464      505         509     494 EBIT margin                          28.1%    28.2%   28.0%   28.7%
    Total assets                                   1,004    1,168       1,361   1,491 EBITDA margin                        32.6%    33.3%   32.6%   33.0%
                                                                                      Tax rate                             31.1%    31.1%   31.2%   31.2%
    Total debt                                       491      491        491      491 Net margin                           17.3%    18.1%   18.5%   19.8%
    Total liabilities                                781      794        806     728
    Shareholders' equity                             223      374        555      763 Net Debt / EBITDA                       1.5   0.9       0.0   (0.3)
                                                                                      Net Debt / Capital (book)            68.1% 47.0%      1.2% (20.5%)
    Net Income (including charges)                    164     197        222      254
    D&A                                                44      55         55       55 Return on assets (ROA)                    -       -       -        -
    Change in working capital                       (145)      35        149     (87) Return on equity (ROE)                    -       -       -        -
    Other                                               -       -          -        - Return on invested capital (ROIC)         -       -       -        -
    Cash flow from operations                         119     287        426      222
                                                                                      Enterprise value / Sales                  -       -     -          -
    Capex                                            (94)     (96)       (60)    (40) Enterprise value / EBITDA               8.5     6.9   5.6        4.8
    Free cash flow                                     25     191        366      182 Free cash flow yield                  1.1%    8.8% 16.8%       8.3%
                                                                                      P/E                                    14.6    12.2  10.8        9.5
    Cash flow from investing activities              (99)    (96)        (60)    (40)
    Cash flow from financing activities              (53)    (46)        (41)    (45)
    Dividends                                        1.42    1.56        1.67    1.79
    Dividend yield                                  2.0%    2.2%        2.3%    2.5%

    Source: Company reports and J.P. Morgan estimates.
    Note: $ in millions (except per-share data). Fiscal year ends Dec




                                                                                                                                                             7
Jeffrey J. Zekauskas                                      North America Equity Research
(1-212) 622-6644                                          10 February 2010
jeffrey.zekauskas@jpmorgan.com




Analyst Certification:
The research analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple research analysts are primarily
responsible for this report, the research analyst denoted by an “AC” on the cover or within the document individually certifies, with
respect to each security or issuer that the research analyst covers in this research) that: (1) all of the views expressed in this report
accurately reflect his or her personal views about any and all of the subject securities or issuers; and (2) no part of any of the research
analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the
research analyst(s) in this report.
Important Disclosures

•    Lead or Co-manager: JPMSI or its affiliates acted as lead or co-manager in a public offering of equity and/or debt securities for
     Compass Minerals International, Inc. within the past 12 months.
•    Client of the Firm: Compass Minerals International, Inc. is or was in the past 12 months a client of JPMSI; during the past 12
     months, JPMSI provided to the company investment banking services, non-investment banking securities-related services and non-
     securities-related services.
•    Investment Banking (past 12 months): JPMSI or its affiliates received in the past 12 months compensation for investment banking
     services from Compass Minerals International, Inc..
•    Investment Banking (next 3 months): JPMSI or its affiliates expect to receive, or intend to seek, compensation for investment
     banking services in the next three months from Compass Minerals International, Inc..
•    Non-Investment Banking Compensation: JPMSI has received compensation in the past 12 months for products or services other
     than investment banking from Compass Minerals International, Inc.. An affiliate of JPMSI has received compensation in the past 12
     months for products or services other than investment banking from Compass Minerals International, Inc..

Compass Minerals International, Inc. (CMP) Price Chart


        144                                                                                                                  Date        Rating Share Price   Price Target
                                                                                        N $50             OW $66                                ($)           ($)
                                                                                                                             13-Aug-07 OW       33.58         -
        120
                                                                                OW $70            N $50                      18-Apr-08   N      72.13         -
                                                                                                                             03-Oct-08   OW     42.28         -
         96                              OW                      N             OW         N $58                    OW $69
                                                                                                                             30-Oct-08   OW     52.68         70.00
Price($) 72                                                                                                                  15-Jan-09   N      57.01         50.00
                                                                                                                             11-Feb-09   N      57.94         58.00
                                                                                                                             29-Apr-09   N      49.60         50.00
         48
                                                                                                                             31-Jul-09   OW     50.55         66.00
                                                                                                                             06-Nov-09 OW       64.05         69.00
         24


          0
              Oct   Jan      Apr      Jul     Oct     Jan     Apr      Jul     Oct      Jan     Apr       Jul    Oct   Jan
              06    07        07      07      07      08       08      08      08       09       09       09     09    10

Source: Bloomberg and J.P. Morgan; price data adjusted for stock splits and dividends.
This chart shows J.P. Morgan's continuing coverage of this stock; the current analyst may or may not have covered it
over the entire period.
J.P. Morgan ratings: OW = Overweight, N = Neutral, UW = Underweight.




Explanation of Equity Research Ratings and Analyst(s) Coverage Universe:
J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the
average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Neutral [Over the next six to twelve
months, we expect this stock will perform in line with the average total return of the stocks in the analyst’s (or the analyst’s team’s)
coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of
the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] The analyst or analyst’s team’s coverage universe is the sector
and/or country shown on the cover of each publication. See below for the specific stocks in the certifying analyst(s) coverage universe.


Coverage Universe: Jeffrey J. Zekauskas: Agrium (AGU), Air Products and Chemicals (APD), Albemarle Corporation
(ALB), Ashland Inc. (ASH), Avery Dennison (AVY), CF Industries Holdings, Inc. (CF), Cabot Corporation (CBT),
Compass Minerals International, Inc. (CMP), Dow Chemical (DOW), DuPont (DD), Eastman Chemical Company (EMN),
Ecolab Inc. (ECL), Ferro Corp (FOE), Georgia Gulf (GGC), H.B. Fuller (FUL), Huntsman Corporation (HUN), Innophos

8
Jeffrey J. Zekauskas                            North America Equity Research
(1-212) 622-6644                                10 February 2010
jeffrey.zekauskas@jpmorgan.com




(IPHS), Innospec (IOSP), International Flavors & Fragrances (IFF), Lubrizol Corporation (LZ), Minerals Technologies
(MTX), Monsanto (MON), Nalco (NLC), Novozymes (NZYMb.CO), Pall Corporation (PLL), Polypore International
(PPO), Potash Corp. (POT), Praxair (PX), RPM International Inc. (RPM), Scotts Miracle-Gro Co. (SMG), Sherwin-
Williams (SHW), Synthesis Energy Systems, Inc. (SYMX), Terra Industries (TRA), The Mosaic Company (MOS), Valspar
Corp (VAL), WD-40 Company (WDFC), Westlake Chemical Corp (WLK)

J.P. Morgan Equity Research Ratings Distribution, as of December 31, 2009
                                                Overweight      Neutral     Underweight
                                                (buy)           (hold)      (sell)
JPM Global Equity Research Coverage             42%             44%         14%
  IB clients*                                   58%             57%         42%
JPMSI Equity Research Coverage                  41%             49%         10%
  IB clients*                                   78%             73%         57%
*Percentage of investment banking clients in each rating category.
For purposes only of NASD/NYSE ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls into a hold
rating category; and our Underweight rating falls into a sell rating category.



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                                                                                                                                                          9
Jeffrey J. Zekauskas                           North America Equity Research
(1-212) 622-6644                               10 February 2010
jeffrey.zekauskas@jpmorgan.com




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10
Jeffrey J. Zekauskas             North America Equity Research
(1-212) 622-6644                 10 February 2010
jeffrey.zekauskas@jpmorgan.com




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