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monsanto 06-14-06
1. BRETT BEGEMANN
EXECUTIVE VICE PRESIDENT,
INTERNATIONAL COMMERCIAL
MERRILL LYNCH,
AGRICULTURAL CHEMICALS CONFERENCE
JUNE 14, 2006
1
2. Forward-Looking Statements
Certain statements contained in this release are quot;forward-looking statements,quot; such as statements
concerning the company's anticipated financial results, current and future product performance,
regulatory approvals, business and financial plans and other non-historical facts. These statements are
based on current expectations and currently available information. However, since these statements are
based on factors that involve risks and uncertainties, the company's actual performance and results may
differ materially from those described or implied by such forward-looking statements. Factors that could
cause or contribute to such differences include, among others: continued competition in seeds, traits and
agricultural chemicals; the company's exposure to various contingencies, including those related to
intellectual property protection, regulatory compliance and the speed with which approvals are received,
and public acceptance of biotechnology products; the success of the company's research and
development activities; the outcomes of major lawsuits, including proceedings related to Solutia Inc.;
developments related to foreign currencies and economies; successful completion and operation of
recent and proposed acquisitions; fluctuations in commodity prices; compliance with regulations affecting
our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the
company's ability to fund its short-term financing needs and to obtain payment for the products that it
sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the
company's facilities; and other risks and factors detailed in the company's filings with the SEC. Undue
reliance should not be placed on these forward-looking statements, which are current only as of the date
of this release. The company disclaims any current intention or obligation to update any forward-looking
statements or any of the factors that may affect actual results.
2
4. OVERVIEW
U.S., Brazil and Argentina Account for More Than 90 Percent
of World Grain Trade
GLOBAL VIEW - 2010 HORIZON
EUROPE
UNITED STATES
KEY TRENDS
KEY TRENDS
BIO-DIESEL DRIVES
ETHANOL DRIVES OILSEED DEMAND
ADDITIONAL CORN
EU REMAINS WORLD’S
DEMAND
PRINCIPAL DESTINATION
SOYBEANS EVOLVE FOR SOYBEAN MEAL
INTO A HIGHER VALUE,
CHINA: NET IMPORTS
SPECIALTY MARKET
40
30
METRIC TONS (M)
20
10
0
ASIA PACIFIC 2005 2010
-10
KEY TRENDS
CORN SOY
CHINA BECOMES A NET
IMPORTER OF CORN AND
SOUTH AMERICA SOYBEAN IMPORTS
ACCELERATE
KEY TRENDS
GROWING WEALTH &
SOYBEAN ACREAGE POPULATION DRIVES
INCREASES GRAIN DEMAND
DEMAND FOR CORN
INCREASES FOR
DOMESTIC FEED
Source: U.S.D.A. Foreign Agricultural Service, ABIOVE, Independent Economists & Monsanto Estimates
4
5. COMMERCIAL
Farmers ‘Buy Yield,’ Creating Opportunity for Seeds and
Traits Growth
FARMERS’ DECISION EQUATION MONSANTO’S POSITION: CORN
SEED Retail brands
(GENETIC GAIN)
The starting point of all agriculture; Regional brands
farmers need to maximize ‘genetics’ in
seed for yield
+TECHNOLOGY
Licensing
+
‘Above ground’ protection
(% OF GENETIC GAIN PRESERVED)
Technology is used to protect and
‘Below ground’ protection
maximize the yield potential of the seed
= MAXIMUM YIELD
Weed control system
=POTENTIAL The elegance of a seed and trait approach
is that the seed is the package and traits
can be ‘stacked’ for maximum effect
The basic equation represents the
In 2005, Monsanto introduced the first
maximum yield potential multiplied by the
triple-stack of biotech traits
percent of that yield preserved by
technology
5
6. COMMERCIAL
Breeding and Biotechnology Combine to Advance
Harvested Yield to the Next Level
FOCUS: YIELD
WHAT MATTERS TO FARMERS IS THE YIELD AT
HARVEST, WHICH IS A FUNCTION OF HOW MUCH
POTENTIAL A SEED HAS AND HOW IT’S
GENETIC POTENTIAL (FUTURE)
PROTECTED:
GENETIC POTENTIAL
NET REALIZED YIELD WITH
PERCENT OF GENETIC GAIN FUTURE PROTECTION
X PRESERVED OPPORTUNITIES
PROTECTION AND
ENHANCEMENT
IMPROVED NITROGEN
ADVANCES
BREEDING
UTILIZATION
NET REALIZED YIELD
DROUGHT
TOLERANCE
SECOND-GENERATION
INSECT CONTROL
GENETIC POTENTIAL (CURRENT)
INSECT PRESSURE NET REALIZED YIELD
WITH CURRENT
WEED PRESSURE
PROTECTION
NATURAL YIELD
NUTRIENT DEFICIENCY
SUPPRESSION
BELOW-GROUND
CURRENT YIELD
WATER DEFICIENCY INSECT CONTROL
PROTECTION
GENETIC POTENTIAL
ABOVE-GROUND PRESERVED
INSECT CONTROL THROUGH BIOTECH
TRAITS AND
PRODUCTION
WEED-CONTROL
ADVANCES
TRAITS
SEED
NET REALIZED YIELD
MANUFACTURING
WITH NO PROTECTION
6
7. COMMERCIAL
Opportunity to Improve Global Corn Yields Comes Through
Investments in Technology
CORN YIELD TRENDS
(BUSHELS PER ACRE)
CORN YIELD
HIGHLIGHTS
1990 2000 2005
U.S.
WORLD AVERAGE 59 70 75 MOST TECHNOLOGICALLY ADVANCED
CORN MARKET
SIGNIFICANT PUBLIC AND PRIVATE
INVESTMENT IN BREEDING AND BIOTECH
UNITED STATES 113 137 149 ARGENTINA
CONSOLIDATED GERMPLASM POOL AND
ARGENTINA 60 93 109 TECHNOLOGY ADOPTION HAVE LED TO
YIELD INCREASES
BRAZIL
CHINA 74 78 80
YIELDS ARE SIGNIFICANTLY BELOW
WORLD AVERAGE
YIELDS POISED TO IMPROVE BECAUSE OF
BRAZIL 33 47 54 BREEDING INVESTMENTS
INDIA
INDIA 23 29 31 LARGE, FRAGMENTED MARKET, MUCH OF
WHICH IS LOW TECHNOLOGY AND
SUBSISTENCE FARMING
SUB-SAHARAN 22 24 25
AFRICA
Source: Doane Forecast
7
8. COMMERCIAL
Monsanto’s Global Germplasm and Breeding Programs
Pave Way for Future Share Growth Internationally
SCORECARD 10 COUNTRIES REPRESENT
80% OF THE GERMPLASM
GLOBAL BRANDED MARKET SHARE
MARKET VALUE
CHANGE
FY2004 FY2005 FY2006F (’04-’06)
IN THOSE 10
NORTH AMERICAN REGION 14% 16% 19% +5% COUNTRIES, MONSANTO
HOLDS No. 1 POSITION IN
UNITED STATES 14% 16% 18% +4%
SIX
EUROPE-AFRICA REGION 13% 15% 15% +2%
STRENGTHS:
FRANCE 10% 14% 15% +5%
IN EUROPE-AFRICA
ITALY 14% 17% 21% +7% REGION, GROWTH WAS
STRONGEST ACROSS
HUNGARY 26% 30% 32% +6%
LARGEST MARKETS
TURKEY 17% 23% 23% +6%
IN ASIA-PACIFIC AND
SOUTH AFRICA 38% 44% 49% +11%
LATIN AMERICA
REGIONS, MARKET
ASIA-PACIFIC REGION 35% 37% 35% FLAT
LEADERSHIP WAS
INDIA 29% 34% 35% +6%
MAINTAINED AND
PROFITABILITY GREW
LATIN AMERICA REGION 37% 38% 38% +1%
CHALLENGES:
MEXICO 58% 57% 60% +2%
IN BRAZIL, PRUDENT
BRAZIL 35% 35% 34% -1%
CREDIT POLICIES ARE
ARGENTINA 35% 37% 35% FLAT
LIMITING SHARE
GROWTH OPPORTUNITIES
8
9. COMMERCIAL
Corn Market Share Gains Still To Fully Reflect Power of
Molecular Breeding Application
CYCLE 1: CYCLE 2: CYCLE 3:
INTEGRATION OF APPLICATION OF MOLECULAR SELECTION POWER OF
PROGRESSION
GLOBAL GERMPLASM BREEDING TO SELECTION MOLECULAR BREEDING
OF BREEDING
TECHNOLOGY
IN THE • MOLECULAR BREEDING DOUBLES
• PREDICTIVE COMBINATIONS
• ASSEMBLED 36 MAJOR CORN
COMMERCIAL GENETIC POTENTIAL VERSUS
ALLOW MORE EFFICIENT
BREEDING PROGRAMS IN 12
PORTFOLIO CONVENTIONAL BREEDING
BREEDING
COUNTRIES
• BY 2006, FIRST MOLECULAR
• MOLECULAR BREEDING
BREEDING HYBRIDS ENTER
ACCELERATES TRAIT
COMMERCIAL PORTFOLIO
INTEGRATION BY SHORTENING
‘BACKCROSSING’ CYCLES
OPPORTUNITY
ACTIONS TAKEN
COMPETITIVE
•APPLY MOLECULAR BREEDING •IN U.S. , BY 2006, FIRST
•FIRST INTRA-COMPANY
ADVANTAGE
TO U.S. MOLECULAR BREEDING
CROSSES; BY CYCLE 3,
BUILT ON OUR
HYBRIDS ENTER COMMERCIAL
MORE THAN 50% OF
INVESTMENTS •APPLY MOLECULAR BREEDING
PORTFOLIO
HYBRIDS IN THE U.S. IN EUROPE
PORTFOLIO MADE THROUGH
•IN EUROPE, BY 2008, FIRST
•APPLY MOLECULAR BREEDING
INTRA-COMPANY CROSSES MOLECULAR BREEDING
RESULTS FROM TEMPERATE TO
HYBRIDS ENTER COMMERCIAL
TROPICAL MARKETS, SUCH AS
PORTOLIO
BRAZIL AND ASIA
•IN BRAZIL AND ASIA, BY
2009, FIRST MOLECULAR
BREEDING HYBRIDS ENTER
COMMERCIAL PORTFOLIO
2001 2002 2003 2004 2005 2006 2007 2008 2009
9
10. COMMERCIAL
Yield Advantages Fuel Market Share Growth in Europe
FOCUS: EUROPE
COMMERCIAL OPPORTUNITY
CORN GERMPLASM
160
2005 CORN YIELD MONSANTO
COMPETITOR
BUSHELS PER ACRE
150
140
130
120
MARKET FACTS 110
ACRES 2005 2006F 100
CORN 25.5M 26M 85 90 95 100 105 110 115
MATURITY ZONES IN DAYS
OILSEEDS 27M 28M
CORN BORER INSECT
BREEDING GAINS HAVE ESTABLISHED A YIELD ADVANTAGE FOR
PROBLEM IS
MONSANTO’S EUROPEAN GERMPLASM
SIGNIFICANT IN EUROPE
OVER THE LAST 3 YEARS, OUR BRANDS HAVE GAINED 7 MARKET
OILSEED ACRES
SHARE POINTS IN ITALY AND 5 IN FRANCE
INCLUDE SUNFLOWER,
STRATEGIC ALLIANCES AND HYBRID LICENSING INCREASE
OILSEED RAPE, AND
GENETIC FOOTPRINT FOR FUTURE TRAIT PENETRATION
SOYBEANS
10
11. COMMERCIAL
Market Leadership In Corn Maintained While Refreshing
Portfolio Mix Through Advanced Breeding
FOCUS: BRAZIL
COMMERCIAL OPPORTUNITY
CORN GERMPLASM
CORN PORTFOLIO MIX
100%
21%
34%
80%
25%
~2X
60% INCREASE
MARKET FACTS 38%
40%
54%
ACRES 2005 2006F
20%
CORN 20M 20M 28%
0%
SOYBEANS 52M 50M 2003 2006F
SOYBEAN YIELDS HIGH TIER MEDIUM TIER LOW TIER
SUPERIOR TO U.S.
AVERAGES
CORN YIELDS LAG U.S.
AVERAGES PORTFOLIO MIX SHIFT DROVE HIGHER YIELDS FOR FARMERS
AND INCREASED PROFITABILITY FOR MONSANTO
BRANDED BUSINESS COUPLED WITH LICENSING AGREEMENTS
WITH AGROMEN AND AGROESTE EXTEND PLATFORM FOR FUTURE
TRAIT PENETRATION
11
12. COMMERCIAL
Seminis to Leverage Portfolio, Pricing and Molecular
Breeding to Create New Growth
FOCUS: SEMINIS
VALUE ENHANCEMENT TIMELINE
OVER THE MID-TERM, SEMINIS WILL UNDERGO THREE PHASES OF EXECUTION EN ROUTE TO
UNLOCKING ADDITIONAL VALUE
+
+
OPERATIONAL EXCELLENCE NEW VALUE CREATION PIPELINE ADVANCEMENT
BY END OF FY 2007 BY END OF FY 2008 BY END OF FY 2010
PRIORITIZE PRODUCT PORTFOLIO IDENTIFY AND IMPLEMENT COMMERCIALIZE FIRST
BY FOCUSING ON 20 – 25 KEY OPPORTUNITIES TO PRICE PRODUCTS HYBRIDS DEVELOPED BY
CROPS THAT DRIVE PROFITABILITY TO VALUE MOLECULAR BREEDING
ASSEMBLE GENETIC MAPS FOR KEY BUILD BUSINESS MODELS TO CREATE LAUNCH SUCCESSION OF
CROPS AND CAPTURE DOWNSTREAM VALUE CONSUMER BENEFIT PRODUCTS
OPPORTUNITIES
ENHANCE R&D CAPABILITY AND
DEPLOY MOLECULAR MARKERS ENHANCE PRODUCT QUALITY AND
FOR AGRONOMIC AND CONSUMER REDUCE COSTS THROUGH
BENEFITS MANUFACTURING AND LOGISTICAL
IMPROVEMENTS
INTEGRATE AND STREAMLINE
BACK –OFFICE OPERATIONS AGGRESSIVELY MAKE HYBRID
CONVERSIONS IN STRATEGIC CROPS
12
13. COMMERCIAL
Expanding Line of Cantaloupe Offers Improved Post-
Harvest and Fresh-Processing Quality
KEY MARKET AREAS EUROPE N.AMERICA
ENHANCED CANTALOUPE .2M
.6M
ACRES
CREATING VALUE
$ 24 M
$ 86 M
AVAILABLE SEED MARKET
PROJECT OVERVIEW 4%
2%
PERCENT PENETRATED
MULTI-GENERATIONAL: PHASE III THROUGH LAUNCH
Not as well as Better than
As expected
expected expected
Quality
Horticultural Performance
New Hybrids
(white flesh, orange flesh, green flesh)
OBSERVATIONS
• Consistent quality and flavor, consumer experience
• Higher marketable yield and profitability
• Better shelf life and excellent flavor
• High sugars even during challenging winter harvest
months
3108
DISCOVERY PHASE III
PHASE I PHASE II PHASE IV LAUNCH
Adv. Development
Proof of Concept Early Development Pre-Launch
13
14. COMMERCIAL
Existing Biotech Traits Set Up Three Pathways for
Mid-Term Growth Internationally
EXAMPLE: BIOTECH TRAITS IN BRAZIL
50M ACRES OF SOYBEANS
OPPORTUNITY:
AND 20M ACRES OF CORN
PENETRATION AND
EXPANSION IN 2006, ~25M ROUNDUP
CURRENT READY SOYBEANS ACRES
STATUS: IN CORN, NO BIOTECH
ACRES WERE PLANTED
EXAMPLE: COTTON TRAITS IN AUSTRALIA
ROUNDUP READY FLEX
OPPORTUNITY: WITH BOLLGARD II STACK
STACKING LAUNCHES IN FY 2007
80% OF ALL ACRES HAVE
A TRAIT. OVER HALF OF
CURRENT
ALL ACRES WITH AT
STATUS:
LEAST ONE TRAIT ARE
STACKED
EXAMPLE: SECOND-GENERATION COTTON TRAITS IN INDIA
BOLLGARD II LAUNCHES IN
OPPORTUNITY:
2006 ON LIMITED ACRES
MULTI-GENERATION
CURRENT 6M+ ACRES TARGETED TO
STATUS: HAVE BOLLGARD IN 2006
14
15. COMMERCIAL
Market Potential for International Biotech Traits by 2010
Highlights Continued Growth Potential
SOYBEANS COTTON CORN
ROUNDUP BOLLGARD ROUNDUP
ROUNDUP YIELDGARD YIELDGARD
KEY MARKETS READY AND READY
READY CORN BORER ROOTWORM
BOLLGARD II CORN 2
FLEX
BRAZIL 50M 3M 2M 20M 15M 5M
ARGENTINA 35M - - 5M 4M 1M
INDIA - 10-15M 10-15M 3 – 5M 3 – 5M -
EUROPE 1M - - 24M 8M 5M
AFRICA 0.2M 11M 10M 6M 4M -
AUSTRALIA - 0.5M-0.8M 0.5M-0.8M - - -
TOTAL KEY
86.2M 24.5–29.8M 22.5-27.8M 58-60M 34-36M 11M
MARKETS
54% 0% 15% <1% 17% 0%
BIOTECH
ACRES
PLANTED 2005
REMAINING
AVAILABLE
ACRES
15
16. COMMERCIAL
Roundup Ready Soybean Penetration Accelerates, Corn
Trait Adoption Poised for Solid Growth
FOCUS: BRAZIL
COMMERCIAL OPPORTUNITY
SOYBEAN TRAITS CORN TRAITS
MARKET OPPORTUNITY=50M
50
40
ACRES IN MILLIONS
30
20
WINTER CORN
10 GROWING
REGION
0
SUMMER CORN
2004 2005 2006F
GROWING
REGION
CURRENT MARKET POTENTIAL IS 50M;
UPSIDE OPPORTUNITY FOR ADDITIONAL 10-
30M ACRES TO COME UNDER CULTIVATION
IN 2006, SAVED SEED ESTIMATED AT 20M BRAZIL HAS TWO CORN-GROWING SEASONS
ACRES AND NEW SEED ESTIMATED AT 5M YIELDGARD CORN BORER AND ROUNDUP READY
VALUE CAPTURE SYSTEM FOR SAVED CORN 2 HAVE BEEN SUBMITTED FOR
SEED IS FUNCTIONING AT 97% INTEGRITY REGULATORY APPROVAL
16
17. COMMERCIAL
Momentum in Stacking Cotton Traits in Australia Extends
Margin Potential Per Acre
FOCUS: AUSTRALIA
COMMERCIAL OPPORTUNITY
COTTON TRAITS
700 1.60
TRAIT INTENISTY PER ACRE
1.40
ACRES IN THOUSANDS
600
1.20
500
1.00
400
0.80
300
0.60
200
0.40
MARKET FACTS 100 0.20
0 0.00
ACRES 2005 2006 2004 2005 2006
SINGLE TRAIT TRAIT INTENSITY
.5M - .5M - DOUBLE STACK
COTTON
.8M .8M
BOLLWORM IS A MORE ROUNDUP READY FLEX WILL LAUNCH IN AUSTRALIA AND THE
SIGNIFICANT INSECT U.S. IN CALENDAR YEAR 2006
PEST THAN IN THE U.S.
RETAIL VALUE PER ACRE HAS INCREASED MORE THAN 4 TIMES
FROM 2004 TO 2006 BECAUSE OF STACKING AND SECOND-
GENERATION TRAIT UPGRADES
FARMER SAVES $35 - $40 PER ACRE USING MONSANTO’S STACK
OF ROUNDUP READY FLEX WITH BOLLGARD II VERSUS
CONVENTIONAL SYSTEMS
17
18. COMMERCIAL
Bollgard II Cotton Launches and Expands Insect Spectrum,
Corn Traits Submitted for Regulatory Approval
FOCUS: INDIA
COMMERCIAL OPPORTUNITY
COTTON TRAITS
10
BOLLGARD ADOPTION
8
MILLIONS
ACRES IN
6+ Million
6
4
2
MARKET FACTS 0
2004 2005 2006F
ACRES 2005 2006F
BOLLGARD II LAUNCHES ON LIMITED ACRES IN 2006 LEADING TO
CORN 3 -5M 3 –5M EVENTUAL REPLACEMENT OF BOLLGARD
BOLLGARD BENEFITS:
10M - 10M –
COTTON
FARMER NET RETURN INCREASED BY 163%
15M 15M
OVERALL COTTON YIELD IMPROVED BY 58%
MANUAL FAMILY
PESTICIDE LOADING REDUCED BY 50%
FARMING PRACTICES
60 PERCENT OF FARMS CORN TRAITS
< 2.5 ACRES
SIGNIFICANT OPEN
CORN BORER, WEEDS AND DROUGHT CONDITIONS IN NORTHERN
POLLINATED ACRES OF
INDIA ARE SIGNIFICANT PROBLEMS
COTTON AND CORN
REPRESENT YIELDGARD CORN BORER AND ROUNDUP READY CORN 2
ADDITIONAL SUBMITTED FOR REGULATORY APPROVAL
OPPORTUNITY FOR RAPID MARKET SHARE GROWTH OF 15 POINTS IN 5 YEARS HAS
HYBRID CONVERSION SOLIDIFIED BASE FOR TRAIT LAUNCHES
18
19. DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PIPELINE
Proof Of Concept Early Advanced Pre-launch
Gene/Trait
2006 Pipeline Development Development
Identification
AS OF JANUARY 1, 2006
Roundup Ready Flex cotton
Roundup RReady2Yield soybeans
Roundup RReady2Yield canola
Dicamba-tolerant soybeans
Dicamba-tolerant cotton
2nd-Gen YieldGard Rootworm
2nd-Gen YieldGard Corn Borer
Insect-protected soybeans
YieldGard Rootworm II
FARMER
Soybean nematode-resistance
Bollgard III
Drought-tolerant corn
2nd-Gen Drought-tolerant corn
Higher-yielding canola
Drought-tolerant soybeans
Drought-tolerant cotton
Higher-yielding corn
Nitrogen utilization corn
Higher-yielding soybeans
Mavera™ High-value corn with lysine1
Mavera™ I High-value soybeans1
PROCESSOR
Mavera™ II High-value soybeans1
2nd-Gen High-value corn with lysine1
Feed Corn with balanced proteins1
High oil soybeans for processing1
CONSUMER
Improved-protein soybeans
Vistive II Low Lin – Mid Oleic soybeans
Vistive III Low Lin – Mid Oleic – Low Sat soybeans
Omega-3 soybeans
19
1. These product candidates are in the Renessen pipeline. Renessen is a Monsanto/Cargill joint venture
20. TECHNOLOGY
Multi-Generational Drought-Tolerant Corn Is Advancing
Closer to Commercial Reality with Global Applications
KEY MARKET ACRES EUROPE BRAZIL ARGENTINA
24M 30M 6M
AVAILABLE MARKET
DROUGHT TECHNOLOGY 0% 0% 0%
PERCENT PENETRATED
DROUGHT MAP
WITH TRAIT WITHOUT TRAIT WITH TRAIT WITHOUT TRAIT
SOUTH AMERICA & EUROPE
AREAS WITH
CONSISTENT
DROUGHT
STRESS AND
IRRIGATION
RESULTS
REQUIREMENTS
AREAS WITH
INCONSISTENT
DROUGHT
STRESS o
C 32 34 40
BROAD
ACRE
DROUGHT TOLERANCE
WATER USE
ESTABLISHED THROUGH PLANT
EFFICIENCY
PHYSIOLOGY (PERFORMANCE) OVER
THREE YEARS
DISCOVERY PHASE I PHASE II PHASE IV LAUNCH
PHASE III
Proof of Concept Early Development Pre-Launch
Adv. Development
20
21. TECHNOLOGY
Second-Generation Roundup RReady2Yield Soybeans
Enhances Yield Globally
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
Roundup RReady2Yield 70M 50M 35M
AVAILABLE MARKET
Soybeans 0% 0% 0%
PERCENT PENETRATED
TECHNOLOGY IMPROVEMENT
WITH UP TO 5 BUSHEL PER ACRE
YIELD IMPROVEMENT, ROUNDUP
RREADY2YIELD WILL
SIGNIFICANTLY ADVANCE
TRADITIONAL BREEDING GAINS
PROVIDES PLATFORM FOR
FUTURE SOY TECHNOLOGIES,
INCLUDING THIRD-GENERATION OF
WEED CONTROL IN SOYBEANS
RESULTS
RESEARCH UNDER WAY ON
POTENTIAL FOR ADDITIONAL
INSURANCE FOR ASIAN SOYBEAN
RUST
ASIAN RUST
SOYBEAN RUST IS A FUNGAL
PATHOGEN WITH MORE THAN 40
SPECIES
RUST PREDOMINANTLY AFFECTS
SOYBEANS IN BRAZIL AND
ARGENTINA
YIELD LOSS IS BETWEEN 10% -
INDICATIONS ARE ROUNDUP RREADY2YIELD SOYBEANS
80% PER YEAR GLOBALLY
DEMONSTRATE UP TO 5 BUSHEL PER ACRE YIELD
FUNGICIDES FOR RUST CONTROL
COST UP TO $25 PER ACRE
ADVANTAGE OVER COMPARABLE ROUNDUP READY
VARIETIES
21
22. TECHNOLOGY
Biodiesel Production Will Drive Incremental Vegetable Oil
Demand
EU 25 BIODIESEL MARKET OUTLOOK
BIODIESEL
MARKET IN EU
BY 2010, BIOFUEL 20
SHOULD
REPRESENT 5.75% 18
MILLIONS OF TONS
OF TOTAL 16
TRANSPORT FUEL 14
USED IN EU
12
BY 2010, OVER 10
HALF OF
8
VEGETABLE OIL
PRODUCED IN EU 6
WILL BE USED FOR 4
BIODIESEL 2
0
2005 2006F 2007F 2008F 2009F 2010F
BIODIESEL RAPESEED SOYOIL
FOUR PATHS TO GROWTH FOR MONSANTO
IMPROVE OIL YIELD PER ACRE
–MOLECULAR BREEDING DOUBLES THE HISTORICAL RATE OF YIELD GAIN FOR SOYBEANS
–PIPELINE PRODUCTS LIKE HIGH OIL AND ROUNDUP RREADY2YIELD SOYBEANS SHOULD PROVIDE
YIELD BENEFITS
MARKET GROWTH
–OILSEED RAPE ACREAGE HAS POTENTIAL TO INCREASE FROM 13M TO 20M
PROCESSOR BENEFITS
–PROCESSOR PREFERRED OILSEED SHOULD RESULT IN DOWNSTREAM VALUE BECAUSE OF
HIGHER QUALITY GRAINS
GLOBAL GROWTH
–SUPPLY CONSTRAINTS IN EU MAY SPILL OVER INTO OPPORTUNITIES FOR BRAZILIAN SOYBEANS,
NORTH AMERICAN CANOLA AND RENESSEN’S CORN OIL
Source: Estimates from EU targets under Directive 2003/30/EG, Oil World and Monsanto Estimates
22
23. SUMMARY
Foundation Created in International Operations Sets Stage
for Seed and Trait Expansion
CORN:
GLOBAL BREEDING PROGRAMS ARE FUELING GROWTH IN EUROPE-
AFRICA AND SUPPORTING LEADERSHIP POSITIONS IN ASIA-PACIFIC
AND LATIN AMERICA
BRANDED SHARE COUPLED WITH LICENSING AGREEMENTS
ESTABLISHES FOUNDATION FOR FUTURE TRAIT LAUNCHES
COTTON:
TRAIT PENETRATION IS ACCELERATING IN ASIA-PACIFIC PREPARING
WAY FOR MULTIPLE MARGIN OPPORTUNITIES WITH STACKING AND
SECOND-GENERATION TECHNOLOGY LAUNCHES
SOYBEANS:
ROUNDUP READY SOYBEAN ACRES DOUBLED IN BRAZIL IN 2006 AND
ARE POISED TO REACH 50 MILLION ACRES BY 2010 WITH A SECOND-
GENERATION TECHNOLOGY LAUNCH ON THE HORIZON
SEMINIS:
BUILDING BUSINESS MODELS TO CREATE AND CAPTURE VALUE
DOWNSTREAM IN PREPARATION FOR COMMERCIALIZATION OF FIRST
HYBRIDS DERIVED FROM MOLECULAR BREEDING
23
