The document provides an overview of Monsanto's European Key Investor Tour scheduled from November 3-7, 2008. It includes forward-looking statements about anticipated financial results and business plans. It also notes trademarks owned by Monsanto and its subsidiaries. The strategic outlook section discusses factors driving continued global demand for corn and soybeans. It outlines Monsanto's goal of doubling crop yields by 2030 through innovation to meet this demand and ensure the company's competitive advantage. Financial projections through 2012 indicate growth in seeds and traits gross profit, driven by corn and soybean seed and traits. The document also reviews Monsanto's strategic focus on seed platforms, expansion of biotech traits, and cash usage primarily for acquisitions and technology
3. STRATEGIC OUTLOOK
While Metrics and Projections Vary, Fundamentals of
Demand-Driven Environment for Grain Remain Strong
USDA LONG-TERM PROJECTIONS: STATE OF AGRICULTURE:
CORN AND SOYBEAN TOTAL TRADE – 2006-2017 Strong Demand Environment
FACTORS:
110 70
► INCREASING PROTEIN
Corn Total Trade Soybean Total Trade
Soybeans – million metric tons
DEMAND
60
105
Corn – million metric tons
Wealth drives meat
50
100 consumption – changing feed
40 demand
95
► ASCENSION OF CHINA
30
China’s growth is driving
90
20 huge changes in global
oilseeds and grain trade
85 10
► ESTABLISHMENT OF
BIOFUELS
80 0
Assuming only base-case
adoption of biofuels, more
corn and soy needed in next
decade
USDA Demand Outlook
• Global corn trade expected to grow 15 percent by 2017
• Imports by China and Mexico help spur demand
• USDA assumption on U.S. planted corn acres: ~90M
• Global soybean trade grows 40 percent by 2017
• 80 percent of growth is driven by China
• USDA assumption on U.S. planted soybean acres: ~70M
4
Source: USDA Agricultural Projections to 2017, available at: http://www.ers.usda.gov/Publications/OCE081/
4. STRATEGIC OUTLOOK
Global Corn Production Per Acre Is Sub-Optimized Today,
Creating an Opportunity for Innovation
GLOBAL CORN PRODUCTION1: YIELD
CORE PRODUCTIVITY MEASURES AND EVALUATION
Boosting yield-per-
acre can make a
meaningful
CANADA difference in
EU 27
3M ACRES
supply-demand
136 BU/AC
500M BUSHELS 27M ACRES
90% HYBRID environment
U.S. 99 BU/AC
CHINA
2B BUSHELS
• If India, Mexico
90M ACRES
151 BU/AC 67M ACRES
MEXICO
13B BUSHELS 83 BU/AC
and Brazil moved
6B BUSHELS
18M ACRES
25% HYBRID to 100 bushel per
INDIA
48 BU/AC
BRAZIL
900M BUSHELS
acre yields, they
20M ACRES
36M ACRES 45% HYBRID
75% HYBRID 32 BU/AC could produce
58 BU/AC 700M BUSHELS
2B BUSHELS
nearly 4 billion
additional
ARGENTINA
bushels of corn
10M ACRES
111 BU/AC
900M BUSHELS
annually – equal
to total world
Optimization of yield per acre
corn exports in
2007
Poor/Subsistence Sub-Optimized Optimized
5
1. Source is USDA FAS and internal estimates.
5. STRATEGIC OUTLOOK
Monsanto’s Innovation Targeted at Doubling Yield by 2030,
Extending Competitive Lead and Creating New Value
DOUBLING YIELD WITH TECHNOLOGY: DOUBLING YIELD BY 2030
U.S. CORN EXAMPLE U.S. BASELINE
CROP 2000 BASELINE1
325
137 bu/ac
Corn:
300
37 bu/ac
Soybeans:
275
Historical Yield
632 lbs/ac
250 Cotton:
U.S. Yield Per Acre (bu/ac)
30-Year Trend
225 STRATEGIC RATIONALE
Molecular Breeding Advances
200 Biotech Advances Helping meet global
demand
175
150 Furthering competitive
lead
125
Creating new value for
100
farmers that creates
75
sustainable growth
50 opportunities
25
0
1970 1980 1990 2000 2010 2020 2030
2030 U.S. YIELD
U.S. YIELD
TARGET
~300 bu/ac
151 bu/ac 2030:
2007:
1. Average U.S. yield by crop, USDA NASS
6
6. STRATEGIC OUTLOOK
Monsanto’s Growth Opportunity Lies at the Intersection of
Demand, Innovation and Execution
Monsanto’s Simple Philosophy on Opportunity:
YIELD
More demand requires more
INNOVATION
More yield requires more
GROWTH
More innovation delivers more
7
7. FINANCIAL OUTLOOK
Yield and Innovation Create the Runway of Growth to 2012
for Seeds & Traits and for Monsanto as a Whole
2012 GROSS PROFIT TARGET
GROSS PROFIT COMMITMENT: RELATIVE TO 2007 BASELINE
2007-2012F $9.5 -
Total Gross Profit
$9.75B
$10,000
$9.5- BUSINESS DETAIL
$8.6-9.1B $9.75B Roundup and Other
$8,000
~$1.9B
Glyphosate-Based
$8-8.5B
>2X ~2.25X Herbicides
GP (in millions)
~2X 2007
2007
BASELINE
~$300M
All Other Ag
$6,000 BASELINE
2007
Productivity
BASELINE
$7.3-
Seeds & Genomics
$4,000
$7.5B
$4,230
2.6-2.7x
Corn Seed &
$2,000
Traits
~2x
Soybean Seed &
$0 Traits
ORIGINAL MID-YEAR CURRENT
BASELINE TARGET UPDATE GUIDANCE
~2x
Cotton Seed &
2007 2012F Traits
>2.5x
•INCREASED •BETTER Vegetable Seeds
ROUNDUP GROWTH IN
GP TARGET SEEDS &
TO $1.8B TRAITS
•2008
ACQUISITIONS
•ROUNDUP GP
TARGET OF
$1.9B
8
8. FINANCIAL OUTLOOK
Near Term, 2009 Again Projects Double-Digit Earnings
Growth and Strong Cash Generation
2008 2009F
EARNINGS
$4.20-$4.40
$3.64
ONGOING EARNINGS PER SHARE ~15-20% GROWTH
>80% GROWTH
FROM 2007 FROM 2008
Seeds & Genomics Gross Profit $3.9B $4.5-$4.6B
Corn Seed & Traits Gross Profit $2.2B ~$2.8B
Soybean Seed & Traits Gross Profit $725M ~$700M
Cotton Seed & Traits Gross Profit $313M ~$300M
Vegetable Seeds Gross Profit $394M ~$500M
All Other Seed & Traits Gross Profit $251M ~$200M
Roundup And All Other Glyphosate-based $2.0B $2.3-2.4B
Herbicides Gross Profit
All Other Ag Productivity Gross Profit $344M ~$400M
CASH MANAGEMENT AND SPENDING
FREE CASH FLOW $772M ~$1.8B
Operating Cash $2.8B >$3B
Capital Expenditures $918M ~$1B
SG&A as a Percent of Sales 20% 19% Range
R&D as a Percent of Sales 9% 9.5%-10% Range
9
9. USES OF CASH
Over 70% of the $2.8 Billion of Operating Cash Generated
Invested in Acquisitions, Technology and Capital in FY08
USES OF CASH
PERCENT OF $2.8B OPERATING CASH USED BY CATEGORY: FY2008
2%
Cash Generation
13%
$772M
FY2008 Free Cash Flow:
37%
FY2009 Free Cash
~$1.8B
Flow Forecast1:
15%
CASH PRIORITIES
• Bolster direct returns to
shareowners
• Support commercial growth
through capital spending
• Invest in future growth through
33%
technology collaborations
Acquisitions and
• Expand the core through strategic
Technology Collaborations
acquisitions
Capital Spending
Dividends
Share Repurchase
1. Estimate does not contemplate strategic acquisitions.
Other
10
10. STRATEGIC OUTLOOK
Seed Platforms Are Business Foundation, Establish Footprint
for Traits, and Create Diversified Crop Portfolio Globally
U.S. 2012
2008 SHARE TARGETS
EU27
25.5% 30-34% 2008 SHARE 2012 TARGETS
DEKALB
10.5% ~15% 12% 16-20%
ASI CORN
20% 24-28%
Asgrow
9% 10-12%
ASI
INDIA 2008 SHARE 2012 TARGETS
41% ~50%
Deltapine
36% 40-44%
CORN
5% 12%
COTTON
LA - NORTH 2008 SHARE 2012 TARGETS
62-66%
58%
CORN
BRAZIL 2008 SHARE 2012 TARGETS
40% 44-48%
CORN
ARGENTINA 2008 SHARE 2012 TARGETS
21% 31%
COTTON
46% 50-54%
CORN
Share for row crops provided reflects sales volume for Monsanto brands divided by total planted acres in respective geography.
Corn represents hybrid corn share in each respective market.
Source for Deltapine share in the U.S. is dmrkynetic 2008 new certified seed share estimates.
11
11. STRATEGIC OUTLOOK
Significant Growth Opportunity in Expansion of Existing and
Near Term Commercial Biotech Traits Globally
SOYBEANS COTTON CORN
INTERNATIONAL MARKET OPPORTUNITY
ROUNDUP ROUNDUP BOLLGARD ROUNDUP YIELDGARD
MARKET OPPORTUNITY FOR BIOTECH TRAITS THROUGH 20101
ROUNDUP YIELDGARD
READY READY AND READY CORN SMARTSTAX
READY ROOTWORM
BOLLGARD II CORN 2 BORER
2 YIELD (FLEX)
U.S. 65-75M 45-55M 10-12M 6-8M 80M 60-70M 45-55M 60-65M
2008 Penetration 97% 0% 63-75% 74-98% 86% 64-75% 55-67% 0%
45-50M2
Brazil 50-60M 3M 2M 15-20M 15-20M 5M 15-20M
Argentina 40M - - - 9M 7M 5M 5-7M
India - - 15-20M 18-20M 6M 6M - 5-6M
Europe (EU27) 1M - - - 24M 8M 5M 15-20M
South Africa 0.2M - .15M .15M 6M 4M - 4M
0.5M-
Australia - - 0.5M-0.8M - - - -
0.8M
OPPORTUNITY:
91-101M 45-50M 19-24M 21-23M 60-65M 40-45M 15M 44-57M
Total Intl. Markets
2008 Penetration
77-86%1
66-74% 0% 3-4% 3% 20-23% 0% 0%
of Intl. Markets
Note: Market Opportunity reflects total acres where technology is applicable, not necessarily acres projected for penetration by 2010.
1. Primarily Bollgard I penetration; opportunity to expand to second generation technology.
Roundup Ready 2 Yield is planned to be launched in Brazil as a stack with Insect-Protected soybeans.
2.
12
12. FINANCIAL OUTLOOK
Increased 2009 and 2012 Targets for Roundup Reflect
Sustainability Even As Supply-Demand Comes Into Balance
ROUNDUP AND OTHER GLYPHOSATE-BASED HERBICIDES:
Roundup and Other
BRANDED AND NON-BRANDED TRENDS – 2004-2008
Glyphosate-Based
Herbicides
300 Branded
2009 Forecast
Non-Branded
GROSS PROFIT TARGET: $2.3-$2.4B
250
Global Volume (in gallons)
Above
BRANDED PRICE BAND
(PER GALLON): $16-$18
200
2012 Forecast
GROSS PROFIT TARGET: $1.9B
150
BRANDED PRICE BAND
$16-$18
(PER GALLON):
100
50
0
2004 2005 2006 2007 2008
GLOBAL VOLUME
209M 215M 235M 252M 257M
(GALLONS):
BRANDED PRICE BAND
$11-$13 $11-$13 $11-$13 >$11-$13 ~$20
(PER GALLON):
TOTAL ROUNDUP AND
OTHER GLYPHOSATE-BASED $703M $637M $648M $854M $2.0B
HERBICIDES GROSS PROFIT:
13
13. R&D PIPELINE
R&D Engine Is Poised to Launch Average of One Game-
Changing Technology Every Other Year Through Mid-Decade
R&D PIPELINE: ADVANCED GAME-CHANGING TECHNOLOGIES
2008 2009 2010 2011 2012 TO MID-DECADE
Roundup Drought- Nitrogen-
SmartStax
Ready 2 Yield Tolerant Corn Utilization
Soybeans Family1 Corn Family1
• Second-gen soybean • All-in-one corn trait • Value likely in improved • Targets ways to use
trait platform platform yield under stress and nitrogen more efficiently
potential for water
• China import approval • On track for 2010 launch
replacement
received September – Submitted for
2008 regulatory review and
refuge reduction
• On track for 2009
release
SUPERIOR, NE - FIELD TRIALS – 2007 FARM PROGRESS SHOW – 2007
WITH GENE
CONTROL HYBRID
FARM PROGRESS SHOW – 2007 (94 BU/AC)
(76 BU/AC)
1. Part of the Monsanto-BASF Yield and Stress R&D Collaboration
14
14. R&D PIPELINE
Monsanto’s Yield Leadership Widens With Each New Game-
Changing Technology Launched
DuPont Syngenta
2009 Option to License
2011
2nd‐Gen Roundup Ready 2
Roundup
Soybean Trait Optimum®GAT®³ Yield⁶
Ready 2 Yield¹
2012
All‐in‐One
2010 No Specified
Corn Trait Optimum Platform⁷
SmartStax
Platform AcreMax™ Plus⁴
Biotech
Drought
2012+² 2014+⁵ Post‐2014⁸
Tolerance
Corn
6. Press Release: “Monsanto and Syngenta
1. Controlled commercial release of 1‐2M 3. Optimum® and GAT® are registered
Reach Royalty‐Bearing Licensing
acres; Large‐scale launch of 5‐6M in 2010 trademarks of Pioneer Hi‐Bred; Date as
Agreement on Roundup Ready 2 Yield
stated in DuPont press release 07‐17‐08
2. First trait in the Drought‐tolerant corn Soybean Technology,” 05‐23‐08
family, currently Phase III 4. AcreMax™ is a trademark of Pioneer Hi‐
7. No specified platform indicated via Corn
Bred; Date as stated by William S. Niebur,
Technology Pipeline, Syngenta Half Year
Ph.D., Merrill Lynch Agricultural Chemicals
Results Presentation, 07‐24‐08, Slide 22.
Conference, 06‐05‐08, Slide 14
Relevant component traits: VIP/Broad lep:
5. Ibid, Slide 23 2009 and RW dual mode of action: 2012
8. Ibid.
15
15. STRATEGIC OUTLOOK
While Metrics and Projections Vary, Fundamentals of
Demand-Driven Environment for Grain Remain Strong
USDA LONG-TERM PROJECTIONS: STATE OF AGRICULTURE:
CORN AND SOYBEAN TOTAL TRADE – 2006-2017 Strong Demand Environment
FACTORS:
110 70
► INCREASING PROTEIN
Corn Total Trade Soybean Total Trade
Soybeans – million metric tons
DEMAND
60
105
Corn – million metric tons
Wealth drives meat
50
100 consumption – changing feed
40 demand
95
► ASCENSION OF CHINA
30
China’s growth is driving
90
20 huge changes in global
oilseeds and grain trade
85 10
► ESTABLISHMENT OF
BIOFUELS
80 0
Assuming only base-case
adoption of biofuels, more
corn and soy needed in next
decade
USDA Demand Outlook
• Global corn trade expected to grow 15 percent by 2017
• Imports by China and Mexico help spur demand
• USDA assumption on U.S. planted corn acres: ~90M
• Global soybean trade grows 40 percent by 2017
• 80 percent of growth is driven by China
• USDA assumption on U.S. planted soybean acres: ~70M
17
Source: USDA Agricultural Projections to 2017, available at: http://www.ers.usda.gov/Publications/OCE081/
16. STRATEGIC OUTLOOK
Global Corn Production Per Acre Is Sub-Optimized Today,
Creating an Opportunity for Innovation
GLOBAL CORN PRODUCTION1: YIELD
CORE PRODUCTIVITY MEASURES AND EVALUATION
Boosting yield-per-
acre can make a
meaningful
CANADA difference in
EU 27
3M ACRES
supply-demand
136 BU/AC
500M BUSHELS 27M ACRES
90% HYBRID environment
U.S. 99 BU/AC
CHINA
2B BUSHELS
• If India, Mexico
90M ACRES
151 BU/AC 67M ACRES
MEXICO
13B BUSHELS 83 BU/AC
and Brazil moved
6B BUSHELS
18M ACRES
25% HYBRID to 100 bushel per
INDIA
48 BU/AC
BRAZIL
900M BUSHELS
acre yields, they
20M ACRES
36M ACRES 45% HYBRID
75% HYBRID 32 BU/AC could produce
58 BU/AC 700M BUSHELS
2B BUSHELS
nearly 4 billion
additional
ARGENTINA
bushels of corn
10M ACRES
111 BU/AC
900M BUSHELS
annually – equal
to total world
Optimization of yield per acre
corn exports in
2007
Poor/Subsistence Sub-Optimized Optimized
18
1. Source is USDA FAS and internal estimates.
17. STRATEGIC OUTLOOK
Monsanto’s Growth Opportunity Lies at the Intersection of
Demand, Innovation and Execution
Monsanto’s Simple Philosophy on Opportunity:
YIELD
More demand requires more
INNOVATION
More yield requires more
GROWTH
More innovation delivers more
19
18. STRATEGIC OUTLOOK
Monsanto’s Innovation Targeted at Doubling Yield by 2030,
Extending Competitive Lead and Creating New Value
DOUBLING YIELD WITH TECHNOLOGY: DOUBLING YIELD BY 2030
U.S. CORN EXAMPLE U.S. BASELINE
CROP 2000 BASELINE1
325
137 bu/ac
Corn:
300
37 bu/ac
Soybeans:
275
Historical Yield
632 lbs/ac
250 Cotton:
U.S. Yield Per Acre (bu/ac)
30-Year Trend
225 STRATEGIC RATIONALE
Molecular Breeding Advances
200 Biotech Advances Helping meet global
demand
175
150 Furthering competitive
lead
125
Creating new value for
100
farmers that creates
75
sustainable growth
50 opportunities
25
0
1970 1980 1990 2000 2010 2020 2030
2030 U.S. YIELD
U.S. YIELD
TARGET
~300 bu/ac
151 bu/ac 2030:
2007:
1. Average U.S. yield by crop, USDA NASS
20
19. FINANCIAL OUTLOOK
Yield and Innovation Create the Runway of Growth to 2012
for Seeds & Traits and for Monsanto as a Whole
2012 GROSS PROFIT TARGET
GROSS PROFIT COMMITMENT: RELATIVE TO 2007 BASELINE
2007-2012F $9.5 -
Total Gross Profit
$9.75B
$10,000
$9.5- BUSINESS DETAIL
$8.6-9.1B $9.75B Roundup and Other
$8,000
~$1.9B
Glyphosate-Based
$8-8.5B
>2X ~2.25X Herbicides
GP (in millions)
~2X 2007
2007
BASELINE
~$300M
All Other Ag
$6,000 BASELINE
2007
Productivity
BASELINE
$7.3-
Seeds & Genomics
$4,000
$7.5B
$4,230
2.6-2.7x
Corn Seed &
$2,000
Traits
~2x
Soybean Seed &
$0 Traits
ORIGINAL MID-YEAR CURRENT
BASELINE TARGET UPDATE GUIDANCE
~2x
Cotton Seed &
2007 2012F Traits
>2.5x
•INCREASED •BETTER Vegetable Seeds
ROUNDUP GROWTH IN
GP TARGET SEEDS &
TO $1.8B TRAITS
•2008
ACQUISITIONS
•ROUNDUP GP
TARGET OF
$1.9B
21
20. FINANCIAL OUTLOOK
Near Term, 2009 Again Projects Double-Digit Earnings
Growth and Strong Cash Generation
2008 2009F
EARNINGS
$4.20-$4.40
$3.64
ONGOING EARNINGS PER SHARE ~15-20% GROWTH
>80% GROWTH
FROM 2007 FROM 2008
Seeds & Genomics Gross Profit $3.9B $4.5-$4.6B
Corn Seed & Traits Gross Profit $2.2B ~$2.8B
Soybean Seed & Traits Gross Profit $725M ~$700M
Cotton Seed & Traits Gross Profit $313M ~$300M
Vegetable Seeds Gross Profit $394M ~$500M
All Other Seed & Traits Gross Profit $251M ~$200M
Roundup And All Other Glyphosate-based $2.0B $2.3-2.4B
Herbicides Gross Profit
All Other Ag Productivity Gross Profit $344M ~$400M
CASH MANAGEMENT AND SPENDING
FREE CASH FLOW $772M ~$1.8B
Operating Cash $2.8B >$3B
Capital Expenditures $918M ~$1B
SG&A as a Percent of Sales 20% 19% Range
R&D as a Percent of Sales 9% 9.5%-10% Range
22
21. USES OF CASH
Over 70% of the $2.8 Billion of Operating Cash Generated
Invested in Acquisitions, Technology and Capital in FY08
USES OF CASH
PERCENT OF $2.8B OPERATING CASH USED BY CATEGORY: FY2008
2%
Cash Generation
13%
$772M
FY2008 Free Cash Flow:
37%
FY2009 Free Cash
~$1.8B
Flow Forecast1:
15%
CASH PRIORITIES
• Bolster direct returns to
shareowners
• Support commercial growth
through capital spending
• Invest in future growth through
33%
technology collaborations
Acquisitions and
• Expand the core through strategic
Technology Collaborations
acquisitions
Capital Spending
Dividends
Share Repurchase
1. Estimate does not contemplate strategic acquisitions.
Other
23
22. FINANCIAL OUTLOOK
On Track in 2008, Growth Drivers Continue to Set Stage for
Growth Through 2012
GROSS PROFIT OUTLOOK BY SEGMENT
2007-2012F
$10,000
TOTAL GROSS
All Other Agricultural Productivity
PROFIT GROWS
TO >2.25X
Roundup and Other Glyphosate-based Herbicides
$8,000 2007 BASELINE
Seeds & Genomics
$6,000
$4,000
2008 SEEDS & GENOMICS
$2,000 GENERATES $3.9B OF
GROSS PROFIT
$0
2007 2008 2009F 2010F 2011F 2012F
U.S. Corn Int’l Corn Cotton Vegetables R&D Pipeline
Soybeans
• Expand seed • Establish and • Prepare for • Accelerate U.S. • Reinvigorate • Largest-ever
footprint expand seed commercial traits and margins R&D field
footprint launch of breeding effort
• Drive trait • DeRuiter
Roundup
• Drive trait • Drive int’l traits
penetration integration
Ready 2 Yield
penetration
SmartStax Accelerated trait Roundup Ready Globalized $1B Vegetable Game-Changing
Platform platform 2 Yield Platform Cotton Platform Platform Launches
23. OVERVIEW
Gross Profit Growth Comes From Two-Step Strategy:
Establish Seed Footprint, Then Layer on Biotech Traits
BREEDING
BIOTECH
TRAIT 3
R&D TRAIT 2
SEED ENGINE TRAIT 1
SEED
Establish Seed Footprint Add Biotech Traits
• Seed provides a core gross-profit • Higher margins than seed with
contribution minimal incremental cost of goods
STRATEGIC VALUE
• Seed footprint speeds penetration • Opportunity to stack multiple traits
rate of biotech traits per acre
• Access to global germplasm • Proven, commercial-driven R&D
pools combined with most program backed by industry’s
DIFFERENTIATORS
advanced breeding technology largest seed-and-trait R&D spend
creates seed that outperforms
• Collaborator of choice
competitors
• New trait introductions
MEASURES OF SUCCESS
• Seed share growth • Trait upgrade and trait platform
opportunity
Corn: U.S., Argentina, Brazil,
Europe, Central America Corn: U.S., Argentina, Brazil
KEY CROPS & GEOGRAPHIES
Soybeans: U.S. Soybeans: U.S., Brazil
Cotton: U.S., India Cotton: U.S., India, Australia
Vegetables: Global
25
24. STRATEGIC OUTLOOK
Significant Growth Opportunity in Expansion of Existing and
Near Term Commercial Biotech Traits Globally
SOYBEANS COTTON CORN
INTERNATIONAL MARKET OPPORTUNITY
ROUNDUP ROUNDUP BOLLGARD ROUNDUP YIELDGARD
MARKET OPPORTUNITY FOR BIOTECH TRAITS THROUGH 20101
ROUNDUP YIELDGARD
READY READY AND READY CORN SMARTSTAX
READY ROOTWORM
BOLLGARD II CORN 2 BORER
2 YIELD (FLEX)
U.S. 65-75M 45-55M 10-12M 6-8M 80M 60-70M 45-55M 60-65M
2008 Penetration 97% 0% 63-75% 74-98% 86% 64-75% 55-67% 0%
45-50M2
Brazil 50-60M 3M 2M 15-20M 15-20M 5M 15-20M
Argentina 40M - - - 9M 7M 5M 5-7M
India - - 15-20M 18-20M 6M 6M - 5-6M
Europe (EU27) 1M - - - 24M 8M 5M 15-20M
South Africa 0.2M - .15M .15M 6M 4M - 4M
0.5M-
Australia - - 0.5M-0.8M - - - -
0.8M
OPPORTUNITY:
91-101M 45-50M 19-24M 21-23M 60-65M 40-45M 15M 44-57M
Total Intl. Markets
2008 Penetration
77-86%1
66-74% 0% 3-4% 3% 20-23% 0% 0%
of Intl Markets
Note: Market Opportunity reflects total acres where technology is applicable, not necessarily acres projected for penetration by 2010.
1. Primarily Bollgard I penetration; opportunity to expand to second generation technology.
Roundup Ready 2 Yield is planned to be launched in Brazil as a stack with Insect-Protected soybeans.
2.
26
25. CORN SEED & TRAITS
Corn Gross Profit to Expand 25-30% in 2009, Reflecting
Continuing Momentum in Seed Share and Trait Penetration
CORN SEEDS AND TRAITS:
KEY FINANCIAL METRICS AND DRIVERS – 2005-2008F
CORN
FINANCIAL OUTLOOK
62%
$4,000
Gross Profit as Percent of Sales
For 2009, Corn Seeds &
$3,500 >$3.5B
Traits gross profit is forecast
60%
to be up 25-30%
$3,000
Absolute gross profit is
$2,500 58%
increased by growing seed
$M
>$2.1B
$2,000
share, increasing trait
penetration and increasing
56%
$1,721
$1,500
prices
$1,000
Margin increases by
$1,019 54%
$825
increasing mix toward traits
$500
2009 DRIVERS
$0 52%
2005 2006 2007 2008 Increasing triple-stack
penetration in U.S. combined
Net Sales Gross Profit Gross Profit as Percent of Sales
with stronger trait pricing
Launch of new traits in
Argentina and Brazil
28
26. FINANCIAL OUTLOOK
Yield-Enhancing Technology Creates Value – Returning
$1.50-$3 For Every Dollar Spent By Farmers in Corn
U.S. FARMER RETURN ON INVESTMENT: 1983-2008F
170
160
150
32
140
130
Bu/ac
120
FARMER RETURN OF
bu/ac
1.5X – 3X
110
PER DOLLAR SPENT
100
ON YIELD-CREATING TECHNOLOGY
@ COMMODITY PRICE RANGE OF $2-$4/BU
90
80
PRE-BIOTECH: 1983-1996 POST-BIOTECH: 1996-2008F
AVERAGE YIELD DURING AVERAGE YIELD DURING
115.6 bu/ac 138.3 bu/ac
PERIOD: PERIOD:
1.7 bu/ac 2.6 bu/ac
ANNUAL YIELD GAIN: ANNUAL YIELD GAIN:
YIELD-RELATED
PRODUCTION
Seed/ Chem/
$27.07/ac $43.24/ac
Equip/ Labor
COSTS
SCARCITY-RELATED
$19.33/ac $52.02/ac
Land Rent
$6.23/ac $94.90/ac
Fertilizer
Source: USDA, Land Rent Averaged using Corn & Soybean, Doane Ag, dmrkynetec data, Yield is calculated using a 3 year rolling average, (32 Yield is 2.6 bu/ac/yr *12 years). 2008F Yield is April 08 Doane Ag. Return – Monsanto Estimate
29
27. CORN SEED & TRAITS
U.S. DEKALB Share Consistently Ahead of Expectations;
Growth Trend Continues in 2009
DEKALB U.S. CORN SHARE EVOLUTION: CORN
2001-2009F FINANCIAL OUTLOOK
30% Three years of growth since
2005 have outpaced projected
28%
growth each year
GROW
26%
2%+ 2009: Trend continues with
25.5%
24% early commitment for
accelerated growth in
23%
22%
DEKALB and ASI
20%
2009 DRIVERS TARGET
19%
18%
2+
U.S. DEKALB Share
2005 PROJECTED
16%
+1
AVERAGE GROWTH
16% U.S. ASI Share
TREND
14%
TRAIT TARGETS
14%
13%
12%
U.S. Triple-Stack
10% 12% 34-35M
Penetration
10%
2001 2002 2003 2004 2005 2006 2007 2008 2009F
1.4 1.5 1.7 1.9 2.2 >2.4 ~2.5
DEKALB Trait Penetration Trend: 2003-2009F
Average Number of Traits Per Acre in DEKALB Seed1
1. Trait intensity reflects the average number of traits per acre with at least one trait
30
28. CORN SEED & TRAITS
Seed Platforms Are Business Foundation, Establish Footprint
for Traits, and Create Diversified Crop Portfolio Globally
EU27 2008 SHARE 2012 TARGETS
12% 16-20%
CORN
U.S. 2012
2008 SHARE TARGETS
25.5% 30-34%
DEKALB
10.5% ~15%
ASI
INDIA 2008 SHARE 2012 TARGETS
36% 40-44%
CORN
LA - NORTH 2008 SHARE 2012 TARGETS
62-66%
58%
CORN
BRAZIL 2008 SHARE 2012 TARGETS
40% 44-48%
CORN
ARGENTINA 2008 SHARE 2012 TARGETS
46% 50-54%
CORN
Share for row crops provided reflects sales volume for Monsanto brands divided by total planted acres in respective geography.
Corn represents hybrid corn share in each respective market.
31
29. CORN SEED & TRAITS
Triple Stack Penetration Accelerates, Creating Added Growth
and Setting Stage for SmartStax Launch
U.S. CORN TRAIT OPPORTUNITY: 2005-2010F
70
220
200
U.S. TRIPLE-STACK ACRES
60
180
U.S. TRAIT ACRES
(IN MILLIONS)
160 50
(IN MILLIONS)
140
40
120
100
30
80
20
60
40
10
20
0
0
2007 2008 2009F
2005 2006 2007 2008F 2009F 2010F
2010
•
Opportunity
Q3UPDATE
Rootworm Control NA 50-65M
20.8M 30.1M
Corn Borer Control NA 60-70M
42.4M 45M
Glyphosate Tolerance NA 80M
57.9M 68.8M
Triple Stack/SmartStax 17.6M 29.1M 34-35M 50-65M
Opportunity widens in 2010 with launch of SmartStax
Trait acres reflect the total acres planted with each individual trait. In the case of stacked traits, each absolute
acre will be reflected by two or more trait acres.
32
30. CORN SEED & TRAITS
Monsanto’s Leadership Continues With Next Game-
Changer in Corn; SmartStax Resets Trait Platform in 2010
LIKELIHOOD OF SWITCHING BRANDS FOR SmartStax
If your current seed brand did not offer this new Monsanto Insect Protection Technology,
SMARTSTAX how likely would you be to switch seed brands to obtain this new technology? Would
you say:
“Very likely” or “Somewhat likely”
COMMERCIAL OPPORTUNITY
YIELDGARD CORN
74%
BORER USERS WHO
LAUNCH TARGET: 2010 TREAT FOR
ROOTWORM
TARGET ACRE
60-65M
OPPORTUNITY: 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
VALUE PROPOSITION PERCENT OF FARMERS
2008 trials evaluating SmartStax in elite HERCULEX® I CORN
65%
BORER USERS WHO
germplasm, quantifying sources of TREAT FOR
ROOTWORM
potential on-farm yield advantages:
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Improved
1-2%
consistency:
SmartStax STATUS
Primary pests
Improved
• Precedent established with U.S. EPA on
consistency: 1-2%
dual-mode-of-action traits:
Secondary pests REFUGE
• YieldGard VT PRO received reduced
REDUCTION
Reduced refuge 3-6% STRATEGY: refuge in Southern geographies
• Bollgard II natural refuge in cotton
5-10%
• On track for 2010
•
COMMERCIAL All components have U.S. approvals
TRACK: • Final regulatory package with 5% refuge
request submitted in June 2008
33
31. CORN SEED & TRAITS
Larger Seed Footprints in South America Enable Larger
Launches and Faster Ramp Up Than Competition
LATIN AMERICAN CORN LATIN AMERICA NORTH
OUTLOOK: CURRENT 5-YEAR OUTLOOK
#1 position in all key
SEED & TRAIT TRENDS THROUGH 2012
SEED SHARE:
countries
7-8M
MEXICO HYBRID ACRES:
In approval stage
BIOTECH STATUS:
HONDURAS
GUATEMALA
• Integration of Cristiani; Expand seed footprint for
FY2009 PRIORITIES:
EL SALVADOR
pending trait introductions
COLOMBIA
BRAZIL
CURRENT 5-YEAR OUTLOOK
40% (#1 position)
SEED SHARE:
BRAZIL
PERU
25-27M
HYBRID ACRES:
1st commercial trait in
BIOTECH
FY2009
STATUS:
• Targeted share gain: 1-2 points
FY2009
• 1-2M acre launch of YieldGard Corn Borer; sold-
PRIORITIES:
out in Q1
ARGENTINA
ARGENTINA
CURRENT 5-YEAR OUTLOOK
46% (#1 position)
SEED SHARE:
8-10M
HYBRID ACRES:
Commercial planting
BIOTECH STATUS:
• Targeted share gain: 1-2 points
FY2009 PRIORITIES: • 1-2M acre launch of YieldGard Corn Borer with
Roundup Ready Corn 2 stack; sold-out in Q1
34