DEKALB, give wings to your growth

CORN SEED BUSINESS IN IBERIACarlos Vicente

Lérida, September 20th. 2005

9/20/2005 Titre2

The market frame

9/20/2005 Titre3

Iberia is a very diverse agricultural market in a limited territory

SPANISH AGRONOMIC CROPS SURFACE'05*

k haCereals 6527 75%Wheat 2184 25%Barley 3195 37%Other small grains 591 7%Corn 436 5%Rice 121 1%Legumes 574 7%Potatoes 94 1%Sugar beet 100 1%Cotton 86 1%Sunflower 523 6%Forrage crops 397 5%Vegetables 444 5%TOTAL AGRONOMICS CROPS 8745 100%

* Surface Estimate June'05 - MAFF

9/20/2005 Titre4

Corn is the highest seed market value opportunity in Iberia

SEED MARKET VALUE by CROP

0

10

20

30

40

50

60

70

Corn Sunflower Cotton

M $

of

NS

Source: Monsanto internal data. July’05

Sunflower reflects only the added value region of Andalusia

9/20/2005 Titre5

* MARKin Spanish Corn Panel 2005 – July’05

CAP (European Common Agricultural Policy) review* in ‘06 will not have an important impact on the Corn Market

FARMERS OPINION ON THE EFFECT OF CAP REVIEW ON CORN SURFACE

72%

17%

1%

10%

0%

20%

40%

60%

80%

Same Less More Don't know

% i

nte

rvie

ws

9/20/2005 Titre6

CAP review will change the “farming model”

Professional farmers with entrepreneurial mentality

Subsidies will have a “smaller role”

Looking for integrated farm management

Adoption of new technologies

Farming solutions vs. product use

Targeting agriculture as a long term & stable business

With a bigger farm size

9/20/2005 Titre7

Biotech market share increases and drives market value

Sources: Spanish MAFF, FAOSTAT, Monsanto internal assessment

* -> Estimate

IBERIA MARKET TREND'98-'05

0

100

200

300

400

500

600

700

800

'98 '99 '00 '01 '02 '03 '04 '05*

k h

a

BtConventional

9/20/2005 Titre8

Corn seed decision is taken at farmer gate, and “value” factors have greater weight than “price”.

0%

5%

10%

15%

20%

25%

Experience Maturity Recomendation Trial Seed quality Resistance to lodging

Price

% o

f cu

ltiv

ate

d c

orn

hect

ars

Source: Kleffmann panel ‘05. Yield, the first and “logical” reason from framers, is not included

9/20/2005 Titre9

Business drivers

9/20/2005 Titre10

Focus on value farmers

STRUCTURE OF SPANISH CORN FARMS

0%

5%

10%

15%

20%

25%

30%

35%<

1 h

a

1 t

o <

2

2 t

o <

5

5 t

o <

10

10

to

<2

0

20

to

<3

0

30

to

<5

0

50

to

<1

00

> =

10

0 h

a

Corn farm size (ha)

% of farms

% of surface

Source: Survey of agricultural farms 1997 – Spanish MAFF

9/20/2005 Titre11

The Bt corn market geographies suffered during the 2005 growing season a severe drought (driest May-Sep period since 1947!)...

Bt areas

% of Cumulated Precipitation vs. Normal at April 30th, 2005SOURCE: INM (Spanish National Meteorological Institute)

9/20/2005 Titre12

However, Bt has been an important contributor to the corn business. New variety approvals for ’06 will increase its relative weight.

Bt weight in the IBERIA market

0

100

200

300

400

500

600

700

'03 '04 '05*

k ha

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

% v

s. T

otal

Mar

ket

Conventional Bt % Bt vs. Total Market

Sources: Spanish MAFF, FAOSTAT, Monsanto internal assessment

* -> Estimate

9/20/2005 Titre13

Key initiatives

9/20/2005 Titre14

Business integration, between Seeds & AgChem, offers a competitive advantage through value added programs directed to “new farming entrepreneurs”

9/20/2005 Titre15

DEKALB re-launch has contributed to brand equity improvement

OverallMeasures:

Unaided awareness –Top 5 brands (QS5)Aided awareness (QS6)

Image attributes (QS7)DEKALBPioneer

Likelihood to recommend (QS8)

Usage (QS10/S14)Likelihood to use again next season (QS13/S17)Switching behavior (QS19/S25)

2005 Score: 0.29

2005 Spain Brand

Equity Score

0.54 0.10

Brand Share of Mind Brand Image Brand Loyalty+ +

++2003 Score: 0.18 0.45 0.09++

BrandEquity Score2003 Spain

0.67

0.93

MARKETING HORIZONS INC.- 2005 DEKALB brand equity study - Spain

9/20/2005 Titre16

Market value growth comes from Biotechnology

Farmers have to aim problems for crop management in corn

Endemic areas for ECB (European Corn Borer)Weeds is a major problem, specially in some geographies

Solutions are very limited with traditional systemsLimited control by insecticidesComplex management for insect controlBan of some herbicides (i.e.: Atrazine)

Bt & Roundup Ready technologies will fit the corn farmer needs in the coming years

9/20/2005 Titre17

Conclusions

9/20/2005 Titre18

Conclusions

Stable conventional market

Increasing value due to Biotech

Entrepreneurial farmers vs. subsidy driven

Bt has “revolutionized” the seed business

Integration of seed businesses has been successful

Value programs drive our growth

Seed & AgChem integration is a differentiated competitive advantage

Brand equity has improved substantially

Roundup Ready and stack technologies (Roundup Ready + YieldGard) will be the next leap in market value growth