monsanto 09-28-05

1

ROBB FRALEYChief Technology Officer

CREDIT SUISSE FIRST BOSTON INVESTMENT CONFERENCE Sept. 28, 2005

2

Forward-Looking Statements

Certain statements contained in this presentation, such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, currency impact, business and financial plans, the outcome of contingencies and other non-historical facts are "forward-looking statements." 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: the company's exposure to various contingencies, including those related to Solutia Inc., litigation, intellectual property, regulatory compliance (including seed quality), environmental contamination and antitrust; successful completion and operation of recent and proposed acquisitions; fluctuations in exchange rates and other developments related to foreign currencies and economies; increased generic and branded competition for the company's Roundup herbicide; the accuracy of the company’s estimates and projections, for example, those with respect to product returns and grower use of our products and related distribution inventory levels; the effect of weather conditions and commodity markets on the agriculture business; the success of the company’s research and development activities and the speed with which regulatory authorizations and product launches may be achieved; domestic and foreign social, legal and political developments, especially those relating to agricultural products developed through biotechnology; the company’s ability to successfully market new and existing products in new and existing domestic and international markets; the company’s ability to obtain payment for the products that it sells; the company's ability to achieve and maintain protection for its intellectual property; the company's ability to fund its short-term financing needs; and other risks and factors detailed in the company's filings with the U.S. Securities and Exchange Commission. 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 revise or update any forward-looking statements or any of the factors that may affect actual results, whether as a result of new information, future events or otherwise.

3

Non-GAAP Financial Information

This presentation may use the non-GAAP financial measures of “free cash flow,” earnings per share (EPS) on an ongoing basis, and Return on Capital (ROC). We define free cash flow as the total of cash flows from operating activities and investing activities. A non-GAAP EPS financial measure, which we refer to as on-going EPS excludes certain after-tax items that we do not consider part of ongoing operations, which are identified in the reconciliation. ROC means net income (without the effect of certain items) exclusive of after-tax interest expenses, divided by the average of the beginning year and ending year net capital employed, as defined in the reconciliation. Our presentation of non-GAAP financial measures is intended to supplement investors’ understanding of our operating performance. These non-GAAP financial measures are not intended to replace net income (loss), cash flows, financial position, or comprehensive income (loss), as determined in accordance with accounting principles generally accepted in the United States. Furthermore, these non-GAAP financial measures may not be comparable to similar measures used by other companies. The non-GAAP financial measures used in this presentation are reconciled to the most directly comparable financial measures calculated and presented in accordance with GAAP, which can be found at the end of this presentation.

Fiscal Year

In this presentation, unless otherwise specified, references to Monsanto’s fiscal years refer to the 12-month period ending August 31.

Trademarks

Roundup, Roundup Ready, Roundup RReady2Yield, Bollgard, Bollgard II, YieldGard, Monsanto Imagine, Vine Design, Asgrow, DEKALB, Monsanto Choice Genetics, Posilac, Processor Preferred, Vistive and Seminis, Seminis Vegetable Seeds, Royal Sluis, Petoseed, and Bruinsma are trademarks owned by Monsanto Company and its wholly-owned subsidiaries and are italicized the first time they appear in this presentation.

4

OVERVIEW

Monsanto Has Established Strategic Platforms inHigh-Value Crops

SEED & TRAIT CROP PLATFORMS

TECHNOLOGY PLATFORMS

CROP PLATFORMSCORN

COTTONOILSEEDS

VEGETABLES

GERMPLASM

GENOMICS

BREEDING

BIOTECHNOLOGY

Licensed

CORN

COTTON

OIL

SEED

S

VEGETA

BLES

Branded

ASIBranded

LicensedBranded

Biotechnology

Breeding

Genomics

Germplasm

Lice

nsed

ASI

Bran

ded

GGBB

R

E

R

I

5

GE

NO

MIC

S

TECHNOLOGY LEADERSHIP

Breeding and Biotech Provide Parallel R&D Paths to Commercial Products

PHASE II PHASE III PHASE IVPHASE IDISCOVERY LAUNCH

BREEDING

BIOTECHNOLOGY

MA

RK

ER

S

ITP

LAT

FOR

M

AN

ALY

TIC

S

CO

MM

ER

CIA

L

BREEDING and BIOTECHNOLOGY form two R&D pathways

Separate, but parallel, the BREEDING and BIOTECHNOLOGY pathways are linked by shared tools.

GGermplasm

R

6

Molecular Markers


Breeding is the Research Engine that Brings Commercial Value to Germplasm

CREATING VALUE

Genetic dissection of phenotype: allowing breeders to understand what genes control desired phenotypes

Efficiency of selection: improving the efficiency and scale of screening for key characteristics

Increased genetic gain: driving improvement in overall gain in key characteristics, such as yield

Improved conversion: helping get new biotech traits into the elite germplasm quickly for improved market opportunity

Optimizing germplasm variation: helping integrate favorable genetic variation from non-elite germplasm

Pre-selection: allowing breeders to eliminate the least-desirable germplasm quickly to focus on the best set of germplasm

Predictive associations: allowing breeders to identify superior crosses from elite germplasm pools

BBBreeding

R

CONCEPT: Molecular markers bring distinct value to breeding programs

7

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

ASI BRAZIL ARGENTINA

80M 30M 6M

4% 35% 49%

LICENSEDBRANDU.S.

33%14%

Corn Germplasm

Monsanto has the largest private international collection of corn germplasm, spanning 6 continents, 3 temperature zones, and 36 acquired breeding programs

No other company can make as many unique crosses from as many unique germplasm libraries as Monsanto

DISCOVERY PHASE IProof of Concept

PHASE IIEarly Development

PHASE IIIAdv. Development

PHASE IVPre-Launch

LAUNCH

2004 U.S. CORN YIELD GAINS

150

160

170

180

190

200

210

220

95 100 105 110 115

Monsanto Branded Competitors

BU

SH

ELS

PE

R A

CR

E

RELATIVE MATURITY (DAYS)


Industry’s Most Diverse Genetic Pool in Corn Creates New Opportunities for Monsanto

INTERNATIONAL GERMPLASM NETWORK

CREATING VALUE

• Value measured in market share gains; U.S. branded seed share with 4th year of 1+ point gain

UP NEXT

• Germplasm now contributing to 3 channels: brands, licensed and ASI

8

0%

10%

20%

30%

40%

50%

60%

2001 2002 2003 2004 2005


Monsanto’s Germplasm Reach Has Grown Significantly Through Branded and Licensed Seeds

U.S. CORN MARKET SHARE – BRANDS AND LICENSEES

43% 44% 46%

53%

49%DEKALB AND ASGROW BRANDS

AMERICAN SEEDS, INC BRANDS

HOLDENS/CORN STATES LICENSEES

6 pt Branded

Share Growth In 4 Years

9

0%

10%

20%

30%

40%

50%

60%

Monsanto Holds Number 1 or 2 Positions in Corn Market Share in All Key Geographies

2005 CORN MARKET SHARE IN KEY GEOGRAPHIES


DOW

SYNGENTA

DUPONT/PIONEERMONSANTO1

Source: Monsanto estimates1. Monsanto share is for DEKALB and Asgrow brands only

NORTH AMERICA

EUROPE-AFRICA

LATIN AMERICA

ASIA-PACIFIC

U.S. ASIU.S. LICENSED

10

There is a Clear Opportunity to Drive Growth in Emergent’s Position in Cotton Market


DELTA & PINE LANDOTHERSFIBERMAX

PHYTOGENEMERGENT

Source: Doane Market Research , reflects share of acres planted

0%

20%

40%

60%

80%

100%

120%

2002 2003 2004 2005

1

1.05

1.11.15

1.2

1.25

1.31.35

1.4

MA

RK

ET

SH

AR

E P

OS

ITIO

NT

RA

IT IN

TE

NS

ITY

IND

EX

11

Molecular Breeding is Used To Create New Source of Seed for U.S. Cotton Farmers

Cotton States

The capabilities and knowledge we’ve refined in bringing new corn germplasm to the market applies in cotton as well

Germplasm licensed from third parties and developed through molecular breeding by Monsanto

Seed production under way for commercialization in 2006

Cotton States launching exclusively on a second-generation trait platform




PHASE IVPre-Launch

LAUNCH


KEY MARKET AREAS

TARGET MARKET

PERCENT PENETRATED

U.S.

7M-8M

0%

2004 COTTON STATES FIELD TRIALSLB

S L

INT

/AC

RE

1,200

1,300

1,400

1,500

1,600

COTTON STATES VARIETIES

COMPETITIVE VARIETIES

CREATING VALUE

• Licensing fee reflects value of top quality germplasm, separate from value of trait

• Cotton seed currently sells for average of $20 per acre

UP NEXT

• 2006 will be first year of sales to farmers of Cotton States germplasm through licensees

12

Seminis Addition to Monsanto Opens New Business and Research Opportunities

Seminis Vegetable Seeds




PHASE IVPre-Launch

LAUNCH

• Vegetable seed industry CAGR at 4.8%

• Fruit & vegetable seeds only represent approx. 3.6% of farmgatevalue (corn: 13.2%; soybeans: 11.4%)

• Significant growth opportunities in hybrid creation


Seminis has the largest global vegetable germplasm library

MARKET POSITION

1

SIGNIFICANT CROPS

CUCUMBER

MARKET SHARE

38%1HOT PEPPER 34%1SWEET PEPPER 29%1TOMATO 23%2ONIONS 25%

1BEANS 31%

0%

5%

10%

15%

20%

25%

2002 2003 2004 2005F

VEGETABLE FRESHNESS INDEX INNOVATION THROUGH BREEDING

There are more “targets” for vegetable breeders to fill farmer needs and consumer quality preferences

CREATING VALUE

PERCENT OF NEW PRODUCTS IN COMMERCIAL PORTFOLIO

13

Molecular Breeding Can Be Applied to Seminis’ Sweet Corn Breeding Programs

Knowledge Transfer to Sweet Corn




PHASE IVPre-Launch

LAUNCH

• Breeding knowledge transfer increases potential new product offerings

• Molecular breeding speeds creation of new hybrids

• Accelerated genetic gains have potential to translate to market share gains, higher market value


Immediate access to broad corn germplasm base

Within 4 weeks of closing the Seminis acquisition, Monsanto had identified 1,000 corn markers to help with Seminis sweet corn breeding

CREATING VALUE

WORLDWIDE

4

KEY MARKET POSITION

MARKET POSITION

14

BiotechnologyCREATING VALUE

The use of biotechnology is an additive tool where there is a special value to be brought that can justify the additional R&D investment

Second Generation

• Bollgard II cotton 2003

• Roundup Ready Flex cotton 2006

• Second-generationYieldGard Corn Borer corn PHASE III

• Roundup RReady2Yieldsoybeans PHASE III

Stacked

• YieldGard Plus corn 2004

• YieldGard Plus with Roundup Ready Corn 2 2005

Breakthrough Platforms

• Drought-tolerant corn PHASE I

• Omega-3 soybeans PHASE IIGrowth Opportunities

• Roundup Ready Corn 2 2001

BITOECH OPPORTUNITY


Biotechnology Complements Breeding to Bring Farmers the Best Options

BBiotechnology

I

15

0

5

10

15

20

25

30

35

1998 1999 2000 2001 2002 2003 2004 2005F 2006F

MIL

LIO

NS

OF

AC

RE

S

Roundup Ready Corn Acreage Expected to Grow 25 Percent in 2006


Roundup ReadyCorn 2CREATING VALUE




PHASE IVPre-Launch

LAUNCH

Current forecast of 23-24M acres of Roundup Ready corn in 2005 U.S. season

30M acres targeted in U.S. for 2006

With European import approval for single trait, U.S. market potential is now 50M acres

ARGENTINA

5M

<1%

KEY MARKET AREAS

TARGET MARKET

PERCENT PENETRATED

U.S.

50M

48%

U.S. ROUNDUP READY CORN ACREAGE GROWTH

• 2005 U.S. trait fee of $8-$10 per acre in Monsanto branded seed for single trait

• Total retail value of incremental 20M acres: approx. $160M-$200M

• Monsanto shares a portion of retail value with channel

• Value boosted by incremental Roundup use

Inflection Points: There

are new trajectories

for growth in Roundup

Ready Corn

VALUE TO 50M ACRES

16

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

U.S. BRAZIL ARGENTINA

15-20M 5M 1M

19% 0% 0%




PHASE IVPre-Launch

LAUNCH

YieldGard Rootworm Corn

Drought Pressure in Central Corn Belt Demonstrating Performance Value of YieldGard Rootworm

• With dry conditions in the Central Corn Belt, observed yield advantage appears to be 10-20 bushels per acre over insecticides


2005 PERFORMANCE

The difference between

YieldGardRootworm plants and conventional

ones is visible

YieldGardRootworm’s protection allows for heartier roots that can tap what moisture exists

ILLINOIS DROUGHT OBSERVATIONS

INSECTICIDETREATED-CORN

YIELDGARDROOTWORM

17

1

1.1

1.2

1.3

1.4

1.5

1.6

1996

1997

1998

1999

2000

2001

2002

2003

2004

F20

05F

2006

F

Stacked Trait Growth Is Driving Corn AccelerationA

CR

ES

IN

MIL

L IO

NS


U.S. Biotech Trait Intensity IndexCREATING VALUE

• Average per-acre opportunity:

VALUE CREATED WITH 3 TRAITS

CORN

COTTON

MON U.S. TRAIT ACRES

46.5M

--

% STACKED

61M ACRES

BIOTECH MARGIN OPPS

SOYBEANS

2005

33%

10.8M 17.9M ACRES66%

67.2M 67.2M ACRES

SOYBEANS (1 TRAIT)CORN (3 TRAITS)COTTON (2 TRAITS)

2005

1.65

1.33

1.0AV

ER

AG

E T

RA

ITS

PE

R A

CR

E

Seed $30

RR $10

YG Corn Borer $ 5

YG Rootworm $15

TOTAL $60

• 2005 saw launch of first triple-stacked product, YieldGardPlus with Roundup Ready Corn 2

18

Continued Innovation in R&D is Translating to Significant Activity at Every Phase of the Pipeline


PHASE IProof of Concept



PHASE IVPre-Launch

LAUNCHED

The projects that advance in the pipeline advance more rapidly and have a higher prospective probability of commercial success

BIO

TE

CH

DISCOVERYProof of Concept

BR

EE

DIN

G

IDENTIFYING GENES & TRAITS

AS TARGETS

DETERMINGING WHICH LEADS

SHOW PROMISE

TESTING TO SELECT

COMMERCIAL CANDIDATES

REGULATORY & COMMERCIAL

DEVELOPMENT TRACKS

•ROUNDUP READYSOYBEANS, COTTON, CANOLA & CORN

•BOLLGARD & BOLLGARD II COTTON

•COTTON STACKS•YIELDGARDCORN BORER

•YIELDGARD ROOTWORM

•YIELDGARD PLUS•CORN STACKS•VISTIVE LOW-LINOLENIC SOYBEANS

•ASGROW AND DEKALBSOYBEAN VARIETIES & CORN HYBRIDS

17 TRAIT PRODUCTS + ANNUAL GERMPLASM

SELECTING COMMERCIAL

PRODUCTS

PERFORMANCE SCREENS

IDENTIFY LEADS

TRAITS IN MODELS & CROPS

VALIDATING CONCEPTS

EXPANDED FIELD TRIALS

REGULATORY STUDIES

COMMERCIAL PREP

BUSINESS STRATEGY

MARKETING HAND OFF

BREEDING TRAITS INTO CROPSVALIDATE

MAPPING RESULTSVALIDATE

GENETIC GAINS

FIELD TRIALS

MOVE TRAITS TO COMMERCIAL GERMPLASM

COMMERCIAL PERFORMANCE

TESTING

DETERMINE MARKET FIT

SEEDBULK UP

MARKETING HAND OFF

TRAIT SCREENS

HIGH VOLUMES OF GENES

TESTING FOR GENE FUNCTION

TRAIT SCREENS

GENETIC MAPPING FOR BREEDING

OPPORTUNITIES

BREEDING PROGRAM

SEEDBULK UP

19


Feedback from 2005 Field Testing Indicates Continuing Momentum in Pipeline Opportunities

FIELD TESTING

July

Augu

st

Sept

embe

r

December

January November

Febr

uary

Mar

ch

June

May

April

October

DATA COLLECTION

DATA ANALYSIS

PORTFOLIO UPDATE

PRIORITY UPDATE

The steady progress of second-generation biotech traits from the pipeline continues

Roundup Ready Flex cotton

Second-generation YieldGard Corn Borer corn

Roundup RReady2Yield soybeans

Our healthier oils platform is generating good commercial opportunity

First products of our Renessen JV are nearing commercialization

Significant progress on longer horizon projects as viable leads are advancing for drought tolerance in three crops

ANNUAL R&D CYCLE: SEEDS & TRAITS EARLY FEEDBACK FROM 2005 FIELD WORK

20

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED




PHASE IVPre-Launch

LAUNCH

Roundup ReadyFlex Cotton

Anticipated largest trait launch of 2-3 million acres, pending final approvals

80-90% of Roundup Ready Flex to be stacked with Bollgard II

8 cotton seed companies currently breeding trait into varieties

Roundup Ready Flex Launch To Be Largest in 10-Year History of Biotech Traits

U.S. AUSTRALIA

10-15M 0.5-0.8M

0% 0%


The Roundup ReadyFlex cotton trait will be coupled with our

Stoneville brand and our Cotton States

licensing as a showcase of

Monsanto’s cotton business

• Value reflects greater convenience and enhanced weed control; lifts the value of the Roundup Readytrait

UP NEXT

• 2006 commercial launch, expected on 2-3 M acres

2005 PERFORMANCE

21

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


70M 50M 30M

0% 0% 0%

Roundup RReady2YieldSoybeans




PHASE IVPre-Launch

LAUNCH


Testing of Second-Generation Roundup RReady2Yield Soybeans Indicates Extended Control

2005 PERFORMANCE

Identified lead event during agronomic and tolerance trials during the 2004 U.S. field season.

Second-generation testing indicates improved tolerance under extended spray conditions

50

55

60

65

FIELD TRIAL YIELD

BU

/AC

RE

ROUNDUP READYSOYBEANS

ROUNDUP RREADY2YIELDSOYBEANS

SPRAYTIME 1

SPRAYTIME 2

SPRAYTIME 1&2

UP NEXT

• 2005 field trial data will support upcoming regulatory submission

• Yield improvement of 5+ bushels per acre in 2004 field trials

• Predicted added value: $19-27 per acre

2005: IN THE FIELD

22

Drought Stress Tolerance To Be Family of High-Value Traits in Multiple Crops




PHASE IVPre-Launch

LAUNCH


CONSITENT DROUGHT STRESS (WESTERN US)

U.S. AFFECTED ACREAGE

13-16M

REDUCED IRRIGATION COSTSDROUGHT “INSURANCE”

BROAD-ACRE WATER USE EFFICIENCY

20M

30-50M

128-148M

CORN, COTTON, SOY MARKET SEGMENTS

DROUGHT-TOLERANT CORNPHASE I2 YEARS OF FIELD TRIALS

DROUGHT-TOLERANT SOYBEANSPHASE IFIRST YEAR OF FIELD TRIALS

DROUGHT-TOLERANT COTTONPHASE IFIRST YEAR OF GREENHOUSE

Drought-TolerantFamily of Traits

UP NEXT

• Identifying potential commercial leads as field testing continues

• Successful greenhouse testing of cotton

• Continued field testing of corn and soybeans

2005 PERFORMANCE

23

Drought Stress Tolerance To Be Family of High-Value Traits in Multiple Crops

Drought-TolerantCorn

Yield protection on all acres against water deficits




PHASE IVPre-Launch

LAUNCH


CONTROL WITH GENE CONTROL WITH GENE

REDUCED LEAF TEMPERATURE

REDUCED LEAF ROLLING

40 32oC34

Yield enhancement through improved water use on drought-prone acres and cost savings on irrigated acres

More than two leads have demonstrated positive traits in corn field trials

CONSITENT DROUGHT STRESS (WESTERN US)

U.S. AFFECTED ACREAGE

10-13M

REDUCED IRRIGATION COSTSDROUGHT “INSURANCE”

BROAD-ACRE WATER USE EFFICIENCY

12M

30-50M

70-80M

CORN MARKET SEGMENTS

2005 PERFORMANCE

UP NEXT

• Begin to identify potential commercial leads through additional testing

• Pricing will reflect yield gains in all three markets; value of higher yields shared with farmer

EXAMPLES OF POSITIVE TRAITS OBSERVED UNDER WATER STRESS:• Enhanced growth

• Reduced leaf rolling

• Reduced leaf temperature

• Enhanced yield

24

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


TBD TBD TBD

0% 0% 0%

Higher-Yielding Corn

Increased yield achieved through enhanced nitrogen uptake and utilization

Potential to reduce fertilizer inputs




PHASE IVPre-Launch

LAUNCH

2005 PERFORMANCE

Nitrogen Use Is Second Only to Water Use as an Opportunity in Agriculture


UP NEXT

• Multi-location field studies of leads

• Functional hits from genomics screens are advanced to crop testing for product prioritization

• 21 leads are under testing in 5 locations in 2005

CONTROLCONTROL WITH GENEWITH GENE

DARKER GREEN LEAVESDARKER GREEN LEAVES

CONTROLCONTROL WITH GENEWITH GENE

TOLERANCE TO LOW NITROGEN

25

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


4M 1M 4M

0% 0% 0%

Renessen High Lysine Corn: First and Second Generations




PHASE IVPre-Launch

LAUNCH


High Lysine Enhances Animal Feed, Shifts Value to Seed

LYSINE TOTALS IN TESTING

Improved amino acid balance; increased total energy

2nd GENERATION

2005 PERFORMANCE

0

1000

2000 1ST GENERATION

SOUTH AMERICA RESULT

US RESULTCONTROL

MINIMUMTARGET

2ND GENERATION

EVENT 1 EVENT 2CONTROL

MINIMUMTARGET

3000

4000

5000

UP NEXT

• Currently identifying brand name and marketing position

• Hopeful to have technology in farmers’ fields by 2007

• Completing regulatory review

Two-product step-change in lysine content

26




PHASE IVPre-Launch

LAUNCH


VISTIVE LOW-LINOLENIC SOYBEANSTARGET: LINOLENIC ACID – MORE STABLE, NO TRANS FATS

LAUNCH500K ACRES COMMERCIAL

Healthier Oils: Family of TraitsCREATING VALUE

Vistive Is A Family of Improved Oils for Food Uses

STANDARD SOYBEANCURRENTLY NOT OPTIMAL FOR

MOST PROCESSED FOOD APPLICATIONS

LINOLEIC ACID

LINOLENIC ACID

STERATE & PALMITATE

OLEIC ACID

FAMILY

VISTIVE II SOYBEANSTARGET: INCREASED OLEIC FOR HEALTH

PHASE 3

VISTIVE III SOYBEANSTARGET: MORE STABLE, NO TRANS, LOWEST SATS, LIKE

‘OLIVE OIL’PHASE 2

27

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


5M TBD TBD

2% 0% 0%

Vistive Is First of Family of Improved Oils for Food Uses

Vistive Low-Linolenic Soy

Vistive was developed by screening Monsanto’s germplasm and using advanced tools in breeding, effectively launching in 36 months from concept

Oil sold out from 2005; To be in consumer products in late 2005




PHASE IVPre-Launch

LAUNCH


2005 PERFORMANCE

800+ Farmers in Eastern and Northeastern Iowa planted Vistive soybeans this year

UP NEXT

• Successful launch of Asgrow AG2421V and AG2321V

• Approximately 100,000 acres planted in Iowa

2 processors4+ processors

1 seed brand10+ seed brands

100K acres500K acres

20052006

In 2006, additional brands and varieties will expand the maturity zones and geographic reach of Vistive

20052006

28

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


5M TBD TBD

2% 0% 0%


Vistive Offers the Ability to Declare Zero Trans Fats on Food Labels

CREATING VALUE

• Vistive provides opportunity to declare zero trans fat and use the nutrient content claims of “Low in saturated fat, contains 7 g of total fat per serving” and “Reduced Saturated Fat”

• Even in Palm Oil substitution, trans fat eliminated at the expense of a 1.5 g/serving increase in saturated fat.

Vistive Low-Linolenic Soy

Protein 2 g 4%Protein 2 g 4%Protein 2 g 4%

Total Carbohydrate 19 g 6% Dietary Fiber 2 g 8% Sugars 0 g



Sodium 120 mg 5%Sodium 120 mg 5%Sodium 120 mg 5%

Cholesterol 0%Cholesterol 0%Cholesterol 0%

Total Fat 7 g 11%Saturated Fat 1 g 5%Trans Fat 0 g 0%

Total Fat 7 g 11%Saturated Fat 3 g 15%Trans Fat 0 g

Total Fat 7 g 11%Saturated Fat 1.5 g 8%Trans Fat 2 g

% Daily Value% Daily Value% Daily Value

Amount Per ServingCalories 140 Calories from Fat 60



Nutrition FactsTortilla Chips (Plain, white corn) Serving Size – 1 0z. (28 g)



100% VISTIVE100% PALM OIL

100% PARTIALLY HYDROGENATED

SOYBEAN OIL

EXAMPLE: USE IN TORTILLA CHIPS

29

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


<1M TBD TBD

0% 0% 0%


Breeding Breakthrough Improves the Taste and Mouth-Feel of Soy-Based Foods

Improved-proteinsoybeans for food

Improves taste and mouth-feel with consumer applications in beverages and meat alternatives; Improved taste for nutritional bars

Initiating seed production and identifying additional varieties for commercialization and validating performance in food products




PHASE IVPre-Launch

LAUNCH

2005 PERFORMANCE

UP NEXT

• Seed bulk up to begin for commercialization

• Yield trials of commercial variety candidates successful

HBC LESS BINDING OF OFF-FLAVORS

Glycinin

β-conglycinin0

5

10

1520

25

0.3 0.6 0.9 1.3 1.6 1.8 2.1

2 pentyl pyridine (mM)

Boun

d 2

pent

ylpy

ridin

em

oles

/mol

e pr

otei

n)

LOWER AFFINITY FOR ODORS, CREATES BALANCED FLAVORS

RETAINS MOISTURE IN

MEAT PRODUCTS, CREATING FIRM & TENDER TEXTURE

IMPROVED SOLUBILITY & EMULSIFYING

(SIMILAR TO MILK) BETTER

TASTE AND TEXTURE

HBC IMPROVED GELLING (FIRM)

Control

High BC

0 500 1000 1500 2000Elastic modulus (Pa)

HBC = IMPROVED SOLUBILITY PROFILE

0 2 4 6 8 10 12Casein

MON HBC

Commodity

Vinton 81

Median particle diameter (microns)

30

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


<1M TBD TBD

0% 0% 0%


Breeding Breakthrough Improves the Taste and Mouth-Feel of Soy-Based Foods

Improved-proteinsoybeans for food

MUTAGENESISΒ-CONGLYCININ10%

GLYCININ14%

Β-CONGLYCININ16-22%

GLYCININ0-6%

PRODUCT CONCEPTEXISTING SOYBEANS

Gy1-5 Genes

A1A2 B1 C1 C2D1a D2 E F G H I J K L MD1bB2 ON

Gy4Gy2Gy1

Gy3

Gy7

Gy5

CREATING VALUE

CONCEPT: Develop High Beta-ConglycininSoybeans Using Markers to Select for Altered Protein Levels

BBreeding

R

31

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


TBD TBD TBD

0% 0% 0%


Omega-3 Biofortification Could Be a Food Industry Breakthrough

Omega-3 Oilseeds

American Heart Association, American Diabetic Association, and 1,600+ research studies support health benefits

Enhanced stability; Best applications in refrigerated or frozen foods or as animal feed for Omega-3 enriched poultry or pork




PHASE IVPre-Launch

LAUNCH

2005 PERFORMANCE

0

5

10

15

20

25

OMEGA-3 (SDA LEVELS) IN SOYBEAN FIELD TRIALS

FAT

TY

AC

ID W

T % TARGET

UP NEXT

• Continued testing to confirm commercial opportunity

• Field tests in U.S. and Argentina showed SDA levels at product concept with good agronomic performance

OMEGA-3 EVENTS IN FIELD TESTING

32

GROWTH OPPORTUNITIES

3 4

1 2Pipeline projects denoted in white text and represent global value; Commercial products denoted in gold and are U.S.-only, unless otherwise indicated.1. “Acre Potential” represents the maximum acre penetration by the trait individually and as a stacked trait in the three-year span during its peak.2. “Per-Acre” premium represents the per-acre average value in the three-year span during the trait penetration peak.

PRICING VALUE MATRIX

ROUNDUP READYSOYBEANS

BOLLGARD II COTTON (INDIA)YIELDGARDROOTWORM

2ND GENERATION ROUNDUP READY SOYBEANS

DROUGHT TOLERANT CORN

DROUGHT TOLERANT SOYBEANS

DROUGHT TOLERANT COTTON

HIGHER-YIELDING SOYBEANS

HIGH-LYSINE CORN

IMPROVED-OIL SOYBEANS FOR PROCESSING

IMPROVED-PROTEIN SOYBEANS FOR FOOD

2ND GENERATION HIGH-LYSINE CORN

IMPROVED-ENERGY CORN III

VISTIVE SOYBEANS

IMPROVED-PROTEIN SOYBEANS FOR FEED

VISTIVE MID-OLEIC + LOW-LINOLENIC SOYBEANS

OMEGA-3 SOYBEANS

VISTIVE ZERO SATURATED FAT + MID-OLEIC + LOW-LINOLENIC SOYBEANS

Pipeline Is Valued Across Market Opportunities and Crops

LARGE-ACRE (11-100 MILLION+)1SMALL-ACRE (0-10 MILION)1 HIG

H P

ER

-AC

RE

($1

1-$1

00+)

2

PROCESSOR PREFERRED ELITE GERMPLASM

YIELDGARD CORN BORERLO

W P

ER

-AC

RE

($0

-$10

)2

ROUNDUP READY + FLEX COTTON

ROUNDUP READY CORN

HIGHER-YIELDING CORN

BOLLGARD II COTTON

ROUNDUP READY + FLEX COTTON (AUSTRALIA)

BOLLGARD II COTTON (AUSTRALIA)

monsanto 09-28-05

Economy & Finance

Transcript of monsanto 09-28-05