1

FOURTH-QUARTER 2006 FINANCIAL RESULTS

October 11, 2006

2

Forward-Looking Statements

Certain statements contained in this release are "forward-looking statements," 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.

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.

Trademarks

Trademarks owned by Monsanto Company and its wholly-owned subsidiaries are italicized in this presentation.

Mavera™ is a trademark of Renessen.

© 2006 Monsanto Company

4

Fourth-Quarter and Full-Year 2006 Financial Summary

Fourth Quarter

2006

Fourth Quarter

2005Change

Fiscal Year 2006

9% $7,344M

$3,548M

$689M

DILUTED EPS ON AS-REPORTED

BASIS$(0.27) $(0.23) (17)% $1.25 $0.47 166%

(3)%

(15)%

Fiscal Year 2005

Change

NET SALES $1,391M $1,274M $6,294M

$3,004M

$255M

GROSS PROFIT $480M $493M

17%

18%

170%NET INCOME $(144)M $(125)M

PERFORMANCE SUMMARY

Note: EPS figures reflect the stock split effective July 28, 2006

5

Items Included in Reported EarningsPERFORMANCE SUMMARY

Fourth Quarter 2006:$(0.04) per share charge for tax on dividend repatriation$(0.01) per share loss on discontinued operations$(0.01) per share charge for accounting change

Fourth Quarter 2005:$0.01 per share income on discontinued operations$0.01 per share tax benefit associated with certain liabilities in connection with the Solutia bankruptcy

Note: EPS figures reflect the stock split effective July 28, 2006

6

Items Included in Reported EarningsPERFORMANCE SUMMARY

Full Year 2006:$(0.04) per share charge for tax on dividend repatriation$(0.01) per share loss on discontinued operations $(0.01) per share charge for accounting change

Full Year 2005:$(0.45) per share in-process R&D write-off related to the Seminis and Stoneville acquisitions$(0.32) per share for Solutia-related charge$0.19 per share tax benefit from loss incurred on European wheatand barley business$(0.01) per share net restructuring charges $0.02 per share income on discontinued operations

Note: EPS figures reflect the stock split effective July 28, 2006

7

Six Key Factors Drive Monsanto’s Future Growth Opportunities

STRATEGIC REVIEW

PERIOD : SEED & TRAITS ESTABLISHED

Commercial viability of seeds and traits established; Supporting infrastructure in place

PERIOD : CORN IS ON THE LEADING EDGE

Seed and trait growth comes from: penetration, stacking and multi-generation traits, and breeding enhancement; Corn defines the future direction

PERIOD : THE GAME CHANGES

With seeds-and-traits strategy established, gross profit opportunity expands in the United States and internationally with penetration, stacking, second-generation – even as competition becomes more significant

2004 2005 2006 2007 2008 20092003 2010

GROSS PROFIT DRIVERS

1 Growth in the U.S. corn market is not over

4 Cotton platform creates new opportunities for growth

2 Growth in international corn market share

3 Biotech traits are advancing internationally

5 Seminis to capture additional gross margin

6 Next-generation pipeline poised for enhanced commercial delivery

8

Demonstrated Product Leadership Translates to Recognized Brand Leadership

MARKET RESEARCH: TOP 3 CITED SEED PURCHASE DRIVERSBased on a sample of 1,909 respondents representing farmers who use seed from the largest suppliers in the U.S. corn seed market1

1.Monsanto research; Survey question: “What one factor most influenced your decision to plant more acres of [brand] corn seed in 2006 than you did this past season in 2005?

RANKED ORDER OF FARMER RESPONSES

OTHER NATIONAL CORN SEED

PROVIDER(S)

1 Good Yield 35% Good Yield 41%

27% 16%

11%10%

2 Lower Cost Good Stand/ Strong Stalks

3 Discount/ Rebates

Test Plot Results

Top 3 purchase drivers for farmers buying DEKALBcorn seed all relate to performance benefits – reflecting 68% of the reasons cited

MARKET SHARE PERFORMANCE

+3 pointsAsgrow and DEKALB brands

MARKET SHARE GAIN 2005 to 2006

Top 2 of 3 purchase drivers related to price

The positive view by farmers of DEKALB’s brand performance is reflected in its market share growth year-to-year

STRATEGIC REVIEW

9

0%

5%

10%

15%

20%

2001 2002 2003 2004 2005 2006 2007F 2008F

0%

1%

2%

3%

4%

5%

6%

Corn Market Share Gains Still To Fully Reflect Power of Molecular Breeding Application

U.S

. MA

RK

ET

SH

AR

E

PROGRESSION OF BREEDING TECHNOLOGY

IN THE COMMERCIAL

PORTFOLIO

CYCLE 1: INTEGRATION OF GLOBAL GERMPLASM

• ASSEMBLED 36 MAJOR CORN BREEDING PROGRAMS IN 12 COUNTRIES

• FIRST INTRA-COMPANY CROSSES; BY CYCLE 3, >50% OF HYBRIDS IN THE U.S. PORTFOLIO MADE THROUGH INTRA-COMPANY CROSSES

CYCLE 2:APPLICATION OF MOLECULAR BREEDING TO SELECTION

CYCLE 3: SELECTION POWER OF MOLECULAR BREEDING

• MOLECULAR BREEDING IMPROVES GENETIC POTENTIAL BY 2X VERSUS CONVENTIONAL BREEDING

• BY 2006, FIRST MOLECULAR BREEDING HYBRIDS ENTER COMMERCIAL PORTFOLIO

• PREDICTIVE COMBINATIONS ALLOW MORE EFFICIENT BREEDING

• MOLECULAR BREEDING ACCELERATES TRAIT INTEGRATION BY SHORTENING ‘BACKCROSSING’ CYCLES

MOLECULAR-BREEDING HYBRIDS AS A PERCENT OF BRANDED UNITS SOLD IN COMMERCIAL CORN PORTFOLIO P

ER

CE

NT

OF B

RA

ND

ED

UN

ITS

SO

LD

IN C

OM

ME

RC

IAL C

OR

N P

OR

TFO

LIO

2006 BRANDED U.S. MARKET SHARE: 19%

DEKALB AND ASGROW U.S. BRAND MARKET SHARE

STRATEGIC REVIEW

10

Another Strong Year of Trait Adoption Moves Penetration of U.S. Corn Traits Toward 2010 Targets

STRATEGIC REVIEW

ACRES IN MILLIONS2005 2006 2010

OPPORTUNITY

U.S. YieldGard Corn Borer Acres 32.1 32.3 50-60U.S. Roundup Ready Corn 2 Acres 24.3 32.7 60U.S. YieldGard Rootworm Acres 4.1 10.0 25-30U.S. Triple-Stack Acres 1.3 6.0 25-30

1. Percent of total market opportunity reflects the ratio of number of actual acres planted to total trait-acre opportunity identified for each particular trait

Roundup Ready Corn 2

U.S. PENETRATION OF CORN TRAITS: 2006PENETRATION OF CORN TRAITS IN 2006 AS

A PERCENT OF 2010 TOTAL MARKET OPPORTUNITY1

0% 20% 40% 60% 80% 100%

YieldGard Corn Borer

YieldGard Rootworm

Triple-Stack Acres

11

With the Corn Trait Technology in Hand Today, There’s Opportunity to Double Penetration By End of Decade

U.S. CORN TRAIT OPPORTUNITYTOTAL MARKET OPPORTUNITY IN 2010

YIELDGARDCORN BORER

YIELDGARDROOTWORM

TRIPLE25-30M ACRES

Because YieldGard Rootworm has the lowest market

opportunity of the 3 traits, its market potential is the proxy for

total potential for triple stack

DOUBLE20-25M ACRES

Above triple stack, remaining YieldGard

Corn Borer forms double-stack opportunity

SINGLE~10M ACRESAcres exclusively using Roundup Ready, which would include “refuge” acres required for other acres using insect-protected traits

RE

LAT

IVE

RE

TA

IL V

ALU

E P

ER

AC

RE

10 20 30 40 50 60U.S. TRAIT-ACRE OPPORTUNITY

(ACRES IN MILLIONS)

ROUNDUP READY CORN

ST

AC

KE

D

OP

PO

RT

UN

ITY

FOCUS: OPPORTUNITY

U.S. TRAIT ACRE OPPORTUNITY: CURRENT

COMMERCIAL CORN TRAITS

2006F:Only 50% penetrated to date

STRATEGIC REVIEW

12

Monsanto’s Breeding Prowess Is Paving the Way for Market Share Growth Internationally

1. Market share is for hybrid corn seed market only2. U.S. market share is for Asgrow and DEKALB brands only; not inclusive of ASI companies

SCORECARDGLOBAL BRANDED MARKET SHARE1

FY2004 FY2005 FY2006 CHANGE (’04-’06)

14%

14%

13%

10%

14%

26%

17%

38%

35%

29%

37%

58%

35%

35%

19%

19%

15%

15%

21%

32%

21%

50%

32%

35%

38%

61%

34%

35%

NORTH AMERICAN REGION 16% +5%

+5%

+2%

+5%

+7%

+6%

+4%

+12%

-3%

+6%

+1%

+3%

-1%

FLAT

SOUTH AFRICA 44%

MEXICO 57%

BRAZIL 35%

ARGENTINA 37%

16%UNITED STATES2

EUROPE-AFRICA REGION 15%

FRANCE 14%

ITALY 17%

HUNGARY 30%

TURKEY 23%

ASIA-PACIFIC REGION 37%

INDIA 34%

LATIN AMERICA REGION 38%

STRATEGIC REVIEW

FRANCE• 7.1M CORN

ACRES

• LARGEST CORN MARKET IN EUROPE

DEKALB market share has grown 5 points over the last two years

For the first time ever, DEKALB is co-leading the French market

13

Global Seed Business Creates Platform for Growth in Traits in Key Markets

STRATEGIC REVIEW

GROWTH TARGETS FOR SELECTED TRAITSACRES IN MILLIONS PAST-YEAR

PLANTED ACRES(2005)

CURRENT-YEAR PLANTED ACRES

(2006)

END-OF-DECADE MARKET POTENTIAL

(2010F)

CORNU.S. ROUNDUP READY CORN 2 ACRES 24.3 32.7 60U.S. YIELDGARD ROOTWORM 4.1 10.0 25-30U.S. TRIPLE-STACK ACRES 1.3 6.0 25-30

COTTONU.S. ROUNDUP READY FLEX COTTON N/A 2.1 10-15

COTTON TRAITS IN AUSTRALIA 0.6 0.7 0.5-0.8

INDIAN BOLLGARD COTTON 3.1 8.4 10-15

SOYBEANSBRAZILIAN ROUNDUP READYSOYBEANS1 12.3 19.4 50

1. Brazilian Roundup Ready soybean acres include acres representing both new-seed sales and point-of-delivery value sharing.

14

Focus on Brazilian Roundup Ready Soybean System is to Encourage Further Penetration

FOCUS: ROUNDUP READY SOYBEANS IN BRAZILACREAGE

2004 2005 2006 2010 MARKET POTENTIAL

7.4M 12.3M 19M 50M

EARNINGS CONTRIBUTION

2006 2007F

2.5 to 5 cents 2.5 to 5 cents

VALUE CAPTURE

Dual system in place for new seed sales and point-of-delivery value captureIn FY2006, weighted average retail price was ~$3.50 per acreFor FY2007, Monsanto expects weighted average price to be in the range of $2.50-$3.00 per acreFinal weighted price will depend on farmer enrollment in payment options (in order of lowest to highest):

Fresh seed with upfront paymentFresh seed paid at harvest point-of-deliverySaved seed paid at harvest point-of-delivery: early deliverySaved seed paid at harvest point-of-delivery: late delivery

STRATEGIC REVIEW

40 MILLION PLANTED SOYBEAN ACRES

10 MILLION PLANTED SOYBEAN ACRES

NORTH: PRIMARILY NEW SEED

SOUTH: PRIMARILY SAVED SEED

15

Bollgard

Roundup Ready

Bollgard II

Roundup Ready Flex

U.S. PENETRATION OF COTTON TRAITS: 2006PENETRATION OF COTTON TRAITS IN 2006 AS

A PERCENT OF 2010 TOTAL MARKET OPPORTUNITY1

1. Percent of total market opportunity reflects the ratio of number of actual acres planted to total trait-acre opportunity identified for each particular trait

Most Significant Near-Term Opportunity in Cotton Is Upgrading to Second-Generation Traits

STRATEGIC REVIEW

SECOND GENERATION

FIRST GENERATION

FOCUS: ROUNDUP READY FLEX

Launched in 2006 on 2.1 million acres

75 percent of Roundup Ready Flex is in the ‘double-double’ stack with second-generation Bollgard II

0% 20% 40% 60% 80% 100%

16

Seminis To Leverage Portfolio, Pricing and Molecular Breeding To Create New Growth

Focus on 20 – 25 most-profitable key crops

VA

LUE

CR

EA

TIO

N O

PP

OR

TU

NIT

Y

Assemble Genetic Maps for Key Crops

Target crops: Sweet Corn Melons BroccoliTomatoes Watermelons CauliflowerPeppers Cabbage

Identify and implement opportunities to price products to value

2005 2006 2007 2008 2009 2010

TomatoHot and Sweet PepperCucumberGarden BeanOnion

PeaSquashSpinachBroccoliMelon

CauliflowerWatermelonLettuceRadishSweet Corn

CarrotCabbageChinese CabbageDry BeanLeek

EggplantPumpkinOkraGourdFennel

Aggressively make hybrid conversions in strategic crops

Significant use of molecular markers in commercially relevant breeding

Monsanto acquires Seminis

Seminis modestly accretive to FY2006 EPS

Seminis accretive to FY2007 EPS in range of $0.10-$0.125

Commercialize first hybrids developed by molecular breeding

OPERATIONAL EXCELLENCE NEW VALUE CREATION PIPELINE ADVANCEMENT

SEMINIS VALUE CREATIONSTAGED OPPORTUNITIES FOR INCREASING BUSINESS VALUE

STRATEGIC REVIEW

17

KEY MARKET ACRES U.S. BRAZIL ARGENTINA

AVAILABLE MARKET 70M 50M 35M

PERCENT PENETRATED 0% 0% 0%Roundup RReady2Yield Soybeans

STRATEGIC REVIEW

Reflecting HIT Status, Roundup RReady2Yield Soybeans Is Targeted for Most Significant Commercial Trait Launch

CREATING VALUE

PRODUCT CONCEPTHIT Project Roundup RReady2Yield soybeans

DISCOVERY PHASE I PHASE II PHASE IV

• Value is additive, with target of up to 5 bushel-per-acre yield improvement over comparable Roundup Ready soybeans

• Value created through yield gains will be shared with farmer and value chain as has been Monsanto’s practice

• Market opportunity for Roundup RReady2Yieldsoybeans recognizes competition from other traits

RETAIL VALUE/ACRE: Medium (>$10/acre to <$30/acre)

TOTAL ACRE OPPORTUNITY: High (>20M acres)

• Roundup RReady2Yield is the second-generation of Monsanto’s popular herbicide-tolerant platform in soybeans

PHASE III

VALUE CONSIDERATIONS

ROUNDUP RREADY2YIELD: COMMERCIAL MILESTONESSTARTING POINTU.S. REGULATORY APPROVAL

SEASON 1 LAUNCH YEARGLOBAL REGULATORY CLEARANCES

COMMERCIAL LAUNCHPRE-COMMERCIAL USER-RELIABILITY TRIALS

0

0.5

1

1.5

2

2.5

3

CORN TRAITSSOYBEAN

TRAITS COTTON TRAITS

LAUNCH ACRES OF U.S. TRAITSHISTORICAL COMMERCIALIZED TRAITS (1996-2006)

Target acreage for Roundup RReady2Yieldcommercial launch is expected to be a multiple above historical acreages in launch years

AC

RE

S (

IN M

ILLI

ON

S)

AVERAGE HISTORIC TRAIT LAUNCH: 1.2M ACRES

18

Monsanto Has a Window of Opportunity to Extend Its Leadership in Seeds and Traits Industry

STRATEGIC REVIEW

2006 Status Outlook Opportunity (2010)1

Accelerate trait penetration Triple stacks grew by >300% Current commercial corn traits are less than 50% penetrated

Increase penetration of Roundup Ready soybeans in Brazil Penetration grew by >50% in 2006 50M acre market

Increase cotton traits in India Bollgard penetration +160% in 2006 10-15M acre market

Apply molecular markers to drive new products Genetic mapping: 8 core products Beginning molecular breeding

2

3

4

5

6

Growth in the U.S. corn market is not over

Grow U.S. corn market share +3 points in 2006 Continued gains of 1-2 points per year

Growth in international corn market share

Grow ex-U.S. corn market share Maintained or grew share in Latin America and Europe

Gains of 1-2 points per year worldwide

Biotech traits are advancing internationally

Cotton platform creates new opportunities for growth

Increase second-generation traits Roundup Ready Flex: 2.1M acres Portfolio flipped to second-gen‘double-double’ traits

Seminis to capture additional gross margin

Change commercial mentality to gross profit focus

Prioritized commercial portfolio, focusing on 25 most-profitable crops

Additional opportunity: capture more value created

Next-generation pipeline poised for enhanced commercial delivery

Advance “HIT” projects 3 “HIT” projects identified“HIT” projects create new standard for launch of pipeline projects

19

2006 Performance Reflects Strength of Seeds and Traits Business

FINANCIAL FOCUS

ORIGINAL PROJECTIONS1 YEAR-END PERFORMANCE

ONGOING EARNINGS PER SHARE2$1.18-$1.25

UP TO 20% GROWTH FROM 2005

$1.3126% GROWTH

FROM 2005

FREE CASH FLOW $825M - $900M $1,049M

22%

10%

$370M

$648M

ALL OTHER AG PRODUCTIVITY GROSS PROFIT ~$400M $438M

SG&A AS A % OF SALES ~22%

$2.46B

R&D AS A % OF SALES ~10%

CAPITAL EXPENDITURES ~$350MROUNDUP AND ALL OTHER

GLYPHOSATE-BASED HERBICIDES GROSS PROFIT

~$600M

SEEDS & TRAITS GROSS PROFIT ~$2.3B

FY2006: ORIGINAL PROJECTIONS AND YEAR-END PERFORMANCE

1. Financial guidance provided at Monsanto’s Biennial Investor Day, Nov. 10, 20052. EPS figures reflect the stock split effective July 28, 2006

20

2007 Opportunity Reflects Organic Growth As Seeds and Traits Momentum Continues

FINANCIAL FOCUS

ORIGINAL PROJECTIONS1 FY2007 CURRENT GUIDANCE

EARNINGS PER SHARE2

$1.41-$1.5020% GROWTH FROM

ORIGINAL 2006 PROJECTION

$1.50-$1.5715%-20% GROWTH

FROM 2006 YEAR-END PERFORMANCE

FREE CASH FLOW $875M - $950M $875M-$950M

21%-21.5%

~10%

$350-$400M

~$600M

ALL OTHER AG PRODUCTIVITY GROSS PROFIT ~$400M ~$400M

SG&A AS A % OF SALES ~21%

$2.8B

R&D AS A % OF SALES ~10%

CAPITAL EXPENDITURES $350M - $400M

ROUNDUP AND ALL OTHER GLYPHOSATE-BASED HERBICIDES

GROSS PROFIT~$600M

SEEDS & TRAITS GROSS PROFIT ~$2.6B

FY2007: ORIGINAL AND UPDATED PROJECTIONS

1. Financial guidance provided at Monsanto’s Biennial Investor Day, Nov. 10, 20052. EPS figures reflect the stock split effective July 28, 2006

21

Six Drivers Set Up Seeds and Traits for Further Acceleration into the Next Decade

FINANCIAL OUTLOOK

42%

44%

46%

48%

50%

52%

54%

2003 2004 2005 2006 2010F

FOCUS: BUSINESS OPPORTUNITY FOCUS: FINANCIAL TARGET

Six drivers are expected to provide a positive pull on gross profit with higher-margin, higher-growth opportunity. That pull disproportionately benefits Seeds & Genomics segment, but also has a positive effect on the gross-profit-to-net-sales ratio for the company. GROSS PROFIT AS A PERCENT OF SALES

Monsanto sees a path to cross the 50% mark for gross profit as a percent of sales in the next few years and moving toward a 51% to 53% target by the end of 2010

TARGET OF UP TO 51% - 53% GROSS PROFIT BY 2010

GROSS PROFIT DRIVERS

1 Growth in the U.S. corn market is not over

4 Cotton platform creates new opportunities for growth

2 Growth in international corn market share

3 Biotech traits are advancing internationally

5 Seminis to capture additional gross margin

6 Next-generation pipeline poised for enhanced commercial delivery

22

Reconciliation of Non-GAAP Financial Measures

$ per shareFiscal Year

2006Fiscal Year

2005Fourth Quarter Fiscal Year 2006

Fourth Quarter Fiscal Year 2005

Net Income per Share $1.25 $0.47

--

$0.47

--

$0.45

$0.32

$(0.19)

$0.01

$(0.02)

$1.04

Cumulative Effect of Change in Accounting Principle $0.01

$(0.23)$(0.27)

$0.01

$(0.26)

$0.04

--

--

--

--

$0.01

--

$(0.23)

--

--

$(0.01)

--

--

$(0.01)

Tax Charge on Repatriated Earnings $0.04

$(0.21) $(0.25)

Diluted Earnings (Loss) per Share Before Effect of Accounting Change

$1.26

Seminis and Stoneville In-Process R&D --

Solutia-Related Charge and Tax Benefit --

Tax Benefit on Loss from European Wheat andBarley Business

--

Loss (Income) on Discontinued Operations $0.01

Restructuring Charges -- Net --

Diluted Earnings (Loss) per Share from Ongoing Business $1.31

Reconciliation of Non-GAAP EPS

Reconciliation of Free Cash Flow$ Millions

Fiscal Year 2007Forecast

Fiscal Year 2006

Fiscal Year 2005

Net Cash Provided (Required) by Operating Activities $1,375-$1,450

$(500)

$875-$950

N/A

N/A

$1,674 $1,737

Net Cash Provided (Required) by Investing Activities $(625) $(1,667)

Free Cash Flow $1,049 $70

Net Cash Provided (Required) by Financing Activities $(117) $(582)

Net Increase (Decrease) in Cash and Cash Equivalents $935 $(512)

Note: EPS figures reflect the stock split effective July 28, 2006

23

Reconciliation of Non-GAAP Financial Measures

Reconciliation of Seminis Gross ProfitFiscal Year

2006Fiscal Year

2005

Inventory Step-Up Charged to COGS

As Adjusted

As Reported

Inventory Step-Up Charged to COGS

Vegetable and Fruit Seed Sales $569 $569 $226 $226

Vegetable and Fruit Seed Cost of Goods Sold $273 $50 $223 $113 $19 $94

$113

50.0%

$346

60.8%

$ MillionsAs

ReportedAs

Adjusted

Vegetable and Fruit Seed Gross Profit $296 $132

Vegetable and Fruit Seed Gross Profit Percent of Sales 52.0% 58.4%

24

Reconciliation of Non-GAAP Financial Measures

Reconciliation of Return on Capital

Total Monsanto Company and Subsidiaries:12 Months

EndedAug. 31, 2006

Operating Profit After-tax (excluding certain items) $767

Average Capital 6,833

Return on Capital 11.2%

Operating Profit After-tax (excluding certain items):

Net Income $689

Adjustment for certain items, after-tax:

Tax Charge on Repatriated Earnings 21

Restructuring Reversal (1)

Cumulative Effect of Accounting Change 6

Loss on Discontinued Operations 3

Interest Expense – Net 79

Tax on Interest Expense – Net (at 38% tax rate) (30)

Operating Profit After-tax (excluding certain items) $767

$ Millions

As of Aug. 31,

2006

Average Capital:

Short-Term and Long-Term Debt $1,667

Shareowners’ Equity 6,536

Cash and Cash Equivalents (1,460)

Cash for Operations 125

Total Capital 6,868

Prior Period Capital 6,797

Average Capital $6,833