monsanto 11-10-05e

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BRETT BEGEMANNEXECUTIVE VICE PRESIDENT,

INTERNATIONAL COMMERCIAL

MONSANTO BIENNIEL U.S. INVESTOR DAYNov. 10, 2005

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OVERVIEW

Two-Step, Two-Horizon Strategy Creates a Line of Sight for Success through 2010

20102009200820072006

GROWGrow Current Portfolio

Grow Globally

Grow the Pipeline LEADLead through Innovation

Lead in an Increasingly Competitive Market

Lead in New Market Opportunities

TARGET: INTERNATIONAL COMMERCIAL

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International Branded Roundup Herbicide

OVERVIEW

Roundup Brand Remains Stable Internationally After More Than a Decade Post-Patent

CREATING VALUE

! Increased" Decreased

BUSINESS REPORT

International Branded Roundup Herbicide

!Product Innovations

"Working Capital Investment

Staffing

"Business Complexity

Higher 2005 pricing was unique event; pricing to return to $11-$13 per REG band

Incremental branded volume growth with Roundup Ready crop expansion

Working capital management remains priority, particularly in Latin America

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U.S., Argentina and Brazil Supply World’s Corn and Soy Needs

Source: U.S.D.A. Foreign Agricultural Service, ABIOVE, Independent Economists & Monsanto Estimates

OVERVIEW

EUROPE

20102005

3M MT1M MTSoy

55M MT52M MTCorn

ASIA

20102005

23 MT22M MTSoy

132M MT122M MTCorn

ARGENTINA

20102005

40M MT38M MTSoy

27M MT23M MTCorn

Net Exporter Production = ConsumptionNet Importer

BRAZIL

20102005

81M MT60M MTSoy

53M MT44M MTCorn

UNITED STATES

20102005

81M MT86M MTSoy

297M MT278M MTCorn

WORLD AREA GRAIN PRODUCTION

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Regulatory Know-How in Complex Global Environment Provides Competitive Edge

OVERVIEW

0

10

20

30

40

2004 2005 2006F 2010F

INTERNATIONAL PRODUCT APPROVALS#

GROWING BIOTECH CROPS

GRANTING IMPORT APPROVALS

APPROVING FIELD TRIALS

NU

MB

ER

OF

PR

OD

UC

TS

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Acceleration In Seeds and Traits Drives International Commercial Gross Profit Evolution

OVERVIEW

2003

TOTAL GROSS PROFIT = $2.3M

MONSANTO GROSS PROFIT GROWTH



2005 2007F

ALL OTHER AGRICULTURAL PRODUCTIVITY

ROUNDUP AND OTHER GLYPHOSATE-BASED HERBICIDES

SEEDS & GENOMICS

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GROW AND LEAD

Opportunity for Near-Term Growth in International Driven by Seed and Trait Expansion

20102009200820072006

GROW

LEAD


Grow value of corn franchise

Grow branded and licensed cotton trait market share while rapidly penetrating second-generation stacked trait combinations

Drive additional biotech penetration globally, led by Brazil, India and Australia

Commercialize new agronomic biotech trait products, and accelerate breeding gains globally

•Monsanto’s global “genetic footprint” has expanded

•Monsanto’s combination of germplasm and stacked traits is platform of choice for farmers

•Full value is being captured in international markets that have started to upgrade to stacked and next-generation trait products

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Monsanto’s global “genetic footprint” has expanded

TARGET: LEAD

International Breeding Effort

LEAD

Diverse Genetic Pool in Corn Continues to Create New Opportunities Internationally Through End of Decade

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

U.S. shares germplasm with Europe and Argentina

Brazil shares germplasm with South Africa and Asia

INTERNATIONAL GERMPLASM NETWORK

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TARGET: GROW

International Corn Commercial Markets

GROW

Monsanto’s Global Germplasm Reach Has Translated Into Greater Market Share

We would expect sustainable growth of 1 to 2 points per year

#1#1#1

#1

#1

#1

#1

#2

#1

#3

#4

#3

BRANDED SHARE

POSITION2004 TO

2005

SCORECARD

FLATBRAZIL

+1%MEXICO

FLATARGENTINA

+5.7%SOUTH AFRICA

$

$

$

FLATLATIN AMERICA REGION

+5.1%INDIA

+1.9%ASIA PACIFIC REGION

+5.2%TURKEY

+1.2%HUNGARY

+1.7%ITALY

+2.5%FRANCE

+2.2%EUROPE-AFRICA REGION

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TARGET: GROW


GROW

Global Breeding Programs Should Fuel Future Market Share Growth in Seed in Europe-Africa

0%2%4%6%8%

10%12%14%16%18%

2003 2004 2005 2006F 2007F

EUROPE-AFRICA CORN MARKET SHARE GROWTH

MONSANTO BRANDED SEED GAINED 4 SHARE POINTS IN THE LAST 2 YEARS

SUSTAINABLE 1-2 POINT BRANDED SHARE GAINS

Seed supply strategy to increase reliability

Branded performance gains driving share growth

Driving growth in Eastern Europe

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TARGET: GROW


GROW

In India, Global Breeding Programs Should Fuel Market Expansion in Corn

INDIA CORN MARKET SHARE GROWTH

MONSANTO BRANDED SEED GAINED 10 SHARE POINTS IN THE LAST 2 YEARS

SUSTAINABLE 1-2 POINT BRANDED SHARE GAINS

Conversion of open pollinated to hybridization expands market potential

Introduction of new hybrids with superior fit

0%5%

10%15%20%25%30%35%40%

2003 2004 2005 2006F 2007F

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TARGET: LEAD

European Channel Strategy

LEAD

Europe Is Next Opportunity for a Multiple Channel Approach

RELATIVE MATURITIES (DAYS)

BU

SH

ELS

/AC

RE

1

2Europe-AfricaTarget reach:Retail, RegionalOutlet:Licensed, non-exclusiveChannel:

2005 COMPETITIVE CORN YIELD COMPARISON

NationalTarget reach:RetailOutlet:OwnedChannel:

100

110

120

130

140

150

160

85 90 95 100 105 110 115

MONSANTO BRANDS COMPETITORS

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TARGET: LEAD

Argentine Channel Strategy

LEAD

Argentine Corn Technology and Breeding Capabilities Drive Enough Materials for Two Channels

1

2NationalTarget reach:Retail, RegionalOutlet:Licensed, non-exclusiveChannel:

TRAIT PENETRATION IN ARGENTINE CORN MARKET

NationalTarget reach:RetailOutlet:OwnedChannel:

YIELDGARD CORN BORER TRAIT PENETRATION

ROUNDUP READY TRAIT PENETRATION

0%

10%20%

30%

40%

50%60%

70%

80%

1999 2000 2001 2002 2003 2004 2005 2006F 2010F

Higher Penetration andStack Launch

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Monsanto’s combination of germplasm and stacked traits is platform of choice

TARGET: LEAD

Market Opportunity

LEAD

Market Potential for Biotech Traits Highlights Continued Growth Opportunity

11M31M55M22.5M -27.8M

24.5M -29.8M 86.2MTOTAL KEY

MARKETS

-4M6M10M11M0.2MAFRICA

CORNCOTTONSOYBEANS

---0.5M-0.8M0.5M-0.8M-AUSTRALIA

5M8M24M--1MEUROPE

---10-15M10-15M-INDIA

1M4M5M--35MARGENTINA

5M15M20M2M3M50MBRAZIL

YieldGardRootworm

YieldGardCorn Borer

Roundup Ready

Bollgard I and II

Roundup ReadyFlex

Roundup Ready

KEY MARKETS

#

UPDATED FORECAST

15

0

25

50

75

100

125

150

•International markets upgrade to stacked and next-generation trait products

TARGET: LEAD

Second-Generation Traits

LEAD

Momentum in Cotton Trait Adoption Will Accelerate With Second-Generation Launches in India and Australia

ROUNDUPREADY

COTTON

ROUNDUPREADYFLEX

CONVENTIONALCOTTON SEED

BOLLGARD II STACK WITH BOLLGARD II &

ROUNDUP READY FLEX

US

$/A

CR

E

In India, biotech cotton adoption reflects economic and environmental benefits

Yield Increase 58%

Pesticide Reduction (50%)

Farmer Net Return 163%

In India, Bollgard II will launch on small acres in 2006 and Roundup Ready Flex in 2010 range

In Australia, success of Bollgard II / Roundup Ready sets stage for launch of Bollgard II/ Roundup Ready Flex starting in 2006

COTTON RETAIL VALUE IN AUSTRALIAN MARKET

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•Drive additional trait penetration globally

TARGET: LEAD

Brazilian Value Capture System

LEAD

Brazil Offers Largest Global Opportunity to Create Value From New Trait Penetration

SeedMultiplier

Grain Delivery

4-5M acres for saleRetail price suggested at

$9 per acre

15–20Macres saved seed

Fee of $4.50 per acre

SoybeanFarmer

Monsanto

Monsanto

Royalty receivedfrom seed supplier

Royalty receivedfrom grain company, shared generously

Situation Update: Planted soybean acres: 50M

Dual value-capture systems

New seed royalty

Saved seed paid upon delivery of grain

Grain delivery system to be expanded in Brazil

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TARGET: LEAD

Roundup RReady2Yield Soybeans

LEAD

Second-Generation Roundup RReady2Yield Soybeans Will Upgrade Traits Globally

BRAZILIAN HISTORICAL SOY YIELD GAINS

BU

SH

ELS

/AC

RE y = 0.9043x - 1772.2

202530

354045

1991 1996 2001 2006

Return value to farmer by bringing new technology

Yield improvement of 3 - 4+ bushels per acre in 2004 field trials

Flexibility by providing wider window of application

Research under way on potential for additional insurance for Asian soybean rust

Provides the platform for future soy technologies

Source: CONAB & Monsanto estimates

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TARGET: LEAD

Market Opportunity

LEAD

Market Potential for Biotech Traits Highlights Continued Growth Opportunity

11M31M55M22.5M -27.8M

24.5M -29.8M 86.2MTOTAL KEY

MARKETS

-4M6M10M11M0.2MAFRICA

CORNCOTTONSOYBEANS

---0.5M-0.8M0.5M-0.8M-AUSTRALIA

5M8M24M--1MEUROPE

---10-15M10-15M-INDIA

1M4M5M--35MARGENTINA

5M15M20M2M3M50MBRAZIL

YieldGardRootworm

YieldGardCorn Borer

Roundup Ready

Bollgard I and II

Roundup ReadyFlex

Roundup Ready

KEY MARKETS

#

BIOTECH ACRES PLANTED 2005

REMAINING AVAILABLE MARKET

UPDATED FORECAST 59% 0% 15% 0% 20% 0%

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GROW AND LEAD

Opportunity for Near-Term Growth in International Driven by Seed and Trait Expansion

20102009200820072006

GROW

LEAD



Grow branded and licensed cotton trait market share while rapidly penetrating second-generation stacked trait combinations

Drive additional biotech penetration globally, led by Brazil, India and Australia

Commercialize new agronomic biotech trait products, and accelerate breeding gains globally

•Monsanto’s global “genetic footprint” has expanded

•Monsanto’s combination of germplasm and stacked traits is platform of choice for farmers

•Full value is being captured in international markets that have started to upgrade to stacked and next-generation trait products

monsanto 11-10-05e

Economy & Finance

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