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 and other non-historical facts are quot;forward-looking statements.quot; 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 effects of the company's accounting policies and changes in generally
accepted accounting principles; 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.
2
3. Non-GAAP Financial Information
This presentation uses the non-GAAP financial measures of “free cash flow,” ongoing earnings per share (EPS),
and Return on Capital (ROC). We define free cash flow as the total of cash flows from operating activities and cash
flows from investing activities. A non-GAAP EPS financial measure, which we refer to as EPS on an ongoing basis,
may exclude the impact of restructuring charges, charges associated with the settlement of litigation, gains and
losses on the sale of assets, and certain other items. The specific items that are excluded from, and result in, our
non-GAAP EPS financial measure are clearly identified as such in this presentation. ROC means net income
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 at the end of this presentation. The presentation of free cash flow,
ongoing EPS and ROC is intended to supplement investors’ understanding of our operating performance. These
non-GAAP financial measures may not be comparable to similar measures used by other companies. Furthermore,
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. 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 years, or to fiscal years, 2001 through 2006 are on a fiscal year basis and refer to the 12-month period
ending August 31.
3
4. Seminis Acquisition Completes Monsanto’s
Transformation as a Leader in Seeds and Traits
Definitive agreement to acquire Seminis
Leading global vegetable and fruit seed company
Acquisition price of $1.4 billion
Plus performance-based payment of up to $125 million payable by
end of FY 2007
Financed with cash and some incremental debt
Expected to be accretive earnings and free cash flow in FY 2006
Transaction expected to close in FY 2005 Q3, pending regulatory
approvals
4
5. Value Shift from Crop Chemicals to Seeds and
Traits Already Under Way
GLOBAL AGRICULTURAL INDUSTRY REVENUE
1996 2003 2008F
$9.1 BILLION
$7.6 BILLION $8.4 BILLION
$0.1
$1.3
$2.7
$2.6
$3.0 $4.5
$3.5 $3.6
$3.8
CROP CHEMICALS GERMPLASM BIOTECH TRAITS
Sources: U.S. 1996-2003 Doane Agrotrak & Seed Studies; 2008 Monsanto estimates
Calendar years
5
6. Vegetable Seed Is Next Logical Strategic Move – High Value,
High Growth Segment in Agriculture
KEY TRENDS
GLOBAL VEGETABLE CONSUMPTION
VEGETABLE AND FRUIT…
1600
… Consumption grew at a 4.2% CAGR
1400
from 1980 to 20011
TOTAL METRIC TONS
1200
(IN MILLIONS)
1000
… Production grew 3.3 times the rate
800
of global population expansion from
1990 to 20002 600
400
… Harvested acres increased 3.2% 200
annually from 1990 to 2000, 0
compared with 0.3% for overall 1998 2002 2006 2010
agricultural harvested acres3 ASIA NORTH AMERICA
EUROPE REST OF WORLD
… Seed revenue projected to grow at
4% CAGR globally from 2000 Source: Datamonitor
Calendar years
through 20064
Sources: 1Seminis estimate 2004 10K; 2United Nations Food and Agriculture Organization; 3Ibid.; 4Seminis estimate
6
7. MARKET LEADERSHIP
Seminis Provides Ready-Made, Leading Position in
Untapped Seed Segment for Monsanto
PROJECTED VEGETABLE SEED INDUSTRY GROWTH SEMINIS 2004 SALES BY
MARKET POSITION
2900
GLOBAL SEED SALES ($ MILLIONS)
R
CAG
4%
2700
2500
2300
2100
MORE THAN 65%
1900 OF REVENUE
DERIVED FROM
PRODUCTS WITH
1700
#1 MARKET
MORE THAN 20%
POSITION
OF REVENUE
1500
DERIVED FROM
2000 2001 2002 2003 2004 2005F 2006F PRODUCTS WITH
#2 MARKET
Source: Seminis estimates
POSITION
Calendar years
7
8. MARKET LEADERSHIP
Seminis and Monsanto Hold Leading
Seed Market Positions
2003 CORN & SOYBEAN SEED &
TRAIT SALES
2003 VEGETABLE SEED SALES
CORN
500
SOYBEANS
1800
400
1500
$ MILLIONS
1200
300
$ MILLIONS
900
200
600
100
300
0 0
S
O
II
ER
TA
IS
ZA
TA
IN
N
TO
TA
IN
TA
W
EJ
R
K
N
IN
A
A
EE
AY
TA
A
K
N
N
N
EN
EN
A
B
R
R
K
U
M
A
SA
ZW
N
G
G
B
SA
N
DV
SE
G
G
O
A
A
N
N
N
PI
M
M
K
A
O
SY
SY
LI
IJ
LI
T/
M
R
N
PO
U
D
Sources: Phillips McDougall; Monsanto estimates
Calendar year for all companies but Monsanto
Source: Seminis estimates
Advanta now part of Syngenta
Calendar year
8
9. MARKET LEADERSHIP
Combined Companies Raise the Bar for Leadership in
Global Seeds
2003 SEED AND TRAIT REVENUE
$3,000
$2,500
$2,000
$ MILLIONS
$1,500
$1,000
$500
$0
MONSANTO MONSANTO LIMAGRAIN SEMINIS BAYER SAKATA
PRO FORMA
DUPONT SYNGENTA KWS TAKII DELTA & DOW
PINE LAND
Sources: Phillips McDougall, Monsanto reports
Calendar year for all companies but Monsanto
Syngenta pro forma for acquisition of Advanta and Golden Harvest (Sources: Phillips McDougall and news releases)
9
10. MARKET LEADERSHIP
Monsanto Becomes the Leader in Fastest Growing
Ag Market Segments
2003 GLOBAL MARKET SHARE IN MAJOR AGRICULTURAL SEGMENTS
100
TOTAL MARKET SHARE
80
(PERCENT)
60
40
20
0
VEGETABLE
CORN
INSECTICIDES HERBICIDES TRAITS
SOYBEAN
SEEDS
SEED SEED
MAJOR MARKET SEGMENTS
MONSANTO FIRST LEADING COMPETITOR SECOND LEADING COMPETITOR
Source: Insecticides, Herbicides: Phillips McDougall for calendar year 2003
Source: Corn, Soybeans: Monsanto estimates for fiscal year 2004; includes Monsanto branded and licensed share
Source: Vegetables: Pro forma for acquisition of Seminis
10
11. MARKET LEADERSHIP
Together, Monsanto and Seminis Are New Standard
for Leadership in Large- and Small- Acre Crops
SEED & TRAIT
GLOBAL SEED
GLOBAL SEED GROSS
MARKET
MARKET SHARE PROFIT AS %
POSITION
OF SALES
CORN1, 2
LARGE-
41% 1 57%
ACRE
SOYBEANS1, 2 25% 1 63%
VEGETABLES3 64%
Beans 31% 1
SMALL-ACRE
Cucumber 38% 1
Hot Pepper 34% 1
Sweet Pepper 29% 1
Tomato 23% 1
Onions 25% 2
1 Monsanto branded and licensed market share
2 Source: Monsanto reports and estimates for Monsanto fiscal year 2004
3 Source: Seminis reports and estimates for Seminis fiscal year 2004
11
12. FINANCIAL GROWTH
Geographic Presence Further Diversifies with
Addition of Seminis
GLOBAL SALES BY WORLD AREA
MONSANTO
SEMINIS1 MONSANTO2 PRO FORMA3
9% 10%
ASIA ASIA
20% 20%
23% 15% PACIFIC LATIN PACIFIC LATIN
ASIA LATIN
AMERICA AMERICA
PACIFIC AMERICA
14%
16%
EUROPE/
EUROPE-
24% 57%
38% 54%
AFRICA
AFRICA
NORTH NORTH
EUROPE/ NORTH
AMERICA AMERICA
AFRICA AMERICA
1 Source: Seminis reports for Seminis fiscal year 2004
2 Source: Monsanto reports for Monsanto fiscal year 2004
3 Source: Pro forma for acquisition of Seminis
12
13. TECHNOLOGY INNOVATION
Technological Capabilities Are Complementary;
Monsanto’s Research Now Leveraged More Broadly
Mapping of plant genes to understand their structure and role in
GENOMICS
plant functions
SMALL-ACRE CROPS
CONVENTIONAL Cross-pollination of plants with desirable qualities to develop
BREEDING improved plants in successive generations
LARGE-ACRE CROPS
Use of DNA markers for genes with physical measurement of
MOLECULAR traits to manage plant breeding programs. Significantly
BREEDING
accelerates the efficiency of bringing new varieties to market.
CROP Application of advanced analytical methods and technologies to
ANALYTICS identify composition of food and feed traits.
Application of scientific knowledge to transfer beneficial genetic
traits to enhance plants’ growth or to provide nutritional or other
BIOTECHNOLOGY
benefits to farmers, food and feed processors, or consumers.
13
14. TECHNOLOGY INNOVATION
Diversity of Corn Seed Breeding Is Driving Market Share
Growth; Poised to Expand U.S.
KEY MARKET ACRES BRAZIL ARGENTINA
BRAND LICENSED ASI
Corn
80M 30M 6M
AVAILABLE MARKET
CONTRIBUTING
Breeding
PLATFORMS
14% 33% 2% 35% 49%
PERCENT PENETRATED
6-to-8 year process undertaken to accelerate breeding:
GENOMICS
Late 1990s: Acquired 36 major corn breeding programs
(12 countries X average of 3 companies per country)
CONVENTIONAL
BREEDING
Early 2000s: Crossed genetic lines across acquired companies
MOLECULAR
BREEDING Today: Launching new hybrids from
inter-company crosses
CROP
ANALYTICS
WHAT IS IT?
THE MOST
ADVANCED
GERMPLASM
CREATES THE
BEST-YIELDING
NEW CORN
DISCOVERY
HYBRIDS FOR PHASE I PHASE III
PHASE II PHASE IV LAUNCH
FARMERS Proof of Concept Adv. Development
Early Development Pre-Launch
14
15. TECHNOLOGY INNOVATION
Seminis Has Largest, Most Diverse Germplasm Pool in
Vegetable Industry LATIN EUROPE- ASIA
KEY MARKET POSITION NAFTA AMERICA AFRICA PACIFIC
Vegetable 1 1 1 1
MARKET POSITION
CONTRIBUTING
Breeding
PLATFORMS
Germplasm investment is nearly double that of closest competitor
GENOMICS
75% of R&D devoted to breeding
CONVENTIONAL
Vegetable seed germplasm is proprietary, scarce and expensive
BREEDING
Breeding strongly linked to market opportunities and refined for
MOLECULAR
BREEDING specific markets
Focus on quality, taste, disease control and health benefits
CROP
ANALYTICS
KEY BRANDS
WHAT IS IT?
LARGEST AND
MOST DIVERSE
GERMPLASM
RESOURCE WITH
1.5 MILLION
BREEDING LINES
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
15
16. TECHNOLOGY INNOVATION
Seed Breeding Research Continually Refreshes
Portfolio in Both Large and Small Acre Crops
MONSANTO FRESHNESS INDEX:
SEMINIS FRESHNESS INDEX:
PERCENT OF CORN HYBRIDS WITHIN
PERCENT OF SALES FROM NEW
PRODUCT MIX IN 3-YEAR PERIOD2
BREEDING PRODUCTS1
90%
25%
20%
60%
15%
10%
30%
5%
0%
0%
2002 2003 2004 2005F
2002 2003 2004 2005F
1 Source: Seminis estimates for Seminis fiscal years
2 Source: Monsanto estimates for Monsanto fiscal years
16
17. FINANCIAL GROWTH
Seminis Brings Historically High-Margin Businesses
to Monsanto
SEMINIS KEY FINANCIAL DATA
2002 2003 2004
NET SALES $453M $477M $526M
GROSS PROFIT 62% 62% 64%
AS % OF
SALES1
Source: Seminis reports for Seminis fiscal years
1Source: Seminis gross profit in 2004 excludes effect of one-time adjustment for removal of inventory step-up premium costs
17
18. FINANCIAL GROWTH
Gross Profit Growth Accelerates with Addition of Seminis to
Monsanto Businesses
GROSS PROFIT
MONSANTO PRO FORMA1
MONSANTO
4% CAGR 7% CAGR
$3,500 $3,500
$3,000 $3,000
$ MILLIONS
$2,500 $2,500
$ MILLIONS
$2,000 $2,000
$1,500 $1,500
$1,000 $1,000
$500 $500
$0 $0
2004 2005F 2006F 2004 2005F 2006F
SEEDS AND TRAITS ALL OTHER ROUNDUP AND OTHER
GLYPHOSATE-BASED
HERBICIDES
1 Pro forma for acquisition of Seminis
18
19. FINANCIAL GROWTH
R&D, SG&A as a Percent of Sales in Range with
Monsanto’s Prior Goals
MONSANTO PRO FORMA1:
MONSANTO PRO FORMA1:
R&D AS PERCENT OF SALES
SG&A AS PERCENT OF SALES
30
12
25
9
20
15
6
10
3
5
0
0
2004 2005F 2006F
2004 2005F 2006F
1 Pro forma for acquisition of Seminis
19
20. FINANCIAL GROWTH
Guidance for Ongoing EPS Reflects Addition of
Seminis Earnings
EPS ON AN ONGOING BASIS
$2.50
$2.25
$2.00
$1.75
$1.50
$1.25
$1.00
2004A 2005F 2006F
PRO FORMA FOR
BASE MONSANTO UPSIDE MONSANTO
ACQUISITION OF SEMINIS
GUIDANCE GUIDANCE
20
21. FINANCIAL GROWTH
Acquisition Also Contributes to Free Cash
Generation Near-Term
FREE CASH FLOW
Current $500M
Share Repurchase
GUIDANCE PRE-
Program Will
ACQUISITION
$950
Continue;
Scheduled
$700
Completion In July
$450 2006
Dividends Will
$200
Continue To Be
Considered To
-$50 2006F
2005F
2004
Return Additional
-$300 Value To
Shareowners
GUIDANCE
-$550 POST-
ACQUISITION
-$800
PRO FORMA FOR ACQUISITION OF SEMINIS
21
22. FINANCIAL GROWTH
Return on Capital Targets in Line with Previously
Stated Goals
RETURN ON CAPITAL TARGETS
12
10
8
PERCENT
6
4
2
0
2003 2004 2005F 2006F
BASE TARGET UPSIDE TARGET
22
23. Seminis Acquisition Leverages Market and Research
Leadership to Generate Greater Near- and Long-Term Growth
SUMMARY
Market Leadership
Ready made, global reach into high-value segments
of agriculture
Technological Innovation
Leading, high-margin business with common
technologies and opportunities to share breeding
know-how
Financial Growth
Creates new growth proactively
Builds on current commitments
23
24. Reconciliation of Non-GAAP Financial Measures
Reconciliation of Free Cash Flow
Fiscal Year 2006 Fiscal Year 2005 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
$ Millions
Aug. 31, 2001
Aug. 31, 2002
Target Target Aug. 31, 2004 Aug. 31, 2003
$740
$855
Net Cash Provided (Required) by Operations $975 $1,050 $1,261 $1,128
Net Cash Provided (Required) by Investing Activities $(665)
$(482) $(274)
$(300) $(1,800) $(262)
$75
$581
Free Cash Flow $675 $(750) $999 $646
$123
$(711)
Net Cash Provided (Required) by Financing Activities N/A N/A $(243) $(502)
$198
$(130)
Net Increase (Decrease) in Cash and Cash Equivalents N/A N/A $756 $144
Reconciliation of Non-GAAP EPS
$ per share 12 Months Ended 12 Months Ended 12 Months Ended
Aug. 31, 2004 Aug. 31, 2005 Aug. 31, 2006
Net Income (Loss) $0.99 $0.86-$1.06 $2.04 - $2.22
--
$0.36 --
Restructuring Charges -- Net
2004 Discontinued Operations and Related $0.02 -- --
Restructurings-- Net
Goodwill Impairment Charge for Global Wheat $0.24 -- --
Business
-- --
Estimated Purchase Accounting Adjustments $0.65 -- $0.70
-
--
Tax Benefit on Loss from Sale of European Wheat and -- $(0.39)
Barley Business
-- --
$0.68
Solutia-Related Charge
Net Income (Loss) from Ongoing Business $1.61 $1.85 - $2.00 $2.04 - $2.22
24
25. Reconciliation of Non-GAAP Financial Measures
Reconciliation of Return on Capital
12 Months 12 Months
$ Millions
Ended Ended
Total Monsanto Company and Subsidiaries:
Aug. 31, 2004 Aug. 31, 2003
Operating Profit After-tax (excluding certain items) $ 475 $ 417
Average Capital 6,191 6,846
Return on Capital 7.7% 6.1%
Operating Profit After-tax (excluding certain items):
Net Income $ 267 $ 68
Adjustments for certain items, after-tax:
Restructuring Charges – Net 98 26
Discontinued Operations and Related Restructuring 4 15
Adjustment of Goodwill 64 —
Cumulative Effect of a Change in Accounting Principle — 12
PCB Litigation Settlement Expense – Net — 252
Interest Expense -- Net 67 69
(1)
Tax on Interest Expense -- Net (at 38% tax rate) (25) (25)
Operating Profit After-tax (excluding certain items) $ 475 $ 417
As of Aug. 31,
2004 2003 2002
Average Capital:
$1,508 $1,527 $1,919
Short-Term and Long-Term Debt
5,258 5,156 5,258
Shareowners’ Equity
(1,037) (281) (137)
Cash and Cash Equivalents
125
125 125
Cash for Operations
Total Capital 5,854 6,527 7,165
Prior Period Capital 6,527 7,165
Average Capital $6,191 $6,846
(1) Represents estimated combined federal and state statutory tax rates for the United States.
25
