2. Forward-Looking Statements
Certain statements contained in this release are quot;forward-looking statements,quot; 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.
2
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 Ready2Yield, Bollgard, Bollgard II, YieldGard, Monsanto, Imagine, Vine
Design, Asgrow, DEKALB, Stoneville, Monsanto Choice Genetics, Posilac, Processor Preferred, Vistive, and French
Kiss are trademarks owned by Monsanto Company and its wholly-owned subsidiaries and are italicized the first
time they appear in this presentation.
Mavera™ is a trademark of Renessen.
3
4. OVERVIEW
Farmers ‘Buy Yield,’ Creating Opportunity for Seeds and
Traits Growth
YIELD = GENETIC GAIN X % OF GENETIC GAIN PRESERVED
FARMERS’ DECISION EQUATION MONSANTO’S POSITION: CORN
SEED Retail brands
(GENETIC GAIN)
The starting point of all agriculture; Regional brands
farmers need to maximize ‘genetics’ in
+ TECHNOLOGY
seed for yield Licensing
‘Above ground’ protection
(% OF GENETIC GAIN PRESERVED)
Technology is used to protect and ‘Below ground’ protection
maximize the yield potential of the seed
=
Weed control system
MAXIMUM YIELD The elegance of a seed and trait
POTENTIAL approach is that the seed is the package
and traits can be ‘stacked’ for maximum
The basic equation represents the
effect
maximum yield potential multiplied by
the percent of that yield preserved by
In 2005, Monsanto introduced the first
technology
triple-stack of biotech traits
4
5. OVERVIEW
Breeding and Biotech Provide Parallel R&D Paths to
Commercial Products
BREEDING and BIOTECHNOLOGY form two R&D pathways
Separate, but parallel, the BREEDING and BIOTECHNOLOGY pathways are linked
by shared tools.
DISCOVERY PHASE I PHASE II
R&D PHASE: PHASE III PHASE IV LAUNCH
BREEDING
COMMERCIAL
IT PLATFORM
GERMPLASM
G ANALYTICS
MARKERS
GENOMICS
SEED
ELITE
Germplasm SOLD TO
FARMERS
R
BIOTECHNOLOGY
5
6. OVERVIEW
Seeds And Traits Strategy Is Played Out Across Four
Core Crop Franchises
SEED & TRAIT CROP PLATFORMS
SMALL-ACRE CROPS
LARGE-ACRE CROPS
CORN SOYBEANS COTTON VEGETABLE
Branded Licensed Branded
Branded Licensed Branded Licensed ASI
ASI
ASGROW STONEVILLE
DEKALB SEMINIS
DEKALB
ASGROW
HOLDEN’S/ HOLDEN’S/ COTTON
CORN CORN STATES
STATES STATES
AMERICAN
AMERICAN
SEEDS, INC.
SEEDS, INC.
BIOTECHNOLOGY
R&D
PLATFORMS
MOLECULAR AND CONVENTIONAL BREEDING
6
7. LEADERSHIP
Diverse Genetic Pool in Corn Continues to Create New
Opportunities Internationally Through End of Decade
International
Breeding Effort
INTERNATIONAL GERMPLASM NETWORK
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
7
8. LEADERSHIP
Monsanto’s Global Germplasm Reach Has Translated
Into Greater Market Share Internationally
International Corn
Commercial Markets
SCORECARD
BRANDED MARKET SHARE GROWTH WORLDWIDE
2004 TO 20051
Sustainable growth of 1 to 2
+2.9%
ALL WORLD AREAS
points per year
+2.2%
NORTH AMERICAN REGION
Multiple channels to market
UNITED STATES +2.0%
approach being replicated
+2.2%
EUROPE-AFRICA REGION
internationally
FRANCE +2.5%
ITALY +1.7% Marker-based breeding
HUNGARY +1.2% approaches accelerating
TURKEY +5.2%
Yield advantages are
SOUTH AFRICA +5.7%
consistently outperforming
+1.9%
ASIA PACIFIC REGION
best competitive commercial
INDIA +5.1%
materials
FLAT
LATIN AMERICA REGION
MEXICO +1%
BRAZIL FLAT
ARGENTINA FLAT
1 - Market share is for hybrid corn seed market only
8
9. LEADERSHIP
Corn Market Share Gains Still to Fully Reflect Power of
Molecular Breeding Application
20% 6%
MOLECULAR-BREEDING HYBRIDS AS A
PERCENT OF BRANDED UNITS SOLD IN
COMMERCIAL CORN PORTFOLIO
5%
2005 BRANDED
IN COMMERCIAL CORN PORTFOLIO
PERCENT OF BRANDED UNITS SOLD
U.S. MARKET
15% SHARE: 16%
4%
U.S. MARKET SHARE
DEKALB AND ASGROW BRAND
3%
10% U.S. MARKET SHARE
2%
5%
1%
0% 0%
2001 2002 2003 2004 2005 2006F 2007F 2008F
CYCLE 1: CYCLE 2: CYCLE 3:
PROGRESSION
INTEGRATION OF APPLICATION OF MOLECULAR SELECTION POWER OF
OF BREEDING GLOBAL GERMPLASM BREEDING TO SELECTION MOLECULAR BREEDING
TECHNOLOGY
IN THE • MOLECULAR BREEDING
• ASSEMBLED 36 MAJOR CORN • PREDICTIVE COMBINATIONS
COMMERCIAL IMPROVES GENETIC POTENTIAL
BREEDING PROGRAMS IN 12 ALLOW MORE EFFICIENT
PORTFOLIO BY 2X VERSUS CONVENTIONAL
COUNTRIES BREEDING
BREEDING
• FIRST INTRA-COMPANY • MOLECULAR BREEDING
• BY 2006, FIRST MOLECULAR
CROSSES; BY CYCLE 3, >50% ACCELERATES TRAIT
BREEDING HYBRIDS ENTER
OF HYBRIDS IN THE U.S. INTEGRATION BY
COMMERCIAL PORTFOLIO
PORTFOLIO MADE THROUGH SHORTENING ‘BACKCROSSING’
INTRA-COMPANY CROSSES CYCLES
9
10. LEADERSHIP
U.S. Market Opportunity for Roundup Ready Corn 2 on
Track for 60M Acres Longer Term
OPPORTUNITY
INFLECTION
POINT:
VARIABLE
Roundup Ready
BASED PRICING
INFLECTION
40 Corn 2 is on pace for
POINT: EU
IMPORT 50M acres by 2008 in
INFLECTION APPROVALS
35 POINT: the U.S.
DOMESTIC
CHANNELING
Supply now available
30
U.S. ACRES
PROGRAM
to sell 34M acres of
25 Roundup Ready corn
and 10M acres of
20 YieldGard Rootworm
SUSTAINABLE
ACREAGE in 2006
15 GROWTH
10
5
0
1998 1999 2000 2001 2002 2003 2004 2005 2006F 2007F
10
11. LEADERSHIP
Stacking Shifts Value Opportunity to More Profitable Acre
U.S. CORN TRAIT ACRES AVERAGE U.S. RETAIL VALUE ADDED WITH STACKED TRAITS
SINGLE TRAITS
TRAIT RETAIL VALUE 3.42
STACKED – DOUBLE TRAITS
3 .5
50
TRAIT RETAIL VALUE PER ACRE
ADDED PER ACRE
STACKED – TRIPLE TRAITS
3
40
(INDEXED)
ACRES IN MILLIONS
2 .5
30
2
20
1.59
1 .5
10
1
DOUBLE TRIPLE
STACK STACK
0
2001 2002 2003 2004 2005
1 = INDEXED VALUE OF SINGLE TRAIT
11
12. LEADERSHIP
Variable-Based Pricing Leverages Roundup Ready Corn
Base and Expands Market for Stacked Traits
Single Trait
Stacked - Double Trait
2
1
Stacked - Triple Trait
TRAIT BAGS OF SEED
Indexed 2005 = 1
1 .5
24%
1
44%
41%
0 .5
54% 32%
0
2005 2006F
STATES WITH WEED CONTROL NEEDS,
SPORADIC CORN BORER AND Significant Incremental
ROOTWORM
Demand For Stacked
STATES WITH CONSISTENT NEED FOR
Combinations of
WEED CONTROL, CORN-BORER
CONTROL AND ROOTWORM CONTROL Roundup Ready and
STATES WITH CONSISTENT NEED
YieldGard in DeKalb /
FOR WEED CONTROL, ROOTWORM
Asgrow Brands in
CONTROL AND SPORADIC CORN-
BORER CONTROL Illinois and Indiana
1.Seed includes one or more traits
12
13. PIPELINE
Multi-Generational Drought-Tolerant Corn Is Advancing
Closer to Commercial Reality
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
80M 30M 6M
AVAILABLE MARKET
0% 0% 0%
PERCENT PENETRATED
SEGMENTED VALUE OPPORTUNITY
WITH TRAIT WITHOUT TRAIT WITH TRAIT WITHOUT TRAIT
RESULTS
o
C 32 34 40
BROAD ACRE STATES WITH
STATES WITH
Drought tolerance established through plant
WATER USE INCONSISTENT
CONSISTENT
physiology (performance) over three years
EFFICIENCY DROUGHT
DROUGHT
STRESS
STRESS AND
IRRIGATION
REQUIREMENTS
DISCOVERY PHASE I PHASE II PHASE IV LAUNCH
PHASE III
Proof of Concept Early Development Pre-Launch
Adv. Development
13
14. LEADERSHIP
New Branded and Licensed Seed Businesses Showcase
Strong Cotton Germplasm U.S.
COTTON
STONEVILLE
KEY MARKET ACRES STATES
14M
AVAILABLE MARKET
CHANNELS TO MARKET
14% 0%
PERCENT PENETRATED
Stoneville will offer 9 varieties either with the Roundup Ready Flex trait or with Roundup
Ready Flex stacked with Bollgard II
Cotton States will have 5 licensees in 2006 launching exclusively on a 2nd generation trait
platform
MONSANTO COTTON SHARE GROWTH
2005 COTTON GERMPLASM PERFORMANCE
30%
(19 LOCATIONS)
1600
25%
1400
1200
20%
LBS LINT/ACRE
1000
RESULTS
15%
800
SUSTAINABLE
600
10% 1-2 POINT SHARE GAIN
400 WITH STONEVILLE
5%
200
0
0%
2005
MONSANTO
COMPETITIVE
VARIETIES 2004 2005 2006F 2007F
LEADERS STONEVILLE
14
15. LEADERSHIP
Roundup Ready Flex Launch To Be Most Significant in
10-Year History of Biotech Traits
KEY MARKET ACRES U.S. INDIA AUSTRALIA
Roundup Ready 10-15M
AVAILABLE MARKET 10-15M 0.5-0.8M
Flex Cotton
CREATING VALUE
0%
0% 0%
PERCENT PENETRATED
ROUNDUP READY
Anticipated largest trait launch of 2-3 million acres in U.S. in 2006
FLEX COTTON
through 10 cotton seed companies
• U.S. pricing at a
Roundup Ready Flex will only be stacked with Bollgard II at
premium of $6-$11
approximately 70 – 80% of mix
an acre over the
first-generation of
Introductory acres planted in Australia; full launch set for 2007
Roundup Ready
cotton
Trait in initial breeding phase in India in preparation for filing for
regulatory field trials
The Roundup Ready
Flex cotton trait will
be coupled with our
Stoneville brand and
our Cotton States
licensing as a
showcase of
Monsanto’s cotton
business
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
15
16. LEADERSHIP
Multiple Margin Opportunities Accelerate With Second-
Generation Launches in India and Australia
Second-Generation
Traits
INDIA
COTTON RETAIL VALUE IN AUSTRALIAN MARKET
Biotech cotton economic and
environmental benefits
150 Yield Increase 58%
Pesticide Reduction (50%)
125 Farmer Net Return 163%
Bollgard II launch in 2006
100
and Roundup Ready Flex
US $/ACRE
potentially in 2010 range,
75 pending regulatory approvals
50 AUSTRALIA
High rate of biotech adoption
25
90% of acres have at least
one trait
0 ROUNDUP
ROUNDUP STACK WITH
CONVENTIONAL BOLLGARD II 65% of acres with at least
READY
READY BOLLGARD II &
COTTON SEED
FLEX
COTTON ROUNDUP one trait are a stack
READY FLEX
Full launch of Bollgard II
stacked with Roundup Ready
Flex starting in FY2007
16
17. PIPELINE
Second-Generation Roundup RReady2Yield Soybeans
Enhances Yield
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
Roundup RReady2Yield 70M 50M 35M
AVAILABLE MARKET
soybeans
CREATING VALUE 0% 0% 0%
PERCENT PENETRATED
• Yield improvement
of potentially five
bushels per acre
• Additional
research being
conducted to
evaluate Roundup
RReady2Yield
system for
potential Asian
soybean rust
control
• Provides the
platform for future
soy technologies
DISCOVERY PHASE I PHASE II PHASE IV LAUNCH
PHASE III
Proof of Concept Early Development Pre-Launch
Adv. Development
17
18. LEADERSHIP
Vistive Family of Improved Oils Meets Multiple Needs in
Food Industry
TARGET: LOW LINOLENIC TARGET: LOW LINOLENIC
TARGET: LOW SAT
VISTIVE SOYBEANS VISTIVE RAPESEED +INCREASED OLEIC
+ LOW LINOLENIC
2005 LAUNCH 2005 LAUNCH
500K ACRES IN US 40K ACRES IN EUROPE
VISTIVE III LOW LIN –
MID OLEIC – LOW SAT
TARGET: INCREASED OLEIC
SOYBEANS
+ LOW LINOLENIC
VISTIVE PHASE II
FAMILY VISTIVE II LOW LIN –
MID OLEIC SOYBEANS CONSUMER
PHASE III MARKET
OIL FOR
FRYING AND
IMPROVED SOYBEAN
SPRAYING
QUALITY FOR LIQUID OILS Crackers
Snack chips
18
19. LEADERSHIP
Molecular Breeding Tools Will Be Applied to Seminis’ Global
Germplasm to Capitalize on Leading Market Share Positions
EUROPE-AFRICA
2005
Market Share 19%
Market Position 1
ASIA-PACIFIC
NORTH AMERICA
2005
2005
Market Share 7%
Market Share 34%
Market Position 3
Market Position 1
OPPORTUNITY
Fruit & vegetable seeds only
represent approx. 3.6% of
farmgate value (corn: 13.2%;
soybeans: 11.4%)
Significant growth
opportunities in hybrid
creation
Seminis has the largest
SOUTH AMERICA
global vegetable germplasm
2005
library; Molecular breeding
Market Share 37%
tools honed in row crops
Market Position 1
will be applied to vegetables
19
20. PIPELINE UPDATE DISCOVERY PHASE I PHASE II PHASE III PHASE IV
Proof Of Concept Early Advanced Pre-launch
Gene/Trait
2006 Pipeline Development Development
Identification
AS OF JANUARY 1, 2006
Roundup Ready Flex cotton
Roundup RReady2Yield soybeans
Roundup RReady2Yield canola
Dicamba-tolerant soybeans
Dicamba-tolerant cotton
2nd-Gen YieldGard Rootworm
2nd-Gen YieldGard Corn Borer
Insect-protected soybeans
YieldGard Rootworm II
FARMER
Soybean nematode-resistance
Bollgard III
Drought-tolerant corn
2nd-Gen Drought-tolerant corn
Higher-yielding canola
Drought-tolerant soybeans
Drought-tolerant cotton
Higher-yielding corn
Nitrogen utilization corn
Higher-yielding soybeans
Mavera™ High-value corn with lysine
PROCESSOR
Mavera™ I High-value soybeans
Mavera™ II High-value soybeans
2nd-Gen High-value corn with lysine
Feed Corn with balanced proteins
High oil soybeans for processing
CONSUMER
Improved-protein soybeans
Vistive II Low Lin – Mid Oleic soybeans
Vistive III Low Lin – Mid Oleic – Low Sat soybeans
Omega-3 soybeans
20
21. LEADERSHIP
Early Adoption of Biotech Is Strong, But Significant Future
Potential Still Remains
10 YEARS OF PROVEN BENEFITS
GLOBAL ACRES USING MONSANTO
200
BIOTECHNOLOGY TRAITS
180
ACRES (IN MILLIONS)
160
140
120
100
80
60
40
20
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
SOYBEANS CORN COTTON CANOLA
GLOBAL ADOPTION
Biotech was first commercialized in 1996 on approximately 3 million acres
Biotechnology acreage has grown by double-digits each year.
Cumulatively, acreage has grown
50-fold since 1996, with biotech traits planted on more than 220 million acres in 20051
1. International Service for the Acquisition of Agri-biotech Applications (ISAAA), “Global Status of Commercialized Biotech/GM Crops: 2005”
21
22. LEADERSHIP
Market Potential for Biotech Traits Highlights Continued
Growth Opportunity
SOYBEANS COTTON CORN
MARKET
OPPORTUNITY: ROUNDUP
KEY MARKETS BOLLGARD I ROUNDUP YIELDGARD YIELDGARD
READY
ROUNDUP READY
AND II READY CORN BORER ROOTWORM
FLEX
UNITED
70M 10-15M 6-8M 60M 50-60M 25-30M
STATES
BRAZIL 50M 3M 2M 20M 15M 5M
ARGENTINA 35M - - 5M 4M 1M
INDIA - 10-15M 10-15M 3 – 5M 3 – 5M -
EUROPE 1M - - 24M 8M 5M
AFRICA 0.2M 11M 10M 6M 4M -
AUSTRALIA - 0.5M-0.8M 0.5M-0.8M - - -
TOTAL KEY 34.5-
156.2M 28.5-35.8M 118-125M 84-96M 36-41M
MARKETS 44.8M
76% 0% 35% 19% 40% 10%
BIOTECH
ACRES
PLANTED 2005
REMAINING
AVAILABLE
MARKET
22
