2. Agenda
12:50 p.m. Welcome & introduction – Magdalena Moll
01:00 p.m. Yield & Stress Collaboration BASF Monsanto – Hans Kast
01:20 p.m. Growth and Value in Yield & Stress – Steve Padgette
01:50 p.m. Q&A by Hans Kast and Steve Padgette
02:20 p.m. Coffee break
02:40 p.m. Workshop “Pipeline Valuation” – Laura Meyer
03:10 p.m. Finding Outstanding Lead Genes – Johan Cardoen
03:30 p.m. Q&A by Johan Cardoen
04:00 p.m. Departure to Greenhouse by bus
04:30 p.m. Site tour CropDesign
05:25 p.m. Concluding remarks – Magdalena Moll
05:30 p.m. Departure
4. 1 | Yield & Stress Collaboration BASF Monsanto
2 | Growth and Value in Yield & Stress
3 | Valuation Workshop
4 | Finding Outstanding Lead Genes
5. Challenges in global agriculture
Agricultural production has to be doubled in twenty years
• Food
UN estimate: 9.2 billion people in 2050
• Feed
Rising social standards drive global demand
for more food, especially for meat consumption in Asia
• Fiber
Cotton is the single most important textile fiber
• Fuel
Use of grain for fuel is growing by ~ 20% per year
We believe that the only technology to meet
future demand is plant biotechnology
6. Global market for biotech traits in 2025
Market value • Estimated market
in billion $
value in 2025:
100
$50 billion
Specialties Mass market
• Market is dominated
by agronomic traits
Yield
and commodities
• Yield is the major
Feed
market
10
Pest
Energy resistance
Specialty crops
traits
Herbicide
tolerance
Trait acreage
in million ha
1
1 10 100 1000
8. Collaboration strategy
Focus
• Joint technology and commercialization collaboration
• R&D pipeline for yield and stress tolerance traits
• Crops: corn, soybeans, cotton, canola
Discovery
• Independent discovery programs at each company
• Lead genes go into joint development pipeline
Development
• Nominated projects are jointly funded (50-50 cost sharing)
• Potential overall R&D budget of $1.5 billion / €1.0 billion
Commercialization
• Emerging products are commercialized by Monsanto
• Broad-licensing approach across Monsanto’s commercial
channels
• Value sharing: 60% for Monsanto, 40% for BASF
9. Collaboration creates joint pipeline
Focus on yield and stress
Joint Development
Independent Discovery Commercialization
Licensed brands
®
Monsanto
discovery
Regional brands
program
BASF
discovery National brands
program
• Increased rate of • Potential R&D budget • Broad-licensing approach
discovery $1.5 / €1.0 billion to seed companies
• Shorter early • Increasing probability • Value shared
development timelines of success (volume of 60% Monsanto, 40% BASF
lead genes)
10. BASF platform for gene discovery
Yield increase in crops
Look Look
at plant inside
Phenotypic screening Metabolic profiling
Unique platform to identify and understand the gene functions of plants
Combines phenotypic screening with metabolic profiling determining gene function
High throughput of 5,000-10,000 genes tested per year
11. Look inside the plant
The value of analyzing the metabolome
• Plant cell: a complex network of
thousands of chemical reactions
• Production of thousands of
metabolites
Metabolite profiling
• Process which analyzes
metabolite changes in plants:
broad, fast, precise
• Over 1,000 important target
metabolite “sensors” screened
in parallel
• 9,000 plant signals seen in parallel
12. Look inside the plant
The value of analyzing the metabolome
Metabolic profiling
• Reveal the genes responsible
for plant composition
• Identify genes and mechanisms
for plant performance
• Reveal plant response systems against
environment and diseases
Results support trait development
• Composition (e.g. oil, amino acids)
• Agronomics (e.g. yield, tolerance)
• Trait diagnostics (e.g. for development)
13. BASF discovery platform fuels progress
• Fully automated high throughput “live” crop screening
in rice
• Fastest growing genetic library in the industry
- Over 1.5 million metabolic profiles
for > 35,000 genes
• Cutting edge bioinformatics systems
• Fast and thorough intellectual property generation
• Early identification of highest potential
development candidates
14. Complementary R&D platforms accelerate
commercialization
Key results of the collaboration
• Gene nomination
> 90% of gene nominations are unique
• Combination of pipelines
Accelerated development timeline
• Yield & stress transformation events
~ 33% pipeline increase
• Genes/events evaluated
> 12 million metabolic data points
• U.S. field trials 2008
Planted yield & stress trials in nearly 175 locations
First products planned from 2012 onward
15. 1 | Yield & Stress Collaboration BASF Monsanto
2 | Growth and Value in Yield & Stress
3 | Valuation Workshop
4 | Finding Outstanding Lead Genes
16. Increasing protein demand, coupled with boost from
biofuels, creates sustained long-term grain demand
STRETCHING SUPPLY STATE OF AGRICULTURE:
WORLD CORN AND SOYBEAN STOCKS-TO-USE1 Strong Demand Environment
FACTORS:
50%
STOCKS-TO-USE RATIO
► INCREASING PROTEIN
METRIC TONS (IN MILLIONS)
DEMAND
40%
Wealth drives meat
30%
consumption – changing
feed demand
20%
► ASCENSION OF CHINA
China’s growth is reaching
10%
limits of domestic
production, driving huge
0%
P
5
9
3
7
1
5
9
3
7
1
5
changes in export
96
96
97
97
98
98
98
99
99
00
00
9
00
/1
/1
/1
/1
/1
/1
/1
/1
/1
/2
/2
/2
64
68
72
76
80
84
88
92
96
00
04
environment
08
19
19
19
19
19
19
19
19
19
20
20
20
► ESTABLISHMENT OF
SOYBEAN STOCKS-TO-USE
BIOFUELS
CORN STOCKS-TO-USE
Assuming only base-case
• U.S. corn ending stocks-to-use ratio projected to be 12% for 2007/08 adoption of biofuels, more
and down 28% to a 9% stocks-to-use ratio for 2008/09
corn and soy needed in next
• U.S. soybean stocks-to-use estimated to be 4.4% for 2007/08 and decade
essentially flat for 2008/09, even with acres up nearly 18%
1. USDA PSD View database query for global corn and soybeans
17. Monsanto’s growth opportunity lies at the
intersection of demand, innovation and execution
Monsanto’s simple philosophy on opportunity:
More demand requires more YIELD
More yield requires more INNOVATION
More innovation delivers more GROWTH
18. Probability of success improves as biotech traits
move through four development phases
Discovery Phase I Phase II Phase III Phase IV Launch
Phase Proof of concept Advanced development Pre-launch
Early product development
1 – 2 years1 1– 2 years1 1 – 2 years1 1 – 3 years1
Key activities
• Regulatory
• Trait integration/
• Trait
• Gene
Monsanto approvals
breeding
development
optimization
discovery
• Seed bulk-up
• Field testing
• Pre-regulatory
• Crop
program
data
transformation • Pre-marketing
• Regulatory data
BASF
generation &
• Large scale
discovery
submission
transformation
program
• Lab & field
testing
Probability
5% 50%
25% 75% 90%
of success2
• $100M = approximate costs to develop a biotech trait (Phase 1-4)
• BASF and Monsanto share development costs (Phase 1-4) 50/50 for yield and stress traits
1. Time estimates are based on our experience; they can overlap. Total development time for any particular product may be shorter or longer than the
estimated time here.
2. This is the estimated average probability that the traits will ultimately become commercial products, based on our experience. These probabilities may
change over time. Commercialization is dependent on many factors, including successful conclusion of the regulatory process.
19. Genes selected for evaluation travel the circuit
from sequencing to field testing
Step 2 Step 3
Gene cloning Transformation
& sequencing
Step 1 Step 4
Gene sourcing Seed increase
& nomination
Step 6 Step 5
Data analysis Field testing
& decision
making
20. Collaborations and cutting-edge enabling
technologies enhance Monsanto pipeline
Discovery Phase I Phase II Phase III Phase IV
Phase Proof of concept Advanced development Pre-launch
Early product development
BASF
Alliance Partners
100’s of collaborations
Ceres
Arcadia
globally
Evogene
Mendel
Chromatin
Devgen
Divergence
Protein Evolution
Differentiating
Technology
Protein Structure
Enabling
Spectral Imaging
Comparative Genomics
Automated Transformation
Systems Biology
Automated Screening
21. Yield & stress field testing builds on a core capability
at Monsanto, with nearly 175 trial locations in 2008
2008 Total Monsanto biotech field trials
Oriska, MN 2008
Jerseyville, IL 2007
Legend
• Phase I and II
• Phase III and IV Jacksonville, IL 2007
22. Monsanto investment in molecular breeding is
accelerating the rate of gain over conventional breeding
• >$100M invested in molecular markers platform
• Staff of >150 scientists using proprietary tools are
supporting the further development and use of
marker technology
• Capability to analyze 10s of millions of samples
• $75M investment in proprietary software tools
Soybean seed chipper
• 3 million marker-trait associations providing
detailed genome understanding
This capability fuels the creation of top-tier germplasm
and sets the genetic knowledge base to deliver next-
generation biotech traits
Automated marker analysis
23. Collaboration boasts industry-leading pipeline
in yield and stress
January 2008 update
Yield and stress pipeline Discovery Phase I Phase II Phase III Phase IV
phase
Drought-tolerant corn family
Drought-tolerant corn
2nd generation drought-tolerant corn
Nitrogen utilization corn family
Nitrogen-utilization corn
Broad-acre higher-yielding corn family
Higher-yielding corn
Broad-acre higher-yielding soybean
family
Higher-yielding soybeans
2nd generation higher-yielding soybeans
Drought-tolerant cotton family
Drought-tolerant cotton
Broad-acre higher-yielding canola
family
Roundup Ready® 2 Plus Yield canola*
The colored bar associated with each project indicates which phase that project is in. It is not intended to represent the
High Impact Technologies (HIT) project
relative status of the project within a particular stage.
Jan. 3, 2008 Advancements/Additions * For higher-yielding + Roundup Ready® 2 Plus Yield canola, only the value of the higher-yielding trait is incorporated
into the Yield and Stress collaboration with BASF.
24. 2007 dryland field tests of lead drought event offers
visual evidence of increased yield in stressed conditions
Drought-tolerant corn family:
2007 field testing shows visual proof
Lead project (HIT project, phase III)
of yield improvement
Project concept
Drought-tolerance family aimed at providing
Superior, NE – field trials – 2007
consistent yield and buffering against effects of
water limitations, primarily in areas of annual
water stress
Family value considerations:
• Launch-country acres*: 55M
• 2020 value**: $300–$500M
Sources of value
1. Improved yield: Targeting 6–10% yield
improvement in water-stress environments
Field test results
In 2007 tests in natural dryland environments from
South Dakota to northern Texas, the lead drought-
tolerant event outperformed conventional checks in
3 different hybrid backgrounds. Percentage yield
difference vs. control ranged from 13.0% to 15.1%.
Control hybrid With gene
(76 bu/ac) (94 bu/ac) * Acre opportunity reflects acres where technology fits at Monsanto’s
current 2007 market share in respective crops
** 2020 value reflects gross sales opportunity in launch country in year 2020
for the family
25. Second-generation drought-tolerant corn delivered
eight percent plus yield advantage in 2007 trials
Drought-tolerant corn family:
Second-gen drought corn events provide
consistent yield advantage Second-generation project
Drought efficacy for second-gen events
(Status: phase II)
2007
2006
Yield difference over controls (%)
16
Project concept
The second-generation of drought tolerant corn
14 Product
concept
is aimed at boosting yield stability for broad-acre
12 target
applications and reducing water input required in
range
10
water-limited environments
8
Family value considerations
6
• Launch-country acres*: 55M
4
• 2020 value**: $300–$500M
2
0
Sources of value
Event 1 Event 2 Event 3 Event 1 Event 2 Event 3
1. Improved yield: Targeting 6–10% yield
Lower-yielding environment Higher-yielding environment
improvement in water-stress environments
Average yield: 53 bu/ac Average yield: 166 bu/ac
2. Water substitution: Variable costs in pumped
• Seeking lead genes that work to improve the ways in which
irrigation of >$100/acre
plants use water
• Evaluating plant growth under drought, root mass improvement, * Acre opportunity reflects acres where technology fits at Monsanto’s
pollen growth, silk expansion and photosynthesis efficiency in current 2007 market share in respective crops
determining drought tolerance ** 2020 value reflects gross sales opportunity in launch country in year 2020
for the family
(All three events significant @ p ≤ 0.10);
Statistical significance determined by ANOVA (2006) or nonparametric test (2007)
26. In continued field testing, nitrogen utilization lead
shows yield improvement under normal nitrogen
Nitrogen-utilization corn family:
Nitrogen utilization lead demonstrates yield
Lead project (Status: phase I)
advantage under normal nitrogen conditions over
multiple years
Project concept
2005 2006 2007
*
Targets ways that corn plants can use nitrogen
12
more efficiently, exploring potential to boost yield
Yield Increase (bu/ac)
*
10 * * under normal nitrogen conditions or to stabilize it
* * *
*
8 in low nitrogen environments
6
Family value considerations
4
• Launch-country acres*: 55M
2
• 2020 value**: $300–$500M
0
-2 Sources of value
Trials in multiple Trials in multiple
1. Improved yield: Yield improvement in normal
hybrid backgrounds hybrid backgrounds
(16 locations) (15 locations)
nitrogen environments
* Statistically significant @ p ≤ 0.10
2. Nitrogen reduction: Improving yield in low
Bar color correlates with the specific hybrid background tested. Same bar color
nitrogen environments
in different tests and different years indicates same hybrid was used.
All trials conducted under sufficient nitrogen application levels.
• Evidence of enhanced nitrogen use efficiency in lead genes * Acre opportunity reflects acres where technology fits at Monsanto’s
indicated by enhanced photosynthesis, improved nitrogen current 2007 market share in respective crops
assimilation, improved root mass or architecture improvement ** 2020 value reflects gross sales opportunity in launch country in year 2020
for the family
27. Higher-yielding corn offers yield advantage in both
normal and high density planting rates
Higher-yielding corn family:
2007 higher-yielding corn
Lead project (Status: phase II)
agronomic testing versus controls
Percentage yield difference vs. control:
Project concept
5.2% 5.6% 6.4% 5.6% 8.4% 9.7% 7.3%
Higher-yielding corn aimed at boosting intrinsic yield
24
potential of corn through insertion of key genes
(bu/ac increase over control)
Product concept benefit target range
Average yield advantage
20
Family value considerations
• Launch-country acres*: 55M
16
• 2020 value**: >$1B
12
Sources of value
8
1. Improved yield: Targeting 6-10% yield
4
improvement
0
Hybrid 1 Hybrid 2 Hybrid 3 Normal High
density density
Event 1 Event 2
• Yield performance at 4–12 locations in the U.S. in 2007;
commercial track events yield tested in the U.S. in 2008
* Acre opportunity reflects acres where technology fits at Monsanto’s
• Lead genes tested for improved light response, increased current 2007 market share in respective crops
biomass and kernel development ** 2020 value reflects gross sales opportunity in launch country in year 2020
for the family
28. Latin America trials of higher-yielding soybeans
confirm prior trials with 6-10 percent yield advantage
Higher-yielding soybeans family:
New: 2007/08 higher-yielding soybean agronomic
Lead project (Status: phase II)
testing versus controls
Percentage yield difference vs. control:
Project concept
7.1% 6.0% 6.2% 10.2% 5.4% 8.8% 4.6% 10.5% 2.2% 10.3%
Higher-yielding soybeans aimed at boosting
8
intrinsic yield potential of soybeans through
(bu/ac increase over control)
Product concept
Average yield advantage
insertion of key genes
target range
6
Family value considerations
4
• Launch-country acres*: 45M
• 2020 value**: $300–$500M
2
Sources of value
0
1. Improved yield: Targeting 6-10% yield
Event 1 Event 2 Event 3 Event 4 Event 5
improvement
Season 1: 2007 U.S. field trips (18 locations)
Season 2: 2007/08 LAS field trips (12 locations)
• 16 top-performing events advanced to Latin America South trial.
Lead events showing strong yield advantages over conventional
controls in both trials.
* Acre opportunity reflects acres where technology fits at Monsanto’s
• Higher-yielding trait will be stacked on top of Roundup Ready current 2007 market share in respective crops
2 Yield and other soybean-pipeline traits. ** 2020 value reflects gross sales opportunity in launch country in year 2020
for the family
29. Cotton drought-tolerant leads offer yield
improvements ranging from 4-19 percent
Drought-tolerant cotton
(Status: phase I)
Mid-season
Halfway, TX – September 2007
Project concept
Drought-tolerant cotton is designed to minimize
risk in cotton farming by providing yield stability in
environments experiencing sporadic or consistent
water stress and by reducing water needs on
irrigated acres.
Family value considerations
To be decided when project enters Phase II
Drought-tolerant cotton is expected to reduce crop
losses on dry-land acres and may reduce water
costs in irrigated farming operations.
Field testing results
In 2 years of testing, across both water stressed and
non-stressed environments, and multiple locations,
our two lead events generated a yield difference vs.
With gene the control of 4-19 percent.
Control
30. First year of broad-acre testing of Roundup Ready® 2
Plus Yield canola shows 11-14 percent increase
Roundup Ready® 2 Plus Yield canola
Top 5 Roundup Ready® 2 Plus Yield events show
yield increases from 11–14% (Status: phase II)
Percentage yield difference vs. control:
Project concept
14% 13% 11% 12% 14%
This is a second-generation weed-control trait vector-
2000 stacked with a yield trait, aimed at increasing weed
* * control and boosting the yield potential of canola by 15
* *
1800 * percent
Yield (lbs/ac)
1600
Value considerations
1400 • Launch-country acres*: 12M
• 2020 value**: <$150M
1200
Sources of value
1000
Event 1 Event 2 Event 3 Event 4 Event 5 1. Improved yield: Targeting 15 percent
increase in yields
With gene No gene
• In 1st year of broad-acre testing for commercial events, 5 events
show significant increases in yield above 11% over matched
control lines in 2007 field trials
* Acre opportunity reflects acres where technology fits at Monsanto’s
• Events show full tolerance at 8x current Roundup Ready spray current 2007 market share in respective crops
regime ** 2020 value reflects gross sales opportunity in launch country in year 2020
31. Strong pipeline value reflects commercial opportunity
in emerging value in yield and stress
Yield and stress Discovery Phase I Phase II Phase III Phase IV
collaboration
Corn:
Drought-tolerant
Broad-acre yield High
family
Nitrogen-utilization
Family traits High
family
Broad-acre,
Family traits Mega
higher-yielding family
Soybeans:
Broad-acre,
Broad-acre yield High
higher-yielding family
2020 value ranges:
Mega High Mid Low
>$1B $300M–$500M $150M–$300M <$150M
Corn
Soybeans
Note: 2020 value reflects expected annual gross sales of trait in launch country in 2020.
33. 1 | Yield & Stress Collaboration BASF Monsanto
2 | Growth and Value in Yield & Stress
3 | Valuation Workshop
4 | Finding Outstanding Lead Genes
34. Probability of success improves as biotech traits
move through four development phases
Discovery Phase I Phase II Phase III Phase IV Launch
Phase Proof of concept Advanced development Pre-launch
Early product development
1 – 2 years1 1– 2 years1 1 – 2 years1 1 – 3 years1
Key activities
• Regulatory
• Trait integration/
• Trait
• Gene
Monsanto approvals
breeding
development
optimization
discovery
• Seed bulk-up
• Field testing
• Pre-regulatory
• Crop
program
data
transformation • Pre-marketing
• Regulatory data
BASF
generation &
• Large scale
discovery
submission
transformation
program
• Lab & field
testing
Probability
5% 50%
25% 75% 90%
of success2
• $100M = approximate costs to develop a biotech trait (Phase 1-4)
• BASF and Monsanto share development costs (Phase 1-4) 50/50 for yield and stress traits
1. Time estimates are based on our experience; they can overlap. Total development time for any particular product may be shorter or longer than the estimated
time here.
2. This is the estimated average probability that the traits will ultimately become commercial products, based on our experience. These probabilities may change
over time. Commercialization is dependent on many factors, including successful conclusion of the regulatory process.
35. Strong pipeline value reflects commercial opportunity
in emerging value in yield and stress
Yield and stress Discovery Phase I Phase II Phase III Phase IV
collaboration
Corn:
Drought-tolerant
Broad-acre yield High
family
Nitrogen-utilization
Family traits High
family
Broad-acre,
Family traits Mega
higher-yielding family
Soybeans:
Broad-acre,
Broad-acre yield High
higher-yielding family
2020 value ranges:
Mega High Mid Low
>$1B $300M–$500M $150M–$300M <$150M
Corn
Soybeans
Note: 2020 value reflects expected annual gross sales of trait in launch country in 2020.
36. Key assumptions in expected annual gross sales
in launch country in 2020
• Valuation reflects expected annual gross trait sales value in the year 2020.
• Gross trait sales are presented for the initial country of launch only.
• Acre opportunities are based on acres where there is a technology fit.
Additionally, acre opportunities for corn and soybeans reflect only the acres that
correspond to the 2007 shares accessed in each respective market by
Monsanto’s branded and licensed channels.
• These valuations do not reflect value attributed to other traits or
germplasm.
• “Family” values include both first and second generation traits,
if both are launched by 2020.
• Assumed launch dates coordinate with phase placement in the R&D
pipeline and normal progression timelines.
37. Collaboration agreement provides for sharing
of trait profits: 60% Monsanto and 40% BASF
Yield & stress valuation metrics
In 2007, Monsanto and BASF announced a Yield and Stress collaboration.
For projects in this segment of the pipeline, there are additional key criteria
that factor into valuation:
• Several projects are valued as families to take into consideration the
successive generation projects.
• The profit in Yield and Stress will be shared between Monsanto
and BASF,
meaning 60% of the residual trait profits from the yield and stress traits
commercialized will accrue to Monsanto and 40% will accrue to BASF.
38. Penetration of traits in countries outside initial launch
country provide upside to values
Summary valuation table
Acreage
2020 Additional
Country potential –
1
Project Phase Value geographic
country
of launch
$M opportunity
of launch
Soybean pipeline
HIGH
Broad-acre higher-yielding
2 US 45 M Brazil, Argentina
$300 – $500
soybeans family
Corn pipeline
HIGH
3 US 55 M Brazil, Argentina, EU27
Drought-tolerant corn family
$300 – $500
1 US 55 M Brazil, Argentina, EU27
HIGH
Nitrogen-utilization corn family
$300 – $500
MEGA
Broad-acre higher-yielding
2 US 55 M Brazil, Argentina, EU27
> $1,000
corn family
Cotton and canola pipeline
LOW
2 Canada 12 M US, EU27
Roundup Ready 2 Plus Yield canola2
< $150
1 N/A US 10-15 M India, Australia, Brazil
Drought-tolerant cotton family
1. For projects noted as “families,” phase designation represents status of first product in family
2. Only the higher-yielding portion of this stack is part of the BASF and Monsanto Yield & Stress Collaboration
39. Pricing to value is hallmark of Monsanto’s value
capture system for traits
HIGHER YIELDING CORN I EXAMPLE
1) INCREMENTAL YIELD
Yield Average Commodity Potential
TOTAL VALUE CREATED
increment yield price yield value
$27-$45/acre,
target per acre
say $45 for example
6-10% 150 bu1 $3/bu2 $27-$45/acre
2) REPLACEMENT COSTS Monsanto/BASF and
partners = 1/3 to 1/2
Crop input Average Opportunity
replaced U.S. cost
N/A for this example
$18
$27
3) OTHER
Peace of mind
Grower =
Potential for reduced crop insurance 1/2 to 2/3
1. Average yield per acre for corn in the U.S. was 151 bushels in 2007, as per the USDA;
rounded to 150 bu/acre for example.
2. Utilized a corn commodity price of $3 for illustrative purposes; average price per bushel
of corn received by a grower in the U.S. ranged from $2.00 to $4.25 per bushel from
2005 to 2007, as per the USDA.
40. Collaboration provides for sharing of profits
generated by yield & stress traits commercialized
HIGHER YIELDING CORN I EXAMPLE
Retail trait price per acre $18.00
Monsanto/BASF and
partners = 1/3 to 1/2
x Volume (Acre opportunity – U.S.)1 55M
Gross trait sales peak potential in the U.S. $990M
Less: Share to channel (retail or licensed)
$18
Net sales for trait
$27 Less: COGS for trait (royalties, etc.)
Gross profit for trait
Grower =
Less: S,G & A (marketing, corporate costs)
1/2 to 2/3
Less: R & D
TOTAL VALUE CREATED Less: Working capital charges
$27-$45/acre,
= Residual trait value
say $45 for example
x 60% = Monsanto portion
x 40%= BASF portion
1. Assumes 90M acres of corn in U.S. multiplied by Monsanto’s
current branded and licensed U.S. corn share
41. Key data for major crops in the collaboration
Metric conversions and average U.S. yields
Crop Domestic unit Metric Ton
Equivalent Factor1
Soybeans bushels .027216
Cotton 480-lb bales .217720
Corn bushels .025401
Crop 2007,2006,20052 2007 Average
U.S. Yield1
U.S. Weighted Average Farm Price
Soybeans $6.43, $5.66, $5.74 per bu 41 bushels/acre
Cotton $.62, $.60, $.56 per lb 871 pounds/acre
Corn $4.25, $3.04, $2.00 per bu 151 bushels/acre
1 Hectare = 2.471 Acres 1. Source: USDA
2. Source: USDA, average price received by farmers for marketing year ended August 31st for
soybeans and corn and year ended July 31st for cotton. For cotton used U.S. Memphis
1 Kilogram = 2.20462 lbs territory price per cotton outlook.
43. Higher-yielding soybeans
Part of broad-acre, higher-yielding soybean family Phase II
Product concept
Jerseyville, IL – 2007
Higher-yielding soybeans are aimed at boosting the intrinsic
yield potential of the soybean through insertion of key genes.
This project aims to increase soybean yields by 6-10
percent.
Need Fulfilled
Higher-yielding soybeans create additional harvestable yield
for farmers, increasing their productivity. Higher yields are
becoming important as population expands and as soybean
With yield trait Control
growers look to meet growing demand for oil in areas like
biodiesel and cooking. Additionally, as protein demand
Family Value Considerations / Status: phase II
increases in key importing markets like China, higher yields
2020 value1: offer farmers a way to better help meet that need.
$300 – $500M
Launch country: U.S.
Current status
Launch-country acres2: 45M This project is in phase II, early product development. This
Additional geographic includes conducting lab and field testing of genes in plants to
opportunity: Brazil, Argentina select commercial product candidates and to advance the
best performing events for regulatory testing. In 2007 testing,
By increasing yield 6-10 percent, this product would we took 68 events into the field for testing at 18 locations,
offer farmers the option to get more yields per acre with lead events showing strong yield advantages over
and additional flexibility in crops planted and market conventional controls.
opportunities. 1. 2020 value reflects gross sales opportunity, for the family, in launch country, in year 2020
2. Acre opportunity reflects areas where technology fits at Monsanto’s current 2007 – 2008
market share in respective crops
44. Drought-tolerant corn
Part of drought-tolerant corn family Phase III
Product concept
Superior, NE field trails – 2007
First-generation drought tolerance is targeted to minimize
uncertainty in farming by buffering against the effects of water
limitation, primarily in areas of annual water stress. In the U.S.,
this area has historically been the dryland farms of the Western
Great Plains.
Need fulfilled
Agriculture uses over 70 percent of the world’s fresh water
resources. Drought tolerant corn could offer farmers one way to
With gene
Control hybrid
reduce agriculture’s impact on the environment. Water is the
94 bu/ac
(76 bu/ac)
biggest limiting factor in agriculture production. Every acre of corn
faces some degree of water stress at some point in the growing
Family value considerations / status: phase III
season. This product could allow farmers to achieve more
2020 value1: $300 – $500M consistent yields even during times of water stress. Increased
yield improves farmers’ productivity helping them meet growing
Launch country: U.S.
demands for feed, food and fuel.
Launch-country acres2: 55M
Current status
Additional geographic
The project is in the advanced development stage, phase III. This
opportunity: Brazil Argentina EU27
phase involves demonstrated efficacy of traits in elite germplasm
and development of regulatory data as appropriate. It completed
Farmers value water-use in “acre-inches of water” needed to
the fifth year of field trials in 2007.
support yield potential. Farmers need 18-to-20 inches of moisture
from natural or irrigated sources during the growing season to
achieve normal Corn Belt yields. This product is targeting 6–10% 1. 2020 value reflects gross sales opportunity, for the family, in launch country, in year 2020
yield improvement in water-stress environments, primarily in areas
2. Acre opportunity reflects areas where technology fits at Monsanto’s current 2007 – 2008 market
of annual water stress. share in respective crops
45. 2nd Generation drought-tolerant corn
Part of drought-tolerant corn family Phase II
Product concept
The second-generation of drought tolerant corn is aimed at
boosting yield stability for broad-acre applications and
reducing water input required in water-limited environments.
Need fulfilled
Agriculture uses over 70 percent of the world’s fresh water
resources. Drought tolerant corn could offer farmers one way
to reduce agriculture’s impact on the environment. Water is
the biggest limiting factor in agriculture production. Every
Control hybrid With gene
acre of corn faces some degree of water stress at some
point in the growing season. This product would allow
Family value considerations / status: phase II
farmers to achieve more consistent yields even during times
2020 value1: $300 – $500M of water stress. Increased yield improves farmers’
productivity helping them meet growing demands for feed,
Launch country: U.S.
food and fuel.
Launch-country acres2: 55M
Additional geographic Current status
opportunity: Brazil, Argentina, EU27 This project is in phase II, early product development. This
phase includes conducting lab and field testing of genes in
Farmers value water-use in “acre-inches of water” needed to
plants to select commercial product candidates and for
support yield potential. Farmers need 18-to-20 inches of moisture
from natural or irrigated sources during the growing season. This advancement of selected events into regulatory testing.
product is targeting 6 – 10% yield improvement in water-stress
environments, and could offer water substitution savings in pumped 1. 2020 value reflects gross sales opportunity, for the family, in launch country, in year 2020
irrigation. Pumped irrigation has a variable cost of >$100/acre. 2. Acre opportunity reflects areas where technology fits at Monsanto’s current 2007 – 2008
market share in respective crops
46. Nitrogen-utilization corn
Part of nitrogen-utilization corn family Phase I
Product concept
Farm process show – 2007
Nitrogen utilization targets ways that corn plants can use
nitrogen more efficiently, exploring the potential to boost
yield under normal nitrogen conditions or to stabilize yield
where growers choose to apply lower nitrogen amounts due
to rising fertilizer costs.
Need fulfilled
Nitrogen is one of the most important farm inputs and is the
most price sensitive to petroleum-input costs. Nitrogen prices
have risen sharply in recent years and are one of the most
Family value considerations / status: phase I significant crop inputs for farmers.
2020 value1: $300 – $500M
Current status
Launch country: U.S.
The project is in phase I, the proof of concept phase,
Launch-country acres2: 55M including discovering new genes and evaluating these genes
Additional geographic in our technology programs.
opportunity: Brazil, Argentina, EU27
According to the USDA, nitrogen fertilizer represents one of the
largest input costs in agriculture, accounting for approximately one-
fifth of the operating costs for a corn producer. Improving nitrogen-
use efficiency in corn provides an opportunity for increased farmer
profitability, while also offering a new way to reduce agriculture’s 1. 2020 value reflects gross sales opportunity, for the family, in launch country, in year 2020
overall impact on the environment. 2. Acre opportunity reflects areas where technology fits at Monsanto’s current 2007 – 2008
market share in respective crops
47. Higher-yielding corn
Part of broad-acre, higher-yielding corn family Phase II
Product concept
Higher-yielding corn is aimed at boosting the intrinsic yield
potential of corn hybrids by a targeted 6-10 percent through
insertion of key genes.
Need fulfilled
Higher yields are becoming ever more important. As
population expands, as protein demand increases in key
importing markets like China, and as renewable fuel
becomes more important, higher yields offer farmers a way
to better help meet these needs. Higher-yielding corn
Family value considerations / status: phase II improves the productivity of farming by increasing average
yield per acre.
2020 value1: >$1B
Launch country: U.S. Current status
Launch-country acres2: 55M This project is in phase II, early product development. Lab
Additional geographic and field testing of genes in plants are being conducted to
opportunity: Brazil, Argentina, EU27 select commercial product candidates and to advance the
best performing events to regulatory trials. With three years
Increasing yield on existing acres helps to make farming more
of field data proving efficacy, higher-yielding corn emerged
profitable. Producing more on the same acre also improves land
from proof-of-concept testing to Phase II development.
stewardship by not bringing additional acres into production to
meet demand.
1. 2020 value reflects gross sales opportunity, for the family, in launch country, in year 2020
2. Acre opportunity reflects areas where technology fits at Monsanto’s current 2007 – 2008
market share in respective crops
48. Roundup Ready® 2 Plus Yield canola
Higher yielding portion of this stack is in collaboration with BASF Phase II
Product concept
This is a second-generation weed-control trait vector-stacked with
a yield trait, aimed at increasing weed control and boosting the yield
potential of canola by 15 percent. This product would also provide
improved nitrogen-use efficiency, giving the farmer the opportunity
to trade off fertilizer costs while maintaining current yields.
Need fulfilled
Higher yields are becoming important as population expands and
Higher-yielding Conventional demand for oil in areas like bio-diesel and cooking increases.
Canola
Higher-yielding canola would create additional harvestable yield
for farmers, increasing their productivity while providing increased
Value considerations / status: phase II weed control. Producing more on the same acre also improves
land stewardship with limited arable land.
2020 value1: <$150M
Launch country: Canada Current status
This project is in phase II, early development. This includes con-
Launch-country acres2: 12M
ducting lab and field testing of genes in plants to select commercial
Additional geographic
product candidates and to identify the best performing events to
opportunity: U.S., EU27, Australia
advance to regulatory trials. More than three years of field testing
demonstrated consistent yield benefit for the lead gene in the
By increasing yield 15 percent, this offers farmers the option to get
United States and Canada.
more yields per acre and additional flexibility in crops planted and
market opportunities.
1. 2020 value reflects gross sales opportunity in launch country in year 2020
2. Acre opportunity reflects areas where technology fits in that country
49. Drought-tolerant cotton
Part of drought-tolerant cotton family Phase I
Product concept
Drought-tolerant cotton is designed to minimize risk in
cotton farming by providing yield stability in environments
experiencing occasional or consistent water stress and by
reducing water needs on irrigated acres.
Need fulfilled
Agriculture uses over 70 percent of the world’s fresh water
resources, and a product like drought tolerant cotton would
offer farmers one way to reduce agriculture’s impact on the
With gene Control
environment. Every acre of cotton faces some degree of
water stress at some point in the growing season, and water
Family value considerations / status: phase I
is one of the biggest limiting factors in agriculture production.
To be decided when project enters phase II This product would allow farmers consistent yields even
during times of drought. Increased yield creates additional
harvestable yield for farmers, increasing their productivity to
Drought-tolerant cotton is expected to reduce crop
help meet growing demands for feed, food and fiber.
losses on dry-land acres and may reduce water costs
in irrigated farming operations.
Current status
The project is in phase I, the proof of concept phase.
The trait is being introduced into diverse germplasm and
undergoing multi-year testing, characterization and quality
control. We are in the process of building a portfolio of
genes that confer drought tolerance in cotton.
51. 1 | Yield & Stress Collaboration BASF Monsanto
2 | Growth and Value in Yield & Stress
3 | Valuation Workshop
4 | Finding Outstanding Lead Genes
52. CropDesign N.V.
• Located in Ghent, Belgium; 85 employees
• Founded in 1998 as a spin-off from VIB
(Flanders Institute for Biotechnology)
• Acquired by BASF in June 2006
• Specialized in developing crops with improved
traits for increase of crop productivity
• Focus is on rice as a commercial crop as well
as a model plant for corn and other cereals
53. BASF platform for gene discovery
Yield increase in crops
Look Look
at plant inside
Phenotypic screening Metabolic profiling
Unique platform to identify and understand the gene functions of plants
Combines phenotypic screening with metabolic profiling determining gene function
High throughput of 5,000-10,000 genes tested per year
54. Look at plant – phenotypic screening
• High throughput screening facility to identify
lead genes for yield & stress in crops
• Screening rice as a model crop:
- testing more than 140,000 plants/year
- processing 50,000 digital images/day
- screening runs 24/7
• Evaluation of more than 20 parameters
for agricultural performance
• Identification of key yield components
• Testing under different growing conditions
(e.g. optimal, drought, low nitrogen)
58. Broad and diversified pipeline of lead genes
Increased root biomass: + 20%
Lead
Control
59. Broad and diversified pipeline of lead genes
Increased green biomass: + 40%
Control Lead
60. Generating more yield and value for farmers
Higher seed count: +50%
Larger seeds: +30%
More yield,
Larger panicles: +30%
More value
Increased biomass: +40%
Increased roots: +20%
61. Field testing of lead genes discovered in greenhouse
Gene discovery Field trial
Validated
lead gene
Largest validated crop-based
development platform for productivity traits
62. Yield lead genes in the field
Increased yield : + 40%
• 235 field trials
conducted
• Rate of lead genes
confirmed in the
field ~ 50%
Lead
Control
63. Concerted R&D approach for better products
Enabled through data integration from unparalleled platforms
Results clustered
Methods Results
along traits
• Unique platform to
monitor performance and
select better lead genes
Metabolic
• Faster identification
intrinsic
profiling yield
Data integration of novel lead genes
using
• Knowledge of mode
cutting-edge
of action supports
bio-informatics
regulatory clearance and
platform
Phenotypic
intellectual property
screening nitrogen
drought
generation
• Shortened time to market
Field trials
Value creation through better and faster
discovery of outstanding lead genes
64. Strongest collaboration in plant biotechnology
• Unites the unique, complementary skills and experience
of both companies
• Targets four major crops for value-creation:
corn, soybeans, cotton, canola
• Focuses on yield which represents the largest
value-creating opportunity in agriculture
• Delivers broadest pipeline in the industry for enhanced
yield to the farmer
• Will create substantial value for farmers and for both
collaboration partners
