monsanto 02-14-06b
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monsanto 02-14-06b monsanto 02-14-06b Presentation Transcript

  • HUGH GRANT CHAIRMAN, PRESIDENT AND CEO MONSANTO COMPANY FOCUS SESSION: BIO CEO & INVESTOR CONFERENCE February 14, 2006 1
  • OVERVIEW Three Revolutions Have Changed the Face of Agriculture During History; The Fourth is Biotechnology FIRST REVOLUTION SECOND REVOLUTION THIRD REVOLUTION DOMESTICATION OF SYSTEMATIC USE OF HYBRIDIZATION PLANTS FARM TOOLS AND THE ‘GREEN 5,000-8,000 B.C. REVOLUTION’ 500-600 A.D. CHANGE FROM A MEDIEVAL USE OF BASIC 1930-1960 NOMADIC EXISTENCE, PLOWING TOOLS BEGAN HYBRID CORN SEED TO A DOMESTICATED SYSTEMATIC ADVANCES AND THE SEDENTARY ONE, THAT IMPROVE ACCUMULATED USE OF SETTING IN MOTION PRODUCTIVITY ‘TECHNOLOGY’ LIKE BASIC AGRICULTURAL FERTILIZER BOOST CORNERSTONE YIELDS TO ALL-TIME HIGHS AD BC 500 AD 1000 AD 2000 AD 1500 AD THE FIRST DECADE OF FOURTH REVOLUTION AGRICULTURAL BIOTECHNOLOGY AGRICULTURAL BIOTECHNOLGY • More than 1 billion acres have been planted 1996 FORWARD TOOLS OF MODERN BIOTECHNOLOGY OPEN • More than 200 million acres planted in 2005 NEW OPPORTUNITIES IN PRODUCTIVITY AND • Grown in 21 countries by 8.5 million farmers FOOD AND FEED QUALITY Sources: Monsanto; Donald G. Baker, “A Brief Excursion Into Three Agricultural Revolutions,” University of Minnesota; International Service for the Acquisition of Agri-biotech Applications (ISAAA), “Global Status of Commercialized Biotech/GM Crops: 2005” 2
  • OVERVIEW Agricultural Biotechnology Today is Where the Computer Industry Was in the 1950s-60s COMPUTER INDUSTRY 1979 2001 1970 1955 1969 1990 1947 CELL iPOD FIRST MASS- FIRST 2ND GEN ‘ARAPNET’ MICROSOFT TRANSISTOR PHONES INTRODUCED PRODUCED COMPUTER INTERNET ANNUAL INVENTED BY FIRST MICRO- USING PRECURSOR REVENUE >$1B BELL LABS TESTED PROCESSOR TRANSISTORS ESTABLISHED 1940s 1950s 1960s 1970s 1980s 1990s 2000s 1962 ASCII 1947 1953 PROGRAMMING 2005 1986 1975 ENIAC IBM LANGUAGE 1 BILLION >30M FIRST MASS- PATENT, INTRODUCES DEVELOPED INTERNET COMPUTERS PRODUCED FIRST FOR A 1975 FIRST MASS- USERS IN THE U.S. PERSONAL ‘COMPUTER’ MICROSOFT PRODUCED COMPUTER FOUNDED COMPUTER AGRICULTURAL BIOTECHNOLOGY 1982 1982 1973 1996 2000 MONSANTO FIRST PATENTS ON COHEN & FIRST FIRST ENTIRE SCIENTISTS FIRST GENETICALLY BOYER FIRST COMMERCIAL- PLANT GENOME TO GENETICALLY ENGINEERED TO SPLICE SCALE BIOTECH MAPPED MODIFY PLANT PLANTS GENES PLANTING CELL 1970s 1980s 1990s 2000s 1987 2005 1980 FIRST FIELD 1 BILLIONTH SUPREME COURT TRIAL OF CUMULATIVE UPHOLDS BIOTECH BIOTECH BIOTECH PATENTS PLANTS ACRE PLANTED 3
  • OVERVIEW Three Key Factors Define the Opportunity and Growth Potential for Ag Biotechnology in the Mid-Term EXAMPLE: U.S. CORN TOTAL 80M AVAILABLE ACRES Estimated opportunity PENETRATION CURRENT of better >500M acres AND EXPANSION 52% BIOTECH PENETRATION1 annually by 2010 “TRAIT ACRES” 80M AVAILABLE TOTAL 80M AVAILABLE ACRES Opportunity: single CURRENT seed, multiple traits STACKING 9% BIOTECH and single acres, PENETRATION1 multiple margins “TRAIT ACRES” 240M AVAILABLE TOTAL 80M AVAILABLE ACRES First-generation SECOND- CURRENT products already being GENERATION 0% BIOTECH replaced with second- PENETRATION1 generation products “TRAIT ACRES” 80M AVAILABLE 1. USDA, National Agricultural Statistics Service, “Acreage,” June 30, 2005. 4
  • OVERVIEW Longer-Term Opportunity Expands as Ag Biotech Industry Expands Technologies, Platforms, and Markets PLANT-MADE PHARMACEUTICALS CATEGORIES OF BIOTECH APPLICATION IN AGRICULTURE1 FORESTRY PRODUCTS ADDITIVE VALUE OPPORTUNITY 2010 PROJECTED INDUSTRY ANIMAL VALUE = $25 B BIOTECHNOLOGY (AGROW) 2005 INDUSTRY FEED & PROCESSING VALUE = $5.25 B TRAITS (ISAAA) “OUTPUT” FOOD TRAITS 2000 INDUSTRY SECOND-GENERATION VALUE = $3 B “INPUT” TRAITS (ISAAA) “INPUT” TRAITS 2000 2005 2010 2015 19952 1. Categories reflect major areas represented by members of BIO’s Food & Agriculture division; Additive value is not a quantitative measure, however the category indicates the potential for new market value 2. Timelines of introduction are general estimates based on industry-provided launch timeframes collected in BIO’s “Guide to Biotechnology” 5