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, 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
Monsanto Is On Track Or Exceeding Expectations, Setting
Stage for Strong Growth
FY2006 AND FY2007 TARGETS
2006 2007
2006
COMMITMENT UPDATE COMMITMENT
$2.35-$2.50 $2.82-$3.00
$2.35-$2.50
EARNINGS PER UP TO 20% 20% GROWTH
TOWARD UPPER
SHARE GROWTH FROM FROM 2006
END OF RANGE
2005 PROJECTION
FREE CASH
$825M - $900M $825M - $900M $875-$950M
FLOW
KEY COMMERCIAL COMMITMENTS
US CORN SHARE 1 – 2 pts 1 – 2pts
US RR CORN 30M ACRES 34M ACRES
US YGRW 8M ACRES 10M ACRES
US COTTON
1 – 2 POINTS 1 – 2 POINTS
SHARE
US RR FLEX 2 – 3M ACRES 2 – 3M ACRES
AUSTRALIA 80% - 85%
90% penetration
COTTON TRAITS penetration
BRAZIL RR
5 – 10 cents per 5 – 10 cents per
EARNINGS
share share
CONTRIBUTION
4
5. COMMERCIAL LEADERSHIP
Corn Germplasm Improvements Are Tightly Linked to
Market Share Gains U.S.
KEY MARKET ACRES BRAND LICENSED ASI
AVAILABLE MARKET 80M
16% 32% 3%
PERCENT PENETRATED
2005 CORN YIELD (BU/A) MONSANTO BRANDS
200
COMPETITORS
190
Average yield differential
180
RESULTS
is better by 33% in 2005
compared with 2004
170
testing
160
Strong yield advantages
150
are consistent across
95 100 105 110 115
maturity zones and
RELATIVE MATURITIES (DAYS)
outperform best
U.S. CORN MARKET SHARE
competitive commercial
60%
material sold in 2005
50%
Branded share on pace for
40%
SUSTAINABLE
RESULTS
1 – 2 points for the fifth
1-2 POINT
30%
SHARE GAINS straight year
20%
10%
0%
2001 2002 2003 2004 2005 2006 2007
HOLDENS/CORN STATES LICENSEES AMERICAN SEEDS, INC. BRANDS
DEKALB AND ASGROW BRANDS
5
6. COMMERCIAL LEADERSHIP
Drought Pressure in 2005 in Central Corn Belt Demonstrated
Performance Value of YieldGard Rootworm
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
YieldGard 5M 1M
AVAILABLE MARKET 25-30M
Rootworm Corn
2006 STATUS
16% 0% 0%
PERCENT PENETRATED
YIELDGARD
MIDWEST DROUGHT OBSERVATIONS
ROOTWORM
• In 2005, YieldGard
approximately one-
Rootworm’s
quarter of growers
protection allows
in U.S. drought
for heartier roots
areas have
that can tap what
experienced >30
bu/acre advantage moisture exists
over soil-applied
insecticides
• Yieldgard
Rootworm corn is
The difference
expected to be in
between
the range of 8 – 10
YieldGard
million acres in INSECTICIDE
TREATED-CORN
2006 Rootworm plants
and conventional
YIELDGARD
ROOTWORM
ones is visible
6
7. COMMERCIAL LEADERSHIP
Market Opportunity for Roundup Ready Corn on Track for
60M Acres Longer Term
OPPORTUNITY
INFLECTION
POINT:
Variable Based
Roundup Ready corn
Pricing
INFLECTION
40 is on pace for 50M
POINT: EU
IMPORT acres by 2008 in the
INFLECTION APPROVALS
35 POINT: U.S.
DOMESTIC
CHANNELING
Supply now available
30
U.S. ACRES
PROGRAM
to sell 15% more acres
25 of Roundup Ready
corn than forecast in
20 November
SUSTAINABLE
ACREAGE
15 GROWTH
10
5
0
1998 1999 2000 2001 2002 2003 2004 2005 2006F 2007F
7
8. COMMERCIAL 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%
5%
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
8
9. COMMERCIAL LEADERSHIP
Stacking Shifts Value Opportunity to the 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
9
10. COMMERCIAL LEADERSHIP
Success in Variable-Based Pricing in Cotton Is Bellwether for
Zone-Based Royalties in Corn
STEP 1
Driving Trait Penetration in Marginal to Modest
COTTON EXAMPLE Insect-Infestation Zones
Differential pricing allowed
51%
U.S. BOLLGARD TRAIT ACRES
Monsanto to earn an acre that
3 .5
penetrated
MARGINAL – TO – MODEST INFESTATION ZONES
ACRES (MILLIONS)
otherwise would not have used
3
Bollgard technology, driving
2 .5
trait penetration on marginally-
2
to modestly-infested acres
11%
1 .5
STEP 2
penetrated
1
Experience shows the farmer
0 .5
recognizes the value and
0
convenience of the trait
1998 2005
package and embraces more
value-added technology, largely
Increasing Monsanto’s Value per Acre in Marginal
COTTON EXAMPLE through stacked traits
to Modest Insect-Infestation Zones
STEP 3
5.6 X GP
RETAIL PRICE (INDEXED 1998 = 1)
WEIGHTED AVERAGE PER ACRE
FROM 1998
6 2 .0 0
1 .7 5 Because of the increased
5
(INDEXED 1998 = 1)
1 .5 0 penetration and movement
GROSS PROFIT
4
1 .2 5 toward stacked-traits, the total
3 1 .0 0 value per acre captured by
0 .7 5 Monsanto increases
2
0 .5 0
With more trait acres and more
1
0 .2 5
value generated per acre,
0 0 .0 0
overall gross profit increases
1998 2005
AVERAGE PER ACRE RETAIL PRICE
10
11. COMMERCIAL LEADERSHIP
New Branded Business and Expanding Licensee Base
Showcases Strong Cotton Germplasm U.S.
COTTON
STONEVILLE
KEY MARKET ACRES STATES
14M
AVAILABLE MARKET
14% 0%
PERCENT PENETRATED
2005 COTTON GERMPLASM PERFORMANCE
(19 LOCATIONS)
1600
1400
Monsanto varieties competitive with 1200
current market leaders and heavily
LBS LINT/ACRE
1000
RESULTS
penetrated with Roundup Ready Flex
stacked with Bollgard II 800
600
400
Stoneville will offer 9 varieties either with
200
the Roundup Ready Flex trait or with
Roundup Ready Flex stacked with 0
2005
MONSANTO
Bollgard II
COMPETITIVE
VARIETIES
LEADERS
Cotton States will have 5 licensees in 2006 MONSANTO COTTON SHARE GROWTH
30%
25%
20%
SUSTAINABLE
1-2 POINT SHARE GAIN
15%
WITH EMERGENT
10%
5%
0%
2004 2005 2006F 2007F
EMERGENT
11
12. COMMERCIAL 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
2006 STATUS
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
• 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 with licensees 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
12
13. COMMERCIAL LEADERSHIP
Multiple Margin Opportunities Accelerate with Second-
Generation Launches Australia
Second-Generation
Traits
COTTON RETAIL VALUE IN AUSTRALIAN MARKET
• 90% of all cotton acres
150
have at least one trait
125 • 65% of all acres with at
least one trait are a
100 stack vs. 44% last year
US $/ACRE
• Success of Bollgard II /
75
Roundup Ready sets
stage for full launch of
50
Bollgard II/ Roundup
Ready Flex starting in
25
2007
0 ROUNDUP
ROUNDUP STACK WITH
CONVENTIONAL BOLLGARD II
READY
READY BOLLGARD II &
COTTON SEED
FLEX
COTTON ROUNDUP
READY FLEX
13
14. COMMERCIAL LEADERSHIP
Brazil Is the Most Significant New Market Potential for
Roundup Ready Soybeans
MARKET UPDATE: ROUNDUP READY SOYBEANS IN BRAZIL
CURRENT MARKET CONDITIONS
Planted soybean acres down roughly 5
percent for 2006 season
VALUE CAPTURE
New seed sales at mid to upper
NORTH: PRIMARILY
end of 4 – 5M acre range
NEW SEED 40 NEW SEED
MILLION
SALES Value: ~$9/acre retail value
PLANTED shared significantly with
SOYBEAN partners
ACRES
Saved seed estimated at ~15M
acres
SAVED SEED Value: ~$4.50/acre retail value
SOUTH: PRIMARILY shared significantly with
SAVED SEED partners
EARNINGS
10 MILLION Expected 5-10 cents per share contribution for
PLANTED FY2006
SOYBEAN
ACRES Revenue recognized primarily in Q3 and Q4
14
15. OVERVIEW
Capitalizing on Our First Mover Advantage Lays Foundation for
Long-Term Leadership
2008 2009 2010
LEAD
Accelerate the Current Commercial Platform
Expanded long–term opportunity for corn traits, reflecting
opportunity in licensing, stacking and price-to-value strategies
Expand in New Markets
Penetration of new markets in Asia, Europe and South America
with existing traits
New opportunity in the high-margin Seminis business
Discover New Opportunities Through Research
Refreshing of first-generation trait portfolio
Breeding programs expand our genetic footprint
Translate Growth to Value
Gross profit mix reflects higher-margin seeds and traits
15
16. COMMERCIAL OPPORTUNITY
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
16
17. COMMERCIAL OPPORTUNITY
Europe Is Next Opportunity for a Multiple Channel
Approach Because of Strong Germplasm Foundation
European Corn
Channel Strategy
2005 COMPETITIVE CORN
YIELD COMPARISON
1 Channel: Owned
160
Outlet: Retail
Target reach: National
150
BUSHELS/ACRE
140
130
120
2
110
Channel: Licensed, non-exclusive
100
Outlet: Retail, Regional
85 90 95 100 105 110 115
Target reach: Europe-Africa
RELATIVE MATURITIES (DAYS)
COMPETITORS
MONSANTO BRANDS
17
18. COMMERCIAL OPPORTUNITY
In India, Markets Emerge As Technology Provides Value to
Farmers, the Economy and the Environment
CORN COTTON
KEY MARKET ACRES
5-7M 10-15M
AVAILABLE MARKET
0% 20%
PERCENT PENETRATED
Bollgard Penetration Biotech cotton adoption reflects
economic and environmental benefits
Acres in Millions
7
Yield Increase 58%
Pesticide Reduction (50%)
5
Farmer Net Return 163%
SUSTAINABLE
Bollgard II will launch on small acres in
ACREAGE
3
2006 and Roundup Ready Flex longer
GAINS
term.
1
2004 2005 2006F 2007
Corn Share
Conversion of open pollinated to
Monsanto Branded Seed hybridization expands market potential
Gained 10 Share Points In
40%
Last Two Years Breeding program introducing new
Market Share
35%
higher yielding hybrids with superior
fit fueling market expansion
SUSTAINABLE 1-2
30%
POINT SHARE
GAINS Roundup Ready and YieldGard corn-
25%
borer corn submitted for regulatory
approval
20%
2003 2004 2005 2006 2007
18
19. COMMERCIAL OPPORTUNITY
Corn Market Share Growth in Brazil Sets Foundation for
Ultimate Value in Traits
KEY MARKET ACRES CORN
20M
AVAILABLE MARKET
0%
PERCENT PENETRATED
CORN YIELD
Strong yield advantages are consistent
High Performance Hybrids
26
across maturity zones and outperform best
24
competitive commercial material sold in
22 MONSANTO BRANDS
Tons/acre
20
2005
COMPETITORS
RESULTS
18
16
New incremental investments in molecular
14
breeding specific for tropical germplasm
12
10
8
S o u th E a r ly E a r ly S o u th E a r ly
E a r ly E a r ly
SAFRINHA
CENTER
SOUTH
CORN SHARE
Branded share on pace for 1 – 2 points
Total Market
40%
Solid share growth despite successive price
38%
increases
SUSTAINABLE
RESULTS
36%
1-2 POINT
Portfolio restructured, 50% of sales are from
34%
SHARE GAINS
high performance hybrids
32%
Licensee agreements signed with regional
30%
2001 2003 2005 2006 2007
Brazilian companies
DEKALB AND ASGROW BRANDS
19
20. COMMERCIAL OPPORTUNITY
Seminis Addition to Monsanto Quickly Contributes to Growth
And Opens New Business and Research Opportunities
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
20
21. PIPELINE OVERVIEW
Efficient Discovery Program Is in Full Gear, Fueling
Pipeline Expansion and Performance
PHASE II PHASE III
DISCOVERY PHASE I PHASE IV
Early Development Advanced
Proof Of Concept Pre-launch
Gene/Trait Development
Identification
AVERAGE
24 to 48 MONTHS 12 to 24 MONTHS 12 to 24 MONTHS 12 to 24 MONTHS 12 to 36 MONTHS
DURATION1
AVERAGE
5 PERCENT 25 PERCENT 50 PERCENT 75 PERCENT 90 PERCENT
PROBABILITY
OF SUCCESS2
ION
AT
GR
E
INT
IT
RA
T G
STIN
D TE
FIEL
MONSANTO
DISCOVERY + REGULATORY DATA GENERATION
COLLABORATIVE REG
U LATO
PARTNERS RY S
UBM
IS SION
KEY INFLECTON POINT: SE
ED
BU
AFTER PHASE II COMMERCIAL LK
UP
SUCCESS GOES TO >50%
WITH LEADS ON COMMERCIAL
TRACK
TENS OF THOUSANDS THOUSANDS 10s <5 1
GENES IN
TESTING
•HIGH-THROUGHPUT •GENE OPTIMIZATION •TRAIT •TRAIT INTEGRATION •REGULATORY
KEY ACTIVITY
SCREENING DEVELOPMENT SUBMISSION
•CROP •FIELD TESTING
•MODEL CROP TRANSFORMATION •PRE-REGULATORY •SEED BULK-UP
•REGULATORY DATA
TESTING DATA GENERATION •PRE-MARKETING
•LARGE-SCALE
TRANSFORMATION
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 time estimated 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.
21
22. DISCOVERY PHASE I PHASE II PHASE III PHASE IV
PIPELINE UPDATE
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
22
23. LEADERSHIP
Monsanto Is Upgrading the Entire Commercial Trait
Portfolio to Second- and Third-Generation Traits
TECHNOLOGY UPGRADES IN THE PIPELINE
CORE FIRST-
COMMERCIALIZED
DISCOVERY PHASE I PHASE II PHASE III PHASE IV
GENERATION
SECOND-
Proof Of Concept Early Development Advanced Development Pre-launch
Gene/Trait
TECHNOLOGY
GENERATION
Identification
YIELDGARD CORN
2ND GEN YIELDGARD
BORER
CORN BORER
(1997)
UPGRADE: BROADER BENEFIT: FULL-SEASON
INSECT CONTROL; CONTROL OF EUROPEAN
BETTER IRM PROPERTIES CORN BORER
ROUNDUP READY
ROUNDUP READY
CORN
CORN 2
(1998)
(2001)
BENEFIT: NEW WEED
UPGRADE: SIMPLIFIED
CONTROL SYSTEM
WEED CONTROL,
GREATER FLEXIBILITY
YIELDGARD
YIELDGARD 2ND GEN YIELDGARD
ROOTWORM
ROOTWORM II ROOTWORM
(2003)
UPGRADE: NEW MODE OF UPGRADE: IMPROVED BENEFIT: CONTROL OF
ACTION FOR INSECT EFFICIENCY OF STACKING CORN ROOTWORM
CONTROL IN ELITE GERMPLASM
ROUNDUP READY
ROUNDUP
DICAMBA-TOLERANT
SOYBEANS
RREADY2YIELD
SOYBEANS
(1996)
SOYBEANS
UPGRADE: ADDITIONAL BENEFIT: NEW WEED
UPGRADE: GREATER
MODE OF ACTION CONTROL SYSTEM
FLEXIBILITY; YIELD
BENEFIT
BOLLGARD
BOLLGARD II
BOLLGARD III
COTTON
COTTON
COTTON
(1996)
(2003)
BENEFIT: BROADER
BENEFIT: IN-PLANT
BENEFIT: BROADER
INSECT CONTROL;
CONTROL OF THE
INSECT CONTROL;
BETTER IRM PROPERTIES
BOLLWORM
BETTER IRM PROPERTIES
ROUNDUP READY
ROUNDUP READY
DICAMBA-TOLERANT
COTTON
FLEX COTTON
COTTON
(1997)
(2006)
BENEFIT: ADDITIONAL BENEFIT: NEW WEED
BENEFIT: GREATER
MODE OF ACTION CONTROL SYSTEM
FLEXIBILITY; HERBICIDE
REPLACEMENT
23
24. PIPELINE OVERVIEW
Drought-Tolerant Corn Advances to Phase II Based on
Second-Year Field Test Results 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
24
25. OVERVIEW
Drivers of Growth in Mid-Term and Long-Term Horizons
Are On Track
FY2006 AND FY2007 TARGETS FY2008 - FY2010
2006 2006 2007
LEADERSHIP
TARGET UPDATE TARGET
$2.35-$2.50 $2.82-$3.00 Accelerate the Current
$2.35-$2.50
EARNINGS PER Up to 20% 20% growth Commercial Platform
Toward upper
SHARE growth from from 2006
end of range Expanded long–term opportunity
2005 projection
for corn traits, reflecting
opportunity in licensing,
FREE CASH
$825M - $900M $825M - $900M $875-$950M stacking and price-to-value
FLOW
strategies
KEY COMMERCIAL COMMITMENTS
Expand in New Markets
US CORN
1 – 2 pts 1 – 2pts Penetration of new markets in
SHARE
Asia, Europe and South America
with existing traits
US RR CORN 30M ACRES 34M ACRES
New opportunity in the high-
margin Seminis business
US YGRW 8M ACRES 10M ACRES
Discover New Opportunities
US COTTON
Through Research
1 – 2 POINTS 1 – 2 POINTS
SHARE
Refreshing of first-generation
US RR FLEX 2 – 3M ACRES 2 – 3M ACRES trait portfolio
Breeding programs expand our
AUSTRALIA 80-85% 90%
genetic footprint
COTTON TRAITS penetration penetration
Translate Growth to Value
BRAZIL RR
5 – 10 cents per 5 – 10 cents Gross profit mix reflects higher-
EARNINGS
share per share margin seeds and traits
CONTRIBUTION
25
26. Reconciliation of Non-GAAP Financial Measures
Reconciliation of Free Cash Flow
Fiscal Year Fiscal Year
2006 2007
$ Millions Target Target
Net Cash Provided by Operations $1,300 - $1,375 $1,375 - $1,450
Net Cash Provided (Required) by Investing Activities $(475) $(500)
Free Cash Flow $825 - $900 $875-$950
Net Cash Provided (Required) by Financing Activities N/A N/A
Net Increase in Cash and Cash Equivalents N/A N/A
26
