3. Non-GAAP Financial Information
This presentation may use the non-GAAP financial measures of “free cash flow,” and earnings per share (EPS) on
an ongoing basis. 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.
3
4. OVERVIEW
Market Forces Are Changing Supply-Demand Patterns
Globally, Creating a New Dynamic Across Agriculture
EMERGENCE OF DEMAND-DRIVEN AGRICULTURE: STATE OF AGRICULTURE:
NEW DEMAND AND PRODUCTION TRENDS The New Demand Environment
FACTORS:
Growing wealth
Expanding ethanol
► INCREASING PROTEIN
and population in
and export
DEMAND
Asia creates new
demands favor U.S.
demand for
as low-cost corn Wealth drives meat
imported grain
producer
consumption – changing
feed demand
► ASCENSION OF CHINA
China’s growth is reaching
limits of domestic
production, driving huge
changes in export
environment
Brazil exploits land
Argentina ► ESTABLISHMENT OF
availability advantage
leverages to become BIOFUELS
geographic commodity soy
proximity to Assuming only base-case
producer to meet
supply corn to demand from China adoption of biofuels, more
Latin America
corn and soy needed in next
decade
4
5. OVERVIEW
Even with Record Corn Prices Spurring Planting, Global Corn
Production Per Acre Is Sub-Optimized Today
GLOBAL CORN PRODUCTION1: YIELD
CORE PRODUCTIVITY MEASURES AND EVALUATION
Boosting yield-per-
acre can make a
meaningful difference
in supply-demand
CANADA
environment
EU 27
3M ACRES
136 BU/AC
500M BUSHELS 27M ACRES • If India, Mexico and
90% HYBRID
U.S. Brazil moved to 100
99 BU/AC
CHINA
2B BUSHELS
bushel per acre yields,
90M ACRES
151 BU/AC 69M ACRES
they could produce
MEXICO
13B BUSHELS 83 BU/AC
6B BUSHELS nearly 4 billion
18M ACRES
additional bushels of
25% HYBRID
INDIA
48 BU/AC
BRAZIL corn annually – equal to
900M BUSHELS
20M ACRES
36M ACRES total world corn exports
45% HYBRID
75% HYBRID 32 BU/AC
in 2007.
58 BU/AC 700M BUSHELS
2B BUSHELS
• If the EU27 and Brazil
adopted the corn-borer
ARGENTINA resistant biotech trait,
10M ACRES
they would have the
111 BU/AC
900M BUSHELS
potential to increase
yields by almost 200
Optimization of yield per acre million bushels – the
amount used by U.S.
food companies as
sweeteners in 2007.
Poor/Subsistence Sub-Optimized Optimized
1. Source: USDA FAS and internal estimates.
6. OVERVIEW
Monsanto Has Created and Is Extending Its Leadership
Through Innovation
Monsanto Strategy
MONSANTO’S FINANCIAL INDICATORS:
Monsanto is an innovation-
GROSS PROFIT BY SEGMENT AND ONGOING EPS – FY04 TO FY08F
FY08F: driven R & D based company
$4,000 $3.50
$3.15 -$3.25 in Agriculture that creates
Ag Productivity
value through improved
Gross Profit
$3,500 $3.00
Seeds & Genomics
yields and seed
Gross Profit
performance.
(in $ millions)
$3,000 Ongoing EPS $2.50
Ongoing EPS
Gross Profit
SIX GROWTH DRIVERS
$2,500 $2.00
U.S. Corn
$2,000 $1.50
International Corn
$1,500 $1.00
Soybeans
$1,000 $0.50
Cotton
$500 $0.00
Vegetables
2004 2005 2006 2007 2008F
R & D Pipeline
Leadership extends as we
2004-2008F: 41% CAGR in EPS
deliver four game-changing
driven by growth of Seeds &
technologies between now
Genomics segment, where innovative
and the middle of the next
solutions translate into seed share
decade.
gains and trait penetration globally
6
7. OVERVIEW
Foundation of Seeds and Traits Creates Unmatched
Capabilities in Ag
CREATION OF UNMATCHED SEED BASE
Monsanto’s Strategy Transforms Agriculture
EXTENDING LEADERSHIP
CREATING LEADERSHIP
1996 to 2007: BUILD SEED BASE 2008 to 2012: INTENSIFY & EXPAND BASE
1996: 1997: 1998: 2005: 2004 to 2006: 2007: 2008:
Acquired Acquired Acquired Acquired Created ASI & Acquired Announced
Asgrow Holden’s DEKALB, Seminis Acquired 25 Delta & intent to
Foundation Cargill Intl Regional Corn Pine Land acquire De
Seeds Inc. and Corn Seed & Soybean and Ruiter Seeds
Corn States Seed AgroEste
Companies
DEVELOPMENT OF GAME-CHANGING BIOTECH TRAITS
Monsanto’s Strategy Transforms Agriculture
EXTENDING LEADERSHIP
CREATING LEADERSHIP
2008 to 2012:FOCUS ON TRAITS TO
1996 to 2007:FOCUS ON TRAITS TO PROTECT YIELD
ENHANCE YIELD
2009: 2010: ~2012: ~2014:
1997: 1998:
1996: 2006:
2005:
2003:
Roundup Roundup Roundup YieldGard Triple- Bollgard II Roundup SmartStax First Nitrogen-
Ready 2 corn Generation Utilization
Ready Ready Ready Rootworm stack Roundup
Yield Drought Corn
soybeans, Cotton and Corn Ready
corn
Flex soybeans, Tolerant
Bollgard YieldGard
YieldGard Corn
Cotton CornBorer Cotton
VT PRO
7
8. CREATING LEADERSHIP
Monsanto Has Portfolio Balance That Carries Between Crops
Even as Planted Acres Fluctuate
PORTFOLIO BALANCE: STATE OF AGRICULTURE:
INDEXED GROSS PROFIT FOR MONSANTO-BRANDED CROP OFFERINGS
Portfolio Balance
1.2
► In 2008, for every 1 million
1.00 acres that shift between
1 0.94
soybeans and corn or
cotton, on average, there
0.8
is an estimated $0.01 EPS
change for Monsanto
0.6
0.47 ► With brands in corn,
cotton and soybeans,
0.4
Monsanto is positioned to
meet demand regardless
0.2
of crop planting patterns
in any given year
0
► With the 2009 controlled
CORN COTTON SOYBEANS
commercial release of
Roundup Ready 2 Yield
2008 U.S. TRAIT
1.6 1.4 0.95
PENETRATION –
and the 2010 launch of
ALL CHANNELS
SmartStax this dynamic
portfolio will be re-
balanced
8
9. CREATING LEADERSHIP
DEKALB and ASI Gain Share as Investment in Breeding
Delivers Yield Advantage
U.S. CORN DEKALB AND ASI U.S. CORN SHARE EVOLUTION:
2001-2008F
STATUS
30%
• In June 2007, announced 3- DEKALB Brand Share – U.S.
year, $610M plan to expand
25 - 26%
ASI Share – U.S.
and build seed facilities in 25%
the U.S.
• In 2008, plan has been 23%
20%
accelerated to reflect
20%
growth in DEKALB and ASI
15%
combined with continued
16%
growth expectations 10 - 11%
14%
9%
through 2012 13%
10% 12%
• Outlook to 2012: 10% 5%
• DEKALB to grow share
5% 4%
through 2012 by up to 10
points cumulatively from
2007 share of 23 percent
0%
• Continued organic share
2001 2002 2003 2004 2005 2006 2007 2008F
growth in ASI
2008F
Projecting 2-3% share gains for DEKALB
and 1-2% share gains for ASI
9
10. CREATING LEADERSHIP
2008 Triple Penetration Ahead of Expectations, Setting Stage
for SmartStax Launch
U.S. CORN TRAIT OPPORTUNITY: 2005-2010F
60
220
200
U.S. TRIPLE-STACK ACRES
50
180
U.S. TRAIT ACRES
(IN MILLIONS)
160
(IN MILLIONS)
40
140
120
30
100
80
20
60
40 10
20
0
0
2008F 2010
2005 2006 2007 2008 2010F
2007 Opportunity
ORIGINAL Q2
OUTLOOK UPDATE
Rootworm Control 45-55M
20.8M 26-28M 27-29M
Corn Borer Control 60-70M
42.4M 40-42M 40-42M
Glyphosate Tolerance 80M
57.9M 63-65M 65-67M
Triple Stack 17.6M 25-27M 26-28M 45-55M
Trait acres reflect the total acres planted with each individual trait. In the case of stacked traits, each absolute
acre will be reflected by two or more trait acres.
10
11. CREATING LEADERSHIP
Leading Brand Share Positions in Corn in Brazil and Argentina
Provide Footprint for New Trait Launches
International Corn
Argentina &
GEOGRAPHY:
Brazil
LATIN AMERICA: SEED FOOTPRINT
Expand
ARGENTINA BRAZIL
international
OBJECTIVE:
footprint 2007 2008F 2007 2008F
2008 STATUS (06/07 SEASON) (07/08 SEASON) (06/07 SEASON) (07/08 SEASON)
• Expected to grow 5 share
8M1 10M1 23M 27M
points in a market that is HYBRID ACRES
25 percent larger than in
2007 in Argentina
40% 45% 40% 40%
MONSANTO
• DEKALB and Agroeste
SHARE
combined are forecasted
to be flat with 2007 in AVG. RETAIL
Brazil, delivering on our PRICE FOR
DEKALB HYBRID
goal to stabilize share $23/ac $29/ac $29/ac $34/ac
CORN SEED
2012 OUTLOOK
• Target 1-to-2 share points
of growth annually
through 2012
11
1. Source: KLEFFMANN Marketing Services
12. EXTENDING LEADERSHIP
With Two Recent Approvals, New Growth Opportunity Exists
For Corn Traits in Latin America
International Corn
LATIN AMERICA: TRAIT OPPORTUNITY
Argentina &
GEOGRAPHY:
Brazil
ARGENTINA BRAZIL
Trait Penetration
OBJECTIVE:
2008 STATUS
APPROVED • YieldGard Corn Borer
• Roundup Ready Corn 2 TRAITS • Roundup Ready Corn 2
with YieldGard Corn Borer • YieldGard Corn Borer
• YieldGard Corn Borer +
stack received regulatory Roundup Ready Corn 2
approval in Argentina end Stack
of August 2007 RECENT Granted approval for Granted first corn trait
DEVELOPMENTS stack in August 2007 approval in February
• YieldGard Corn Borer
received final approvals in 2009 OUTLOOK Seed production
30-40% of DEKALB seed underway for 1-2M
Brazil in early 2008
will be double-stack commercial acres of
• Pricing for new traits to be YieldGard corn
on par with the U.S. and TRAIT RETAIL
On par with U.S. On par with U.S.
value sharing above 50% PRICING
to promote adoption CORN BORER
7M 15-20M
OPPORTUNITIES
CONTROL
2012 OUTLOOK
2010 TRAIT
GLYPHOSATE
9M 15-20M
• Increasing trait penetration TOLERANCE
sets the stage for
ROOTWORM
5M 5M
SmartStax introduction CONTROL
12
13. CREATING LEADERSHIP
Monsanto’s Pricing Model Aimed at Total Value Created;
Shared With Farmer to Build Stable Long-Term Growth
EXAMPLE : LOW-PRICE ENVIRONMENT EXAMPLE : HIGH-PRICE ENVIRONMENT
Farmer Value Proposition On Triple Stack at Farmer Value Proposition On Triple Stack at
$2.50 Corn Prices $4.50 Corn Prices
VALUE CREATION VALUE CREATION
15-20 bu/ac 15-20 bu/ac
Improved Yield1 Improved Yield1
$2.50/bu $4.50/bu
Commodity Price: Commodity Price:
$37-$50 $67-$90
Value: Value:
$5 $5
Indirect Benefits2 Indirect Benefits2
$42-$55 $72-$95
Incremental Value Created Incremental Value Created
PRICING APPROACH PRICING APPROACH
$28-$36 $28-$36
Per-Acre Trait Cost3 Per-Acre Trait Cost3
($17) ($17)
– Cost of Replacements4 – Cost of Replacements4
$16-$19 $16-$19
Incremental Farmer Cost Incremental Farmer Cost
With $2.50 corn, about 50% of the incremental
yield value created is shared with the farmer;
With $4.50 corn, about two-thirds of that value
accrues to the farmer
1. Monsanto estimates, based on better insect and weed control over conventional options
2. Monsanto estimates, based on farmer surveys quantifying benefits such as convenience and peace of mind
3. Retail royalty range for YieldGard VT Triple in 2008, at normal seeding rates
4. Subtracts costs farmers would have spent had they not used a trait package
13
14. EXTENDING LEADERSHIP
Strong Pipeline Reflects Growing Innovation and Value of
Emerging Yield and Stress Traits
DISCOVERY PHASE 1 PHASE 2 PHASE 3 PHASE 4
Drought-
HIGH Tolerant
FAMILY TRAITS►
Family
CORN:
COLLABORATION
YIELD & STRESS
Nitrogen-
BROAD-ACRE HIGH Utilization
FAMILY TRAITS►
YIELD Family
Broad-Acre,
MEGA Higher-Yielding
FAMILY TRAITS►
Family
SOYBEANS: Broad-Acre,
BROAD-ACRE HIGH Higher-Yielding
FAMILY TRAITS►
YIELD Family
2020 VALUE RANGES: Roundup
Omega-3
Bollgard III Ready 2 Yield
soybeans
soybeans
MEGA HIGH Roundup
Insect-protected
$300M-$500M Ready 2
>$1BM Roundup Ready
YieldGard
Yield canola 2 Yield soybeans
VT PRO
Dicamba- corn
MID LOW tolerant
soybeans
<$150M
$150M-$300M Vistive III Improved-
protein
High-oil
Corn Soybeans Cotton Canola soybeans
soybeans
14
15. EXTENDING LEADERSHIP
Roundup Ready 2 Yield Soybeans Raise the Performance
Bar with 7 to 11 Percent Yield Advantage
ROUNDUP READY 2 YIELD SOYBEANS: STATE OF AGRICULTURE:
SECOND-GENERATION WEED CONTROL FIELD RESULTS
A New Soybean Platform
Near-Isoline Comparisons:
Roundup Ready 2 Yield vs. Roundup Ready
% Yield Increase over Roundup Ready
12%
HIGHER-YIELDING
11%
10% DICAMBA-TOLERANT
9%
VISTIVE III
9%
8% ROUNDUP READY 2 YIELD
7% 7%
6%
► Roundup Ready 2 Yield
becomes the platform for
4%
soybean traits
► Three soybean pipeline
2%
traits advanced to Phase 3
0% commercial development in
4 YEAR recent R&D update
2004 2005 2006 2007 AVERAGE
Roundup Ready 2 Yield soybeans yield 7 to 11 percent higher than Roundup Ready soybeans
based on 73 Monsanto field trials from 2004-2007
► Power in the pod; Over 200 observations indicate that Roundup Ready 2 Yield soybean plants
produce significantly more 3-bean pods per plant compared to Roundup Ready soybeans
15
16. EXTENDING LEADERSHIP
SmartStax Corn Projected to Increase Value on Farm Through
Potential Refuge Reduction and Improved Insect Control
Projected SmartStax Value: On-Farm
Increased Yield (per-acre and on-farm)
+
SmartStax Value:
YIELD Refuge Reduction Considerations
YIELD COMPONENT
BENEFIT1
PER-ACRE
U.S. EPA requires set-aside refuge
Improved consistency: 1-2%
for current single-mode-of-action
Primary pests
insect-protected traits in corn
Improved protection: 1-2%
20%
Secondary pests
ON-FARM
80%
Reduced refuge 3-6%
4-10%
Total Estimated Yield Benefit
Flexibility to move to one technology
+
20 BU/AC
platform on-farm 1
Durability
+ Yield Differential
Flexibility to increase planting Farmers in Illinois in 2007 reported
+
populations average 20 bu/acre yield difference
Platform for future traits between YieldGard VT Triple and
+
refuge acres
Access to superior seed
+
Total Projected SmartStax Value
=
1. Yield benefit reflects expected yield benefit above triple-stack standard, on a
16
per-acre and whole-farm basis as noted. Ranges may overlap
17. EXTENDING LEADERSHIP
First Generation Drought-Tolerant Corn Has First Mover
Advantage In Yield and Stress Traits
Average Yield Improvement of Lead Event
Yield Difference (bu/acre)
R&D Pipeline 16 Percentage yield difference vs. control
13.4% 6.7% 10.6% 11.3%
14
Drought-Tolerant Corn Family:
Lead Project 12
10 PRODUCT
HIT Project
KEY RESULTS
CONCEPT
Phase 3 8 TARGET
RANGE
6
PROJECT CONCEPT:
4
Drought-tolerance family aimed at
providing consistent yield and 2
buffering against effects of water 0
limitations a b b b
2004 2005 2006 2007
VALUE: 15 TOTAL 9 TOTAL 11 TOTAL
8 TOTAL
LOCATIONS LOCATIONS LOCATIONS
LOCATIONS
LAUNCH-COUNTRY
55M a: data from two hybrids
ACRES1:
b: data from three hybrids
$300-$500M
2020 VALUE2:
SEGMENTED VALUE OPPORTUNITY ACROSS MARKETS
SOURCES OF VALUE:
KEY OPPORTUINITY
First leads show
Improved yield
benefit under
Targeting 8-10% yield
1 water-stress
improvement in water-stress WESTERN
environments conditions
DRYLAND
10-12M Acres First product
1. Acre opportunity reflects acres where technology fits at
Monsanto's current 2007 market share in respective crops
targeted at
2. 2020 value reflects gross sales opportunity in launch country
western dryland
in year 2020
Low annual High annual region of 10-12M
precipitation precipitation
acres
Source: Spatial Climate Analysis Service, Oregon State University
17
18. EXTENDING LEADERSHIP
Second Generation Drought-Tolerant Corn Targeted to Expand
Reach
Drought Efficacy for Second-Gen Events
Yield Difference Over Controls (%)
16
R&D Pipeline
14
Drought-Tolerant Corn Family:
12
Second-Generation Project
10 PRODUCT
CONCEPT
Phase 2 8
STATUS:
TARGET
KEY RESULTS
RANGE
6
PROJECT CONCEPT:
4
Drought-tolerance family aimed at
2
providing consistent yield and
0 EVENT 1EVENT 2 EVENT 3 EVENT 1 EVENT 2 EVENT 3
buffering against effects of water
limitations HIGHER-YIELDING ENVIRONMENT
LOWER-YIELDING ENVIRONMENT
AVERAGE YIELD: 166 BU/AC
AVERAGE YIELD: 53 BU/AC
VALUE:
2007
2006
LAUNCH-COUNTRY
55M (All three events significant @ p≤0.10); Statistical significance determined by ANOVA (2006) or nonparametric test (2007)
ACRES1:
$300-$500M
2020 VALUE2:
SOURCES OF VALUE: SEGMENTED VALUE OPPORTUNITY ACROSS MARKETS
Improved yield Second generation
KEY OPPORTUINITY
IRRIGATED
Targeting 8-10% yield demonstrates
1 improvement in water-stress 8-12M Acres
performance over
environments WESTERN broad range of stress
DRYLAND
Water substitution conditions in both
10-12M Acres low and high-yielding
2 Variable costs in pumped
environments
irrigation of >$100/ acre STABILITY
Potential for a broad
60-70M Acres
Low annual High annual
1. Acre opportunity reflects acres where technology fits at
acreage fit across all
precipitation
Monsanto's current 2007 market share in respective crops precipitation
acres planted
2. 2020 value reflects gross sales opportunity in launch country Source: Spatial Climate Analysis Service, Oregon State University
in year 2020
18
19. EXTENDING LEADERSHIP
Nitrogen-Utilization Corn Designed to Create Value Via
Improved Yields or Reduced Nitrogen Usage
PER-ACRE NITROGEN COST STATE OF AGRICULTURE:
FOR CORN PRODUCTION IN THE U.S.: 1990-20071 Breakthroughs in Nitrogen-Use Research
Under normal nitrogen conditions, lead Nitrogen-
$60 Utilization trait has demonstrated yield advantages
in multiple backgrounds over multiple years
$50
12
*
$40
Yield Increase (bu/Ac)
** ***
*
10
$30 8
6
$20 4
2
$10
0
-2 TRIALS IN
$0 TRIALS IN
MULTIPLE
MULTIPLE
1990 1993 1996 1999 2002 2005 2008B
HYBRID
HYBRID
Nitrogen accounts for approximately one-fifth of BACKGROUNDS
BACKGROUNDS
the direct operating costs for a corn producer2 and (15 LOC)
(16 LOC)
continues to escalate with current estimates of
nearly $780 per ton or approximately $70 per acre
2005 2006 2007
by the fall.
Nitrogen-Utilization corn offers the potential to
* Statistically significant @ p≤0.10
bring the value of nitrogen into the seed:
Bar color correlates with the specific hybrid background tested.
• Reducing farmers’ exposure to nitrogen Same bar color in different tests and different years indicates same
price volatility hybrid was used.
• Boosting yield All trials conducted under sufficient nitrogen application levels.
• Improving ease of use, flexibility
1. NASS
2. USDA and University of Illinois 2008 Crop Budgets
19
20. USES OF CASH
Leadership and Innovation Underscored by Strong Cash
Generation for Investment in Next Wave of Growth
USES OF CASH FY08F ESTIMATED USES OF CASH
CUMULATIVE: 2005-2007 ESTIMATED $2.5B CASH GENERATED BY
OPERATIONS
American Seeds,
Inc. (2004-2007)
FY2007
Seminis (2005)
Dividend
FY2008
increased $3,000
Delta & Pine Land $313M of
40% to 70 $2,450
(2007) dividends &
$2,500
cents/share
share
$545 Agroeste (2007)
$2,000 repurchases
($200) through Q2
$1,500
$639
$1,000 ($950)
$3,161
$266
$500
($830)
$0
($500)
$1,160
FY2008
($1,000)
Estimated $2.5B
FY2008
($1,500) of Operating
FY2008
Cash Flows CAPEX:
generated
Acquisitions Year two of ACQUISITIONS:
$610M corn Entered
FY2007 seed
Capital Spending agreement to
Capex focused expansion purchase De
on corn seed project; year
Technology Investments Ruiter Seeds for
expansion; year one of $196M €546M - ~$830M
one of 3 year glyphosate
Dividends if closes in
$610M project expansion FY08
Share Repurchases FY2008
Technology
Operating Cash Flows Investments
20
21. ACQUISITION STRATEGY
Acquisition Strategy Set to Strengthen and Expand Core and
Drive Differentiation Through Innovation
INVESTMENT OPPORTUNITY
In an expanding agriculture environment, value is defined by innovation –
Monsanto’s strategy is targeted on innovation: discovering and developing
technology that is game-changing
CATEGORY EXAMPLES OUTLOOK
► Delta and Pine Land • ASI and Delta and Pine Land
Intensify The Space
moving to integration
► American Seeds, Inc.
Strengthen position of the • Leading position in
(ASI) Companies protected-culture established
core business, largely by
► Agroeste (Brazil) in vegetables
building the germplasm
► De Ruiter Seeds • Continued opportunity for
footprint of seeds
add-on international corn and
vegetable seed companies
► Seminis • Continually looking for areas
Expand The Space
where Monsanto can apply
core technology quickly or
Expansion to adjacent spaces
benefit from advanced
– where core technology can
research
be applied quickly and with
transformational benefits
► Yield and Stress R&D • Most highly transformational,
Redefine The Space
but rarest to find appropriate
Collaboration with BASF
fit
Investments that rewrite the ► SmartStax agreement with
landscape, providing new Dow
avenues, new technologies
► Global Seed Treatment
and creating new markets
Alliances
21
22. EXTENDING LEADERSHIP
De Ruiter Seeds Helps Address Gap in Monsanto Vegetable
Seed Portfolio in Growing Protected-Culture Segment
FY07 Annual net Sales = $145M
FY07 Annual Net Sales = $612M
Portfolio Composition: Percent of Sales1
Portfolio Composition: Percent of Sales1
10%
12%
Open-Field
Protected-Culture
88% 90%
Pairing Seminis with De Ruiter Seeds
brings together the leading positions in
open-field and protected-culture
segments
• Both segments benefit from the coordinated
molecular breeding infrastructure
1. Size of pies not to scale with revenue
generated by Seminis or De Ruiter Seeds
22
23. SUMMARY
Monsanto’s Strategy to Extend Competitive Lead Through
Innovation, Driving 2012 Growth
2012 GROWTH RANGE
GROSS PROFIT OUTLOOK BY SEGMENT
Gross profit targeted to more
2007-2012F than double from 2007 through
>2X
2012 including recent lift in
Roundup to $1.8B gross profit
$10,000
2007 BASELINE STRATEGIC PLAYBOOK
All growth is organic, from base
$8,000
business and pipeline
IN MILLIONS
U.S. Corn
$6,000
International Corn
Soybeans
Cotton
$4,000
Vegetables
R&D Pipeline
$2,000
Acquisitions to be pursued, but
are not included in this growth
projection
$0
Earnings continue to translate
2007 2008F 2012F
into operating cash, and value
created for shareowners
All Other Agricultural Productivity
through combination of
Roundup And Other Glyphosate-based
acquisitions, technology
Herbicides
investments, share repurchases
Seeds & Genomics
and dividends
23
24. Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP EPS
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
$ per share 2008F 2007 2006 2005 2004
Net Income (Loss) per Share $3.38 - $3.48 $1.79 $1.25 $0.47 $0.50
Cumulative Effect of Change in Accounting Principle - - $0.01 -- --
Diluted Earnings (Loss) per Share Before Effect of $3.38 - $3.48 $1.79 $1.26 $0.47 $0.50
Accounting Change
Solutia Claim Settlement ($0.23)
Tax Charge on Repatriated Earnings -- -- $0.04 -- --
Seminis In-Process R&D -- -- -- $0.38 --
Solutia-Related Charge -- -- -- $0.32 --
Tax Benefit on Loss from European Wheat and -- -- -- $(0.19) --
Barley Business
Restructuring Charges -- Net -- -- -- $0.01 $0.18
Loss (Income) on Discontinued Operations 1 -- ($0.13) -- $0.05 --
Impairment of Goodwill -- -- -- -- $0.12
In-Process R & D Write-Off Related to the Delta & Pine Land -- $0.34 -- -- --
(D&PL) Acquisition
Diluted Earnings (Loss) per Share from Ongoing Business $3.15 - $3.25 $2.00 $1.30 $1.04 $0.80
Note: EPS figures reflect the stock split effective July 28, 2006
24
1. The operating results of Stoneville and Nexgen have been conformed to discontinued operations for all relevant years presented.