2. OVERVIEW
2003 Objectives Reflected Belief in Growth Potential of
Seeds and Traits as Roundup Stabilized
OVERVIEW OF MONSANTO’S MID-TERM
GROWTH OBJECTIVES
OUTLINED NOVEMBER 2003
2004: $1.40-$1.50
2005: 10% GROWTH
ONGOING
($1.54-$1.65)
EARNINGS PER
SHARE
2006: 10% GROWTH
($1.69-$1.82)
FREE CASH FLOW $350M-$400M IN 2004;
REFLECTING EARNINGS IN 2005-
2006
ROUNDUP GROSS PROFIT DECLINE OF 15%
IN 2004, THEN FLAT AS U.S.
PRICE/VOLUME STABILIZE
2004: GROSS PROFIT GROWTH
OF 15%
2005: MID-TEENS GROSS PROFIT
SEEDS AND TRAITS GROWTH
2006: LOW-TEENS GROSS PROFIT
GROWTH
2
3. OVERVIEW
2004-2005 Accelerated Because of Dramatic
Seeds and Traits Growth
OVERVIEW OF MONSANTO’S MID-TERM GROWTH PERFORMANCE AND
OBJECTIVES NOVEMBER 2005
EXPECTATIONS
OUTLINED NOVEMBER 2003
$1.59
2004: $1.40-$1.50
ONGOING 2005: 10% GROWTH $2.08
EARNINGS PER ($1.54-$1.65) >30% GROWTH
SHARE 2006: 10% GROWTH $2.35-$2.50
($1.69-$1.82) UP TO 20% GROWTH
FREE CASH FLOW 2004: $999M
$350M-$400M IN 2004;
2005: $70M
REFLECTING EARNINGS IN 2005- WITH $1.5B USED FOR ACQUISITIONS
2006
2006F: $825M-$900M
ROUNDUP 2004 GP: $703M
GROSS PROFIT DECLINE OF 15% 2% INCREASE FROM 2003 ACTUAL
IN 2004, THEN FLAT AS U.S. 2005 GP: $637M
PRICE/VOLUME STABILIZE
2006F: $600M
GP: $1.4B
2004: GROSS PROFIT GROWTH OF
15% 28% INCREASE FROM 2003 ACTUAL
GP: $2B
2005: MID-TEENS GROSS PROFIT
SEEDS AND TRAITS
GROWTH 45% INCREASE FROM 2004 ACTUAL
2006: LOW-TEENS GROSS PROFIT
FORECAST GP $2.3B
GROWTH
3
4. GROW
Four Objectives Drive Monsanto’s Growth Through 2007
2006 2007 2008 2009 2010
GROW
TARGET FOUR OBJECTIVES GUIDE MONSANTO’S SUCCESS
AND GROWTH IN NEXT TWO YEARS
2007
Grow Current Portfolio
Grow Globally
Grow the Pipeline
Translate Growth to Value
4
5. GROW
Corn Franchise Represents Greatest Potential To Grow
Existing Portfolio
SCORECARD
BRANDED MARKET SHARE GROWTH WORLDWIDE
2004 TO 20051
+2.9%
ALL WORLD AREAS
U.S. CORN MARKET SHARE
+2.2%
NORTH AMERICAN REGION
Monsanto branded seed gained 6 share
+2.0%
UNITED STATES
points in the last 4 years
+2.2%
60%
EUROPE-AFRICA REGION
50%
+2.5%
FRANCE
40%
SUSTAINABLE
+1.7%
ITALY
1-2 POINT
30%
SHARE GAINS
+1.2%
HUNGARY
20%
+5.2%
TURKEY 10%
+5.7%
SOUTH AFRICA 0%
2001 2002 2003 2004 2005 2006 2007
+1.9%
ASIA PACIFIC REGION
HOLDENS/CORN STATES LICENSEES
+5.1%
INDIA
AMERICAN SEEDS, INC. BRANDS
FLAT
LATIN AMERICA REGION
DEKALB AND ASGROW BRANDS
+1%
MEXICO
FLAT
BRAZIL
FLAT
ARGENTINA
Market share is for hybrid corn seed market only
5
7. GROW
Monsanto’s Gross Profit Evolution Continues as Seeds
and Traits Accelerate
MONSANTO GROSS PROFIT GROWTH
2003 2005 2007F
TOTAL GROSS TOTAL GROSS TOTAL GROSS
PROFIT = $2.3B PROFIT = $3B PROFIT = $3.6B
ALL OTHER AGRICULTURAL
SEEDS & GENOMICS ROUNDUP AND OTHER
PRODUCTIVITY
GLYPHOSATE-BASED HERBICIDES
7
8. GROW
Commitment to Seeds and Traits Strategy Translates to
Significant Earnings and Free Cash Growth
ONGOING EPS
$3.50
20%
UP TO
$3.00 ONGOING EPS
TREND
20% EXTENDS INTO
$2.50
2007 WITH
31% PROJECTED
$2.00
20% GROWTH
FROM 2006
$1.50 BASE
$1.00
$0.50
$0.00
2004 2005 2006F 2007F
8
9. GROW
Commitment to Seeds and Traits Strategy Translates to
Significant Earnings and Free Cash Growth
FREE CASH FLOW
$1,000
OUR FOCUS
IS ON
TRANSLATING
$750
EARNINGS INTO
IN MILLIONS
FREE CASH
THAT CAN
$500 RETURNED AS
VALUE TO
SHAREOWNERS
$250
$0
2004 2005 2006F 2007F
9
10. LEAD
Four Additional Milestones Will Define Success
Through 2010
2006 2007 2008 2009 2010
LEAD
TARGET FOUR OUTCOMES THAT WOULD DEFINE MONSANTO’S
SUCCESS STRATEGICALLY IN NEXT FIVE YEARS
2010
Lead through Innovation
Lead in an Increasingly Competitive Market
Lead in New Market Opportunities
Translate Leadership to Value
10
11. LEAD
Monsanto’s Technology and Innovation Will Continue to
Change Landscape of Agricultural Industry
2010: Lead through Innovation
TODAY’S AGENDA
D I II III
2005 INVESTOR DAY IV LAUNCH
BREEDING
ROBB FRALEY
10:30 AM
G
CHIEF TECHNOLOGY OFFICER
COMMERCIAL
IT PLATFORM
GERMPLASM
GENOMICS
ANALYTICS
MARKERS
SEED
Germplasm
TOPIC PIPELINE MOMENTUM AND VALUE
ELITE
SOLD TO
FARMERS
R
CARL CASALE
11:15 AM EXECUTIVE VICE PRESIDENT,
BIOTECHNOLOGY
NORTH AMERICA COMMERCIAL
NOON LUNCH
BRETT BEGEMANN
12:30 PM
We continue to see our R&D investment
EXECUTIVE VICE PRESIDENT,
INTERNATIONAL COMMERCIAL
rewarded as the established industry
1:15 PM BRETT BEGEMANN
leader and partner of choice, generating
more leads and products than the
TERRY CREWS
2:00 PM
competition, based on dual platforms of
CHIEF FINANCIAL OFFICER
breeding and biotechnology
HUGH GRANT
2:45 PM CHAIRMAN, PRESIDENT AND CEO
11
12. LEAD
Leadership Will Be Paramount to Success In Larger, Yet
More Competitive Marketplace
2010: Lead in an Increasingly Competitive Market
TODAY’S AGENDA
U.S. CORN TRAIT ACRES
2005 INVESTOR DAY STACKED TRAITS ROUNDUP READY
50
CORN SINGLE
YIELDGARD CORN
TRAIT
BORER OR
ACRES IN MILLIONS
40
ROBB FRALEY YIELDGARD
10:30 AM
ROOTWORM SINGLE
CHIEF TECHNOLOGY OFFICER
TRAIT
30
CARL CASALE
11:15 AM EXECUTIVE VICE PRESIDENT,
20
NORTH AMERICA COMMERCIAL
GROWTH AND LEADERSHIP IN
10
TOPIC NORTH AMERICA/LATIN AMERICA
NORTH BUSINESS
0
1998 1999 2000 2001 2002 2003 2004 2005
NOON LUNCH
BRETT BEGEMANN
12:30 PM EXECUTIVE VICE PRESIDENT,
We continue to see ourselves as the
INTERNATIONAL COMMERCIAL
leader in a larger, yet more competitive,
1:15 PM BRETT BEGEMANN
market as we expand our seed and trait
offerings in multiple go-to-market
TERRY CREWS
2:00 PM
opportunities
CHIEF FINANCIAL OFFICER
HUGH GRANT
2:45 PM CHAIRMAN, PRESIDENT AND CEO
12
13. LEAD
Seminis Provides Opportunity for Margin Expansion in
“Adjacent” Commercial Space
2010: Lead in New Market Opportunities
TODAY’S AGENDA
2005 INVESTOR DAY
ROBB FRALEY
10:30 AM
CHIEF TECHNOLOGY OFFICER
CARL CASALE
11:15 AM EXECUTIVE VICE PRESIDENT,
NORTH AMERICA COMMERCIAL
R
NOON LUNCH
BRETT BEGEMANN
12:30 PM EXECUTIVE VICE PRESIDENT,
Acquired companies such as Seminis are
INTERNATIONAL COMMERCIAL
an integral part of our margin expansion
LUNCH PRESENTATION: THE
TOPIC
as we benefit from applying our
SEMINIS OPPORTUNITY
technologies to “adjacent spaces”
1:15 PM BRETT BEGEMANN
TERRY CREWS
2:00 PM CHIEF FINANCIAL OFFICER
HUGH GRANT
2:45 PM CHAIRMAN, PRESIDENT AND CEO
13
14. LEAD
International Opportunity Leverages Experience, but
Adapts to Regional Market Needs
2010: Lead in New Market Opportunities
TODAY’S AGENDA
INTERNATIONAL GERMPLASM NETWORK
2005 INVESTOR DAY
ROBB FRALEY
10:30 AM
CHIEF TECHNOLOGY OFFICER
CARL CASALE
11:15 AM EXECUTIVE VICE PRESIDENT,
NORTH AMERICA COMMERCIAL
NOON LUNCH
BRETT BEGEMANN
12:30 PM EXECUTIVE VICE PRESIDENT,
INTERNATIONAL COMMERCIAL
1:15 PM BRETT BEGEMANN
GROWTH AND LEADERSHIP
TOPIC Through 2010, we expect the evolution of
GLOBALLY
the international landscape to continue,
TERRY CREWS
2:00 PM
and our strategies are positioning us to
CHIEF FINANCIAL OFFICER
lead in a “bigger world”
HUGH GRANT
2:45 PM CHAIRMAN, PRESIDENT AND CEO
14
15. LEAD
Our Strategic Success Is Underpinned by Our Operational
Focus and Discipline
2010: Translate Leadership to Value
TODAY’S AGENDA
ONGOING EPS
2005 INVESTOR DAY
$3.50
ROBB FRALEY
10:30 AM
20%
$3.00
CHIEF TECHNOLOGY OFFICER
Up To 20%
BRETT BEGEMANN $2.50
31%
11:15 AM EXECUTIVE VICE PRESIDENT,
$2.00
INTERNATIONAL COMMERCIAL
$1.50
NOON LUNCH
$1.00
$0.50
12:30 PM BRETT BEGEMANN
$0.00
CARL CASALE 2004 2005 2006F 2007F
1:15 PM EXECUTIVE VICE PRESIDENT,
NORTH AMERICA COMMERCIAL
TERRY CREWS
2:00 PM Our financial success in 2005 sets up
CHIEF FINANCIAL OFFICER
growth in 2006-2007 and beyond
FINANCIAL GROWTH AND
TOPIC SHAREOWNER VALUE
We continue to be a technology company
HUGH GRANT
that both grows EPS and generates
2:45 PM CHAIRMAN, PRESIDENT AND CEO
significant free cash
15
16. SUMMARY
Two-Step, Two-Horizon Strategy Creates a Line of Sight
for Success through 2010
2006 2007 2008 2009 2010
GROW
Grow Current Portfolio
Grow Globally
LEAD
Grow the Pipeline
Translate Growth to Value
Lead through Innovation
Lead in an Increasingly Competitive Market
Lead in New Market Opportunities
Translate Leadership to Value
16
