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. 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
With Opportunities in Hand, Monsanto Has Potential to More
Than Double 2007 Gross Profit Over Next Five Years
GROSS PROFIT OUTLOOK BY SEGMENT 2012 GROWTH RANGE
2007-2012F Gross profit targeted to more
>2X
than double from 2007 through
2012 including recent lift in
$10,000
Roundup to $1.8B gross profit
2007 BASELINE
STRATEGIC PLAYBOOK
$8,000
All growth is organic, from
IN MILLIONS
base business and pipeline
$6,000
U.S. Corn
International Corn
Soybeans
$4,000
Cotton
Vegetables
$2,000 R&D Pipeline
Earnings continue to translate
into operating cash
$0
2007 2008F 2012F
All Other Agricultural Productivity Increased in
Q2 2008 for
Roundup And Other Glyphosate-based
Herbicides new Roundup
Seeds & Genomics target
5. OVERVIEW
On Track to More Than Double Gross Profit From 2007 to 2012,
Growth Drivers Roll Out In Balanced Progression
GROSS PROFIT TARGET: • Yield & stress platform
R&D Pipeline DRIVERS:
NEAR $9B IN 2012 • Breakthrough platforms
• From 2007 baseline: $4.2B • Protected culture
Seminis DRIVERS:
• Molecular markers
• 2012 target increased by almost 10% in
Q2 2008 on incremental 2012 Roundup
• 2nd-gen trait acceleration
expectations
Cotton DRIVERS:
• Breeding inroads
• Roundup Ready 2 Yield platform
Soybean DRIVERS:
• Seed share growth
• Seed share growth
International Corn DRIVERS: • New trait approvals in LA
• Trait penetration and seed share growth
U.S. Corn DRIVERS: • SmartStax platform
2008 2009 2010 2011 2012
2012+
2011-2012
2009 2010
U.S. drought-
Delta and Pine
Roundup Ready 2 U.S. SmartStax
MILESTONES
tolerant corn launch
Land U.S.
Yield soybeans corn launch
portfolio
controlled
2012+
Large-scale converted to
commercial release
Stacked trait
Roundup Ready 2 second-
soybean launches,
First major selling Yield soybean generation stack
including dedicated
season for LA corn launch
product for Brazil
traits
Projected branded corn share gains globally
2008 to 2012
5
6. OVERVIEW
Strong Cash Position Gives Monsanto the Resources to
Extend Its Competitive Lead
MONSANTO’S FINANCIAL INDICATORS:
Cash Generation
OPERATING CASH AND ONGOING EPS – 2003 TO 2008F
Strong cash generation
$2,600 $3.50
allows Monsanto to invest to
Operating Cash
$2,400
extend its competitive lead:
$3.00
Cash from Operations
Ongoing EPS
$2,200
(in $ thousands)
Bolster direct returns to
Ongoing EPS
shareowners
$2.50
$2,000
Support commercial growth
through capital spending
$1,800 $2.00
Invest in future growth
$1,600
$1.50 through R&D
$1,400
Expand the core through
$1.00 strategic acquisitions
$1,200
$1,000 $0.50
2003 2004 2005 2006 2007 2008F
2008F
2003-2006
Monsanto operating
>$1B in Working Capital
cash guidance exceeds
reductions used to fund key
$2B, as net income
acquisitions like Seminis
grows
and ASI
6
7. OVERVIEW
Over Last Three Years, Use of Cash Focused on Areas That
Contribute to Growth and Return Value to Shareowners
USES OF CASH
CUMULATIVE: 2005-2007
SHARE REPURCHASES 9% OF CASH USED
• Initiated 4-year $800M share-repurchase program in October
$ in thousands
2005
$545
DIVIDENDS 11% OF CASH USED
• Increased dividends 3 times during this period, for a
cumulative increase of 106% $639
TECHNOLOGY SPENDING 5% OF CASH USED
$3,161
$266
• Nearly $150M spent to expand technology partnership
network
ACQUISITIONS 55% OF CASH USED
$1,160
• American Seeds, Inc. • Delta & Pine Land (2007)
(2004-2007) • Agroeste (2007)
• Seminis (2005)
CAPITAL SPENDING 20% OF CASH USED
• Beginning of 3-year, $610M plan to expand corn seed
production
7
8. RETURNING VALUE TO SHAREOWNERS
Newly Authorized Program Accelerates and Extends
Monsanto’s Share-Repurchase Initiative
MONSANTO ANNUAL SHARE REPURCHASE:
Share Repurchases
2003-2007
STATUS $300
• 54% through 4-year $800M
program begun in October $250
2005
• Focus areas in 2008:
$200
• In April, announced
$ in millions
acceleration of current
program and new 3-year
$150
$800M authorization
$100
$50
$0
2004 2005 2006 2007
2006 FORWARD
2004-2005
• 4-year $800M repurchase
3-year $500M repurchase
program initiated in October
program – completed early
2005
• 2008 Update: Accelerated
and added new program
8
9. RETURNING VALUE TO SHAREOWNERS
Monsanto’s Strong Earnings Growth Continues To Be
Reflected in Dividend Payout
MONSANTO QUARTERLY DIVIDENDS:
Dividends
2001-2007
STATUS
$0.20
• Since establishment in
$0.18
2001, Monsanto has
increased dividends 6 $0.16
times – an increase of 200
Per-Share Amounts1
percent $0.14
$0.12
$0.10
$0.08
$0.06
$0.04
$0.02
$0.00
Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08
2007
Monsanto increases quarterly dividend
twice in 12-month period
9
10. EXTENDING LEADERSHIP
Expanded Capital Spending Supports Growth Areas of Current
Commercial Business
MONSANTO CAPITAL SPENDING:
Capital Spending
2004-2007
STATUS
$1,000
• Capital Spending is being
$900
used to support growth
areas of the commercial $800
business – supporting
continued gross-profit $700
$ in thousands
growth
$600
• Focus areas in 2008:
• Global corn seed $500
production expansion to
support share growth in $400
DEKALB and ASI
• De-bottlenecking for $300
glyphosate production to
$200
increase volumes
$100
$0
2004 2005 2006 2007 2008F
2008F
Increased Capital Spending used to support
acceleration of corn-plant expansions and new
de-bottlenecking for glyphosate
1. Amounts for record dates from Jan. 1, 2001 – July 7, 2006 adjusted to allow comparison following Monsanto’s stock split
10
11. EXTENDING LEADERSHIP
Primary Capital Spending Use For Acceleration of Corn Plant
Expansions to Support DEKALB and ASI Share Growth
Capital Spending 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
11
12. EXTENDING LEADERSHIP
De-Bottlenecking of Roundup Production Moving to Increase
Volumes to Meet Demand-Driven Opportunity
Capital Spending ROUNDUP AND OTHER GLYPHOSATE-BASED HERBICIDES:
BRANDED AND NON-BRANDED TRENDS – 2004-2008F
STATUS
300
• In April, announced 18- Branded
month $196M Non-Branded
de-bottlenecking plan
250
• Demand-driven
Global Volume (in gallons)
environment is sustainable,
with projection of $1.8B in 200
gross profit in 2012
• Factors:
150
• $16-$18 Branded price band
• Single-digit volume growth
• Increased capacity in
100
CY2009-2010 from Monsanto
• Branded Roundup quality
needed to service Roundup
Ready opportunity 50
0
2004 2005 2006 2007 2008F
GLOBAL VOLUME
209M 215M 235M 252M 262M
(GALLONS):
BRANDED PRICE BAND
$11-$13 $11-$13 $11-$13 >$11-$13 $16-$18
(PER GALLON):
TOTAL ROUNDUP AND ALL
$703M $637M $648M $854M $1.8B
OTHER GLYPHOSATE-BASED
HERBICIDES GROSS PROFIT:
12
13. EXTENDING TECHNOLOGY
Monsanto’s Significant, But Focused R&D Investment Helps
Extend Lead in Core Seeds-and-Traits Business
R&D MONSANTO’S R&D EXPENDITURES:
2004-2007
STATUS
• Monsanto spends more on $900 12%
seed and biotech R&D than
any other ag company $800
10%
R&D Spend (in $ millions)
• R&D is targeted at 10% of
R&D as Percent of Sales
$700
sales
• >90% of R&D spend is for $600 8%
seeds-and-traits, split
$500
roughly 50/50 between 6%
breeding and $400
biotechnology
$300 4%
• Outlook for 2008:
• R&D spend likely to be in $200
9% range given rapid 2%
uptick in revenue, still $100
greater than $850M
$0 0%
2004 2005 2006 2007
Monsanto’s R&D spending applies earnings
from established products like Roundup
herbicides to extend the company’s
leadership in the high-margin seeds-and-traits
segment
13
14. EXTENDING TECHNOLOGY
Additional Spending for Collaborations and Other Investments
Expand R&D Network
R&D TECHNOLOGY SPEND FOR SEEDS & TRAITS1:
COLLABORATIONS AND INVESTMENTS – 2004-2007
STATUS
$70
• Beyond pure R&D expense,
Monsanto also uses cash
for technology $60
collaborations and other
investments $50
• Monsanto has thousands
$ in millions
of research agreements, $40
licenses and collaborations
with universities, institutes $30
and other companies
$20
$10
$0
2004 2005 2006 2007
1. Reflects portion of “Technology and Other Investments” devoted to seed-and-trait programs; 2006 figure excludes a one-time $100M payment
made for patents for Monsanto’s Animal Agriculture business
14
15. EXTENDING TECHNOLOGY
R&D Engine Is Poised to Launch Average of One Game-
Changing Technology Every Other Year Through Mid-Decade
2008 2009 2010 2011 2012 TO MID-DECADE
HIT Project HIT Project
Nitrogen-Utilization
SmartStax
Roundup Ready Drought-Tolerant Corn Family
TECHNOLOGY: 2 Yield
Corn Family
Soybeans
• Resets trait • Resets trait platform • Value likely in • Targets ways to use
platform for in corn improved yield nitrogen more
PRODUCT
soybeans under stress and efficiently
CONCEPT:
potential for water
replacement
2020 COMMERCIAL
HIGH HIGH HIGH HIGH
VALUE1:
U.S. ACRE
40-50M 60-65M 55M 55M
OPPORTUNITY2:
• On track for • On track for 2010 • Lead product in • Lead product in
controlled launch Phase 3 testing Phase 1 testing
commercial release • Second-generation
in 2009 of 1-2M product in Phase 2
STATUS:
acres
• Full commercial
launch of 5-6M
acres in 2010
1. 2020 value reflects gross sales opportunity in launch country in year 2020; “HIGH” : $300-$500M
2. Acre opportunity reflects acres where technology fits at Monsanto's current 2007 market share in respective crops
15
16. EXTENDING TECHNOLOGY
Strong Pipeline Reflects Growing Innovation and Leadership;
Expected to Create Commercial Value of $>5B in 2020
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
Bollgard III
Omega-3 Ready 2 Yield
soybeans soybeans
Roundup
MEGA HIGH Ready 2 Yield
canola
$300M-$500M
>$1BM Insect-protected
RR2Y soybeans
YieldGard VT PRO
corn
High-oil
MID LOW soybeans
<$150M
$150M-$300M Dicamba-tolerant
Improved-
soybeans
protein
Corn Soybeans Cotton Canola Vistive III soybeans
17. EXTENDING PLATFORMS
Recent Acquisitions Have Converted Cash From Roundup
Into Higher-Margin Seed Opportunities
INVESTMENT OPPORTUNITY
In an expanding agriculture environment, value is defined by scarcity or
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
(agreement signed)
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
17
18. EXTENDING PLATFORMS
Success of ASI Model Has Allowed Monsanto to Further Its
Momentum in the U.S. Corn Business
Acquisitions ASI GROSS PROFIT PER ACRE
STATUS
• Begun in November 2004, GP/acre increases
2
AVERAGE GROSS PROFIT/ACRE
ASI now stands at >20 85% after ASI Average
1.8
seed brands acquisition GP/acre in
1.85
• With technology support same band
1.6
as DEKALB
of Monsanto and local
1.4
(INDEXED)
touch of established
brands, ASI is poised to 1.2
grow 1-2 share points in
1
2008
1
0.8
0.6
0.4
0.2
0
POST-
PRE- DEKALB
ACQUISITION
ACQUISITION
• With technology infusion, gross profit per acre lifts when
seed company brought under ASI umbrella
19. EXTENDING PLATFORMS
De Ruiter Seeds Accelerates Monsanto Vegetable Seed
Capability and Reach, Bolstering Five-Year Growth Prospects
VALUE CREATION FOR VEGETABLE SEED PLATFORM:
STAGED OPPORTUNITIES FOR INCREASING GROSS PROFIT
VALUE CREATION OPPORTUNITY
New product launches;
use of molecular markers
Aggressively shift mix via protected culture and hybrid conversion
Identify and implement opportunities to capture full product value
Assemble genetic maps for key crops
Focus on operational excellence; working capital management
2007 2008 2009 2010 2011 2012
PIPELINE
OPERATIONAL EXCELLENCE NEW VALUE CREATION
ADVANCEMENT
~2010 2012
2007 Seeds1
De Ruiter accretive to Monsanto vegetable
Monsanto vegetable Monsanto vegetable seed EPS seeds projected to
seed sales top contribution in second full fiscal be >$1B in sales,
$600M in 2007; 7.5% year following closing mid-60s margin
top-line growth
2008 2012
De Ruiter Seeds Molecular marker platform
acquisition agreement begins transforming
Seminis and De Ruiter
announced1 – strengthens
portfolios
protected-culture portfolio
1. Subject to closing
19
20. SUMMARY
Growth Is Underpinned By Financial Discipline, Continued
Focus on Working Capital
MONSANTO WORKING CAPITAL:
Working Capital
2003-2007
STATUS
50%
Receivables as a percent of sales
• Even as business expands,
45% Inventory as a percent of sales
discipline has been
sustained on key working 40%
capital elements
35%
• 2007 Current Ratio – 1.65:1
Percent of Sales
• Focus in 2008: 30%
• Receivables as a percent
of sales: High teens 25%
• Inventories as a percent of
20%
sales: 20%
15%
10%
5%
0%
2003 2004 2005 2006 2007
2007
Receivables and Inventories as a percent of
sales decline to lowest point in Monsanto’s
existence
20
21. SUMMARY
Monsanto Using Strong Cash Backbone to Extend
Competitive Lead Through Innovation, Driving 2012 Growth
GROSS PROFIT OUTLOOK BY SEGMENT 2012 GROWTH RANGE
2007-2012F Gross profit targeted to more
>2X
than double from 2007 through
2012
$10,000
2007 BASELINE STRATEGIC PLAYBOOK
All growth is organic, from
$8,000
base business and pipeline
IN MILLIONS
U.S. Corn
$6,000
International Corn
Soybeans
Cotton
$4,000
Vegetables
R&D Pipeline
$2,000
Earnings continue to translate
into operating cash, and value
created for shareowners
$0
through combination of
2007 2008F 2012F acquisitions, share
repurchases and dividends
All Other Agricultural Productivity Increased in
Q2 2008 for
Roundup And Other Glyphosate-based
Herbicides new Roundup
Seeds & Genomics target
22. Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP EPS
Fiscal Year Fiscal Fiscal Year Fiscal Year Fiscal Year Fiscal Year
$ per share 2008 Year 2007 2006 2005 2004 2003
Net Income (Loss) per Share $3.38-$3.48 $1.79 $1.25 $0.47 $0.50 $0.13
Cumulative Effect of Change in Accounting Principle -- -- $0.01 -- -- $0.02
Diluted Earnings (Loss) per Share Before Effect of $3.38-$3.48 $1.79 $1.26 $0.47 $0.50 $0.15
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 $0.05
Operations 1
Loss (Income) on Discontinued -- ($0.13) -- $0.05 -- $0.03
Impairment of Goodwill -- -- -- -- $0.12 --
In-Process R & D Write-Off Related to the Delta & Pine -- $0.34 -- -- -- --
Land (D&PL) Acquisition
PCB Litigation Settlement Expense – Net -- -- -- -- -- $0.48
Diluted Earnings (Loss) per Share from Ongoing Business $3.15-$3.25 $2.00 $1.30 $1.04 $0.80 $0.71
Note: EPS figures reflect the stock split effective July 28, 2006
1. The operating results of Stoneville and Nexgen have been conformed to discontinued operations for all relevant years presented.
22
