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 ongoing 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, not replace net income (loss), cash flows, financial position, or comprehensive income (loss), as
determined in accordance with GAAP. 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.
With respect to the time period prior to Sept. 1, 2000, references to Monsanto in this presentation also refer to the
agricultural business of Pharmacia.
FISCAL YEAR:
References to year, or to fiscal year, are on a fiscal year basis and refer to the 12-month period ending August 31.
3
4. FY2009 Guidance Supports 20 Percent Plus
Growth Rate
FY2008 2009F Q1 2009 Q1 2008 CHANGE
EARNINGS
$4.40-$4.50
$3.64
ONGOING EARNINGS PER ~20-24%
>80% $0.98 $0.45 118%
SHARE GROWTH GROWTH
FROM 2007 FROM 2008
$678M $495M 37%
Seeds & Genomics Gross Profit $3.9B $4.5-$4.6B
Corn Seed & Traits Gross Profit $2.2B ~$2.8B $403M $285M 41%
Soybean Seed & Traits Gross Profit $725M ~$700M $145M $111M 31%
Cotton Seed & Traits Gross Profit $313M ~$300M $26M $24M 8%
Vegetable Seeds Gross Profit $394M ~$500M $80M $64M 25%
All Other Seed & Traits Gross Profit $251M ~$200M $24M $11M 118%
Roundup And All Other Glyphosate- $804M $487M 65%
$2.0B $2.4-2.5B
based Herbicides Gross Profit
$68M $57M 19%
All Other Ag Productivity Gross Profit $344M ~$400M
CASH MANAGEMENT AND SPENDING
FREE CASH FLOW $124M $740M -83%
$772M >$1.8B
$124M $996M -88%
Operating Cash $2.8B >$3B
$274M $154M 78%
Capital Expenditures $918M ~$1B
21% 22% Dec. 1 pt
SG&A as a Percent of Sales 20% 19% Range
R&D as a Percent of Sales (Excluding 9.5%-10% <10% <10% FLAT
9%
acquired IPR&D) Range
4
5. Monsanto’s Biotech Pipeline Is Accelerating, With Progress
in Key Projects and on Highest-Value Platforms
MILESTONES:
Biotech pipeline progress is accelerating
6 projects either advanced from one phase to
another or were added to the pipeline
First time ever transitioned 2 projects from Phase 3
Q1 Q4 to Phase 4 with each project remaining in Phase 3
for only 1 year
Q2 First addition of a project in sugarcane,
Q3
accelerating expansion into new areas
Accelerated progress is on the most
meaningful platforms and products
Advanced phases on 2 critical yield & stress
products
Drought-tolerant corn lead moves into Phase 4
ANNUAL R&D CYCLE: SEEDS & TRAITS with first regulatory submission
WHAT CHANGED 2008-2009? Higher-yielding soybeans move into Phase 3
with strong field trial performance
• 4 projects advanced phases
SmartStax, the new platform for corn, moves into
• 2 products added
pre-launch Phase 4 with EPA submission
• 1 product launched and 1 in demonstration:
Biotech pipeline robust with new
• Roundup Ready 2 Yield soybeans collaborations and broad scale testing
• YieldGard VT Pro – Commercial Demonstration Entered into more than 1,400 technology-related
►
• 2 products removed: agreements; 40% more than FY2007
• High-oil corn Field tested over 2,500 genes in 13,000 field events
►
• Mavera high-value corn with lysine in 180 locations in phase 1-3 projects
~89,000 drought plots and ~48,000 SmartStax plots
►
5
6. Monsanto’s Investment in Breeding Continues to Yield
Results; Improving Germplasm Base Across Crops
15
BUSHELS/ACRE DEKALB ANNUAL YIELD ADVANTAGE
DEKALB 3-YEAR ROLLING AVERAGE YIELD ADVANTAGE
10
9.6 8.8
8.4 8.4 8.3
8.2 7.8
7.1
5
0
2005 2006 2007 2008
ASGROW FINAL ANNUAL YIELD ADVANTAGE
2
BUSHELS/ACRE
ASGROW FINAL 3-YEAR ROLLING AVERAGE YIELD ADVANTAGE
1.5
1.5
1 1.4
1.2
1.1 1.0
0.5 0.7
0
2006 2007 2008
2009 Deltapine Bollgard II Roundup 2008 Deltapine Bollgard II Roundup
CROP VALUE ($/ACRE)
Ready Flex Ready Flex
700 2008 Competitive Bollgard II Roundup 2008 Deltapine 555 Bollgard Roundup
Ready Flex Ready
600
500
400
Beltwide N. Tier S. Tier TX, OK
N = 78
N = 189 N = 25
N = 61
6
7. Final Yield Trial Results Reinforce Yield Advantage of DEKALB
Seed in the U.S.
2008 FINAL U.S. COMPETITIVE CORN YIELD
COMPARISON: DEKALB
3-YEAR ROLLING AVERAGE YIELD ADVANTAGES
14
2005-2007
2003-2005
12 2006-2008 11.5
2004-2006
(APPROXIMATE DIFFERENCES)
GEOGRAPHY: U.S.
10.4
10
Grow 1-2 Share
2009
OBJECTIVE:
8.8
Points 8.4
BUSHELS/ACRE
2008 PERFORMANCE UPDATE
8 7.6
• DEKALB consistently
6
out-yields competitive
best over time and
changing environmental 4
conditions 2.9
• DEKALB’s overall 3-year 2
average yield advantage
continues to improve
0
each year
95 100 105 110 115 Overall
RELATIVE MATURITY ZONE
Source: Annual yield advantage calculated each year by comparing leading DEKALB volume products within each RM zone to national
competitor products within 2 RM days. 2008 data as of November 23, 2008. Weighted average calculated to 15% moisture. >230,000
comparisons represented in the overall 3-year of rolling averages.
7
8. New 2009 Deltapine Bollgard II Roundup Ready Flex
Varieties Provide Greater Value to Growers
DELTAPINE 2008 COMPETITIVE YIELD TRIALS
NEW:
750
Value difference of 2009 Deltapine Bollgard II Roundup Ready Flex
700
Crop Value ($/acre)
vs. control checks
Crop Value ($/acre)
+5.9-6.6%
+9.3-12.2% +4.8-9.9%
+7.2-9.5%
GEOGRAPHY: U.S.
650
Convert fully to
600
Bollgard II
2012
Roundup
OBJECTIVE:
550
Ready Flex
varieties
500
2008 PERFORMANCE UPDATE
450
• In 2008, in > 530 trials,
the new class of
400
Deltapine Bollgard II
Roundup Ready Flex
Beltwide N. Tier S. Tier TX, OK
varieties out-performs N = 189 N = 25
N = 61
N = 78
the competition and
existing 2008 Deltapine
2009 Deltapine Bollgard II Roundup Ready Flex
varieties, from a value
perspective, by nearly 5- 2008 Competitive Bollgard II Roundup Ready Flex
12% across the cotton-
2008 Deltapine Bollgard II Roundup Ready Flex
growing regions of the
U.S.
2008 Deltapine 555 Bollgard Roundup Ready
8
9. Phase Advancements For Key Projects Reflect Progress and
Strength Throughout Monsanto’s Industry-Leading Pipeline
BIOTECH TRAIT PIPELINE: JANUARY 2009 UPDATE
PHASE PHASE PHASE PHASE
D 1 3
2 4
AGRONOMIC TRAITS
PHASE PHASE PHASE PHASE
D 1 3
2 4
SMARTSTAX CORN
YIELD AND STRESS PIPELINE
DICAMBA-TOLERANT SOYBEANS
DROUGHT-TOLERANT CORN
FAMILY INSECT-PROTECTED + ROUNDUP
READY 2 YIELD SOYBEANS
DROUGHT-TOLERANT CORN
2ND GEN INSECT-PROTECTED +ROUNDUP
READY 2 YIELD SOYBEANS
2ND-GEN DROUGHT-TOLERANT CORN
INSECT-PROTECTED + ROUNDUP
READY SUGARCANE
NITROGEN-UTILIZATION CORN
BOLLGARD III
FAMILY
NITROGEN-UTILIZATION CORN
SOYBEAN NEMATODE-RESISTANCE
BROAD-ACRE HIGHER-YIELDING SOYBEAN DISEASE
CORN FAMILY
HIGHER-YIELDING CORN DICAMBA AND GLUFOSINATE-
TOLERANT COTTON
BROAD-ACRE HIGHER-YIELDING COTTON LYGUS CONTROL
SOYBEAN FAMILY
YIELDGARD ROOTWORM III
HIGHER-YIELDING SOYBEANS
2ND-GEN HIGHER-YIELDING
SOYBEANS
VALUE-ADDED TRAITS
DROUGHT-TOLERANT COTTON
FAMILY
EXTRAX™ CORN PROCESSING
SYSTEM2
DROUGHT-TOLERANT COTTON
HIGH-OIL SOYBEANS
BROAD-ACRE HIGHER-YIELDING
CANOLA FAMILY
2ND-GEN HIGH-OIL SOYBEANS
HIGHER-YIELDING + ROUNDUP
READY 2 YIELD CANOLA1
OMEGA-3 ENRICHED SOYBEANS
The colored bar associated with each project indicates which phase that project is in. It is
VISTIVE III SOYBEANS
not intended to represent the relative status of the project within a particular stage.
Jan. 3, 2009 Advancements/Additions HIGH-STEARATE SOYBEANS
(VIA BIOTECH)
High Impact Technologies (HIT) project
1. For higher-yielding + Roundup Ready 2 Yield canola, only the value of the higher-yielding
trait is incorporated into the Yield and Stress collaboration with BASF
2. Value of licensing the EXTRAX™ technology is shared with Cargill as a part of Renessen
9
joint venture
10. Roundup Ready 2 Yield Soybeans Introduction Highly
Anticipated by Farmers Because of Step Change In Yield
ROUNDUP READY 2 YIELD
LAUNCH PLANS
► U.S. controlled commercial release on
1-2M acres in maturity groups 2 and 3
► >50% of the U.S. soybean acres
planted are in groups 2 and 3
► Multiple varieties available for 2009
2009
release
VALUE PROPOSITION
► EU import approval recently obtained,
YIELD
IMPROVEMENT ON
~3.8 bu/ac
AVERAGE YIELDS
demonstrating continued global
IN GROUPS 2 & 3:
acceptance
INCREMENTAL
YIELD VALUE TO
~$38/ac ► Launch on 5-6M acres in the U.S. with
FARMER (VERSUS
ROUNDUP READY):
2010 up to 30 new varieties with expanded
PRICING
maturity groups
SEAMLESS PRICE
FOR FIRST-
$49-$52 ► Expand majority of Asgrow varieties to
GENERATION
ROUNDUP READY
2011
SEED (PER ACRE)1:
Roundup Ready 2 Yield
SEAMLESS PRICE
$69-$72
FOR ROUNDUP
READY 2 YIELD
SEED (PER ACRE)1:
10
1. Reflects seamless price to the farmer, including trait value, germplasm value and value provided by the seed treatment.
11. Roundup Ready 2 Yield Will Be the First Biotech Yield Trait
Offered in Soybeans
FINAL ROUNDUP READY 2 YIELD SOYBEANS VERSUS COMMERCIAL CHECKS
NEW:
COMPARISONS TO COMMERCIAL ROUNDUP READY SOYBEANS – 2 YEAR SUMMARY
60
COMPETITORS’ PRODUCT WITH
ROUNDUP READY 2 YIELD ROUNDUP READY TRAIT
Two year summary
Bushels per Acre 55
(2007-2008) of
head-to-head
54.5 55.2
55.5
comparisons
between all
50
Roundup Ready 2
49.9 51.7 51.4
Yield products
available for sale in
2009 vs. national
45
competitor
Roundup Ready
products. Final
40
data as of
December 9, 2008.
35
2 3 Overall
RELATIVE MATURITIES:
COMPARISONS: >1,000 >2,900 >3,900
APPROXIMATE BU/AC
ADVANTAGE FOR ROUNDUP 4.6 3.8 3.8
READY 2 YIELD:
PERCENT YIELD ADVANTAGE
9.1% 7.3% 7.4%
FOR ROUNDUP READY 2 YIELD1:
► Power in the Pod: Roundup Ready 2 Yield soybean varieties provide higher yields by
producing more 3-bean pods per plant2
1 Roundup Ready 2 Yield percent yield advantages ranged from 6 to 12% across year and maturity group combinations.
2 SOURCE: 19 Monsanto field trials with seed counted from over 4,728 plants from 340 plots. p value <0.001 Data as of November 24, 2008.
11
12. SmartStax Corn Advances to Phase 4 with EPA Submission,
Closing In On Estimated 2010 Launch
SMARTSTAX
R&D Pipeline
LAUNCH PLANS
SmartStax Corn
► SmartStax EPA submission made June 16, 2008
ADVANCED
STATUS:
Phase 4
► Requested reduction in refuge for both
PROJECT CONCEPT:
above-ground and below-ground corn pests
SmartStax combines the following to 5% from current 20% requirement in the
herbicide-tolerant and insect-protection
corn belt
2008
traits for the most complete control:
• YieldGard VT Rootworm with ► Necessary global regulatory submissions made
Roundup Ready Corn 2 and YieldGard
and first import approval received from Japan
VT PRO
• Herculex® I and Herculex® RW in December
• Liberty Link®
► All insect efficacy data confirmed
VALUE:
► December 2008: EPA approved amendment to
LAUNCH-COUNTRY
55-65M
allow for reduction in above-ground corn pest
ACRES1:
refuge to 5% from 20% in the corn belt for
2020 VALUE2: $300-$500M
second-generation YieldGard corn borer
WHOLE-FARM YIELD IMPROVEMENT 2009 technology; YieldGard VT Pro component of
ESTIMATES:
SmartStax
IMPROVED CONSISTENCY FOR
► SmartStax yield testing in Monsanto hybrids in
1
1. Acre opportunity reflects acres where technology fits at
PRIMARY AND SECONDARY
Monsanto's current 2007 market share in respective crops
3
PESTS
summer 2009
2. 2020 value reflects gross sales opportunity in launch
2country in year 2020 REFUGE 4
REDUCED
► Planned U.S. launch of SmartStax4
2010
TOTAL: 5-10%
1. Acre opportunity reflects acres where technology fits at Monsanto's current 2007 market share in respective crops
2. 2020 value reflects gross sales opportunity in launch country in year 2020
Herculex® is a registered trademark of Dow Agrosciences LLC
12
3. As compared to YieldGard VT Triple 4. Subject to EPA approval
Liberty Link® is a registered trademark of Bayer CropScience AG
13. SmartStax Insect Efficacy Trials Highlight Increased Durability
and Insect Spectrum of New Corn Platform
2007 & 2008 SmartStax EFFICACY TRIALS
NEW:
R&D Pipeline
Node Injury Scale 0-3
1.5
SmartStax Corn
CRW Root Damage Ratings
ADVANCED
STATUS: 1.0
Phase 4
PROJECT CONCEPT:
0.5
SmartStax combines the following
herbicide-tolerant and insect-protection
0.0
traits for the most complete control:
YieldGard VT
Roundup Herculex® SmartStax
• YieldGard VT Rootworm with Rootworm
Ready Corn Rootworm
6.0 with Roundup
Roundup Ready Corn 2 and YieldGard
Damaged Area (cm2)
Ready Corn 2
VT PRO
5.0
• Herculex® I and Herculex® RW Corn Earworm Damage
4.0
• Liberty Link®
3.0
VALUE:
2.0
LAUNCH-COUNTRY
1.0
55-65M
ACRES1:
0.0
2020 VALUE2: $300-$500M Roundup Herculex® SmartStax
YieldGard VT
Ready Corn Corn Borer Triple PRO
WHOLE-FARM YIELD IMPROVEMENT
ESTIMATES:
The second-generation YieldGard corn borer trait, a key
SmartStax component, demonstrates incremental yield benefit of
IMPROVED CONSISTENCY FOR
11. Acre opportunity reflects acres where technology fits at
PRIMARY AND SECONDARY 4 percent over first-generation corn borer traits in preliminary
Monsanto's current 2007 market share in respective crops
PESTS 3
data from 2 years of comparisons
2. 2020 value reflects gross sales opportunity in launch
country in year 2020
2 REDUCED REFUGE 4 Fewer damaged kernels from earworm drives yield advantage
TOTAL: 5-10%
1. Acre opportunity reflects acres where technology fits at Monsanto's current 2007 market share in respective crops
2. 2020 value reflects gross sales opportunity in launch country in year 2020
Herculex® is a registered trademark of Dow Agrosciences LLC
13
3. As compared to YieldGard VT Triple 4. Subject to EPA approval
Liberty Link® is a registered trademark of Bayer CropScience AG
14. Lead Drought-Tolerant Corn Project Advances to Phase 4; 2008
Dry Land Field Tests Mark Fifth Season of Increased Yield
FIFTH YEAR OF CONSISTENT YIELD
NEW: IMPROVEMENT UNDER DROUGHT STRESS
R&D Pipeline Average Yield Improvement of Lead Event
Percentage yield difference vs. control
16
Drought-Tolerant Corn Family:
Yield Difference (bu/acre)
Lead Project 10.5% 11.3% 7.7%
13.4% 6.7%
14
ADVANCED:
HIT Project Phase 4 12
10
VALUE:
LAUNCH-COUNTRY 8
55M
ACRES-FAMILY1:
6
2020 VALUE-
$300-$500M
FAMILY2:
4
SOURCES OF VALUE:
2
Improved yield 0
Targeting 6-10% yield improvement
2004 2005 2006 2007 2008
in water-stress environments;
historically the dry land farms of the
5 TOTAL
9 TOTAL 11 TOTAL
8 TOTAL 15 TOTAL
Western Great Plains
LOCATIONS LOCATIONS LOCATIONS LOCATIONS
LOCATIONS
▲ 2008 Western Great Plains Testing: Lead event continued to
demonstrate a yield advantage in a drought stress environment
Evaluation of best germplasm and trait combinations underway
Regulatory submissions in progress, with initial submission to
1. Acre opportunity reflects acres where technology fits at
Monsanto's current 2008 market share in respective crops
FDA made December 19, 2008
2. 2020 value reflects gross sales opportunity in launch country
in year 2020
14
PART OF THE MONSANTO BASF YIELD AND STRESS R&D COLLABORATION
15. Higher-Yielding Soybeans Advance to Phase 3 With Continued
Demonstration of Improved Yield Over Conventional Controls
2008 HIGHER-YIELDING SOYBEAN AGRONOMIC
NEW: TESTING VERSUS CONTROLS
R&D Pipeline
Higher-Yielding Soybean Family:
Dayton, Iowa -- 2008
Lead Project
Control Transgenic
ADVANCED
STATUS:
Phase 3
VALUE:
LAUNCH-COUNTRY
45M
ACRES-FAMILY1:
2020 VALUE-
$300-$500M
FAMILY2:
SOURCES OF VALUE:
Improved yield
Targeting 6-10% yield improvement
through insertion of key genes
Lead events 1 and 2 showing average yield advantage of 7.4%
and 6.7%, respectively, over controls in meta analysis across
three seasons of testing in 56 environments
1. Acre opportunity reflects acres where technology fits at
Monsanto's current 2008 market share in respective crops
Higher-yielding trait built upon yield platform of Roundup
2. 2020 value reflects gross sales opportunity in launch country
in year 2020
Ready 2 Yield
15
PART OF THE MONSANTO BASF YIELD AND STRESS R&D COLLABORATION
16. Dicamba and Glufosinate-Tolerant Cotton Demonstrated
Excellent Tolerance in 2008, Advancing to Phase 2
DGT COTTON DEMONSTRATES EXCELLENT
NEW: TOLERANCE IN 2008 FIELD TRIALS
R&D Pipeline
Dicamba and Glufosinate-Tolerant
Winterville, Mississippi – July 2008
Cotton (DGT Cotton)
ADVANCED
STATUS: DGT Cotton
Non-transgenic
Phase 2
Control
VALUE:
LAUNCH-COUNTRY
8-10M
ACRES1:
2020 VALUE2: <$150M
SOURCES OF VALUE:
Increased Flexibility
Improved weed control options with
three modes of action for herbicide
tolerance: Roundup Ready Flex plus
dicamba and glufosinate-tolerance
DGT cotton showed tolerance to dicamba and glufosinate at
three applications at two times the recommended application
rates
DGT cotton demonstrated yield parity to conventional cotton in
first year of field trials
Planned to stack with Roundup Ready Flex for launch
1. Acre opportunity reflects acres where technology fits in first country of launch
16
2. 2020 value reflects gross sales opportunity in launch country in year 2020
17. Roundup Ready and Insect-Protected Sugar Cane Advanced to
Phase 1 as First Project in New Focus Crop
FIRST ROUNDUP READY AND INSECT-
NEW: PROTECTED SUGAR CANE FIELD TRIAL
R&D Pipeline
Roundup Ready and Insect-
Conchal, Brazil – September 2008
Protected Sugar Cane
ADVANCED:
STATUS:
Phase 1
VALUE:
LAUNCH-COUNTRY
13.5M
ACRES1:
2020 VALUE2: <$150M
SOURCES OF VALUE:
Reduced insecticide use
Potential to reduce insecticides
1.
through insertion of key genes
for in-plant insect control
Improved yield
Potential to improve yield with
improved insect control,
Multi-event field trial established in the Sao Paulo region of
specifically of the sugar cane
Brazil in September
2. borer, from insertion of key
genes and improved weed These events have shown efficacy in initial greenhouse
control with Roundup Ready studies
gene conveying herbicide
1. Acre opportunity in 2020 assuming 17M acres planted and a 20% refuge.
tolerance
2. 2020 value reflects gross sales opportunity in launch country in year 2020
17
18. Second-Generation Soybean Insect Control Product for Brazil
Moves into Phase 1; Targets Improved Spectrum and Durability
2nd GENERATION INSECT-CONTROL
NEW:
SOYBEAN EVENTS MOVE TO PHASE 1
R&D Pipeline
2nd Gen Insect-Protected +Roundup
Ready 2 Yield Soybean
ADVANCED
STATUS:
Phase 1
VALUE:
LAUNCH-COUNTRY: Brazil
LAUNCH-COUNTRY ACRES1: 50M
2020 VALUE2: TBD
SOURCES OF VALUE:
Insecticide Reduction
- -
+ + + -
1. Improved spectrum for
secondary pests
Efficacy is measured by insect mortality and
2. Reduced Refuge reduction of leaf feeding
20 events across 5 constructs were selected based on
efficacy in a leaf disc insect bioassay
Events express either one or two lead Bt proteins
Second-generation insect-protected product will contain at
1. Acre opportunity reflects acres where technology
expected to fit
least two distinct modes of action to enhance spectrum and
2. 2020 value to be determined when product moves to
increase durability
Phase 2
18
19. Cotton Plant Tests Reveal First Break-Through in Piercing,
Sucking Insects with Phase 1 Cotton Lygus Control Lead
Lygus-Resistant Cotton Leaves
200 0.9
R&D Pipeline Lygus-Resistant Cotton Leaves -PPM
180 0.8
Mean insect mass -mg
Cotton Lygus
Mean Insect Mass (mg)
160
PPM Fresh Weight
Phase 1 0.7
STATUS:
140
VALUE: 0.6
120
LAUNCH-COUNTRY ACRES1: 8-10M 0.5
100
2020 VALUE2: TBD 0.4
80
SOURCES OF VALUE: 0.3
60
0.2
Insecticide Reduction 40
1. Improved spectrum for
0.1
20
secondary pests such as lygus
0 0
Improved Yield
1 2 3 4 5 6 7 8 9
Improved yield from reduced
2. damage to bolls and improved
plant health
Cotton lygus-resistant plants show activity against lygus in
Lygus nymphs
growth chamber events as evidenced by decreasing mass
gain for lygus as concentration of resistant-plant leaves
increases
First break-through in developing a biotech product with
resistance to piercing, sucking insects such as lygus
- + Protein Crystal
19
protein protein Structure
20. Second Generation Drought-Tolerant Corn Consistently
Demonstrates Yield Benefit in Third Year of Testing
SECOND-GENERATION DROUGHT-TOLERANT
NEW: CORN: THIRD YEAR OF TESTING
R&D Pipeline
Drought-Tolerant Corn Family: Percentage yield difference vs. control
18
Yield Difference (bu/acre)
Second-Generation Project +10%
+15% +9%
16
Phase 2
STATUS:
14
VALUE:
12
LAUNCH-COUNTRY
55M 10
ACRES-FAMILY1:
8
2020 VALUE2: $300-500M
6
SOURCES OF VALUE:
4
Improved Yield
2
Targeting 6-10% yield
0
1 improvement in water-stress
environments in a broad-
2006 2007 2008
acre application
HIGH LOW LOW
Water Substitution DROUGHT DROUGHT DROUGHT
53 bu/ac base
2 166 bu/ac base
Pumped irrigation has a 173 bu/ac base
4 locations 7 locations 5 locations
variable cost of >$100/ acre.
16 reps total 21 reps total 20 reps total
1. Acre opportunity reflects acres where technology fits at
Currently selecting commercial event for second-generation
Monsanto's current 2007 market share in respective crops
2. 2020 value reflects gross sales opportunity in launch drought-tolerant corn
country in year 2020
20 20
PART OF THE MONSANTO BASF YIELD AND STRESS R&D COLLABORATION
21. First Product from Higher-Yielding Corn Family Showed
Improved Yield in 2008 Trials
HIGHER-YIELDING CORN GENERATES YIELD
NEW: ADVANTAGE VERSUS CONTROLS
Percent yield difference vs. control
R&D Pipeline
Yield Difference (bu/ac)
16.0 5.8%
6.0% 5.4% 4.6%
Higher-Yielding Corn Family:
Lead Project
12.0
Phase 2
STATUS:
VALUE:
8.0
LAUNCH-COUNTRY
55M
ACRES-FAMILY1:
2020 VALUE-
>$1B 4.0
FAMILY2:
SOURCES OF VALUE:
0.0
Improved yield
Targeting 6-10% yield improvement Event 1 Event 2 Event 3 Event 4
through insertion of key genes
18 Locations
Potential commercial events were yield tested at 18 locations
in the U.S. in 2008
1. Acre opportunity reflects acres where technology fits at
8 potential commercial events enhanced yield over controls
Monsanto's current 2008 market share in respective
crops
in the target range for the product concept
2. 2020 value reflects gross sales opportunity in launch
country in year 2020
Potential commercial events will be advanced to a more
powerful trial in U.S. in 2009
21
PART OF THE MONSANTO BASF YIELD AND STRESS R&D COLLABORATION
22. Consistent Yield Benefit from Nitrogen Utilization Lead Across
Two Years of Testing Under Limited Nitrogen Applications
NITROGEN-UTILIZATION CORN LEADS REPEAT
NEW: YIELD ADVANTAGE
R&D Pipeline
With Gene
Control
Nitrogen-Utilization Corn Family:
Lead Project
240
Phase 1
LEAD STATUS: 8%*
Yield – (bu/ac)
220
VALUE: 200
LAUNCH-COUNTRY 180
55M
ACRES-FAMILY1:
160
2020 VALUE-
$300-$500M 140
FAMILY2: 23%*
120
SOURCES OF VALUE:
100
Improved yield
80
Yield improvement in normal
1
nitrogen environments
0 60 200
Nitrogen reduction Lbs of applied Nitrogen
2 Improving yield in low nitrogen 2007 2008 2008
environments
2 locations, 4 locations, 16 locations, * p<0.1
3 reps 3 reps 1 rep
Gene provides potential for reducing input costs as
1. Acre opportunity reflects acres where technology fits at
demonstrated by two years of field performance
Monsanto's current 2008 market share in respective crops
2. 2020 value reflects gross sales opportunity in launch
country in year 2020
22
PART OF THE MONSANTO BASF YIELD AND STRESS R&D COLLABORATION
23. Investment in Traits Yields Significant Returns for Both
Monsanto and Growers
ROUNDUP READY SOYBEAN TRAIT
LIFE-TO-DATE NET SALES = ~$4.0B
GROWERS RECEIVED
~$11B1
OF FARM INCOME
BENEFIT
~40X
INITIAL
INVESTMENT
~$100M
INITIAL R&D
INVESTMENT
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
1. SOURCE: Graham Brookes & Peter Barfoot PG Economics Ltd, UK June 2008 “GM crops: global socio-economic and environmental
impacts 1996-2006” Amounts in nominal terms and represent global farm income benefit from 1996-2006. Argentina benefit excluded
from Roundup Ready soybean grower farm income benefit.
23
24. Strong Pipeline Reflects Growing Innovation and Value of
Emerging Yield and Stress Traits
DISCOVERY PHASE 1 PHASE 2 PHASE 3 PHASE 4
Drought-Tolerant Family
HIGH
FAMILY TRAITS►
CORN: Nitrogen-
BROAD-ACRE HIGH Utilization
FAMILY TRAITS►
COLLABORATION
YIELD
YIELD & STRESS
Family
Broad-Acre,
MEGA Higher-Yielding
FAMILY TRAITS►
Family
SOYBEANS: Broad-Acre,
BROAD-ACRE HIGH Higher-Yielding
FAMILY TRAITS►
YIELD Family
2020 VALUE RANGES: Bollgard III Omega-3
soybeans
cotton
Higher -
MEGA HIGH SmartStax
Yielding
corn
$300M-$500M
Insect-protected
Roundup
>$1BM Roundup Ready
Ready 2
2 Yield soybeans
Yield canola
Dicamba-
Dicamba
MID LOW tolerant
and
soybeans
<$150M
glufosinate-
$150M-$300M tolerant Vistive III
cotton
High-oil
Corn Soybeans Cotton Canola soybeans
Note: 2020 value ranges reflect expected annual gross sales in launch country in 2020. 24
25. Monsanto’s Biotech Pipeline Is Accelerating, With Progress
in Key Projects and on Highest-Value Platforms
R&D PIPELINE STATUS:
R&D success reflected in 2 products moving
into commercial arena and 4 phase changes
Roundup Ready 2 Yield to be released on 1-2M
acres in 2009, creating new platform for soybeans
Q1 Q4 Second-generation YieldGard Corn Borer serves
as core component of SmartStax, the unique
insect and weed control platform for future yield
Q2 Q3 and stress traits
Drought-tolerant corn moves into Phase 4 with
first regulatory submission; estimated first yield
and stress trait to launch in corn
High-yielding soybeans move to Phase 3 and
create opportunity to reset yield potential after
Roundup Ready 2 Yield
R&D pipeline commercial value potential
unmatched in the industry
Pipeline potential gross sales of $5B by 2020
Includes 4 blockbusters and 1 mega-blockbuster
Conservatively excludes value for breeding,
vegetables and multi-country opportunities
25
26. Reconciliation of Non-GAAP Financial Measures
Reconciliation of Free Cash Flow
Fiscal Year Fiscal Year Fiscal Year First First
$ Millions 2009 Forecast 2008 2007 Quarter 2009 Quarter 2008
Net Cash Provided (Required) by Operations $3,000 $2,799 $1,854 $114 $996
Net Cash Provided (Required) by Investing Activities (1,200) (2,027) (1,911) $10 (256)
Free Cash Flow $1,800 $772 $(57) $740
$124
Net Cash Provided (Required) by Financing Activities N/A (102) (583) (47)
(258)
Effect of Exchange Rate Changes on Cash and Cash Equivalents N/A 77 46 (137) 58
Net Increase (Decrease) in Cash and Cash Equivalents N/A $747 $(594) $751
$(271)
Reconciliation of Non-GAAP EPS
First First
Fiscal Year Fiscal Year Fiscal Year
$ per share 2009 Forecast 2008 2007 Quarter 2009 Quarter 2008
TBD1 $3.62 $1.79 $1.00 $0.46
Diluted Earnings (Loss) per Share
Solutia Claim Settlement -- ($0.23) -- -- --
Loss (Income) on Discontinued Operations ($0.02) ($0.04) ($0.15) ($0.02) ($0.01)
In-Process R & D Write-Off Related to the De Ruiter Acquisition -- $0.29 -- -- --
In-Process R & D Write-Off Related to the Delta & Pine Land -- -- $0.34 -- --
(D&PL) Acquisition
In-Process R & D Write-Off Related to the Aly Participacoes TBD1 -- -- -- --
Ltda. Acquisition
Diluted Earnings (Loss) per Share from Ongoing Business $4.40-$4.50 $3.64 $1.98 $0.98 $0.45
1. The company is not able to provide a reconciliation to reported EPS guidance for fiscal year 2009 at this time, as it is still evaluating purchase accounting adjustments related
to its recent acquisition of the Brazilian sugar cane business Aly Participacoes Ltda. Such adjustments are dependent upon the completion of valuations of certain intangible
26
assets, including in-process R&D which requires immediate expense recognition and it is expected to be significant.
