monsanto 08-27-07HG


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monsanto 08-27-07HG

  2. 2. Forward-Looking Statements Certain statements contained in this presentation 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 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 most recent periodic report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this presentation. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results. Trademarks Trademarks owned by Monsanto Company and its wholly-owned subsidiaries are italicized in this presentation. All other trademarks are the property of their respective owners. © 2007 Monsanto Company 2
  3. 3. OVERVIEW All Six Growth Drivers Delivered in 2007, Setting Stage for Continued Growth Through End of Decade MONSANTO’S OPPORTUNITY FY2007 STATUS FACTOR • Trait penetration up across the board; FOCUS: GROSS PROFIT AS A PERCENT OF SALES triple stack penetration up 200% U.S. corn • U.S. share up an estimated 4-5 points in DEKALB; 1 point organic growth in ASI 54% GROSS MARGIN ‘PULL’ • Share up 1-2 points in key European International countries; 4-5 share point gains in India TARGET 52-54% BY 2010 corn and Argentina 52% • Roundup Ready soybeans in Brazil up Global biotech to 45% penetrated • Bollgard penetration increases by traits approximately two-thirds in India 50% • Delta and Pine Land acquisition Cotton completed • Roundup Ready Flex over 25% of U.S. platform 48% planted acres; Bollgard II 20-25% range CURRENT LEVEL • Top line growth, including price increases 46% Seminis • Inventory adjustments in current fiscal year; ongoing margin in 60% range expected 44% • BASF collaboration on yield and stress 2003 2004 2005 2006 2007F 2008F 2009F 2010F announced • Roundup RReady2Yield soybeans R&D pipeline approved in U.S. and Canada • Continued strong results from Southern Hemisphere trials; 2007 U.S. field trials under way 3
  4. 4. OVERVIEW Pipeline Has Some Likely Blockbusters and Some Hidden Gems WHISTLE STOP TOUR II ANNUAL R&D CYCLE: SEEDS & TRAITS BIOTECH TRAIT PIPELINE SOYBEANS ARE EMERGING FROM CORN’S SHADOW Roundup RReady2Yield creates platform for future First product developed exclusively for an ex-US market will be in soybeans Soybeans could be a 3+ stack by middle of next decade COTTON POTENTIAL TO BE UNLOCKED Q1 Q4 Second-generation stacked products to accelerate globally Q2 Q3 Cotton could be a 3+ stack by middle of next decade YIELD AND STRESS POTENTIAL EXPLODING Drought tolerance in corn expected to be first of a rapid series of blockbuster traits BREEDING PIPELINE BREEDING ENGINE FIRING ON ALL CYLINDERS At a greater pace than ever before, new breeding tools are being applied across all platforms and resulting in breakthrough products 4
  5. 5. SUMMARY Farm Progress Event Gives Monsanto’s Customers Opportunity to See Cutting-Edge Research In Field TECHNOLOGY SHOWCASE TOUR FARM PROGRESS SHOW AREA 1 Dr. Ted Crosbie, Breeding Technology Lead 21 20 19 18 Dr. Marlin Edwards, AREA 4 Chief Technology Officer, EXIT Seminis 17 ENTRANCE The Farm Progress Show Dr. Bob Reiter, is the largest outdoor farm Breeding Technology Lead 1 show in the United States AREA 2 16 AREA 3 AREA 1 2 2007 is the second year Dr. Fred Perlak, 12 Monsanto has brought its Cotton Technology Lead 3 15 Dr. Roy Fuchs, research plots on-site for 11 4 Oilseeds Technology Lead thousands of farmers to 14 see our next generation of AREA 3 AREA 2 13 research performing in the Dr. Steve Padgette, 5 6 7 8 9 10 field Vice President, Biotechnology AREA 4 Dr. David Fischhoff, Technology Strategy & Development Lead 5