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.
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. PERFORMANCE SUMMARY
Second-Quarter Financial Summary
Second Second First
First Half
Change Change
Quarter Quarter Half
2006
2007 2006 2007
NET SALES $2,616M $2,200M 19% $4,155 $3,605M 15%
GROSS
$1,450M $1,240M 17% $2,130 $1,874M 14%
PROFIT
NET INCOME $543M $440M 23% $633 $499M 27%
DILUTED
EPS ON AS-
$0.98 $0.80 23% $1.14 $0.91 25%
REPORTED
BASIS
FREE CASH
$290M $(135)M NM
FLOW
Note: EPS figures reflect the stock split effective July 28, 2006
4
5. U.S. CORN GROWTH
U.S. Corn Seed Business Has Progressed Through Three
Distinct Phases, Expanding Its Customer Base
PROGRESSION OF DEKALB CUSTOMER STATUS:
1997-2007F
2000-2001 2007
1998 2002 2005
Establishment and DEKALB share
Monsanto First year of DEKALB First triple-stack
ramp up of expected to increase
completes share gains trait introduced
molecular breeding 3 or more points;
acquisition of
platform in corn Sixth consecutive
DEKALB year of growth
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
CUSTOMER CUSTOMER CUSTOMER
RETENTION INTENSIFICATION EXPANSION
DEKALB’s
First hybrids developed using intra-
Monsanto completed acquisition of
continued strong
company crosses begin to enter
DEKALB and other international seed
yield
portfolio; Molecular breeding becomes
companies
performance is
new standard for Monsanto breeders
earning
Initial priorities revolved around
Reflecting the improved yield potential increasing trial
integrating breeding and commercial
from breeding, DEKALB seed begins and adoption
programs to present a single face to the
gaining share from farmers
customer
who’ve
Primary growth initially comes from
Significant investment in production historically
existing farmers expanding acres
assets to maximize quality and yield purchased other
planted to DEKALB seed
potential of genetic base brands
Organizational focus on customer
retention
5
6. U.S. CORN GROWTH
By 2006-2007, DEKALB Has Achieved a Tipping Point,
Entering a Period of Attracting New Customers
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
CUSTOMER CUSTOMER CUSTOMER
RETENTION INTENSIFICATION EXPANSION
DEKALB USE PATTERNS
2007 MARKET RESEARCH: More than 43% of DEKALB users have been customers for 4 years or
DEKALB USE PATTERNS less, and the average first-time customer is planning on planting 29%
of acres to DEKALB seed
BASED ON A SAMPLE OF 500 CORN
Customers for 4 years or less
GROWERS COMPLETED IN MARCH 2007
Key conclusions: 2007 DEKALB
43%
CUSTOMER
BASE
DEKALB is in a period of
attracting new customers 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
DEKALB’s intensification
DEKALB USE PATTERNS
per farm is expanding
Only 6% of farmers surveyed indicated they would switch away from
Farmers buy performance DEKALB if another seed brand offered the same set of biotech traits
and are not willing to Interested in Non-DEKALB seed brands if comparable trait
switch away from superior package was available
yield potential
2007 DEKALB
6%
CUSTOMER
BASE
0% 1 0% 2 0% 30 % 40 % 50 % 60 % 70% 80% 90% 100%
6
7. U.S. CORN GROWTH
By Delivering Better Yielding Products, DEKALB on Track to
Gain More Than 12 Share Points in Six Years
DEKALB SHARE EVOLUTION: 2001-2007F
25% 2005-2007
TOTAL
6+ PTS
SHARE GAIN
22+%
20% DURATION
2001-2005 2 YEARS
19%
TOTAL
6 PTS
SHARE GAIN
U.S. SHARE
15% DURATION 4 YEARS 16%
14%
13%
12%
10%
10%
5%
0%
2001 2002 2003 2004 2005 2006 2007F
TOTAL U.S. PLANTED
TRIPLE-STACK ACRES -- -- -- -- 1.3 6.0 16.0
(ACRES IN MILLIONS)
TRIPLE-STACK TRAIT
PENETRATION IN -- -- -- -- 8% 20% 40%
DEKALB PORTFOLIO
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8. U.S. CORN GROWTH
2007 Trait Demand Has Been Even Stronger Than
Anticipated, Accelerating Adoption Rates for All Corn Traits
160
2007 FRONTLINE 140
UPDATE:
120
TRAIT ACRES IN MILLIONS
With triple-stacks
in strong demand, 100
trait sales have
exceeded early- 80
season estimates
60
40
20
0
2005 2006 2007F 2010F
2007 FORECAST END-OF-DECADE
U.S. CORN TRAIT ACRES1 2005 ACTUAL 2006 ACTUAL MARKET
INITIAL
(IN MILLIONS) Q2 UPDATE OPPORTUNITY
ESTIMATE
U.S. YIELDGARD
4.1 10 >15 ~19 25-30
ROOTWORM ACRES
U.S.YIELDGARD CORN
32.1 32.3 >32 ~40 50-60
BORER ACRES
U.S. ROUNDUP READY
24.8 32.7 >40 ~50 60
CORN ACRES
1.3 6.0 >10 ~16 25-30
U.S. TRIPLE-STACK ACRES
1. 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.
8
9. FINANCIAL UPDATE
Increased EPS Guidance Reflects Strong Start to U.S.
Season, Solid Performance Across Seed-and-Trait Business
EARNINGS PER SHARE GROWTH
PROGRESSION OF ONGOING EPS (2003-2007F)
$1.80
2007 EPS GUIDANCE:
FY2007
22-26% GROWTH GUIDANCE
$1.60
$1.60 - $1.65
$1.60-$1.65
$1.40
Earnings Per
Updated from
Share1
$1.50-$1.57 range
$1.31
$1.20
$875M-$950M
Free Cash Flow
$1.00
$1.04
$450-$500M
Capital
Updated from
$0.80
Expenditures
$350-$400M range
$0.80
$0.71
$0.60
2003 2004 2005 2006 2007F
13% GROWTH 30% GROWTH 26% GROWTH 22-26% GROWTH
1. EPS figures reflect the stock split effective July 28, 2006
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10. Reconciliation of Non-GAAP Financial Measures
Reconciliation of Free Cash Flow
Fiscal Year Six Months Six Months
2007 Ended Ended Feb.
$ Millions Target Feb. 28, 2007 28, 2006
Net Cash Provided (Required) by Operations $1,425 - $1,500 $520 $331
Net Cash Provided (Required) by Investing Activities (550) (230) (466)
$(135)
Free Cash Flow $875 - $950 $290
191
Net Cash Provided (Required) by Financing Activities N/A (200)
Effect of Exchange Rate Changes on Cash and Cash Equivalents N/A 15 --
$56
Net Increase (Decrease) in Cash and Cash Equivalents N/A $105
Reconciliation of Non-GAAP EPS
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
$ per share 2006 2005 2004 2003
Net Income (Loss) per Share $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 $1.26 $0.47 $0.50 $0.15
Accounting Change
Tax Charge on Repatriated Earnings $0.04 -- -- --
Seminis and Stoneville In-Process R&D -- $0.45 -- --
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
Loss (Income) on Discontinued Operations $0.01 $(0.02) -- $0.03
Impairment of Goodwill -- -- $0.12 --
PCB Litigation Settlement Expense – Net -- -- -- $0.48
Diluted Earnings (Loss) per Share from Ongoing Business $1.31 $1.04 $0.80 $0.71
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