2. OVERVIEW
Corn Growth Continues, Becoming Increasingly Global with
Continued Emphasis On Improving Per-Acre Margins
MONSANTO GROSS PROFIT 2012 GROWTH RANGE
GROWTH TARGET
Gross profit targeted to double
$9,000 from 2007 through 2012
STRATEGIC PLAYBOOK
$8,000
U.S. Corn
$7,000
International Corn
$6,000
GROSS PROFIT
(IN MILLIONS)
1. Grow U.S. seed footprint
$5,000
2. Expand trait penetration
$4,000
and bridge to SmartStax
$3,000 2010 launch
3. Expand international seed
$2,000
footprint
$1,000
4. Set the table for biotech
$0 trait ramp up outside the
U.S.
MILESTONES
2004 2007 2012
2010
2007
Gross margin
Base Gross Profit:
target: 52-54%
$4,286M
ONGOING EPS GROWTH:
MID-TO-HIGH TEENS
2
3. U.S. CORN
U.S. Corn Growth Continues Through 2012, Reflecting
Differentiated Opportunities Across Commercial Channels
U.S. CORN SEED & TRAITS GROSS PROFIT BY CHANNEL
INDEX=2004
2004 2007 2012F
>8X
OVER 2004 INDEX
Trait licensing outside
Holden’s/Corn States
3
4. U.S. CORN
DEKALB’s Performance Accelerated Share Gains Ahead of
Schedule; Fundamentals Remain Viable Through 2012
DEKALB U.S. CORN SHARE EVOLUTION: 2001-2012F
32%
30% 2012 TARGET RANGE
GEOGRAPHY: U.S.
28%
OBJECTIVE: Grow footprint
2008 STATUS 26%
• DEKALB earned 4 points 24%
in 2007 for total share of ORIGINAL 2010 TARGET RANGE
22%
23%, doubling its share
in 5 years 23%
20%
2012 OUTLOOK
18%
• Grow share through 2012 19%
16% DEKALB expected to
by up to 10 points
continue share gains,
cumulatively 16%
14% with cumulative target
14% of as much as 10
12% 13%
points in 5 years
10% 12%
10%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2007
2005
DEKALB ends 2007 with
Monsanto projects 1-2 point
23% share, achieving 2010
share gains for DEKALB from
target 3 years early
2005 through 2010
4
5. U.S. CORN
With Strong Yield Performance, Value of DEKALB Seed
Portfolio Continues to Expand
DEKALB SEED PORTFOLIO MIX
“SWEET SPOT”
DEKALB PORTFOLIO
GEOGRAPHY: U.S.
RELATIVE MIX IN
• Roughly 60% of
OBJECTIVE: Grow footprint
DEKALB brand comes
2008 STATUS from 25 hybrids – all
less than 4 years old
• Average retail value in
DEKALB’s portfolio
increased 20% since 2001
2012 OUTLOOK
Momentum continuing: MATURE HYBRIDS NEW HYBRIDS
CORE HYBRIDS
• 2007 initial results show
New hybrids consistently drive mix and value of DEKALB portfolio
DEKALB has 8.3 bu/ac
yield advantage over
$44
AVERAGE RETAIL
competitors
$42
PRICE/ACRE
Average Retail Value
$40
Of DEKALB Portfolio
$38
$36
$34
2001 2002 2003 2004 2005 2006 2007
5
6. U.S. CORN
ASI Gross Profit Per Acre Comparable to DEKALB; Growth
Accelerating Through End of Decade
ASI GROSS PROFIT PER ACRE
GEOGRAPHY: U.S.
GP/acre increases
2
OBJECTIVE: Grow footprint
AVERAGE GROSS PROFIT/ACRE
85% after ASI
2008 STATUS Average
1.8 acquisition GP/acre in
1.85
• ASI includes 24 brands, 1.6 same band
with differentiated as DEKALB
1.4
(INDEXED)
customer experience
from DEKALB 1.2
• Organic growth of
1
1 share point in 2007 to
1
0.8
bring ASI to 9 points total
2012 OUTLOOK 0.6
0.4
• Emphasis on organic
growth 0.2
0
POST-
PRE- DEKALB
ACQUISITION
ACQUISITION
• With technology infusion, gross profit per acre lifts when
seed company brought under ASI umbrella
6
7. U.S. CORN
Opportunity Exists to Nearly Triple Penetration of Triple-
Stack Traits in U.S. By End of Decade
U.S. CORN TRAIT OPPORTUNITY: 2007-2010F
220 60
U.S. TRIPLE-STACK ACRES
200
U.S. TRAIT ACRES
50
180
(IN MILLIONS)
(IN MILLIONS)
160
40
140
120
30
100
80
20
60
40 10
20
0 0 CATALYSTS OF
2010
2005 2006 2007 2010F TRIPLE STACK
2007 Opportunity GROWTH
Rootworm Control 45-55M
20.8M
Channel Triple
Corn Borer Control Penetration
60-70M
42.4M
Glyphosate Tolerance DEKALB Supply
80M
57.9M
Guarantee
Triple Stack 17.7M 45-55M
Yield Insurance
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.
Program
Source: “Monsanto Biotechnology Trait Acreage” available through: monsanto.com/investors/
7
8. U.S. CORN
Starting in 2010, New Margin Opportunity Created by Upgrade
From Triple-Stack Acres To SmartStax
DEKALB SEED GROSS PROFIT/ACRE:
GEOGRAPHY: U.S.
2007 VS. 2010F
OBJECTIVE: Expand margin
2008 STATUS
AVERAGE GROSS PROFIT/ACRE
1.2
• To be sold through
1.15
DEKALB and ASI; 1.1
Monsanto also
SmartStax
representative for joint 1
(INDEXED)
increases the
third-party licensing of 1.00
GP potential
SmartStax through of DEKALB by
0.9
Holden’s/Corn States 12-15% per
acre
2012 OUTLOOK 0.8
• SmartStax expected
0.7
average gross profit per
acre greater than gross
profit of current-triple 0.6
stack acre, net of 2010F
2007
royalties paid and Indexed Gross Profit:
Indexed Gross
received Average SmartStax Acre
Profit: Average
(Net Of Royalties Paid)
Triple-Stack Acre
8
9. U.S. CORN
SmartStax Creates Value on Multiple Dimensions; Primary
Benefit Is Increased Yield, Both Per-Acre and Total Farm
SmartStax Value: On-Farm Commercial Preparation: Field Data Generation
+ Increased Yield (per-acre and on-farm) YEAR 1 YEAR 2 YEAR 3 FORWARD
YIELD
YIELD COMPONENT 2006 2008+
BENEFIT1
Focus: Focus: SmartStax
PER-ACRE
Feasibility of full bred into elite
Improved consistency: 1-2% trait integration germplasm; yield
Primary pests data generation
Improved protection: 1-2%
Secondary pests Field Testing: 2007
ON-FARM
Testing focused on trait
performance, such as
Reduced refuge 3-6%
consistency of control of
Flexibility to move to one technology targeted pests
+
platform on-farm
Initial 2007 Results
+ Durability
• Indicates superior
Flexibility to increase planting
rootworm consistency
+
populations
versus triple-stack
+ Platform for future traits standard
TRIALS: 56
• Good control of
+ Access to superior seed
STATES: 12 secondary pests
Total SmartStax Value
=
1. Yield benefit reflects expected yield benefit above triple-stack standard, on a
per-acre and whole-farm basis as noted. Ranges may overlap
9
10. U.S. CORN
Potential for Refuge Reduction Can Raise Total Farm Yield
With Standardized Technology Platform
Refuge Reduction Benefit Example:
SmartStax Value: 100 Acres In Illinois1,2
Refuge Reduction Considerations
Standard 20% Refuge
20 Acres X 20 Bushels
U.S. EPA requires set-aside refuge
for current single-mode-of-action
(400) BU
REFUGE LOSS:
insect-protected traits in corn
20% Reduced Refuge Option3: 10%
80% 10 Acres X 20 Bushels
(200) BU
REFUGE LOSS:
GAIN OVER CURRENT
200 BU
REFUGE STANDARD:
20 BU/AC 1
Reduced Refuge Option3: 5%
Yield Differential
5 Acres X 20 Bushels
Farmers in Illinois in 2007 reported
(100) BU
average 20 bu/acre yield difference REFUGE LOSS:
between YieldGard VT Triple and
GAIN OVER CURRENT
300 BU
refuge acres REFUGE STANDARD:
1. Based on reported yield differential refuge vs. traited acres,
Central Illinois – Monsanto market research (2007)
Farmers only access upside if technology
2. Based on assumed average triple-stack (YieldGard VT Pro)
platform standardized across farm
yields in Illinois
3. Refuge reduction would require regulatory review and approval
by the U.S. EPA
10
11. U.S. CORN
By 2010, SmartStax Resets Trait Platform, Changes
Competitive Standard and Opens New Acreage Opportunity
U.S. ACREAGE OPPORTUNITY: SWITCH FROM TRIPLES TO SMARTSTAX IN 2010
70
65
60 60-65M
+10-15M
55 Total
Competitive
(10-15M)
27-37M 45-55M Opportunity
50
+10-15M
(IN MILLIONS)
45-50M
45 All acres are
Monsanto
40 in play as
ACRES
Baseline
superior
35
performance
30 from
25 SmartStax
20 creates
compelling
17.7M
15
competitive
10
platform
5
0
Acres from Potential
2007 Remaining Total 2010 Total
Competitors Upside from
Monsanto Upside; Triple-Stack SmartStax
Not Using Refuge
Triple-Stack Shared with Opportunity Opportunity
SmartStax Reduction
Penetration Competitors
TRIPLE-STACK BASELINE SMARTSTAX OPPORTUNITY
11
12. U.S. CORN
Size of U.S. Gross Profit Opportunity Grows Significantly;
Components Shift to Highest-Margin Contributors
U.S. CORN SEED & TRAITS GROSS PROFIT BY CHANNEL
INDEX=2004
2004 2007 2012F
>8X
OVER 2004 INDEX
Trait licensing outside
Holden’s/Corn States
12
13. INTERNATIONAL CORN
International Corn Markets Compare Favorably Against U.S.
Market for Value
GENETIC FOOTPRINT: GLOBAL CORN PRODUCTION
GEOGRAPHY: International
Average
OBJECTIVE: Grow footprint 2007 Value Of
DEKALB 2007
Hybrid Average Corn Monsanto
2008 STATUS Retail Share
Market Yield Per Seed Brand
Value Point
Size1 Acre1 Share2
Market
• Target of 1 to 2 share Per Acre Change
(Acres) (U.S. $B)
(U.S. $)
point gains in all regions
except Brazil, where plan
153 $44 $3.2B 23% 4
U.S. 92M
is to stabilize share
bu/ac
2012 OUTLOOK
99 $65 $1.9B 13% 1
EU27 27M
• Outside the U.S., 70M bu/ac3
acres of hybrids in
57
higher-value markets
$29 $0.7B 30% 4
Brazil 23M
• Targeted 1-2 share point bu/ac
gains annually in all key
120 $28 $0.2B 40% 5
Argentina 8M
countries through 2012
bu/ac
• Brazil targeted to grow
29
after share trait stabilizes
$20 $0.1B 39% 4
India 7M
in 2008 bu/ac
TOTAL 157M
1. Corn acreage and production; USDA FAS 2007/08 projections report and internal estimates
2. Reflects share performance for 2007 planting season; for Brazil and Argentina, reflects 2006-2007 planting season
3. Average yield; from 55 bu/acre in Romania to 150 bu/acre in France, Italy
13
14. INTERNATIONAL CORN
DEKALB Gained Five Share Points in Four Years in EU27;
Highest Share Gain of Any Company
DEKALB EU27 CORN SHARE EVOLUTION: 2002-20071,2,3
GEOGRAPHY: Europe
OBJECTIVE: Grow footprint
30%
2008 STATUS
25%
• Because of demand for
higher-yielding hybrids,
20%
seed in western Europe
most valuable per-acre in
15%
the world
10%
2012 OUTLOOK
• DEKALB share in EU27
5%
increased 5% since 2004 –
largest gain by any seed 0%
company in the region
PIONEER LIMAGRAIN KWS SYNGENTA
• Share gains have come
without widespread use of
2002 2003 2004 2005 2006 2007
biotech traits
1. Kleffman Market Research
2. EU27 + Serbia included,
reflecting parameters of
market research
3. 2007: new sampling
methodology in Italy
14
15. INTERNATIONAL CORN
Continued DEKALB Growth in EU27 to Come From Greater
Emphasis on Highest Value Segment
EARLY SILAGE SEGMENT
CORN MATURITY ZONES:
EU 27 GEOGRAPHY • Mainly silage market: <85 day RM
• Historically led by European breeders
• DEKALB initiated significant breeding
investments 4 years ago
SEGMENT SHARE 2002 2007
3% 5%
MID TO EARLY SEGMENT
• Grain market: 85-100 day RM
• Similar to Minnesota – strongest area for
DEKALB in U.S.
• DEKALB genetics leading this segment
SEGMENT SHARE 2002 2007
10% 23%
LATE SEGMENT
• Grain market: 100-110 day RM
• Similar to Iowa – area of significant U.S.
breeding gains
• Highest value segment
SEGMENT SHARE 2002 2007
9% 17%
15
16. INTERNATIONAL CORN
Brazil Is Turnaround Story; Agroeste Acquisition, Enhanced
Focus on Tropical Breeding to Improve Position
BRAZIL CORN MARKET COMPOSITION: 2007-2008
GEOGRAPHY: Brazil
OBJECTIVE: Grow footprint Agroeste Opportunity:
2008 STATUS Market share for all segments of
► Agroeste provided share
Brazilian hybrid corn seed market
• Acquisition increases strength in the south, gap
focus on high value for DEKALB
segment in Brazil AGROESTE, 10%
DEKALB, 30% ► Agroeste mainly uses
• Agroeste’s solid position
direct-to-grower model,
DOW/
in southern region
AGROMEN, complementing DEKALB’s
complements existing
15% distribution; similar to ASI
base
channel in U.S.
2012 OUTLOOK
Opportunity to Expand Brazil
• Increased emphasis on OTHERS,
Footprint:
11%
breeding in tropical
hybrids and access to ► Greater tropical germplasm
SYNGENTA, 12%
PIONEER, 22%
germplasm from opportunity
Agroeste to improve
► Larger footprint for trait
position in Brazil
penetration
• Potential to accelerate
► Export opportunity to serve
launch of YieldGard Corn
growing economies in
Borer
China, Russia
16
17. INTERNATIONAL CORN
Trait Expansion Opportunity Still Early Globally; SmartStax
Resets Stage in 2010 and Beyond
COMMERCIAL PLATFORM: 2007-20101
GLOBAL MARKET
OPPORTUNITY: • Reflects technology fit; actual penetration
determined by regulatory approvals and
CORN TRAITS competitive share
2010 VS 2012 • Competitors continue to license Monsanto
traits in key markets
2007
HYBRID
MARKET
SIZE2
(ACRES)
U.S. 92M 80M 60-70M 45-55M
Europe (EU27) 27M 24M 8M 5M
Brazil 23M 15-20M 15-20M 5M
Argentina 8M 9M 7M 5M
India 7M 6M 6M --
Total Markets 157M 134-139M 96-111M 60-70M
2007 Penetration 43-45% 46-53% 30-35%
1. Market Opportunity reflects total acres where technology is applicable, not necessarily
Targets marked in green representing countries currently planting acres projected for penetration by 2010.
80M or with primary regulatory approval secured for respective trait 2. Corn acreage and production; USDA FAS 2007/08 projections report and internal
estimates
17
18. INTERNATIONAL CORN
Trait Expansion Opportunity Still Early Globally; SmartStax
Resets Stage in 2010 and Beyond
GLOBAL MARKET TRAIT PLATFORM: 2010+
OPPORTUNITY: • SmartStax resets trait opportunities
CORN TRAITS
• Acreage reflects potential acres
2010 VS 2012
• Competition, penetration and
technology fit being evaluated further
for each geography
2007
HYBRID
SmartStax
MARKET
SIZE1
(ACRES)
U.S. 92M 60-65M
Europe (EU27) 27M 15-20M
Brazil 23M 15-20M
Argentina 8M 5-7M
India 7M 5-6M
Total Markets 157M 100-118M
1. Corn acreage and production; USDA FAS 2007/08 projections report and internal estimates
18
19. INTERNATIONAL CORN
Recent Regulatory Approval in Argentina Opens Door For
Stacked Traits; Ramp Up Under Way
CORN TRAIT PENETRATION IN ARGENTINA:
ANNUALLY AS A PERCENT OF TOTAL ACRE OPPORTUNITY1
GEOGRAPHY: Argentina
OBJECTIVE: Expand margin YGCB-RR Stack2
100%
PERCENT OF TRAIT ACRE
2008 STATUS INTRODUCED 2008F
TOTAL
• Roundup Ready/YieldGard 7M
OPPORTUNITY
75%
OPPORTUNITY1
Corn Borer received
YieldGard Corn Borer
regulatory approval in
INTRODUCED 1997
50%
Argentina end of August
TOTAL
2007 7M
OPPORTUNITY
• Local approvals for some
25% Roundup Ready Corn
stacked hybrids completed
INTRODUCED 2001
2012 OUTLOOK
TOTAL
0% 9M
OPPORTUNITY
• 8 million total corn acres
1 2 3 4 5 6 7 8 9
planted in Argentina today;
YEARS FROM COMMERCIAL LAUNCH►
expected to grow to 10
million acres to fill U.S.
• YieldGard Corn Borer/Roundup Ready stack should change
export gap
inflection of penetration curve, moving toward peak
penetration faster than single traits in Argentina
1. Percent of total market opportunity reflects the ratio of number of actual acres planted to total trait-acre opportunity identified for each trait
2. Forecasted possible trend curve for YieldGard Corn Borer-Roundup Ready stack (YGCB+RR). Based on commercial production planning for
DEKALB brand.
19
20. INTERNATIONAL CORN
SmartStax Agreement Creates Step-Change Opportunity in
Brazil and Argentina for Insect Control
INSECT CONTROL OPPORTUNITY:
South
SMARTSTAX IN BRAZIL AND ARGENTINA
GEOGRAPHY:
America
Expand
OBJECTIVE:
margin
2008 STATUS
• SmartStax agreement BRAZIL
with Dow is global deal,
spanning all geographies
where respective traits
are registered
INA
2012 OUTLOOK
NT
GE
• Currently evaluating the
AR
CORN PEST ESTIMATED: SOUTH AMERICA
commercial opportunity
for SmartStax in Brazil
ACRES INFESTED SmartStax
and Argentina
BRAZIL ARGENTINA Control
Fall Armyworm 20-22 M 4M
Sugarcane Corn Borer 16-18 M 10 M
Corn Earworm 16-18 M 10 M
Very Good to
Excellent Control
20
21. SUMMARY
By 2012, Sustained Momentum in U.S. Corn Combined With
International Growth Expands Corn Gross Profit Contribution
GLOBAL CORN SEED AND TRAITS GROSS PROFIT
INDEX=2004
2004 2012F
2007
>6X
OVER 2004 INDEX
• In 2007, international markets generated
more than 25% of gross profit
• By 2012, total gross profit expected to U.S. Corn Seeds & Traits Gross Profit
expand significantly with continued
penetration of traits globally, conversion International Corn Seeds &
to SmartStax and greater seed brand Traits Gross Profit
share worldwide
21
