2. Forward-Looking Statements
Certain statements contained in this presentation, such as statements concerning the company's anticipated
financial results, current and future product performance, regulatory approvals, currency impact, business and
financial plans, the outcome of contingencies and other non-historical facts are quot;forward-looking statements.quot;
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: the company's exposure to various contingencies,
including those related to Solutia Inc., litigation, intellectual property, regulatory compliance (including seed
quality), environmental contamination and antitrust; successful completion and operation of recent and proposed
acquisitions; fluctuations in exchange rates and other developments related to foreign currencies and economies;
increased generic and branded competition for the company's Roundup herbicide; the accuracy of the company’s
estimates and projections, for example, those with respect to product returns and grower use of our products and
related distribution inventory levels; the effect of weather conditions and commodity markets on the agriculture
business; the success of the company’s research and development activities and the speed with which regulatory
authorizations and product launches may be achieved; domestic and foreign social, legal and political
developments, especially those relating to agricultural products developed through biotechnology; the company’s
ability to successfully market new and existing products in new and existing domestic and international markets;
the company’s ability to obtain payment for the products that it sells; the company's ability to achieve and maintain
protection for its intellectual property; the company's ability to fund its short-term financing needs; and other risks
and factors detailed in the company's filings with the U.S. Securities and Exchange Commission. Undue reliance
should not be placed on these forward-looking statements, which are current only as of the date of this release.
The company disclaims any current intention or obligation to revise or update any forward-looking statements or
any of the factors that may affect actual results, whether as a result of new information, future events or otherwise.
2
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 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.
Fiscal Year
In this presentation, unless otherwise specified, references to Monsanto’s fiscal years refer to the 12-month period
ending August 31.
Trademarks
Roundup, Roundup Ready, Roundup RReady2Yield, Bollgard, Bollgard II, YieldGard, Monsanto Imagine, Vine
Design, Asgrow, DEKALB, Monsanto Choice Genetics, Posilac, Processor Preferred, Vistive and Seminis, Seminis
Vegetable Seeds, Royal Sluis, Petoseed, and Bruinsma are trademarks owned by Monsanto Company and its
wholly-owned subsidiaries and are italicized the first time they appear in this presentation.
3
4. OVERVIEW
Monsanto Has Established Strategic Platforms in
High-Value Crops
SEED & TRAIT CROP PLATFORMS
CROP PLATFORMS
CORN
Licensed
d
de AS
CORN
ran I
OILSEEDS
B
Biotechnology
COTTON
Breeding
I
AS
Genomics
VEGETABLES
VEGETABLES
Licensed
OILSEEDS
Branded
TECHNOLOGY PLATFORMS
Germplasm
GERMPLASM
GR
d
de
GENOMICS
G
ran B
E
BREEDING
BR
Bra d
COTTON
nse
nde
Lice
d
BIOTECHNOLOGY
B I
4
5. TECHNOLOGY LEADERSHIP
Breeding and Biotech Provide Parallel R&D Paths to
Commercial Products
BREEDING and BIOTECHNOLOGY form two R&D pathways
Separate, but parallel, the BREEDING and BIOTECHNOLOGY pathways are linked by
shared tools.
DISCOVERY PHASE I PHASE II PHASE III PHASE IV LAUNCH
BREEDING
G IT PLATFORM
COMMERCIAL
ANALYTICS
GENOMICS
MARKERS
Germplasm
R
BIOTECHNOLOGY
5
6. TECHNOLOGY LEADERSHIP
Breeding is the Research Engine that Brings Commercial
Value to Germplasm
Molecular Markers
CREATING VALUE
Genetic dissection of phenotype: allowing breeders to understand
what genes control desired phenotypes
B Efficiency of selection: improving the efficiency and scale of
Breeding
screening for key characteristics
R Increased genetic gain: driving improvement in overall gain in
key characteristics, such as yield
Improved conversion: helping get new biotech traits into the
elite germplasm quickly for improved market opportunity
CONCEPT:
Optimizing germplasm variation: helping integrate favorable
Molecular markers
genetic variation from non-elite germplasm
bring distinct value
to breeding
Pre-selection: allowing breeders to eliminate the least-desirable
programs
germplasm quickly to focus on the best set of germplasm
Predictive associations: allowing breeders to identify superior
crosses from elite germplasm pools
6
7. TECHNOLOGY LEADERSHIP
Industry’s Most Diverse Genetic Pool in Corn Creates New
Opportunities for Monsanto U.S.
KEY MARKET ACRES BRAZIL ARGENTINA
BRAND LICENSED ASI
Corn Germplasm
80M 30M 6M
AVAILABLE MARKET
CREATING VALUE
14% 33% 4% 35% 49%
PERCENT PENETRATED
Monsanto has the largest private international collection of corn
• Value measured in
germplasm, spanning 6 continents, 3 temperature zones, and 36
market share
gains; U.S. acquired breeding programs
branded seed
share with 4th year No other company can make as many unique crosses from as many
of 1+ point gain
unique germplasm libraries as Monsanto
2004 U.S. CORN YIELD GAINS
INTERNATIONAL GERMPLASM NETWORK
UP NEXT
Monsanto Branded Competitors
• Germplasm now 220
BUSHELS PER ACRE
contributing to 3 210
channels: brands, 200
licensed and ASI
190
180
170
160
150
95 100 105 110 115
RELATIVE MATURITY (DAYS)
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
7
8. TECHNOLOGY LEADERSHIP
Monsanto’s Germplasm Reach Has Grown Significantly
Through Branded and Licensed Seeds
U.S. CORN MARKET SHARE – BRANDS AND LICENSEES
HOLDENS/CORN STATES LICENSEES
AMERICAN SEEDS, INC BRANDS
60% 53%
DEKALB AND ASGROW BRANDS
49%
50% 46%
44%
43%
40%
30%
20%
6 pt
Branded
10% Share
Growth In
4 Years
0%
2001 2002 2003 2004 2005
8
9. TECHNOLOGY LEADERSHIP
Monsanto Holds Number 1 or 2 Positions in Corn
Market Share in All Key Geographies
2005 CORN MARKET SHARE IN KEY GEOGRAPHIES
DUPONT/PIONEER
MONSANTO1
60% SYNGENTA
U.S. ASI
DOW
U.S. LICENSED
50%
40%
30%
20%
10%
0% ASIA-
EUROPE-
NORTH LATIN
PACIFIC
AFRICA
AMERICA AMERICA
Source: Monsanto estimates
1. Monsanto share is for DEKALB and Asgrow brands only
9
10. TECHNOLOGY LEADERSHIP
There is a Clear Opportunity to Drive Growth in
Emergent’s Position in Cotton Market
120% 1.4
1.35
100%
1.3
TRAIT INTENSITY INDEX
MARKET SHARE POSITION
80%
1.25
60% 1.2
1.15
40%
1.1
20%
1.05
0% 1
2002 2003 2004 2005
EMERGENT FIBERMAX
PHYTOGEN DELTA & PINE LAND
OTHERS
Source: Doane Market Research , reflects share of acres planted
10
11. TECHNOLOGY LEADERSHIP
Molecular Breeding is Used To Create New Source of
Seed for U.S. Cotton Farmers
KEY MARKET AREAS U.S.
TARGET MARKET 7M-8M
Cotton States
CREATING VALUE
PERCENT PENETRATED 0%
The capabilities and knowledge we’ve refined in bringing new corn
• Licensing fee
germplasm to the market applies in cotton as well
reflects value of top
quality germplasm, Germplasm licensed from third parties and developed through molecular
separate from value
breeding by Monsanto
of trait
Seed production under way for commercialization in 2006
• Cotton seed
currently sells for
Cotton States launching exclusively on a second-generation trait platform
average of $20 per
2004 COTTON STATES FIELD TRIALS
acre
1,600
UP NEXT
1,500
LBS LINT/ACRE
• 2006 will be first
year of sales to
1,400
farmers of Cotton
States germplasm
1,300
through licensees
1,200
COTTON STATES COMPETITIVE
VARIETIES VARIETIES
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
11
12. TECHNOLOGY LEADERSHIP
Seminis Addition to Monsanto Opens New Business and
Research Opportunities SIGNIFICANT CROPS MARKET MARKET
SHARE POSITION
Seminis Vegetable
BEANS 31% 1
CUCUMBER
Seeds
38% 1
CREATING VALUE HOT PEPPER 34% 1
SWEET PEPPER 29% 1
Seminis has the largest TOMATO 23% 1
• Vegetable seed ONIONS 25% 2
global vegetable germplasm
industry CAGR at library
4.8%
There are more “targets” for vegetable breeders to fill farmer needs and
• Fruit & vegetable
consumer quality preferences
seeds only
VEGETABLE FRESHNESS INDEX INNOVATION THROUGH BREEDING
represent approx.
3.6% of farmgate
PERCENT OF NEW
value (corn: 13.2%; PRODUCTS IN
25%
soybeans: 11.4%) COMMERCIAL
PORTFOLIO
20%
• Significant growth
opportunities in
15%
hybrid creation
10%
5%
0%
2002 2003 2004 2005F
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Early Development Adv. Development Pre-Launch
12
13. TECHNOLOGY LEADERSHIP
Molecular Breeding Can Be Applied to Seminis’ Sweet
Corn Breeding Programs
KEY MARKET POSITION WORLDWIDE
Knowledge Transfer MARKET POSITION 4
to Sweet Corn
CREATING VALUE
Immediate access to broad corn
• Breeding
germplasm base
knowledge transfer
increases potential Within 4 weeks of closing the
new product
Seminis acquisition, Monsanto
offerings
had identified 1,000 corn
• Molecular markers to help with Seminis
breeding speeds
sweet corn breeding
creation of new
hybrids
• Accelerated
genetic gains have
potential to
translate to market
share gains, higher
market value
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Early Development Adv. Development Pre-Launch
13
14. TECHNOLOGY LEADERSHIP
Biotechnology Complements Breeding to Bring Farmers
the Best Options
Biotechnology
CREATING VALUE
The use of biotechnology is an additive tool where there is a
special value to be brought that can justify the additional R&D
B investment
Biotechnology BITOECH OPPORTUNITY
Second Generation Stacked
I
• Bollgard II cotton • YieldGard Plus corn
2003
2004
• Roundup Ready Flex
• YieldGard Plus with
cotton 2006
Roundup Ready Corn 2
• Second-generation 2005
YieldGard Corn Borer
Breakthrough Platforms
corn PHASE III
• Drought-tolerant corn
• Roundup RReady2Yield PHASE I
soybeans PHASE III
• Omega-3 soybeans
Growth Opportunities PHASE II
• Roundup Ready Corn 2
2001
14
15. TECHNOLOGY LEADERSHIP
Roundup Ready Corn Acreage Expected to
Grow 25 Percent in 2006
KEY MARKET AREAS U.S. ARGENTINA
Roundup Ready TARGET MARKET 50M 5M
Corn 2
CREATING VALUE
PERCENT PENETRATED 48% <1%
Current forecast of 23-24M acres of Roundup Ready corn in
VALUE TO 50M
2005 U.S. season
ACRES
30M acres targeted in U.S. for 2006
• 2005 U.S. trait fee
of $8-$10 per acre
With European import approval for single trait, U.S. market
in Monsanto
potential is now 50M acres
branded seed for
single trait
U.S. ROUNDUP READY CORN ACREAGE GROWTH
• Total retail value of
35
incremental 20M
acres: approx. 30
MILLIONS OF ACRES
$160M-$200M
Inflection 25
Points: There
• Monsanto shares a
are new 20
portion of retail
trajectories
value with channel
15
for growth in
• Value boosted by
Roundup 10
incremental
Ready Corn
Roundup use 5
0
1998 1999 2000 2001 2002 2003 2004 2005F 2006F
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
15
16. TECHNOLOGY LEADERSHIP
Drought Pressure in Central Corn Belt Demonstrating
Performance Value of YieldGard Rootworm
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
YieldGard Rootworm 5M 1M
AVAILABLE MARKET 15-20M
2005
Corn
PERFORMANCE
19% 0% 0%
PERCENT PENETRATED
ILLINOIS DROUGHT OBSERVATIONS
• With dry conditions
in the Central Corn
YieldGard
Belt, observed
Rootworm’s
yield advantage
appears to be 10-20 protection allows
bushels per acre for heartier roots
over insecticides
that can tap what
moisture exists
The difference
between
YieldGard
INSECTICIDE
TREATED-CORN
Rootworm plants
and conventional
YIELDGARD
ROOTWORM
ones is visible
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
16
17. TECHNOLOGY LEADERSHIP
Stacked Trait Growth Is Driving Corn Acceleration
%
MON U.S. BIOTECH
2005
TRAIT ACRES STACKED MARGIN OPPS
U.S. Biotech Trait CORN 33% 61M ACRES
46.5M
Intensity Index
CREATING VALUE
COTTON 66% 17.9M ACRES
10.8M
VALUE CREATED SOYBEANS -- 67.2M ACRES
67.2M
WITH 3 TRAITS
2005
1.6
• 2005 saw launch of
first triple-stacked
1.65
product, YieldGard
1.5
Plus with Roundup
AVERAGE TRAITS PER ACRE
Ready Corn 2
1.4
ACRES IN MILLIONS
• Average per-acre 1.3 1.33
opportunity:
Seed $30 1.2
RR $10
1.1
YG Corn Borer $5
YG Rootworm $15
1
1.0
TOTAL $60
6
7
8
9
0
1
2
3
F
F
F
99
99
99
99
00
00
00
00
4
5
6
00
00
00
1
1
1
1
2
2
2
2
2
2
2
SOYBEANS (1 TRAIT)
CORN (3 TRAITS)
COTTON (2 TRAITS)
17
18. TECHNOLOGY LEADERSHIP
Continued Innovation in R&D is Translating to Significant
Activity at Every Phase of the Pipeline
The projects that advance in the pipeline advance more rapidly and have a higher
prospective probability of commercial success
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCHED
Proof of Concept Proof of Concept Adv. Development
Early Development Pre-Launch
17 TRAIT
TESTING TO REGULATORY & SELECTING
DETERMINGING
IDENTIFYING
PRODUCTS +
SELECT COMMERCIAL COMMERCIAL
WHICH LEADS
GENES & TRAITS
ANNUAL
COMMERCIAL DEVELOPMENT PRODUCTS
SHOW PROMISE
AS TARGETS
GERMPLASM
CANDIDATES TRACKS
•ROUNDUP READY
BIOTECH
SOYBEANS,
COTTON,
CANOLA & CORN
SEED
PERFORMANCE
TRAIT SCREENS •BOLLGARD &
BULK UP
SCREENS BOLLGARD II
COTTON
VALIDATING REGULATORY BUSINESS
HIGH VOLUMES OF IDENTIFY LEADS •COTTON STACKS
CONCEPTS STUDIES STRATEGY
GENES
•YIELDGARD
EXPANDED FIELD COMMERCIAL MARKETING HAND
TRAITS IN MODELS
TESTING FOR CORN BORER
TRIALS PREP OFF
& CROPS
GENE FUNCTION •YIELDGARD
ROOTWORM
•YIELDGARD PLUS
BREEDING
BREEDING TRAITS COMMERCIAL SEED •CORN STACKS
TRAIT SCREENS FIELD TRIALS
INTO CROPS PERFORMANCE BULK UP •VISTIVE LOW-
TESTING LINOLENIC
GENETIC MAPPING VALIDATE MOVE TRAITS TO MARKETING HAND
SOYBEANS
FOR BREEDING MAPPING RESULTS COMMERCIAL OFF
DETERMINE
•ASGROW AND
OPPORTUNITIES GERMPLASM MARKET FIT
VALIDATE DEKALB
GENETIC GAINS BREEDING SOYBEAN
PROGRAM VARIETIES &
CORN HYBRIDS
18
19. TECHNOLOGY LEADERSHIP
Feedback from 2005 Field Testing Indicates Continuing
Momentum in Pipeline Opportunities
EARLY FEEDBACK FROM 2005
ANNUAL R&D CYCLE: SEEDS & TRAITS
FIELD WORK
December
No
The steady progress of second-
ary ve
PORTFOLIO mb
nu
Ja er
generation biotech traits from the
UPDATE
pipeline continues
DATA
PRIORITY
ary
Oc
Roundup Ready Flex cotton
ANALYSIS
UPDATE
bru
tob
Fe
er
Second-generation YieldGard Corn Borer
corn
Roundup RReady2Yield soybeans
September
DATA
March
Our healthier oils platform is
COLLECTION
generating good commercial
opportunity
Ap
First products of our Renessen JV are
st
ril
gu
Au
nearing commercialization
FIELD TESTING
Significant progress on longer horizon
Ma
y
ly
projects as viable leads are advancing
Ju
for drought tolerance in three crops
June
19
20. TECHNOLOGY LEADERSHIP
Roundup Ready Flex Launch To Be Largest in 10-Year
History of Biotech Traits
KEY MARKET ACRES U.S. AUSTRALIA
Roundup Ready AVAILABLE MARKET 10-15M 0.5-0.8M
2005
Flex Cotton
PERFORMANCE
0% 0%
PERCENT PENETRATED
• Value reflects Anticipated largest trait launch of 2-3 million acres, pending final
greater approvals
convenience and
enhanced weed 80-90% of Roundup Ready Flex to be stacked with Bollgard II
control; lifts the
8 cotton seed companies currently breeding trait into varieties
value of the
Roundup Ready
trait
The Roundup Ready
UP NEXT
Flex cotton trait will
be coupled with our
• 2006 commercial Stoneville brand and
launch, expected our Cotton States
on 2-3 M acres licensing as a
showcase of
Monsanto’s cotton
business
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
20
21. TECHNOLOGY LEADERSHIP
Testing of Second-Generation Roundup RReady2Yield
Soybeans Indicates Extended Control
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
Roundup RReady2Yield 70M 50M 30M
AVAILABLE MARKET
2005
Soybeans
PERFORMANCE
0% 0% 0%
PERCENT PENETRATED
Identified lead event during agronomic and tolerance trials during the
• Yield improvement
of 5+ bushels per 2004 U.S. field season.
acre in 2004 field
Second-generation testing indicates improved tolerance under extended
trials
spray conditions
• Predicted added
2005: IN THE FIELD
value: $19-27 per
FIELD TRIAL YIELD
acre
ROUNDUP
ROUNDUP READY
RREADY2YIELD
SOYBEANS
SOYBEANS
UP NEXT 65
• 2005 field trial data
60
will support
BU/ACRE
upcoming
regulatory
55
submission
50
SPRAY SPRAY SPRAY
TIME 1 TIME 2 TIME 1&2
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
21
22. TECHNOLOGY LEADERSHIP
Drought Stress Tolerance To Be Family of High-Value
Traits in Multiple Crops U.S. AFFECTED
CORN, COTTON, SOY
ACREAGE
MARKET SEGMENTS
Drought-Tolerant
CONSITENT DROUGHT
13-16M
STRESS (WESTERN US)
2005
Family of Traits
PERFORMANCE REDUCED IRRIGATION 20M
COSTS
30-50M
DROUGHT “INSURANCE”
• Successful BROAD-ACRE WATER USE 128-148M
greenhouse testing EFFICIENCY
of cotton
DROUGHT-TOLERANT CORN
• Continued field
testing of corn and PHASE I
2 YEARS OF FIELD TRIALS
soybeans
DROUGHT-TOLERANT
UP NEXT
SOYBEANS
PHASE I
• Identifying FIRST YEAR OF FIELD TRIALS
potential
commercial leads
as field testing
DROUGHT-TOLERANT
continues
COTTON
PHASE I
FIRST YEAR OF GREENHOUSE
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
22
23. TECHNOLOGY LEADERSHIP
Drought Stress Tolerance To Be Family of High-Value
Traits in Multiple Crops U.S. AFFECTED
CORN MARKET
ACREAGE
SEGMENTS
Drought-Tolerant
CONSITENT DROUGHT
10-13M
STRESS (WESTERN US)
2005
Corn
PERFORMANCE REDUCED IRRIGATION 12M
COSTS
30-50M
DROUGHT “INSURANCE”
Yield protection on all acres against
• Pricing will reflect
BROAD-ACRE WATER USE
yield gains in all 70-80M
water deficits EFFICIENCY
three markets;
Yield enhancement through improved water use on drought-prone acres and
value of higher
cost savings on irrigated acres
yields shared with
farmer
More than two leads have demonstrated positive traits in corn field trials
EXAMPLES OF o
40 34 32 C
POSITIVE TRAITS
OBSERVED UNDER
UP NEXT
WATER STRESS:
• Enhanced growth
• Begin to identify
potential • Reduced leaf
commercial leads rolling
through additional
• Reduced leaf
testing
temperature CONTROL WITH GENE CONTROL WITH GENE
• Enhanced yield
REDUCED LEAF REDUCED LEAF
ROLLING TEMPERATURE
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
23
24. TECHNOLOGY LEADERSHIP
Nitrogen Use Is Second Only to Water Use as an
Opportunity in Agriculture
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
Higher-Yielding TBD TBD TBD
AVAILABLE MARKET
2005
Corn
PERFORMANCE
0% 0% 0%
PERCENT PENETRATED
• Functional hits from Increased yield TOLERANCE TO LOW NITROGEN
genomics screens
achieved through
are advanced to crop
enhanced nitrogen
testing for product
prioritization uptake and
utilization
• 21 leads are under
testing in 5 locations
Potential to reduce
in 2005
fertilizer inputs WITH GENE
CONTROL WITH GENE
CONTROL
UP NEXT
DARKER GREEN LEAVES
DARKER GREEN LEAVES
• Multi-location field
studies of leads
WITH GENE
CONTROL WITH GENE
CONTROL
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
24
25. TECHNOLOGY LEADERSHIP
High Lysine Enhances Animal Feed,
Shifts Value to Seed
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
Renessen High Lysine Corn: 4M 1M 4M
AVAILABLE MARKET
2005
First and Second Generations
PERFORMANCE
0% 0% 0%
PERCENT PENETRATED
• Completing Improved amino acid balance; increased total energy
regulatory review
Two-product step-change in lysine content
UP NEXT LYSINE TOTALS IN TESTING
2ND GENERATION
5000
• Currently
identifying brand
MINIMUM
4000
name and
TARGET
marketing position
3000
• Hopeful to have
technology in
1ST GENERATION
2000
farmers’ fields by
2007
MINIMUM
1000
TARGET
0 CONTROL SOUTH US RESULT CONTROL EVENT 1 EVENT 2
AMERICA
RESULT
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
2nd GENERATION 25
26. TECHNOLOGY LEADERSHIP
Vistive Is A Family of Improved Oils for Food Uses
Healthier Oils:
Family of Traits
CREATING VALUE
STANDARD SOYBEAN FAMILY
CURRENTLY NOT OPTIMAL FOR
MOST PROCESSED FOOD
VISTIVE LOW-LINOLENIC SOYBEANS
APPLICATIONS
TARGET: LINOLENIC ACID – MORE STABLE, NO TRANS FATS
LINOLENIC ACID LAUNCH
500K ACRES COMMERCIAL
VISTIVE II SOYBEANS
OLEIC ACID TARGET: INCREASED OLEIC FOR HEALTH
LINOLEIC PHASE 3
ACID
VISTIVE III SOYBEANS
STERATE &
TARGET: MORE STABLE, NO TRANS, LOWEST SATS, LIKE
PALMITATE ‘OLIVE OIL’
PHASE 2
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
26
27. TECHNOLOGY LEADERSHIP
Vistive Is First of Family of Improved Oils for Food Uses
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
Vistive Low- 5M TBD TBD
AVAILABLE MARKET
2005
Linolenic Soy
PERFORMANCE
2% 0% 0%
PERCENT PENETRATED
Vistive was developed by screening Monsanto’s germplasm and using
• Successful launch
advanced tools in breeding, effectively launching in 36 months from concept
of Asgrow
AG2421V and
Oil sold out from 2005; To be in consumer products in late 2005
AG2321V
• Approximately In 2006, additional brands and varieties will expand
100,000 acres the maturity zones and geographic reach of Vistive
planted in Iowa
UP NEXT
2006 2005
2005
500K acres 100K acres
2006
10+ seed brands 1 seed brand
800+ Farmers in Eastern
4+ processors 2 processors
and Northeastern Iowa
planted Vistive soybeans
this year
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
27
28. TECHNOLOGY LEADERSHIP
Vistive Offers the Ability to Declare Zero Trans Fats on
Food Labels
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
Vistive Low- 5M TBD TBD
AVAILABLE MARKET
Linolenic Soy
CREATING VALUE 2% 0% 0%
PERCENT PENETRATED
EXAMPLE: USE IN TORTILLA CHIPS
• Vistive provides
opportunity to
declare zero trans fat 100% PARTIALLY
100% PALM OIL
HYDROGENATED
and use the nutrient
100% VISTIVE
SOYBEAN OIL
content claims of
“Low in saturated
Nutrition Facts Nutrition Facts Nutrition Facts
fat, contains 7 g of
Tortilla Chips (Plain, white corn) Tortilla Chips (Plain, white corn) Tortilla Chips (Plain, white corn)
total fat per serving” Serving Size – 1 0z. (28 g) Serving Size – 1 0z. (28 g) Serving Size – 1 0z. (28 g)
and “Reduced Amount Per Serving Amount Per Serving Amount Per Serving
Saturated Fat” Calories 140 Calories 140 Calories 140
Calories from Fat 60 Calories from Fat 60 Calories from Fat 60
• Even in Palm Oil % Daily Value % Daily Value
% Daily Value
substitution, trans
Total Fat 7 g 11% Total Fat 7 g 11% Total Fat 7 g 11%
fat eliminated at the
Saturated Fat 1.5 g 8% Saturated Fat 3 g 15% Saturated Fat 1 g 5%
expense of a 1.5 Trans Fat 2 g Trans Fat 0 g Trans Fat 0 g 0%
g/serving increase in
Cholesterol 0%
Cholesterol 0% Cholesterol 0%
saturated fat.
Sodium 120 mg 5% Sodium 120 mg 5% Sodium 120 mg 5%
Total Carbohydrate 19 g 6% Total Carbohydrate 19 g 6% Total Carbohydrate 19 g 6%
Dietary Fiber 2 g 8% Dietary Fiber 2 g 8% Dietary Fiber 2 g 8%
Sugars 0 g Sugars 0 g Sugars 0 g
Protein 2 g 4% Protein 2 g 4% Protein 2 g 4%
28
29. TECHNOLOGY LEADERSHIP
Breeding Breakthrough Improves the Taste and Mouth-
Feel of Soy-Based Foods
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
Improved-protein <1M TBD TBD
AVAILABLE MARKET
2005
soybeans for food
PERFORMANCE
0% 0% 0%
PERCENT PENETRATED
Improves taste and mouth-feel with consumer applications in
• Yield trials of
beverages and meat alternatives; Improved taste for nutritional bars
commercial variety
candidates
Initiating seed production and identifying additional varieties for
successful
commercialization and validating performance in food products
IMPROVED HBC = IMPROVED SOLUBILITY PROFILE
LOWER AFFINITY FOR SOLUBILITY & Vinton 81
ODORS, CREATES EMULSIFYING Commodity
BALANCED FLAVORS (SIMILAR TO MON HBC
UP NEXT HBC LESS BINDING OF MILK) BETTER
OFF-FLAVORS
Casein
TASTE AND 0 2 4 6 8 10 12
TEXTURE
• Seed bulk up to
Bound 2 pentyl pyridine
25 Median particle diameter (microns)
Glycinin
begin for
moles/mole protein)
20
HBC IMPROVED GELLING (FIRM)
commercialization 15
RETAINS
MOISTURE IN High BC
10
β-conglycinin MEAT PRODUCTS,
5
CREATING FIRM & Control
0
0.3 0.6 0.9 1.3 1.6 1.8 2.1
TENDER TEXTURE 0 500 1000 1500 2000
2 pentyl pyridine (mM)
Elastic modulus (Pa)
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
29
30. TECHNOLOGY LEADERSHIP
Breeding Breakthrough Improves the Taste and Mouth-
Feel of Soy-Based Foods
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
Improved-protein <1M TBD TBD
AVAILABLE MARKET
soybeans for food
CREATING VALUE
0% 0% 0%
PERCENT PENETRATED
EXISTING SOYBEANS PRODUCT CONCEPT
BBreeding Β-CONGLYCININ
MUTAGENESIS Β-CONGLYCININ
10% 16-22%
R
GLYCININ GLYCININ
14% 0-6%
Gy1-5 Genes
O
A1 A2 B1 B2 C1 C2D1aD1b D2 E F G HI J KL MN
CONCEPT:
Gy5
Develop High Gy3
Beta-Conglycinin
Gy2
Gy7
Soybeans Using Gy1 Gy4
Markers to Select
for Altered Protein
Levels
30
31. TECHNOLOGY LEADERSHIP
Omega-3 Biofortification Could Be a Food Industry
Breakthrough
KEY MARKET ACRES U.S. BRAZIL ARGENTINA
TBD TBD TBD
AVAILABLE MARKET
Omega-3 Oilseeds
2005
PERFORMANCE
0% 0% 0%
PERCENT PENETRATED
American Heart Association, American Diabetic Association, and 1,600+
• Field tests in U.S.
research studies support health benefits
and Argentina
showed SDA levels
Enhanced stability; Best applications in refrigerated or frozen foods or
at product concept
as animal feed for Omega-3 enriched poultry or pork
with good
agronomic
OMEGA-3 (SDA LEVELS) IN SOYBEAN FIELD TRIALS
performance
25
FATTY ACID WT %
TARGET
20
UP NEXT
15
• Continued testing
to confirm
commercial 10
opportunity
5
0
OMEGA-3 EVENTS IN FIELD TESTING
DISCOVERY PHASE I PHASE III
PHASE II PHASE IV LAUNCH
Proof of Concept Adv. Development
Early Development Pre-Launch
31
32. GROWTH OPPORTUNITIES
Pipeline Is Valued Across Market Opportunities and Crops
PRICING VALUE MATRIX
4
3
2
HIGH PER-ACRE ($11-$100+)
OMEGA-3 SOYBEANS
BOLLGARD II COTTON (AUSTRALIA)
IMPROVED-PROTEIN SOYBEANS FOR FOOD
PROCESSOR PREFERRED
ELITE GERMPLASM
BOLLGARD II COTTON
BOLLGARD II COTTON (INDIA) ROUNDUP
ROUNDUP READY + FLEX COTTON
YIELDGARD READY
ROUNDUP READY 2ND GENERATION
ROOTWORM SOYBEANS
+ FLEX COTTON HIGH-LYSINE CORN
(AUSTRALIA) 2ND GENERATION ROUNDUP
IMPROVED-ENERGY CORN III
READY SOYBEANS
HIGHER-YIELDING CORN
SMALL-ACRE (0-10 MILION)1 LARGE-ACRE (11-100 MILLION+)1
DROUGHT ROUNDUP READY CORN
TOLERANT
COTTON
LOW PER-ACRE ($0-$10)2
VISTIVE ZERO SATURATED FAT + MID-
IMPROVED-PROTEIN OLEIC + LOW-LINOLENIC SOYBEANS HIGHER-
SOYBEANS FOR FEED
YIELDING
YIELDGARD CORN BORER
VISTIVE MID-OLEIC + LOW-
SOYBEANS
LINOLENIC SOYBEANS
VISTIVE SOYBEANS DROUGHT
TOLERANT
IMPROVED-OIL
CORN
SOYBEANS FOR
PROCESSING
HIGH-LYSINE CORN
DROUGHT TOLERANT
1 2
SOYBEANS
Pipeline projects denoted in white text and represent global value; Commercial products denoted in gold and are U.S.-only, unless otherwise indicated.
1. “Acre Potential” represents the maximum acre penetration by the trait individually and as a stacked trait in the three-year span during its peak.
2. “Per-Acre” premium represents the per-acre average value in the three-year span during the trait penetration peak.
32