SlideShare uma empresa Scribd logo
1 de 32
Baixar para ler offline
ROBB FRALEY
Chief Technology Officer


CREDIT SUISSE FIRST BOSTON
INVESTMENT CONFERENCE
Sept. 28, 2005




                             1
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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

Mais conteúdo relacionado

Semelhante a monsanto 09-28-05

monsanto 07-27-05
monsanto 07-27-05monsanto 07-27-05
monsanto 07-27-05finance28
 
monsanto 03-08-06
monsanto 03-08-06monsanto 03-08-06
monsanto 03-08-06finance28
 
monsanto 12-07-05
monsanto 12-07-05monsanto 12-07-05
monsanto 12-07-05finance28
 
monsanto 12-01-08
monsanto 12-01-08monsanto 12-01-08
monsanto 12-01-08finance28
 
monsanto 03-30-06
monsanto 03-30-06monsanto 03-30-06
monsanto 03-30-06finance28
 
monsanto 02-14-06c
monsanto 02-14-06cmonsanto 02-14-06c
monsanto 02-14-06cfinance28
 
monsanto 11-10-05b
monsanto 11-10-05bmonsanto 11-10-05b
monsanto 11-10-05bfinance28
 
monsanto EU_HughGrant_1110006
monsanto EU_HughGrant_1110006monsanto EU_HughGrant_1110006
monsanto EU_HughGrant_1110006finance28
 
.monsanto 01_07_09
.monsanto 01_07_09.monsanto 01_07_09
.monsanto 01_07_09finance28
 
monsanto 01_07_09
monsanto 01_07_09monsanto 01_07_09
monsanto 01_07_09finance28
 
monsanto 03-28-07
monsanto 03-28-07monsanto 03-28-07
monsanto 03-28-07finance28
 
monsanto_rd_platform_aquisition
monsanto_rd_platform_aquisitionmonsanto_rd_platform_aquisition
monsanto_rd_platform_aquisitionfinance28
 
monsanto 02-20-07
monsanto 02-20-07monsanto 02-20-07
monsanto 02-20-07finance28
 
Strategies of investment in sps along the value chain
Strategies of investment in sps along the value chainStrategies of investment in sps along the value chain
Strategies of investment in sps along the value chainABRAHAM SARFO
 

Semelhante a monsanto 09-28-05 (14)

monsanto 07-27-05
monsanto 07-27-05monsanto 07-27-05
monsanto 07-27-05
 
monsanto 03-08-06
monsanto 03-08-06monsanto 03-08-06
monsanto 03-08-06
 
monsanto 12-07-05
monsanto 12-07-05monsanto 12-07-05
monsanto 12-07-05
 
monsanto 12-01-08
monsanto 12-01-08monsanto 12-01-08
monsanto 12-01-08
 
monsanto 03-30-06
monsanto 03-30-06monsanto 03-30-06
monsanto 03-30-06
 
monsanto 02-14-06c
monsanto 02-14-06cmonsanto 02-14-06c
monsanto 02-14-06c
 
monsanto 11-10-05b
monsanto 11-10-05bmonsanto 11-10-05b
monsanto 11-10-05b
 
monsanto EU_HughGrant_1110006
monsanto EU_HughGrant_1110006monsanto EU_HughGrant_1110006
monsanto EU_HughGrant_1110006
 
.monsanto 01_07_09
.monsanto 01_07_09.monsanto 01_07_09
.monsanto 01_07_09
 
monsanto 01_07_09
monsanto 01_07_09monsanto 01_07_09
monsanto 01_07_09
 
monsanto 03-28-07
monsanto 03-28-07monsanto 03-28-07
monsanto 03-28-07
 
monsanto_rd_platform_aquisition
monsanto_rd_platform_aquisitionmonsanto_rd_platform_aquisition
monsanto_rd_platform_aquisition
 
monsanto 02-20-07
monsanto 02-20-07monsanto 02-20-07
monsanto 02-20-07
 
Strategies of investment in sps along the value chain
Strategies of investment in sps along the value chainStrategies of investment in sps along the value chain
Strategies of investment in sps along the value chain
 

Mais de finance28

virgin media.FINAL_Q4_06_Presentation_VMED
virgin media.FINAL_Q4_06_Presentation_VMEDvirgin media.FINAL_Q4_06_Presentation_VMED
virgin media.FINAL_Q4_06_Presentation_VMEDfinance28
 
virgin media.FINAL_Q4_06_Presentation_VMED
virgin media.FINAL_Q4_06_Presentation_VMEDvirgin media.FINAL_Q4_06_Presentation_VMED
virgin media.FINAL_Q4_06_Presentation_VMEDfinance28
 
virgin media.Q1_07_Analyst_presentation_FINAL
virgin media.Q1_07_Analyst_presentation_FINALvirgin media.Q1_07_Analyst_presentation_FINAL
virgin media.Q1_07_Analyst_presentation_FINALfinance28
 
virgin media.Q1_07_Analyst_presentation_FINAL
virgin media.Q1_07_Analyst_presentation_FINALvirgin media.Q1_07_Analyst_presentation_FINAL
virgin media.Q1_07_Analyst_presentation_FINALfinance28
 
virgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentationvirgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentationfinance28
 
virgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentationvirgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentationfinance28
 
virgin media.Q3_07_AnalystPresentation
virgin media.Q3_07_AnalystPresentationvirgin media.Q3_07_AnalystPresentation
virgin media.Q3_07_AnalystPresentationfinance28
 
virgin media.Q3_07_AnalystPresentation
virgin media.Q3_07_AnalystPresentationvirgin media.Q3_07_AnalystPresentation
virgin media.Q3_07_AnalystPresentationfinance28
 
virgin media.UBS_vmed_December07_FINAL
virgin media.UBS_vmed_December07_FINALvirgin media.UBS_vmed_December07_FINAL
virgin media.UBS_vmed_December07_FINALfinance28
 
virgin media.UBS_vmed_December07_FINAL
virgin media.UBS_vmed_December07_FINALvirgin media.UBS_vmed_December07_FINAL
virgin media.UBS_vmed_December07_FINALfinance28
 
virgin media._Q12008_presentation
virgin media._Q12008_presentationvirgin media._Q12008_presentation
virgin media._Q12008_presentationfinance28
 
virgin media.VMED_Q12008_presentation
virgin media.VMED_Q12008_presentationvirgin media.VMED_Q12008_presentation
virgin media.VMED_Q12008_presentationfinance28
 
virgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentationvirgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentationfinance28
 
virgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentationvirgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentationfinance28
 
virgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationvirgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationfinance28
 
virgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationvirgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationfinance28
 
virgin media.Analyst_day_november112008
virgin media.Analyst_day_november112008virgin media.Analyst_day_november112008
virgin media.Analyst_day_november112008finance28
 
virgin media.Analyst_day_november112008
virgin media.Analyst_day_november112008virgin media.Analyst_day_november112008
virgin media.Analyst_day_november112008finance28
 
virgin media.london_nov132008
virgin media.london_nov132008virgin media.london_nov132008
virgin media.london_nov132008finance28
 
virgin media.london_nov132008
virgin media.london_nov132008virgin media.london_nov132008
virgin media.london_nov132008finance28
 

Mais de finance28 (20)

virgin media.FINAL_Q4_06_Presentation_VMED
virgin media.FINAL_Q4_06_Presentation_VMEDvirgin media.FINAL_Q4_06_Presentation_VMED
virgin media.FINAL_Q4_06_Presentation_VMED
 
virgin media.FINAL_Q4_06_Presentation_VMED
virgin media.FINAL_Q4_06_Presentation_VMEDvirgin media.FINAL_Q4_06_Presentation_VMED
virgin media.FINAL_Q4_06_Presentation_VMED
 
virgin media.Q1_07_Analyst_presentation_FINAL
virgin media.Q1_07_Analyst_presentation_FINALvirgin media.Q1_07_Analyst_presentation_FINAL
virgin media.Q1_07_Analyst_presentation_FINAL
 
virgin media.Q1_07_Analyst_presentation_FINAL
virgin media.Q1_07_Analyst_presentation_FINALvirgin media.Q1_07_Analyst_presentation_FINAL
virgin media.Q1_07_Analyst_presentation_FINAL
 
virgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentationvirgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentation
 
virgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentationvirgin media.Q2-07_Analyst_presentation
virgin media.Q2-07_Analyst_presentation
 
virgin media.Q3_07_AnalystPresentation
virgin media.Q3_07_AnalystPresentationvirgin media.Q3_07_AnalystPresentation
virgin media.Q3_07_AnalystPresentation
 
virgin media.Q3_07_AnalystPresentation
virgin media.Q3_07_AnalystPresentationvirgin media.Q3_07_AnalystPresentation
virgin media.Q3_07_AnalystPresentation
 
virgin media.UBS_vmed_December07_FINAL
virgin media.UBS_vmed_December07_FINALvirgin media.UBS_vmed_December07_FINAL
virgin media.UBS_vmed_December07_FINAL
 
virgin media.UBS_vmed_December07_FINAL
virgin media.UBS_vmed_December07_FINALvirgin media.UBS_vmed_December07_FINAL
virgin media.UBS_vmed_December07_FINAL
 
virgin media._Q12008_presentation
virgin media._Q12008_presentationvirgin media._Q12008_presentation
virgin media._Q12008_presentation
 
virgin media.VMED_Q12008_presentation
virgin media.VMED_Q12008_presentationvirgin media.VMED_Q12008_presentation
virgin media.VMED_Q12008_presentation
 
virgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentationvirgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentation
 
virgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentationvirgin media.FINAL_Q208_Presentation
virgin media.FINAL_Q208_Presentation
 
virgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationvirgin media.Q3_08_Presentation
virgin media.Q3_08_Presentation
 
virgin media.Q3_08_Presentation
virgin media.Q3_08_Presentationvirgin media.Q3_08_Presentation
virgin media.Q3_08_Presentation
 
virgin media.Analyst_day_november112008
virgin media.Analyst_day_november112008virgin media.Analyst_day_november112008
virgin media.Analyst_day_november112008
 
virgin media.Analyst_day_november112008
virgin media.Analyst_day_november112008virgin media.Analyst_day_november112008
virgin media.Analyst_day_november112008
 
virgin media.london_nov132008
virgin media.london_nov132008virgin media.london_nov132008
virgin media.london_nov132008
 
virgin media.london_nov132008
virgin media.london_nov132008virgin media.london_nov132008
virgin media.london_nov132008
 

Último

Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent PreferencesGRAPE
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfMichael Silva
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESKumarJayaraman3
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxOffice for National Statistics
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Matthews Bantsijang
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismBrian Lin
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI360factors
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023SkillCircle
 
20240315 _E-Invoicing Digiteal. .pptx
20240315 _E-Invoicing Digiteal.    .pptx20240315 _E-Invoicing Digiteal.    .pptx
20240315 _E-Invoicing Digiteal. .pptxFinTech Belgium
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneurabcisahunter
 

Último (20)

Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent Preferences
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdf
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
 
Effects & Policies Of Bank Consolidation
Effects & Policies Of Bank ConsolidationEffects & Policies Of Bank Consolidation
Effects & Policies Of Bank Consolidation
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024Monthly Economic Monitoring of Ukraine No.230, March 2024
Monthly Economic Monitoring of Ukraine No.230, March 2024
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptxSlideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 18 March 2024.pptx
 
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
Remembering my Totem _Unity is Strength_ growing in Bophuthatswana_Matthews B...
 
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for TourismTaipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
Taipei, A Hidden Jewel in East Asia - PR Strategy for Tourism
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023
 
20240315 _E-Invoicing Digiteal. .pptx
20240315 _E-Invoicing Digiteal.    .pptx20240315 _E-Invoicing Digiteal.    .pptx
20240315 _E-Invoicing Digiteal. .pptx
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
 

monsanto 09-28-05

  • 1. ROBB FRALEY Chief Technology Officer CREDIT SUISSE FIRST BOSTON INVESTMENT CONFERENCE Sept. 28, 2005 1
  • 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