1. Investor Presentation
August 2004
1

2. Forward-Looking Statements
Forward-Looking Statements
Forward-
Certain statements contained in this presentation, such as statements concerning the company's anticipated financial
statements
results, current and future product performance, regulatory approvals, currency impact, business and financial plans and
approvals,
other non-historical facts are quot;forward-looking statements.quot; These statements are based on current expectations and
non- quot;forward- expectations
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
those
company’
such forward-looking statements. Factors that could cause or contribute to such differences include, among others: the
forward- such
company’s exposure to various contingencies, including those related to Solutia, Inc., litigation, intellectual property,
company’
regulatory compliance (including seed quality), environmental contamination and antitrust; fluctuations in exchange rates
contamination
and other developments related to foreign currencies and economies; increased generic and branded competition for the
economies;
company's Roundup herbicide; the accuracy of the company’s estimates and projections, for example, those with respect
company’
to product returns and grower use of our products and related distribution inventory levels; the effect of weather
distribution
conditions and commodity markets on the agriculture business; the success of the company’s research and
the company’
development activities and the speed with which regulatory authorizations and product launches may be achieved;
rizations
autho
domestic and foreign social, legal and political developments, especially those relating to agricultural products
especially
developed through biotechnology; the company's ability to continue to manage its costs; the company’s ability to
continue company’
successfully market new and existing products in new and existing domestic and international markets; the company’s
existing company’
ability to obtain payment for the products that it sells; the company's ability to achieve and maintain protection for its
company's
intellectual property; the effects of the company's accounting policies and changes in generally accepted accounting
policies
principles; the company's ability to fund its short-term financing needs; general economic and business conditions;
short-
political and economic conditions due to threat of future terrorist activity and related military action; and other risks and
terrorist
factors detailed in the company's filings with the U.S. Securities and Exchange Commission. Undue reliance should not
Securities
be placed on these forward-looking statements, which are current only as of the date of this release. The company
forward- this
disclaims any current intention to revise or update any forward-looking statements or any of the factors that may affect
forward-
actual results, whether as a result of new information, future events or otherwise.
events
2

3. Non-GAAP Financial Information
Non-GAAP Financial Information
This presentation uses the non-GAAP financial measures of “free cash flow” and earnings per share (“EPS”)
non- flow” (“ EPS”
excluding the effect of certain items. We define “free cash flow” as the total of cash flows from operating
flow”
activities and cash flows from investing activities. A non-GAAP EPS financial measure (which we sometimes
non-
refer to as EPS from ongoing business) may exclude the impact of restructuring charges, charges associated
with the settlement of litigation, gains and losses on the sale of assets, and certain other items. The specific
items that are excluded from, and result in, our non-GAAP EPS financial measure are clearly identified as such
non-
in this presentation. The presentation of free cash flow and EPS excluding the effect of certain items is
EPS
intended to supplement investors’ understanding of our operating performance. These non-GAAP financial
non-
investors’
measures may not be comparable to similar measures used by other companies. Furthermore, these non- non-
GAAP financial measures are not intended to replace net income (loss), cash flows, financial position, or
(loss),
comprehensive income (loss), as determined in accordance with accounting principles generally accepted in
accounting
the United States. The non-GAAP financial measures used in this presentation are reconciled to the most
non-
directly comparable financial measure calculated and presented in accordance with GAAP and can be found at
in
the end of this presentation.
Fiscal Year
In this presentation, unless otherwise specified references to years, or to fiscal years, 2001 through 2006
references
are on a fiscal year basis and refer to the 12-month period ending August 31.
12-
Trademarks
Roundup, Roundup Ready, Bollgard, Bollgard II, YieldGard, Harness, Posilac and the Monsanto, Imagine and
YieldGard,
vine logo are trademarks owned by Monsanto Company and its wholly owned subsidiaries. All other
wholly
trademarks are the property of their respective owners. © 2004. Monsanto Company. All Rights Reserved.
3

4. Monsanto’s Business Focuses on Agriculture Globally
2003 Sales $4.9B
Sales by Business Segment Sales by Geographic Region
Biotechnology Trait
Acreage by Crop
150M Acres Worldwide
North America Latin America
Seeds and Genomics
Europe-Africa
Europe- Asia-Pacific
Asia-
Agricultural Productivity
Soybean traits Corn traits
Cotton traits Canola traits
Source: 2003 Earnings Data
4

5. Agricultural Productivity Continues To Generate
Significant Cash
Key Market Positions
No. 1 Selling Selective Herbicides Hold
Herbicide the No. 2 U.S. Position
Largest-Selling Dairy-Related
Animal Health Product
5

6. Roundup Remains Leading Product in Global Crop
Protection Market
2003 sales
$ millions
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
Fenoxaprop Sulfosate
Paraquat
Roundup* Glufosinate
2,4-D
2,4-
Nicosulfuron
Atrazine Pendimethalin
Metolachlor
Acetochlor
* Branded and third party supply revenue
Source: Monsanto and Phillips McDougall, 2003
6

7. Having Managed Post-Patent Decline, Roundup
Strategy Shifts Focus to Improving Return on Capital
Increase Decrease
U.S. branded net average selling price
projected in range of $13.50 to $14.50
U.S.
per gallon in 2004, sustained in 2005
Number of
Brand strength supports 60% U.S.
SKUs
market share in 2005
On-Farm “Pull”
Restructuring actions in place to move
Marketing
Roundup SG&A to low teens as percent
of sales in 2006
Distribution
“Push”
Reducing number of branded Roundup
Marketing
SKU’s globally by 45% (20% in 2001-2003
and an additional 25% in 2004-2005)
Staffing
Working Capital
Investment
7

8. Biotechnology Continues To Grow Globally
Global Monsanto Planted Biotech Acres
Acres in millions
180
160 Canola
Cotton
140
Corn
120
Soybeans
100
80
60
40
20
0
y
96
97
98
99
00
01
02
03
ar
19
19
19
19
20
20
20
20
in
im
el
Pr
04
20
Source: Monsanto estimates
8

9. Market Potential for Biotech Traits Highlights
Continued Growth Opportunity
Total Available Market in Acres
Key Markets Roundup Roundup YieldGard YieldGard Roundup Bollgard I
Ready Ready Corn Root Ready and II
Soybeans Corn Borer Worm Cotton Cotton
United States 70M 20M-50M 30M-40M 15-20M 10-15M 6-8M
Brazil 50M 20M 15M 5M - -
Argentina 30M 5M 4M 1M - -
India - - - - - 10-15M
Australia - - - - 0.5M-0.8M 0.5M-0.8M
Biotech
Acres
Planted 2004
Preliminary
Remaining
64% 21% 61% 8% 66% 26%
64% 21% 61% 8% 66% 26%
Available
Market
9

10. Seed and Trait Momentum Fuels Mid-Term Earnings
Growth
Seeds and traits projected to grow significantly
Breeding advancements continue to improve seed
–
performance
Second-generation and stacked traits offer unmatched
–
benefits to growers
Roundup shifts focus toward improving return
on capital
Roundup remains major source of free cash flow
–
R&D advancements accelerate longer term
growth
10% EPS CAGR in 2005 and 2006 from Ongoing Business
with Strong Free Cash Flow
10

11. Round 1: Seed and Single-Trait Positions Firmly
Established and Growing
• Seed Breeding Advancements
• First-Generation Traits
• Geographic Expansion
• Value Capture
Round 1
11

12. Round 1: Seed Breeding
Breeding Advancements Are Critical to Corn Growth
to
ta
eer
san
ge n
2003 Hybrid Performance
Pion
Mo n
2003 Global Corn Market Share
S yn
Yield
U.S. North
Standability
45
<105 Day RM* 40%
Disease Resistance
40 Licensed
Yield
U.S. Central &
35
South Branded
Standability
28%
30
>105 Day RM* Disease Resistance
25
Yield
France Standability 20
Disease Resistance
15
Yield
10 7%
Brazil Standability
5
Disease Resistance
0
•RM is relative maturity
Syngenta
Monsanto Pioneer
Source: Monsanto Performance Trials
Top of the market
Average of the market
Below average of the market
12

13. Round 1: First-Generation Traits
Monsanto’s Biotech Portfolio Has Established Industry
Standard for First-Generation Traits
Percentage of 2004 U.S. total planted acres
(Preliminary)
Monsanto products
100
Competitive products
80
60
40
20
0
n
ts
ts
rn
ts
rn
or
i
i
ai
co
co
tra
tra
Ic
tr
k
x
IM
n
n
n
n
e
to
or
ea
Li
ul
ld
ot
C
yb
c
rty
e
er
C
rfi
So
be
H
a
le
Li
C
Source: Monsanto
13

14. Round 1: First-Generation Traits
Roundup Ready Soybeans Deliver Superior Weed
Control at Competitive System Cost
U.S. Grower System Cost
Roundup Ready Soybeans
Herbicide and Trait
Seed
$ per acre
Herbicide Cost
$48
$40
Trait Cost
Unmatched weed control in Roundup Ready Soybeans
2003
1998
Source: Monsanto and Doane Market Research
14

15. Round 1: Global Expansion & Value Capture
EU Import Approvals Pending, but Business
Strategy in Process To Expand Market Choices
European Union
Situation
Import approvals needed for free flow of grain
Expands market potential in Americas
– Near-term, Roundup Ready corn key
2
1 Business Alternative
Regulatory Alternative
Advance products under new EU Pursue business approach to expand
regulations U.S. market
– –
Monsanto focused on imports New grower initiatives under way
to ensure market availability for
– 23 products in regulatory queue under
biotech grain
Directive 2001/18; 12 from Monsanto
– “We Buy All Corn, All Year”
• Roundup Ready corn (NK603)
approved for importation and whole
corn feed in July 2004
• NK603 Food application in queue
15

16. Round 1: Global Expansion & Value Capture
Enhanced Channeling Could Expand Market Potential
for Roundup Ready Corn in U.S.
Business Approach
Website indicates to farmers
which elevators in their area
accept biotech grain not yet
approved for import into the
European Union
Communication and education
program under way
Percent of growers citing grain
marketing concerns has
dropped from roughly 60% to
nearly 30% in past year*
*Based on Roundup Ready corn surveys taken in fall of 2003 and
spring of 2004 in Eastern Iowa/Northern Illinois region
16

17. Round 1: Global Expansion & Value Capture
Brazil Value Capture System Operating Smoothly
Brazil
2 To Do
Complete
1
Grain-based system Monitor and audit progress
Sale of Roundup implemented
Collect remaining royalty
Ready soybean
Over 95% of grain originators in payments from partners
varieties for this
the territory under contract
area requires new
regulatory
100% of harvest has been
approvals
delivered
Varieties from
40 million planted soybean acres
Argentina are
adaptable to
this area
10 million planted soybean acres
2004 Forecast for Brazil Value Capture System
( )
Soybean Average 2004 Expected
harvest in grower price contribution
• Grain partner
Percent
_
territory to earnings
share
$3.50 US
Roundup
X =
X per share in
6 million dollars • Implementation
Ready
2004
metric costs
(10 reais)
tons Neutral to
Slightly
Negative
17