Download - monsanto EU_TerryCrews_1110006
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TERRY CREWSCHIEF FINANCIAL OFFICER
MONSANTO EUROPEAN INVESTOR DAYNov. 10, 2006
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OVERVIEW12
-MO
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H R
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FIT
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$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Q1 200
3Q2 2
003
Q3 200
3Q4 2
003
Q1 200
4Q2 2
004
Q3 200
4Q4 2
004
Q1 200
5Q2 2
005
Q3 200
5Q4 2
005
Q1 200
6Q2 2
006
Q3 200
6Q4 2
006
FOCUS: 12-MONTH ROLLING GROSS PROFIT BY BUSINESS SEGMENT
SEEDS & GENOMICS SEGMENT
AGRICULTURAL PRODUCTIVITY SEGMENT
KEY INFLECTION POINT:MID-2004, ROLLING GROSS PROFIT FOR SEEDS & GENOMICS BUSINESS SEGMENT SURPASSED AGRICULTURAL PRODUCTIVITY
Monsanto’s Strategic and Financial Opportunity Lies In Seeds and Traits
SEEDS & GENOMICS
CAGR: 36%
AGRICULTURAL PRODUCTIVITY
CAGR: (5)%
3
OVERVIEW
44%
46%
48%
50%
52%
54%
CURRENT LEVEL
GROSS MARGIN ‘PULL’
2003 2004 2005 2006 2007F 2008F 2009F 2010F
GROSS MARGIN OPPORTUNITYGROSS PROFIT AS A PERCENT OF SALES
HIGHR&D pipeline
MEDIUMSeminis
LOWCotton platform
MEDIUMGlobal biotech traits
MEDIUMInternational corn
HIGHU.S. corn
VALUE1FACTOR
Delta between 2006 current gross margin and a 51-53% trajectory reflects continued growth opportunity for seeds and traits
MONSANTO’S OPPORTUNITY
HIGH >$250M MEDIUM $100M - $250M LOW <$100M
Six Building Blocks Extend Leadership and Elevate Gross Margin Opportunity Through 2010
1. Increment to total gross profit in the period 2006-2010; Some categories will overlap.
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Seed Market Share Gains Alone Yield Greater Profit Contributions
U.S. CORN GROWTH
• Gain of 1 market share point in U.S. adds approximately $10M to $15M to gross profit in seed alone for DEKALB/Asgrowbrands
OUTLOOK:
U.S. Corn
• In 2006, Monsanto’s DEKALB and Asgrow brands grew by 3 market share points
• Over five years, comparable market share gain was 9 points
SITUATION:
MEDIUM
40-45%40-45%COST FACTORS
$42$32PRICING FACTORS
78.5MMARKET FACTORS
$13M-$15M$10M-$11MAverage Gross Profit: Per Share Point
Average Gross Profit: Per Acre $16.80-$18.90$12.80-$14.40GROSS PROFIT VALUE
Assumed Industry-Standard Gross Margin
$32.8M$23.4MRetail Value: Per Share Point
Average Seed Retail Price Per Acre
780,000 acresAcre: Market Share Conversion
USDA Total Acres Planted (2006)
HIGH-END RANGE
NEW, HIGHER-VALUE HYBRIDS IN PORTFOLIO
LOW-END RANGEMATURE, LOWER-VALUE HYBRIDS IN PORTFOLIO
U.S. MARKET SHARE VALUESEED VALUE RANGE FOR ADDED ACRES IN DEKALB/ASGROW BRANDS
HIGH >$20 MEDIUM $10 - $20 LOW <$10
1. Average incremental value in gross profit opportunity for the seed value (excluding traits) of the addition of an acre in a Monsanto national brand:
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Each New Trait Stacks Additive Gross Margin to Upgrade Financial and Commercial Platform
U.S. CORN GROWTH
• Addition of each stacked trait increases gross profit as a percent of sales for each bag of seed sold
OUTLOOK:
U.S. Corn
• Stacking corn traits on to our germplasm improves gross profit contribution
• In 2006, Monsanto national brands sold more stacked traits than single traits
• In 2007, in our national brands, Monsanto expects to sell more triple stacks than singles
SITUATION:
INCREASED MARGINS WITH STACKINGVALUE PROGRESSION OF STACKED CORN TRAITS
GR
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SA
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61%
63%
65%67%
0
0.5
1
1.5
2
2.5
3
3.5
4
SEED ONLY 1 TRAIT 2 TRAITS 3 TRAITS 4 TRAITS50%
52%
54%
56%
58%
60%
62%
64%
66%
68%
“4 trait” value assumed to be an average of the retail value of the three other first-generation traits
For currently commercialized traits, the demand for triple-stack traits can double gross profit per acre over seed alone in DEKALB/Asgrow brands
GROSS PROFIT AS A PERCENT OF SALES
TR
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GR
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VA
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Gross Profit Value of Seed Internationally Varies, Yet Still Solid Contributor to Growth, Commercial Platform
INTERNATIONAL CORN GROWTH
• For the first time ever, DEKALB is co-leader of French market
• Monsanto is targeting to grow share in each of the most valuable corn-growing countries
OUTLOOK:
International Corn
• Primary value in international corn markets today is in the seed
• In France, DEKALB market share has grown 5 points over the last 3 years
SITUATION:
HIGH
40-45%COST FACTORS
$57PRICING FACTORS
7.5M(3.0M Ha)
MARKET FACTORS
Average Gross Profit: Per Acre1 $23-26GROSS PROFIT VALUE
Assumed Industry-Standard Gross Margin
Average Seed Retail Price Per Acre
7,500 acresAcre: Market Share Conversion
Total Acres Planted (2006)
FRANCE
GERMPLASM VALUE: FRANCE SEED VALUE RANGE FOR ADDED ACRES IN DEKALB/ASGROW BRANDS
HIGH >$20 MEDIUM $10 - $20 LOW <$10
1. Average incremental value in gross profit opportunity for the seed value (excluding traits) of the addition of an acre in a Monsanto-owned brand:
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Significant Growth Opportunity Lies in Expansion of Existing Commercial Biotech Traits Globally
GLOBAL BIOTECH TRAIT GROWTH
• As is the case in the U.S., largest category of opportunity internationally is corn trait adoption
• Even where some traits – like cotton – are penetrated, there’s still an upgrade opportunity to second-generation traits
OUTLOOK:
Global Biotech Traits
• Historically, most rapid adoption has been in the U.S., also the most highly penetrated market
• Penetration is moving globally, trait by trait, country by country
SITUATION:
GLOBAL MARKET OPPORTUNITYMARKET OPPORTUNITY FOR BIOTECH TRAITS THROUGH 20101
26%42%29%57%39%86%2006 Penetration
25-30M50-60M60M6-8M10-15M70MUnited States
36-41M84-96M118-120M
28.5-35.8M
34.5-44.8M156.2MTotal Key
Markets
-4M6M10M11M0.2MAfrica
CORNCOTTONSOYBEANS
---0.5M-0.8M
0.5M-0.8M-Australia
5M8M24M--1MEurope
-3 – 5M3 – 5M10-15M10-15M-India
1M4M5M--35MArgentina
5M15M20M2M3M50MBrazil
YIELDGARDROOTWORM
YIELDGARDCORN BORER
ROUNDUP READY CORN 2
BOLLGARD AND
BOLLGARD II
ROUNDUP READY(FLEX)
ROUNDUP READY
1. Market Opportunity reflects total acres where technology is applicable, not necessarily acres projected for penetration by 2010.
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$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
2007 2008F 2009F 2010
Emerging Markets Require Business Solutions to Balance Reward and Risk
GLOBAL BIOTECH TRAIT GROWTH
• Corn traits outside U.S. have significant opportunity for penetration
• Brazilian upside of 30M+ acres for Roundup Ready soybeans
• Cotton holds dual opportunity of initial penetration into markets and upgrading to second-generation traits
OUTLOOK:
Global Biotech Traits
• Genetic footprint in corn seed globally establishes platform for trait launches
• Largest soybean market outside U.S. is Brazil; Recent pricing action taken there to promote penetration of new seed
• Cotton traits among most advanced globally, with second-generation upgrades in 2007 in Australia and India
SITUATION:
CO
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ROUNDUP READY SOYBEANS IN BRAZILPROJECTED EPS CONTRIBUTIONS (2007 VS 2010)
$0.09-$0.11
$0.025-$0.05
2007F 2010F
90% PENETRATION
50MMARKET SIZE
$2.50-$3.00/acrePRICING
ASSUMPTIONS
45%PENETRATION
50MMARKET SIZE
$2.50-$3.00/acrePRICING
ASSUMPTIONS
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Upgrade to Double-Double Stacks in Cotton Significantly Enhances Value Versus Seed Alone
COTTON GROWTH
• From the base of a single trait, move to second-generation stack – ‘double-double’ – can increase retail value by 50 percent
OUTLOOK:
Cotton Platform
• Cotton trait platform is first to move forward on complete replacement of first-generation traits with second-generation upgrades
• Roundup Ready Flex cotton launched in the U.S. in 2006; Will launch in Australia in 2007
SITUATION:
INCREASED U.S. COTTON TRAIT RETAIL VALUEEXAMPLE: VALUE PROGRESSION OF COTTON TRAITS
IN NORTH DELTA REGION OF U.S.
0
0.5
1
1.5
2
SEED ONLY FIRST-GEN SINGLE FIRST-GENSTACKED
DOUBLE-DOUBLE
Each trait in a stacked combination adds functionality and value for the farmer. Second-generation stacks further enhance that added performance
ADDITIVE VALUE IN STACKS
1.001.17
1.50T
RA
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VA
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SEMINIS VALUENET PRESENT VALUE OF GROSS PROFIT BY PRODUCT TIERS
The top 5 crops in Seminis portfolio represent ~50% of the expected gross profit contribution going forward
SEMINIS VALUE
FIRST TIER
SECOND TIER
THIRD TIER
FOURTH TIER
TomatoSweet PepperHot PepperOnionMelon
• Seminis gross profit as a percent of sales was in the 60% range and will continue to grow through price increases
OUTLOOK:
Seminis
• In 2006, narrowed commercial and research focus to 25 crops that generate the most profit
• Began application of breeding technology, with genome-wide marker platform for tomatoes and peppers; Melons, watermelons and the brassicafamily of cabbage, broccoli and cauliflower next
SITUATION:
Seminis To Leverage Portfolio, Pricing and Molecular Breeding To Create New Growth
SEMINIS GROWTH
~50%
PRODUCT RANKING WITHIN 25-CROP
PORTFOLIO:
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Monsanto’s Pipeline Is Funded for Growth, but Focused on Return on Investment
PIPELINE
R&D Pipeline
In FY2006:• There was positive
movement –advancing phases or adding to the pipeline – in 50 percent of the pipeline projects
• Three projects were designated as “HIT” projects reflecting our confidence in their commercial track
SITUATION:
PIPELINE VALUE: TOP-TEN PROJECTSREFLECTING COMMERCIAL VALUE1
1. Top ten not presented in ranked order; Commercial value calculated by penetration and retail value during three-year span at peak.
2. Value and acres are for direct feed piece only and do not include value for Renessen’s corn processing system, which is to be determined
U.S.5M>$30Improved health3Omega 3 soybeansU.S.
Brazil Europe
41M$10 - $30Insect protection3YieldGard VT PRO2nd-GEN YIELDGARD CORN BORER
U.SBrazil
Europe20M$10 - $30Feed and fuel4
Renessen Corn Processing System and Mavera™ High-
Value Corn with Lysine2
U.S.Brazil
Argentina155M$10 - $30Yield
enhancement2Higher yielding soybeans
CORE MARKETS
ACRE BASE
VALUE PER ACRE
SOURCE OF VALUEPHASE
U.SBrazil
Europe164M$10 - $30
Nitrogen replacement and
yield1Nitrogen utilization corn
U.S.12-15M$10 - $30Improved health2Vistive III soybeans
U.SBrazil
Europe164M$10 - $30
Water replacement and
yield2Drought-tolerant corn
U.S.IndiaBrazil
Australia36M$10 - $30
Water replacement and
yield1Drought-tolerant cotton
Insect-protected soybeans WITH ROUNDUP RREADY2YIELD
Roundup RReady2Yieldsoybeans
BrazilArgentina95M<$10Yield2
U.S.Brazil
Argentina155M$10 - $30Yield
enhancement3HIT
HIT
HIT
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44%
46%
48%
50%
52%
54%
CURRENT LEVEL
GROSS MARGIN ‘PULL’
2003 2004 2005 2006 2007F 2008F 2009F 2010F
GROSS MARGIN OPPORTUNITYGROSS PROFIT AS A PERCENT OF SALES
HIGHR&D pipeline
MEDIUMSeminis
LOWCotton platform
MEDIUMGlobal biotech traits
MEDIUMInternational corn
HIGHU.S. corn
VALUE1FACTOR
Delta between 2006 current gross margin and a 51-53% trajectory reflects continued growth opportunity for seeds and traits
MONSANTO’S OPPORTUNITY
HIGH >$250M MEDIUM $100M - $250M LOW <$100M
FINANCIAL FOCUS
2007 Is First Step Toward Gross Profit Targets in 2010
1. Increment to total gross profit in the period 2006-2010; Some categories will overlap.
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FINANCIAL FOCUS
Gross Profit Mix Shows Power of Seeds and Traits, Especially as Traits Expand
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2003 2004 2005 2006 2007F
SEEDS & GENOMICS ROUNDUP AND OTHER GLYPHOSATE-BASED HERBICIDES
ALL OTHER AGRICULTURAL PRODUCTIVITY
$875M - $950M$1.50-$1.572007F
FREE CASH FLOW
ONGOING EPS
IN M
ILLI
ON
S
~$400MALL OTHER AG PRODUCTIVITY
2007F
~$600MROUNDUP AND
OTHER GLYPHOSATE-
BASED HERBICIDES
~$2.8BSEEDS & GENOMICS
OUTLOOK:
• From 2005 to 2006, gross profit grew 18%; Gross profit from Seeds & Genomics grew 24%
SITUATION:
Gross Profit by SegmentGROSS PROFIT PERFORMANCE BY SEGMENT
2003-2007F
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$875M - $950M$1.50-$1.572007F
FREE CASH FLOW
ONGOING EPS
2007F
~10%R&D % SALES
21%-21.5%SG&A % SALES
OUTLOOK:
• Seeds and traits are high-service businesses, but that service is highly rewarded in the marketplace
• R&D as a percent of sales remains in 10 percent range
• R&D expense includes milestone payments and other expenses related to third-party agreements
• Renessen joint venture included in Other Expense, approximately $35M investment annually
SITUATION:
SG&A and R&D as Percent of Sales
SG&A AS A PERCENT OF SALES2004-2007F
FINANCIAL FOCUS
R&D and SG&A Spend Balances Growth with Focus
0
5
10
15
20
25
2004 2005 2006 2007F
LOW 20% RANGE
R&D AS A PERCENT OF SALES2004-2007F
0
4
8
12
2004 2005 2006 2007F
10% RANGE
15
$875M - $950M$1.50-$1.572007F
FREE CASH FLOW
ONGOING EPS
2007F
$875-$950MFREE CASH FLOW
OUTLOOK:
• In 2005, Monsanto used roughly $1.5 billion of cash for acquisitions, including Seminis, Emergent and ASI
• 2006 free cash also covered a one-time payment for a licensing agreement with University of California and a contingent payment related to Seminis acquisition
SITUATION:
Free Cash Flow
FINANCIAL FOCUS
Earnings Should Continue to Translate to Free Cash Flow
$0
$400
$800
$1,200
$1,600
2004 2005 2006 2007F
IN M
ILLI
ON
S $999
$70
$1,500
$1,049$875 - $950
FREE CASH FLOW PERFORMANCE2004-2007F
FREE CASH FLOW PERFORMANCE AND FORECAST
2005 FREE CASH USED FOR ACQUISITIONS
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$875M - $950M$1.50-$1.572007F
FREE CASH FLOW
ONGOING EPS
2007F
$875-$950MFREE CASH FLOW
OUTLOOK:
• From 2004-2006, Monsanto generated $1.3B from working capital
• During the same period, $1.8B was spent on acquisitions
SITUATION:
Free Cash Flow
FINANCIAL FOCUS
Working Capital Improvements Have Helped Fund Key Acquisitions
SOURCES OF CASHCUMULATIVE: 2004-2006
USES OF CASHCUMULATIVE: 2004-2006
WORKING CAPITAL
NET INCOME
ACQUISITIONS
CAPITAL EXPENDITURES
TECHNOLOGY AND OTHER INVESTMENTS
Between 2004 and 2006, much of the cash generated from working capital improvements was used to fund key acquisitions
CASH GENERATION AND USES
$1.3B $1.8B$1.2B
$270M
$860M
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$875M - $950M$1.50-$1.572007F
FREE CASH FLOW
ONGOING EPS
• Inventories as percent of sales have increased because of acquisitions but should drop modestly going forward
OUTLOOK:
• Receivables as percent of sales have declined from 47 percent in 2003 to just under 20 percent in 2006, even with addition of acquisitions
• Credit policies in Brazil and Argentina remain disciplined, preference for receivables that are securitized
• As a result, receivables as percent of sales dropped in both Brazil and Argentina in 2006
SITUATION:
Receivables & Inventories as Percent of Sales
FINANCIAL FOCUS
Working Capital Discipline Sustained Even as Business Expands
0%
10%
20%
30%
2004 2005 2006 2007F
0%
10%
20%
30%
40%
2004 2005 2006 2007F
RECEIVABLES AS A PERCENT OF SALES2004-2007F
INVENTORIES AS A PERCENT OF SALES2004-2007F
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$875M - $950M$1.50-$1.572007F
FREE CASH FLOW
ONGOING EPS
• Capital expenditures of approximately $400M in 2007, with primary investments in new or expanded seed production
• Technology investments expected to continue in $100M range
OUTLOOK:
• Investing cash primarily used for bolt-on acquisitions to bolster seed positions in all crops globally
SITUATION:
Investing Cash
FINANCIAL FOCUS
Investing Cash Targeted for Bolt-On Acquisitions, Technology Investments, Seed Production
CAPITAL AND TECHNOLOGY EXPENDITURES 2004-2007F
$0
$50
$100
$150
$200
$250
$300
$350
$400
2004 2005 2006 2007F
IN M
ILLI
ON
S
TECHNOLOGY CAPITAL
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$875M - $950M$1.50-$1.572007F
FREE CASH FLOW
ONGOING EPS
• Monsanto will continue to explore options for returning value to shareowners, including:
• Continued strategic seed acquisitions
• Continued technology investments• Share repurchase programs• Dividends
OUTLOOK:
• From 2004-2006, Monsanto has generated a cumulative total of approximately $4.6B in cash
• $800 million, four-year share repurchase program announced end of October 2005
$120 million of shares repurchased through end of FY 2006
• Dividend payments Dividend yield as of 8/31/06: 0.84% FY 2006 GAAP pay-out ratio: 30.5%
SITUATION:
Uses of Cash
FINANCIAL FOCUS
Consistent Commitment to Return Additional Value through Dividends, Share Repurchases
USES OF CASH CUMULATIVE: 2004-20061
1. Net of approximately $400M in pension contributions
ACQUISITIONS
CAPITAL EXPENDITURES
SHARE REPURCHASE & DIVIDENDS
DEBT REPAYMENT
CASH ACCUMULATION
Between 2004 and 2006, 75% of the cash generated was either returned to shareowners or re-invested in the growth of the business
USES OF CASH
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From 2003 to 2007, ROC has the potential to double
ROC IMPROVEMENT
$875M - $950M$1.50-$1.572007F
FREE CASH FLOW
ONGOING EPS
• Exclusive of acquisition effect, target of another 100-basis-point improvement
OUTLOOK:
• ROC in 2006 of 11.2 percent surpassed original projections of an ROC target in 2007 of 10.5 percent
• ROC in 2007 will be dependent on timing of closing of potential Delta and Pine Land acquisition
SITUATION:
Return on Capital
FINANCIAL FOCUS
Return on Capital Has Leapfrogged Original Targets, Still Can Significantly Improve
RETURN ON CAPITAL 2003-2006
0%
2%
4%
6%
8%
10%
12%
2003 2004 2005 2006
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Focus, Discipline and Leadership Translate to Continued Growth
SUMMARY
1. EPS figures reflect the stock split effective July 28, 2006
$0.71$0.79
$1.04
$1.31
$1.50-$1.57
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
2003 2004 2005 2006 2007F
EARNINGS PER SHARE GROWTHPROGRESSION OF ONGOING EPS (2003-2007F)
FY2007 GUIDANCE
~$400MAll Other Ag Productivity Gross Profit
~$2.8B
~$600M
$350-$400M
~10%
21%-21.5%
$875M-$950M
$1.50-$1.5715%-20% GROWTH
FROM 2006 YEAR-END PERFORMANCE
Seeds & Traits Gross Profit
Roundup and All Other Glyphosate-Based Herbicides
Gross Profit
Capital Expenditures
R&D as a % Of Sales
SG&A as a % Of Sales
Free Cash Flow
Earnings Per Share1
12% GROWTH 31% GROWTH 26% GROWTH
2007 EPS GUIDANCE: 15-20% GROWTH
22
Reconciliation of Non-GAAP Financial Measures
$0.48------PCB Litigation Settlement Expense – Net
--$0.12----Impairment of Goodwill
$1.04
$(0.02)
$0.01
$(0.19)
$0.32
$0.45
--
$0.47
--
$0.47
Fiscal Year 2005
$0.80
--
$0.18
--
--
--
--
$0.50
--
$0.50
Fiscal Year 2004
$0.72
$0.04
$0.05
--
--
--
--
$0.15
$0.02
$0.13
Fiscal Year 2003
$0.04Tax Charge on Repatriated Earnings
$0.01Cumulative Effect of Change in Accounting Principle
$1.25Net Income (Loss) per Share
$0.01Loss (Income) on Discontinued Operations
--Tax Benefit on Loss from European Wheat andBarley Business
--Solutia-Related Charge
--Seminis and Stoneville In-Process R&D
$1.31Diluted Earnings (Loss) per Share from Ongoing Business
--Restructuring Charges -- Net
$1.26Diluted Earnings (Loss) per Share Before Effect of Accounting Change
Fiscal Year 2006$ per share
Reconciliation of Non-GAAP EPS
Reconciliation of Free Cash Flow
$(243)$(582)$(117)N/ANet Cash Provided (Required) by Financing Activities
$756
--
$999
$(262)
$1,261
Fiscal Year 2004
N/A
--
$875-$950
$(500)
$1,375-$1,450
Fiscal Year 2007
Forecast
$(512)$935Net Increase (Decrease) in Cash and Cash Equivalents
--$3Effect of Exchange Rate Changes on Cash and Cash Equivalents
$70$1,049Free Cash Flow
$(1,667)$(625)Net Cash Provided (Required) by Investing Activities
$1,737$1,674Net Cash Provided (Required) by Operating Activities
Fiscal Year 2005
Fiscal Year 2006$ Millions
Note: EPS figures reflect the stock split effective July 28, 2006
23
Reconciliation of Non-GAAP Financial Measures
Reconciliation of Return on Capital
--64----Impairment of Goodwill
24986(1)Restructuring Charges (Reversals) – Net
----(106)--Tax Benefit on Loss from European Wheat and Barley Business
----175--Solutia-Related Charge
----248--In-Process R&D Write-Off Related to the Seminis and Stoneville Acquisitions
$767
(30)
79
3
--
6
21
$689
11.2%
6,827
$767
12 Months Ended
Aug. 31, 2006
$612
(29)
75
(12)
--
--
--
$255
9.8%
6,256
$612
12 Months Ended
Aug. 31, 2005
$464
(21)
57
(1)
--
--
--
$267
7.6%
6,068
$464
12 Months Ended
Aug. 31, 2004
252PCB Litigation Settlement Expense – Net
--Tax Charge on Repatriated Earnings
$413Operating Profit After-tax (excluding certain items)
(24)Tax on Interest Expense – Net
63Interest Expense – Net
18(Income) Loss on Discontinued Operations
12Cumulative Effect of Accounting Change
Adjustment for certain items, after-tax:
$68Net Income
Operating Profit After-tax (excluding certain items):
6.1%Return on Capital
6,774Average Capital
$413Operating Profit After-tax (excluding certain items)
12 Months Ended
Aug. 31, 2003Total Monsanto Company and Subsidiaries:$ Millions
$6,7747,1256,422125
(281)5,156
$1,422
2003As of Aug. 31,
$6,8276,7976,857125
(1,460)6,525
$1,667
2006As of Aug. 31,
$6,2565,7146,797125
(525)5,613
$1,584
2005As of Aug. 31,
$6,0686,4225,714125
(1,037)5,258
$1,368
2004As of Aug. 31,
Average CapitalPrior Period CapitalTotal CapitalCash for OperationsCash and Cash EquivalentsShareowners’ EquityShort-Term and Long-Term DebtAverage Capital: