monsanto 12-04-07

1

BRETT BEGEMANNEXECUTIVE VICE PRESIDENT, GLOBAL COMMERCIAL

CITI

2007 BASIC MATERIALS SYMPOSIUM

DECEMBER 4, 2007

2

Forward-Looking Statements

Certain statements contained in this presentation are "forward-looking statements," such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. 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: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company's research and development activities; the outcomes of major lawsuits, including proceedings related to Solutia Inc.; developments related to foreign currencies and economies; successful completion and operation of recent acquisitions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company's facilities; and other risks and factors detailed in the company's most recent periodic report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this presentation. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

TrademarksTrademarks owned by Monsanto Company and its wholly-owned subsidiaries are italicized in this presentation. All other trademarks are the property of their respective owners.

© 2007 Monsanto Company

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$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2004 2007 2012

Given Growth Opportunities, Monsanto Has Potential to More Than Double Gross Profit Over the Next Five Years

OVERVIEW

2012 GROWTH RANGE

Gross profit targeted to double from 2007 through 2012

STRATEGIC PLAYBOOK

All growth is organic, from base business and pipeline

U.S. CornInternational CornSoybeansCottonSeminisR&D Pipeline

TRAIT PLATFORMS

CORN: SmartStaxSOYBEANS: Roundup

RReady2YieldCOTTON: Bollgard II/

Roundup Ready Flex

MONSANTO GROSS PROFITGROWTH TARGET

GR

OS

S P

RO

FIT

(IN

MIL

LIO

NS

)

MIL

ES

TO

NE

S

2007Base Gross Profit:

$4,286M

2010Gross margin target: 52-54%

ONGOING EPS GROWTH: MID-TO-HIGH TEENS

4

International Market Share Gains Create Footprint for Expansion

GEOGRAPHY: InternationalOBJECTIVE: Grow footprint2008 STATUS

• Target of 1 to 2 share point gains in all regions except Brazil, where plan is to stabilize share

2012 OUTLOOK

• Outside the U.S., 70M acres of hybrids in higher-value markets

• Targeted 1-2 share point gains annually in all key countries through 2012

• Brazil targeted to grow after share trait stabilizes in 2008

GENETIC FOOTPRINT: GLOBAL CORN PRODUCTION

157MTOTAL

439%$0.1B$2029bu/ac

7MIndia

540%$0.2B$28120bu/ac

8MArgentina

430%$0.7B$2957bu/ac

23MBrazil

113%$1.9B$6599bu/ac3

27MEU27

423%$3.2B$44153bu/ac

92MU.S.

2007Share Point

Change

DEKALBBrand Share2

Value Of Corn Seed

Market (U.S. $B)

Average DEKALB

Retail Value

Per Acre(U.S. $)

Average Yield Per

Acre1

2007 Hybrid Market Size1

(Acres)

1. Corn acreage and production; USDA FAS 2007/08 projections report and internal estimates2. Reflects share performance for 2007 planting season; for Brazil and Argentina, reflects 2006-2007 planting season3. Average yield; from 55 bu/acre in Romania to 150 bu/acre in France, Italy

U.S. AND INTERNATIONAL CORN

5

DEKALB’s Performance Accelerated Share Gains Ahead of Schedule; Fundamentals Remain Viable Through 2012

U.S. CORN

2005Monsanto projects 1-2 point

share gains for DEKALB from 2005 through 2010

ORIGINAL 2010 TARGET RANGE

2007DEKALB ends 2007 with 23% share, achieving 2010 target 3 years early

2012 TARGET RANGE

DEKALB U.S. CORN SHARE EVOLUTION: 2001-2012F

DEKALB expected to continue share gains, with cumulative target of as much as 10 points in 5 years

GEOGRAPHY: U.S.OBJECTIVE: Grow footprint2008 STATUS

• DEKALB earned 4 points in 2007 for total share of 23%, doubling its share in 5 years

2012 OUTLOOK

• Grow share through 2012 by up to 10 points cumulatively

10% 12%13%

14%

16%

19%

23%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

6

Final Yield Trial Results Reinforce Yield Advantage of DEKALB Seed in U.S.

GEOGRAPHY: U.S.OBJECTIVE: Grow footprint2007 PERFORMANCE UPDATE

• In > 14,000 comparisons, Monsanto out-yields competitive best by 8.4 bu/ac

• In 110-day RM, Monsanto’s lead remains a strong 12 bu/ac advantage

2007 FINAL U.S. COMPETITIVE CORN YIELD COMPARISON: DEKALB

FINAL:

190

205

195 197

179

186

193189 188

163

191

155150

155

160

165

170

175

180

185

190

195

200

205

210

COMPETITORS

DEKALB

BU

SH

ELS

/AC

RE

(AP

PR

OX

IMA

TE

DIF

FER

EN

CE

S)

7.8

>480

95 RM

8.4

>14,000

Overall

5.512.05.110.4APPROXIMATE BU/AC

>5,270>5,220>1,820>1,220COMPARISONS:

115 RM110 RM105 RM100 RMRELATIVE MATURITIES (DAYS)►

ADVANTAGE:

Source: 2007 Monsanto and third party trials through November 15, 2007. Weighted average, calculated to 15% moisture. DEKALBproducts are compared with national competitive products that contain similar crop protection traits.

U.S. CORN

7

Like National Brands, New ASI Hybrids Have Substantial Yield Advantage Over Competitive Offerings

2007 PRELIMINARY U.S. COMPETITIVE CORN YIELD COMPARISON: ASI


• Overall, 2007 yield comparisons showing 7.5 bu/ac advantage for ASI over competitive best

197

203 203

183

190 192 193

184

166 163160

165

170

175

180

185

190

195

200

205

210

10.5

158

115 RM

11.56.513.5APPROXIMATE BU/AC ADVANTAGE:

1478712854LOCATIONS:

110 RM105 RM100 RM95RMRELATIVE MATURITIES (DAYS)►

Source: 2007 Monsanto trials through October 24, 2007.

BU

SH

ELS

/AC

RE

(AP

PR

OX

IMA

TE

DIF

FER

EN

CE

S)

COMPETITORS

ASI

U.S. CORN

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Opportunity Exists to Nearly Triple Penetration of Triple-Stack Traits in U.S. By End of Decade

U.S. CORN

U.S

. TR

AIT

AC

RE

S(I

N M

ILLI

ON

S)

0

20

40

60

80

100

120

140

160

180

200

220

2005 2006 2007 2010F

0

10

20

30

40

50

60 U.S

. TR

IPLE

-ST

AC

K A

CR

ES

(IN M

ILLION

S)

U.S. CORN TRAIT OPPORTUNITY: 2007-2010F

Trait acres reflect the total acres planted with each individual trait. In the case of stacked traits, each absolute acre will be reflected by two or more trait acres.Source: “Monsanto Biotechnology Trait Acreage” available through: monsanto.com/investors/

2007 2010 Opportunity

45-55M

60-70M

80M

45-55MTriple Stack 17.7M

Rootworm Control 20.8MCorn Borer Control 42.4M

57.9MGlyphosate Tolerance

CATALYSTS OF TRIPLE STACK

GROWTHChannel Triple PenetrationDEKALB Supply GuaranteeYield Insurance Program

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SmartStax Becomes Corn Platform of Choice After 2010, Boosting Performance, Creating New Value for Farmers

SmartStaxAnatomy of first-ever eight-way gene platform

TRAIT STATUS

YieldGard VT Triple PRO Pending Regulatory Review

COMPONENTS

COMPONENTS

YieldGard VT Rootworm/RR22ND-GENERATION ROOTWORM

CONTROL1

Below-Ground Insect Control

PRIMARY: ROOTWORMCommercial

Roundup Ready 2 TechnologyVIA YIELDGARD VT ROOTWORM/RR2 1 Weed Control

MODE: GLYPHOSATE Commercial

Herculex® XTRA

YieldGard VT PRO2ND-GENERATION YIELDGARD CORN

BORER 2Above-Ground Insect

ControlPRIMARY: CORN BORER

PHASE IVPending Regulatory Review

Commercial

Commercial

Commercial

• Application for EPA registration to be submitted

• On track for end-of-decade commercialization in U.S., with global roll-out following

Herculex® I

Herculex® RW

Liberty Link® 1 Weed ControlMODE: GLUFOSINATE

SmartStaxIndustry-Standard Trait

Platform1

Multiple modes of action for above- and below-ground insect

and weed control

GENES FUNCTION

1Above-Ground Insect

ControlPRIMARY: CORN BORER

2Below-Ground Insect

ControlPRIMARY: ROOTWORM

SmartStax is in proof-of-concept testing, establishing:

Feasibility of full trait integrationViability of enhanced performance for insect and weed control

1. This product has not been registered by the U.S. Environmental Protection Agency. It is a violation of federal law to promote or sell an unregistered pesticide.

SMARTSTAX CORN PLANTED IN WESTERN IOWA, SHOWING FULL, HEALTHY EARS AND STRONG, HEALTHY ROOTS

U.S. CORN

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COMMERCIAL PLATFORM: 2007-20101 TRAIT PLATFORM: 2010+

• SmartStax resets trait opportunities

• Competition, penetration and technology fit being evaluated further for each geography

SmartStax

60-65M15-20M15-20M5-7M5-6M

100-118M

• Reflects technology fit; actual penetration determined by regulatory approvals and competitive share

• Competitors continue to license Monsanto traits in key markets

U.S. 92M 80M 60-70M 45-55MEurope (EU27) 27M 24M 8M 5M

Total Markets 157M 134-139M 96-111M 60-70M

2007 Penetration 43-45% 46-53% 30-35%

2007 HYBRID MARKET

SIZE2

(ACRES)

Brazil 23M 15-20M 15-20M 5MArgentina 8M 9M 7M 5M

India 7M 6M 6M --

Trait Expansion Opportunity Still Early Globally; SmartStaxResets the Deck in 2010 and Beyond


80M Targets marked in green representing countries currently planting or with primary regulatory approval secured for respective trait

1. Market Opportunity reflects total acres where technology is applicable, not necessarily acres projected for penetration by 2010.

2. Corn acreage and production; USDA FAS 2007/08 projections report and internal estimates

GLOBAL MARKET OPPORTUNITY:

CORN TRAITS 2010 VS 2012

11

By 2012, Sustained Momentum in U.S. Corn Combined With International Growth Expands Corn Gross Profit Contribution

GLOBAL CORN SEED AND TRAITS GROSS PROFIT INDEX=2004

2004 2012F

U.S. Corn Seeds & Traits Gross Profit

International Corn Seeds & Traits Gross Profit

• In 2007, international markets generated more than 25% of gross profit

• By 2012, total gross profit expected to expand significantly with continued penetration of traits globally, conversion to SmartStax and greater seed brand share worldwide

2007

>6XOVER 2004 INDEX


12

U.S. Soybean Seed Share to Continue to Grow OrganicallySOYBEANS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2004 2005 2006 2007 2012

U.S. SOYBEAN BRANDED AND LICENSED SEED SHARE

U.S

. SO

YB

EA

N S

EE

D M

AR

KE

T S

HA

RE

(P

ER

CE

NT

AG

E)

ASGROW ASI CORN STATES LICENSEES

TARGET

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SOYBEANS

Coming Off 2007 Share Gain, Initial Soybean Yield Performance Continues to Reinforce Breeding Leadership

2007 PRELIMINARY U.S. COMPETITIVE SOYBEAN YIELD COMPARISON: ASGROW


• Yield data from 2007 indicates continued yield advantage for national brands versus best-in-class competitors

44

51

58

49

43

49

57

55

47

52

56

51

40

42

44

46

48

50

52

54

56

58

60

COMPETITORS

ASGROW

Source: 2007 Monsanto and third party trials through October 30, 2007. Asgrowproducts are compared to competitive products. (1)

>30

5

21.511.51APPROXIMATE BU/AC ADVANTAGE:

>1,000>3,400>3,500>400>300COMPARISONS:

4321ORELATIVE MATURITIES►

BU

SH

ELS

/AC

RE

(AP

PR

OX

IMA

TE

DIF

FER

EN

CE

S)

14

Preparations Under Way for Large Scale U.S. Launch of Roundup RReady2Yield

SOYBEANS

ROUNDUP RREADY2YIELD SOYBEANS: LAUNCH PLANSCROP: Soybeans

OBJECTIVE:Launch Roundup RReady2Yield

2008 STATUS

• Consistent 7-11% yield advantage with Roundup RReady2Yield

• USDA, EPA and FDA approvals received; awaiting key export approvals

• Pre-launch activities under way

PRICING

• Yield improvement shared with grower; average 5-year soybean commodity price approximately $6.40 per bushel1

Branded and licensed seed production

U.S. Full-Scale Launch Target:

5- 6M Acres

Grower level marketing, awareness and trial

Licensee breeding

U.S. Controlled Commercial

Release Target: 1- 2M Acres

2010200920082007

Pursuit of export approvals in Japan, China, Europe and Mexico

Industry coordination and communications • American Soybean Association and key agri-food

stakeholders

P R O J E C T

1. Source: NASS, USDA data 2003 to August 2007

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SOYBEANS

Soybean Value Upgraded with Roundup RReady2Yield, Modified Oil Traits and Insect Protection

SOYBEAN UPGRADE UNDER WAY; MARKET SEGMENTATION BY MID NEXT DECADE

BRAZIL SOYBEAN MARKET

VALUE

• Insect-protected Roundup RReady2Yieldbeing launched

•$2.50-$3.00+ per acre for Roundup tolerance plus 7-11% yield

•Insecticide replacement

CROP: Soybeans

OBJECTIVE: Growth via new traits

2008 STATUS

• Roundup Readysoybeans at 95% penetration in U.S., 50% in Brazil

• Roundup RReady2Yieldapproved by USDA, EPA and FDA; key export approvals pending

2012 OUTLOOK

• Five trait stacks in soybeans feasible, with Roundup RReady2Yield as base trait for all

MODIFIED OIL TRAITS

U.S. SOYBEANS: 60-70M ACRE MARKET

BRAZIL SOYBEANS: 50-60M ACRE MARKET

ROUNDUP RREADY2YIELD AND INSECT PROTECTED

ROUNDUP READY

ROUNDUP RREADY2YIELD

COMPETITIVE PLATFORM

• Roundup RReady2Yieldin market for 2+ years

• Vistive III and other modified oil traits being launched

U.S. SOYBEAN MARKET

• $13+/acre for Roundup tolerance plus 7-11% yield

• Oil premium

VALUE

16

Relative Contribution of U.S. and Ex-U.S. Should Be Consistent in Growing Soybean Seed and Trait Business

SOYBEANS

GLOBAL SOYBEAN SEED AND TRAITS GROSS PROFIT BY GEOGRAPHYINDEX=2004

2004 2007 2012F

U.S.

BRAZIL ROUNDUP READY SOYBEAN

LAUNCHED IN 2004

BRAZIL ROUNDUP READYSOYBEAN AT 50% PENETRATION IN

2007

ROUNDUP RREADY2YIELD

PLANTED 2009/2010 IN U.S.; BRAZIL

ROUNDUP READYSOYBEAN FULLY

PENETRATEDINTERNATIONAL

>2XOVER 2004 INDEX

17

Delta and Pine Land’s Global Breeding Strategy Focused on Yield and Fiber Improvement

COTTON

U.S. (9)Testing Programs

Breeding Programs

Winter Nurseries

Costa Rica

Brazil

South Africa

India (3)

Greece

Australia

GLOBAL COTTON BREEDING STRATEGYRESOURCES CAPABILITIES OUTLOOK• World’s largest private cotton

breeding program• Strategically located in

pivotal cotton areas• All lines feed into global

testing and introgression program

• ‘Jumpstart’ of up to 3 years over corn in 1990s with established infrastructure

• Labs, IT and markers are ready to go; “plug-and-play” opportunity

• Largest marker collection in the world

• Focus on drought, fiber quality, lint yield and disease resistance

• Novel targets: Diverse germplasm base can lead to new genetic pairings that greatly benefit farmers

18

Planned Upgrade to Second-Generation Cotton Technology in U.S. Focused on Southern Markets

COTTON

CROP: Cotton

OBJECTIVE:Second-generation technology

2008 STATUS

• Southern Delta region lags at 15% average penetration for second-generation traits

2012 OUTLOOK

• Aggressive breeding strategy to fully convert to Bollgard II by start of 2010 growing season; fully converted to Roundup Ready Flex by 2012

U.S. COTTON SEED BRAND SHARE - 20071

17% 45%46%TOTAL

DELTA AND PINE LAND

86%

1. Source: dmrkynetec – cotton seed study – planted acre basis for new certified seed

46% ROUNDUP READY FLEX15% BOLLGARD II / ROUNDUP READY FLEX

48% BOLLGARD II / ROUNDUP READY FLEX

FOCUS ON SHIFTING SOUTHERN DELTA TRAITED ACRES FROM 15% SECOND-GENERATION TO 100% BY 2012

19

U.S. Cotton Trait Acres Shift with Total Planted Cotton Acres; Opportunity to Upgrade to Second-Generation

COTTON

M A

CR

ES

U.S. COTTON TRAIT ACRES

0

5

10

15

20

25

2003 2004 2005 2006 2007

0%

25%

50%

75%

100%

2. Absolute trait acres represents the total number of acres with at least one trait; two traits on one acre one absolute acre

1. Second-generation trait penetration reflects percent of commercial portfolio containing either RoundupReady Flex, Bollgard II or both traits.

CROP: Cotton


2008 STATUS

• Nearly 80% of the U.S. planted cotton acres contained at least one Monsanto trait in 2007

• Delta and Pine Land’s portfolio was only 17% second-generation1 traits compared with industry average of 41%

2012 OUTLOOK

• Delta and Pine Land’s portfolio fully converted to second-generation traits in all U.S. segments

AB

SO

LUT

E2

TR

AIT

AC

RE

S

(PE

RC

EN

T O

F TO

TA

L PLA

NT

ED

AC

RE

S)

ROUNDUP READY

ROUNDUP READY FLEX

BOLLGARD

BOLLGARD II

20

Bollgard Cotton Penetration in India Nearly Doubles in 2007; Creates Platform for Second-Generation Traits

COTTON

BOLLGARD & BOLLGARD II COTTON IN INDIA

ROUNDUP READY FLEX OPPORTUNITY

M ACRES

2004 2005 2006 2007 2012OPPORTUNITY

M A

CR

ES

2007 RETAIL PRICE/ACRE SEED & TRAIT

BOLLGARD BOLLGARD II

$ 18 $22

15-20M

CROP: Cotton


2008 STATUS

• Hybrid market now estimated to be 15-20 million acres in India

2012 OUTLOOK

• Expect market in India to be fully converted to Bollgard II by 2012

• Potential to launch Bollgard II stacked with Roundup Ready Flex prior to 2012

0

5

10

15

20

25

BOLLGARD II BOLLGARD

BOLLGARD II WITH ROUNDUP READY FLEX

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COTTON

Second-Generation Trait Conversion Accelerates Globally to Expand Gross Profit Contribution of Cotton

GLOBAL COTTON SEED AND TRAITS GROSS PROFITINDEX=2007

2007 2012F

U.S.

INTERNATIONAL

• In five years, Delta and Pine Land fully contributing with market share and second-generation trait growth

• India becomes a larger player with conversion to second generation traits

• Australia and Brazil are small acre, but important markets

1.8XOVER 2007 INDEX

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Strong Pipeline Value Reflects Commercial Opportunity in Latter-Stage Projects and Emerging Value in Yield and Stress

R&D PIPELINE

DISCOVERY PHASE 1 PHASE 2 PHASE 3 PHASE 4

FAMILY TRAITS►Broad-Acre, Higher-Yielding Family

HIGHSOYBEANS:BROAD-ACRE YIELD

Broad-Acre, Higher-Yielding Family

Nitrogen-Utilization Family

FAMILY TRAITS►

FAMILY TRAITS► MEGA

HIGH

Drought-Tolerant Family

FAMILY TRAITS► HIGHCORN:BROAD-ACRE YIELD

YIE

LD &

ST

RE

SS

C

OLL

AB

OR

AT

ION

High-oil soybeans

Dicamba-tolerant soybeansVistive III

Improved-protein soybeans

Roundup RReady2Yield canola

Bollgard III

Insect-protected Roundup RReady2Yieldsoybeans

Omega-3 soybeans

YieldGard VT PROcorn

Roundup RReady2Yieldsoybeans

MEGA>$1BM

HIGH$300M-$500M

MID$150M-$300M

Corn Soybeans Cotton Canola

2020 VALUE RANGES:

LOW<$150M

23

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2004 2007 2012

Given Growth Opportunities, Monsanto Has Potential to More Than Double Gross Profit Over the Next Five Years

SUMMARY

MONSANTO GROSS PROFITGROWTH TARGET

GR

OS

S P

RO

FIT

(IN

MIL

LIO

NS

)

MIL

ES

TO

NE

S

2007Base Gross Profit:

$4,286M

2010Gross margin target: 52-54%

ONGOING EPS GROWTH: MID-TO-HIGH TEENS

2012 GROWTH RANGE

Gross profit targeted to double from 2007 through 2012

STRATEGIC PLAYBOOK

All growth is organic, from base business and pipeline

U.S. CornInternational CornSoybeansCottonSeminisR&D Pipeline

TRAIT PLATFORMS

CORN: SmartStaxSOYBEANS: Roundup

RReady2YieldCOTTON: Bollgard II/

Roundup Ready Flex

monsanto 12-04-07

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