NYSE:MONMII

Robel ChiappiniNovember 4th, 2008

Agenda

• Business Overview• Competition• Investment Overview• Valuation & Key Stats• Risks• VAR• Questions?

Business Overview

• Global provider of agricultural products for farmers – seeds, biotech traits, and herbicides

• $11.3 Billion in revenues for FY2008– Half of total sales came abroad

Business Overview cont.Financial Review

Millions $ 2008 2007 2006 2005 2004

Total Revenue 11365.00 8349.00 7065.00 6275.00 5423.00

Revenue Growth 36.12% 18.17% 12.59% 15.71% 10.13%

Gross Margin 54.35% 50.66% 48.73% 47.73% 46.60%

Net Profit Margin 17.81% 11.89% 9.75% 4.06% 4.92%

Free Cash Flow 772.00

(57.00)

1,049.00

70.00

999.00

Business Overview Cont.Seeds and Genomics

• $6.3 Billion in sales last year– Corn and Soybeans account for 75% of sales

• Germplasm– Hybrid corn, soybean, tomato, melon, and

cucumber seeds

• Biotechnology Traits– Enable crops to protect themselves from insects

and herbicides

• Seen as driver of future growth for company

Business Overview cont.Agricultural Productivity

• $5 Billion in Revenue for last year• Roundup brand herbicides – 82% of sales

Business Overview cont.Sales by Segment

2008

Total Revenue $ 11,365.00

Seed and Genomics 6,369.00

Corn 55.6%

Soybean 18.4%

Cotton 7.1%

Vegetables 11.7%

Agricultural 4,996.00

Roundup 81.9%

Business Overview Cont.Gross Margin Breakdown

2008 2007 2006MON Gross Margin 54.4% 50.1% 48.2%Seed and Genomics 60.6% 60.7% 61.2%

Corn 61.4% 61.3% 56.8%*Soybean* 61.8% 65.3% 69.5%

*Cotton* 69.6% 83.7% 81.1%Vegetables 53.0% 43.6% 52.0%

Agricultural 46.4% 35.3% 32.8%Roundup 48.3% 33.3% 28.6%

Competition

• Global and Regional competition– Most of seed competitors are also licensees of

MON’s germplasm or biotechnology traits

• Roundup is market leader with great brand recognition– Integrated into seed business: Roundup Ready

Investment Overview

• World food demand

• Industry Leadership

• Management

World Food DemandIncreased Corn and Soybean Demand

• Income + Population = Need More Food• 25% increase in U.S. corn production by 2017• 30% increase in Soybean related products

World Food DemandCloser Look at Soybeans

• Most of Soybean production growth will come from Brazil and Argentina– MON’s existing and growing presence in both

Nations: 20% of 2008 sales

World Food DemandIncreased Demand for Livestock

• More Wealth = More Meat• 27% increase in U.S. meat exports• How is this livestock going to be supported?– Main ingredients used in commercially prepared

feed are corn and soybeans

World Food DemandLimited Supply of Farmland

• 9% increase in farmland across U.S.• Corn and Soybean producing states

• IL – 15.5% • IN – 11.3% • NE – 18.7% • IA – 17.6%• MN – 11.5%• ND – 20.7%• SD – 17.7%

World Food DemandLimited Supply of Farmland

• “Industry experts” – prices stable• Increased interest in agricultural real estate• Safe tangible investments poised to increase in

popularity

• “Perfect Storm” for Monsanto– Need for more efficient seeds with higher crop yields

Industry LeadershipContinued focus on R&D

• $3.5 Billion invested over past 5 years

• BASF joint R&D collaboration– $1.5 Billion to focus on high-yielding and high

tolerance crops

Industry LeadershipCompetitive Advantage

• 1st generation vs. 2nd and 3rd generation

• Higher quality seeds = higher prices

• Patent protection through 2025

• 35% top line growth in Roundup business on price increases

Industry LeadershipProduct Pipeline

• Roundup Ready 2 Yield Soybeans• YieldGard VT Triple Pro• YieldGard VT Pro• SmartStax Corn• Emerging Market Penetration– YieldGard stacked w/ Roundup Ready Corn 2– YieldGard Corn

Management• CEO (2003-Present): Hugh Grant–M.S. degree in Molecular Biology and

Agricultural Zoology, MBA–With the company since 1998

• EVP, Strategy and Ops (2007-Present): Carl Casale– B.S. degree in agricultural economics, MBA –With company since 2003

ManagementAggressive Acquisitions

• De Ruiter• DPL• Semillas Cristiani• Agroeste• Aly Particpacoes

Valuation and Key Stats• PPS: $87.34 (close monday)• Mkt Cap: 48.76B• P/E: 25.31• 52 week range: ($68.02-$145.80)• Div. Yield: 1.1%• A+ and A-1 short term• Trading at 5 times book value• ROE: 23.78%• Cash: $1.6B

Valuation and Key Stats Cont.2 year w/ 100 day moving average

Risks

• Tight Credit

• Regulatory Approval

• Negative Consumer perceptions

VAR• Melvin Woodson, Loan Originator, Country

Mortgages Farm Credit– How are you helping farmers?– Slowdown in farming?– Historical Perspective?

• Anonymous, Fed. Gov. with industry expertise– Market turmoil affect on farming credit?– Rates?– Is it hard to secure credit now?

Questions?