monsanto 02-14-06a

1

HUGH GRANTCHAIRMAN, PRESIDENT AND CEOMONSANTO COMPANY

BIO CEO & INVESTOR CONFERENCEFebruary 14, 2006

2

Forward-Looking Statements

Certain statements contained in this release 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 and proposed 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 filings with 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.

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 Ready2Yield, Bollgard, Bollgard II, YieldGard, Monsanto, Imagine, Vine Design, Asgrow, DEKALB, Monsanto Choice Genetics, Posilac, Processor Preferred, Vistive, and French Kiss are trademarks owned by Monsanto Company and its wholly-owned subsidiaries and are italicized the first time they appear in this presentation.

Mavera™ is a trademark of Renessen.

4

Biotechnology Poised to Expand As Increased Grain Production Required to Meet World-Wide Demand

Source: U.S.D.A. Foreign Agricultural Service, ABIOVE, Independent Economists & Monsanto Estimates

EUROPE

20102005

3M MT1M MTSoy

55M MT52M MTCorn

ASIA

20102005

23 MT22M MTSoy

132M MT122M MTCorn

ARGENTINA

20102005

40M MT38M MTSoy

27M MT23M MTCorn

Net Exporter Production = ConsumptionNet Importer

BRAZIL

20102005

81M MT60M MTSoy

53M MT44M MTCorn

UNITED STATES

20102005

81M MT86M MTSoy

297M MT278M MTCorn

WORLD AREA GRAIN PRODUCTION

OVERVIEW

5

OVERVIEW

Early Adoption of Biotech Is Strong, But Tremendous Future Potential Still Remains

Seed accounts for less than 20% of the cost per acre for a U.S. farmer today. Biotech traits create new value and substitute for inputs like chemicals and fertilizersThe projected global value for the biotech trait market in 2005 was $5.25 billion1 with estimates of up to $25 billion in sales by 20103

MARKET OPPORTUNITY

Biotech was first commercialized in 1996 on approximately 3 million acresBiotechnology acreage has grown by double-digits each year. Cumulatively, acreage has grown 50-fold since 1996, with biotech traits planted on more than 220 million acres in 20051

GLOBAL ADOPTION

10 YEARS OF PROVEN BENEFITS

AC

RE

S (

IN M

ILLI

ON

S)

0

20

40

60

80

100

120

140

160

180

200

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

SOYBEANS CORN COTTON CANOLA

GLOBAL ACRES USING MONSANTO BIOTECHNOLOGY TRAITS

$0

$50

$100

$150

$200

$250

$300

DEPRECIATON OTHER FIXED COSTSSEEDS FERTILIZERSCHEMICALS MACHINE OPERATIONSMISCELLANEOUS

U.S. CORN PRODUCTION COST PER ACRE (2004)2

1. International Service for the Acquisition of Agri-biotech Applications (ISAAA), “Global Status of Commercialized Biotech/GM Crops: 2005”2. USDA and Monsanto estimates3. AGROW, “The Global Crop Protection Industry in 2010,” (2001)

6

OVERVIEW

Biotechnology Is the Most Rapidly Adopted Agricultural Technology in History Because of Significant Benefits

Since 1996, global farm income increased by a cumulative total of $27 billion from a combination of higher productivity and reduced costs1

In a single year, U.S. growers increased productivity by 5.3 billion pounds, increased net returns by $1.9 billion2

FARM PRODUCTIVITY

The ‘environmental footprint’ of the four most prevalent crops has been reduced by 14 percent because of the planting of biotech crops1

Conservation tillage practices have increased significantly since the adoption of biotechnology-derived herbicide-tolerant crops2

OTHER BENEFITS

Biotech crops has resulted in 380 million pounds of less pesticide use by growers since 1996, a reduction of over 6 percent1

In 2003, US growers eliminated over 46 million pounds of pesticide active ingredients2

PESTICIDE REDUCTION

ENVIRONMENTAL BENEFITS

ECONOMIC BENEFITS

10 YEARS OF PROVEN BENEFITS

1. Brookes, Graham and Peter Barfoot “GM Crops: The Global Economic and Environmental Impact – The First Nine Years 1996-2004,” (2005) AgBioForum, http://www.agbioforum.org.

2. National Center of Food and Agricultural Policy (NCFAP) “Impacts on US Agriculture of Biotechnology Derived Crops Planted in 2003 – An Update of Eleven cases studies,” (2004).

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OVERVIEW

Farmers ‘Buy Yield,’ Opening Opportunity for Seeds and Traits Strategy

FARMERS’ DECISION EQUATION

SEEDThe starting point of all agriculture; farmers need to maximize ‘genetics’ in seed for yield

TECHNOLOGYTechnology is used to protect and maximize the yield potential of the seed

MAXIMUM YIELD POTENTIALThe basic equation represents the maximum yield potential multiplied by the percent of that yield preserved by technology

OPTIONS FOR FARMERS MONSANTO’S POSITION

Seed is locally adapted to geographical growing conditions

Roughly 300 seed companies serve U.S. Corn seed market

Biotechnology traits

Insecticides

Herbicide systems

In a tight-margin business, farmers need the ‘complete package’ to maximize yield and profitability

Monsanto has three channels to market:

National brands

Regional/local brands

Licensing to other brands

Monsanto traits offer protection for ‘above-and-below’ ground insects and new weed control optionsWe’ve had 11 different traits approved and commercializedOur traits are broadly licensed to seed companies

The elegance of a seed and trait approach is that the seed is the package and traits can be ‘stacked’ for maximum effect

In 2005, Monsanto introduced the first triple-stack of biotech traits

+

=

8

LEADERSHIP

Monsanto Has Rare Mix of Leading Commercial Portfolio and Unmatched R&D Pipeline

ROUNDUP READYFLEX COTTON (2006)

BGII WITH RR (2003)

BOLLGARD II (2003)

BG WITH RR (1997)

ROUNDUP READYCOTTON (1997)

BOLLGARD COTTON (1996)

ROUNDUP READYSOYBEANS (1996)

YGPL WITH RR (2005)

YIELDGARD PLUS (2004)

YGRW WITH RR (2003)

YIELDGARDROOTWORM (2003)

ROUNDUP READYCORN 2 (2001)

YGCB WITH RR (1998)

ROUNDUP READYCORN (1998)

YIELDGARD CORN BORER (1997)

CURRENT COMMERCIAL PRODUCTS

DROUGHT-TOLERANT

COTTON

DICAMBA-TOLERANT

COTTONBIOACTIVE

COMPOUNDS

BOLLGARD IIIDROUGHT-TOLERANT SOYBEANS

CARBOHYDRATE ENHANCEMENTS

MAVERATM II HIGH-VALUE SOYBEANS

SOYBEAN NEMATODE

RESISTANCEPROTEIN

ENANCEMENTS

HIGH-OIL SOYBEANS FOR

PROCESSING

FEED CORN WITH BALANCED

PROTEINSLIPID

ENHANCEMENTS

VISTIVE III LOW LIN – MID OLEIC

– LOW SAT

2nd-GEN HIGH-VALUE CORN WITH LYSINE

DISEASE RESISTANCE

IMPROVED-PROTEIN

SOYBEANSOMEGA 3

SOYBEANSHIGHER-

YIELDING SOYBEANS

NITROGEN-UTILIZATION

CORNHERBICIDE

TOLERANCE

MAVERATM I HIGH-VALUE SOYBEANS

VISTIVE II LOW LIN – MID OLEIC

INSECT-PROTECTED SOYBEANS

HIGHER-YIELDING CORN

STRESS TOLERANCE

MAVERATM

HIGH-VALUE CORN WITH

LYSINE

ROUNDUP READY2YIELD

SOYBEANS

DICAMBA-TOLERANT SOYBENS

2nd-GEN DROUGHT-

TOLERANT CORNGRAIN YIELD

2nd GEN YIELDGARD ROOTWORM

2nd GEN YIELDGARD

CORN BORER

DROUGHT-TOLERANT

CORNYIELDGARD

ROOTWORM IIPEST CONTROL

PHASE IVPre-launch

PHASE IIIAdvanced Development

PHASE IIEarly Development

PHASE IProof Of Concept

DISCOVERYGene/Trait Identification

9

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

U.S. BRAZIL ARGENTINA

25-30M 5M 1M

16% 0% 0%

DISCOVERY PHASE IProof of Concept


PHASE IIIAdv. Development

PHASE IVPre-Launch

LAUNCH

YieldGard Rootworm Corn

Drought Pressure in 2005 in Central Corn Belt Demonstrated Performance Value of YieldGard Rootworm

• Approximately one-quarter of growers in U.S. drought-stricken areas in 2005 have experienced >30 bu/acre advantage over soil-applied insecticides

LEADERSHIP

The difference between

YieldGardRootworm plants and conventional

ones is visible

YieldGardRootworm’s protection allows for heartier roots that can tap what moisture exists

MIDWEST DROUGHT OBSERVATIONS

INSECTICIDETREATED-CORN

YIELDGARDROOTWORM

YIELDGARDROOTWORM (2003)

2006 STATUS

10

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


60M 20M 5M

40% 0% 0%




PHASE IVPre-Launch

LAUNCH

Roundup ReadyCorn 2

Market Opportunity for Roundup Ready Corn on Track for 60M Acres Longer Term

• Roundup Readycorn is on pace for 50M acres in 2008 in the U.S.

• We now have supply available to sell 15% more acres of Roundup Ready corn and YieldGard Rootworm corn than forecast in November, up to 44M acres collectively

LEADERSHIP

2006 STATUS

ROUNDUP READYCORN 2 (2001)

SUSTAINABLEACREAGE GROWTH

05

1015

2025

3035

40

1998 1999 2000 2001 2002 2003 2004 2005 2006F 2007F

U.S

. AC

RE

S

INFLECTION POINT:

DOMESTIC CHANNELING

PROGRAM

INFLECTION POINT: EU

IMPORT APPROVALS

INFLECTION POINT:

VARIABLE-BASED

PRICING

11

Stacking Shifts Value Opportunity to the More Profitable Acre

LEADERSHIPA

CR

ES

IN

MIL

LIO

NS

U.S. CORN TRAIT ACRES

0

5

10

15

20

25

30

35

40

45

2001 2002 2003 2004 2005

SINGLE TRAITS

STACKED – DOUBLE TRAITS

STACKED – TRIPLE TRAITS

AVERAGE U.S. RETAIL VALUE ADDED WITH STACKED TRAITS

1

1 . 5

2

2 . 5

3

3 . 5

TR

AIT

RE

TA

IL V

ALU

E P

ER

AC

RE

(IN

DE

XE

D)

1.59

3.42TRAIT RETAIL VALUE ADDED PER ACRE

DOUBLE STACK

TRIPLE STACK

1 = INDEXED VALUE OF SINGLE TRAIT

12

BIOTECH ACRES PLANTED 2005

REMAINING AVAILABLE MARKET

76% 0% 35% 19% 40% 10%

25-30M50-60M60M6-8M10-15M70MUNITED STATES

36-41M84-96M118-125M28.5-35.8M34.5-44.8M156.2MTOTAL KEY

MARKETS

-4M6M10M11M0.2MAFRICA

CORNCOTTONSOYBEANS

---0.5M-0.8M0.5M-0.8M-AUSTRALIA

5M8M24M--1MEUROPE

-3 – 5M3 – 5M10-15M10-15M-INDIA

1M4M5M--35MARGENTINA

5M15M20M2M3M50MBRAZIL

YIELDGARDROOTWORM

YIELDGARDCORN BORER

ROUNDUP READY

BOLLGARD I AND II

ROUNDUP READYFLEX

ROUNDUP READY

MARKET OPPORTUNITY: KEY MARKETS

LEADERSHIP

Market Potential for Biotech Traits Highlights Continued Growth Opportunity

13

LEADERSHIP

Efficient Discovery Program Is in Full Gear, Fueling Pipeline Expansion and Performance

1<510sTHOUSANDSTENS OF THOUSANDSGENES IN TESTING

•REGULATORY SUBMISSION

•SEED BULK-UP•PRE-MARKETING

•TRAIT INTEGRATION•FIELD TESTING•REGULATORY DATA GENERATION

•TRAIT DEVELOPMENT

•PRE-REGULATORY DATA

•LARGE-SCALE TRANSFORMATION

•GENE OPTIMIZATION•CROP TRANSFORMATION

•HIGH-THROUGHPUT SCREENING

•MODEL CROP TESTING

KEY ACTIVITY

90 PERCENT75 PERCENT50 PERCENT25 PERCENT5 PERCENTAVERAGE PROBABILITY OF SUCCESS2

12 to 36 MONTHS12 to 24 MONTHS12 to 24 MONTHS12 to 24 MONTHS24 to 48 MONTHSAVERAGE DURATION1

PHASE IVPre-launch





MONSANTO DISCOVERY + COLLABORATIVE PARTNERS

KEY INFLECTON POINT:AFTER PHASE II COMMERCIAL SUCCESS GOES TO >50% WITH LEADS ON COMMERCIAL TRACK

1. Time estimates are based on our experience; they can overlap. Total development time for any particular product may be shorter or longer than the time estimated here.2. This is the estimated average probability that the traits will ultimately become commercial products, based on our experience. These probabilities may change over time.

TRAIT INTEGRATION

FIELD TESTING

REGULATORY DATA GENERATIONREGULATORY SUBMISSIONSEED BULK UP

14

Bollgard III

2nd-Gen Drought-tolerant corn

2006 Pipeline AS OF JANUARY 1, 2006

LEADERSHIP

YieldGard Rootworm II

Dicamba-tolerant soybeans

Omega-3 soybeans

Vistive III Low Lin – Mid Oleic – Low Sat soybeans

Vistive II Low Lin – Mid Oleic soybeans

Improved-protein soybeans

High oil soybeans for processing

Feed Corn with balanced proteins

2nd-Gen High-value corn with lysine

Mavera™ II High-value soybeans

Mavera™ I High-value soybeans

Mavera™ High-value corn with lysine

PHASE IVPre-launch





Drought-tolerant corn

Insect-protected soybeans

Soybean nematode-resistance

Higher-yielding canola

Roundup RReady2Yield canola

Roundup RReady2Yield soybeans

Higher-yielding soybeans

Nitrogen utilization corn

Higher-yielding corn

Drought-tolerant cotton

Drought-tolerant soybeans

2nd-Gen YieldGard Corn Borer

2nd-Gen YieldGard Rootworm

Dicamba-tolerant cotton

Roundup Ready Flex cotton

FAR

ME

RP

RO

CE

SS

OR

CO

NS

UM

ER

15

LEADERSHIP

Monsanto Is Upgrading the Entire Commercial Trait Portfolio to Second- and Third-Generation Traits

CORE FIRST-GENERATION TECHNOLOGY

YIELDGARD CORN BORER (1997)

BENEFIT: FULL-SEASON CONTROL OF EUROPEAN CORN BORER

2ND GEN YIELDGARD CORN BORER

UPGRADE: BROADER INSECT CONTROL; BETTER IRM PROPERTIES

COMMERCIALIZED SECOND-GENERATION

ROUNDUP READYCORN (1998)

BENEFIT: NEW WEED CONTROL SYSTEM

ROUNDUP READYCORN 2(2001)

UPGRADE: SIMPLIFIED WEED CONTROL, GREATER FLEXIBILITY

YIELDGARD ROOTWORM

(2003)

BENEFIT: CONTROL OF CORN ROOTWORM

2ND GEN YIELDGARD ROOTWORM

UPGRADE: IMPROVED EFFICIENCY OF STACKING IN ELITE GERMPLASM

TECHNOLOGY UPGRADES IN THE PIPELINE

ROUNDUP READYSOYBEANS

(1996)


ROUNDUP RREADY2YIELD

SOYBEANS

UPGRADE: GREATER FLEXIBILITY; YIELD BENEFIT

DICAMBA-TOLERANT SOYBEANS

UPGRADE: ADDITIONAL MODE OF ACTION

BOLLGARD COTTON (1996)

BENEFIT: IN-PLANT CONTROL OF THE BOLLWORM

BOLLGARD IICOTTON (2003)

BENEFIT: BROADER INSECT CONTROL; BETTER IRM PROPERTIES

BOLLGARD IIICOTTON

BENEFIT: BROADER INSECT CONTROL; BETTER IRM PROPERTIES

ROUNDUP READYCOTTON (1997)


ROUNDUP READYFLEX COTTON

(2006)

BENEFIT: GREATER FLEXIBILITY; HERBICIDE REPLACEMENT

DICAMBA-TOLERANT COTTON

BENEFIT: ADDITIONAL MODE OF ACTION

PHASE IVPre-launch





YIELDGARD ROOTWORM II

UPGRADE: NEW MODE OF ACTION FOR INSECT CONTROL

16

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

U.S. INDIA

10-15M 10-15M

0% 0%




PHASE IVPre-Launch

LAUNCH

Roundup ReadyFlex Cotton

Roundup Ready Flex Launch To Be Most Significant in 10-Year History of Biotech Traits

• Pricing at a premium of $6-$11 an acre over the first-generation of Roundup Readycotton

LEADERSHIP

2006 STATUS


(2006)

The Roundup ReadyFlex cotton trait will be coupled with our

Stoneville brand and our Cotton States

licensing as a showcase of

Monsanto’s cotton business

AUSTRALIA

0.5-0.8M

0%

Anticipated trait launch of 2-3 million acres in U.S. in 2006 through 10 cotton seed suppliersRoundup Ready Flex will be only stacked with Bollgard II, at approximately 70-80% of mixIntroductory acres planted in Australia; full launch set for 2007Trait in initial breeding phase with licensees in India in preparation for filing for regulatory field trials

17

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


80M 30M 6M

0% 0% 0%




PHASE IVPre-Launch

LAUNCH


LEADERSHIP

Drought-Tolerant Corn Advances to Phase II Based on Second-Year Field Test Results

CREATING VALUE

PHASE IVPHASE IIDISCOVERY

2006 FOCUS

• Continue to screen lead events for performance • Continue commercial transformations for second

generation of drought tolerance; Second set of genes are being evaluated in Discovery and Phase I

• Select optimal germplasm for drought genes

PHASE IIIPHASE I

• In second year, lead genes tested in drought conditions in 7 locations, broad-acre application in 10 locations

• In multiple locations of drought-condition field trials, best-performing events show significant yield advantage over conventional checks


2005 PERFORMANCE

PROJECT UPDATE

RE

SU

LTS

Consistent results from early leads and more leads emerging from pipeline

18

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


5M TBD TBD

2% 0% 0%




PHASE IVPre-Launch

LAUNCH

LEADERSHIP

Vistive Is First of Family of Improved Oils for Food Uses

CREATING VALUE


2006 FOCUS

• Expanded market, with approximately 500,000 acres, 10+ seed brands and 4+ processors

PHASE IIIPHASE I

• Vistive was developed by screening Monsanto’s germplasm and using advanced tools in breeding, effectively launching in 36 months from concept

• Successful launch, with approximately 100,000 acres planted in Iowa in the Asgrow seed brand

• Oil from the Vistive crop was sold out before Harvest

Vistive Low Lin soybeans

2005 PERFORMANCE

PROJECT UPDATE

RE

SU

LTS

Vistive Low-Linolenic Soy

800+ Farmers in Eastern and Northeastern Iowa planted Vistivesoybeans this year

Protein 2 g 4%Protein 2 g 4%Protein 2 g 4%

Total Carbohydrate 19 g 6% Dietary Fiber 2 g 8% Sugars 0 g



Sodium 120 mg 5%Sodium 120 mg 5%Sodium 120 mg 5%

Cholesterol 0%Cholesterol 0%Cholesterol 0%

Total Fat 7 g 11%Saturated Fat 1 g 5%Trans Fat 0 g 0%

Total Fat 7 g 11%Saturated Fat 3 g 15%Trans Fat 0 g

Total Fat 7 g 11%Saturated Fat 1.5 g 8%Trans Fat 2 g

% Daily Value% Daily Value% Daily Value

Amount Per ServingCalories 140 Calories from Fat 60



Nutrition FactsTortilla Chips (Plain, white corn) Serving Size – 1 0z. (28 g)



100% VISTIVE100% PALM OIL

100% PARTIALLY HYDROGENATED

SOYBEAN OIL

Vistive provides opportunity to declare zero trans fat and use the nutrient content claims of “Low in saturated fat, contains 7 g of total fat per serving” and “Reduced Saturated Fat”

19

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


TBD TBD TBD

0% 0% 0%




PHASE IVPre-Launch

LAUNCH

Omega-3 soybeans

LEADERSHIP

2005 Marked Successful Completion of Initial Taste, Smell and Oil Stability Testing for Omega-3 Soybeans

CREATING VALUE


2006 FOCUS

• Continue to screen to select the lead event for regulatory submission

PHASE IIIPHASE I

• Moved into Phase III• Field trials continue to confirm expression of

stearidonic acid (SDA) levels at concept targets• Initial sensory data superior to fish oil

Omega-3 soybeans

2005 PERFORMANCE

PROJECT UPDATE

In testing for oil stability, SDA oil produced from Omega-3 soybean plants showed less oxidation – an indicator of stability – than fish oil where both oils were stabilized with commercial products

RE

SU

LTS

20% SDA w/ CA

0

50

100

150

200

250

300

350

400

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30DAYS AT 55°C

PE

RO

XID

E V

ALU

E, M

EQ

/KG Stabilized Fish Oil

Stabilized 20% SDA

20

LEADERSHIP

Monsanto’s Pipeline Is Balanced Across Multiple Market Opportunities

TOTAL ACRE OPPORTUNITY1

RE

TA

IL V

ALU

E P

ER

AC

RE

2

SMALL: <5M ACRES MEDIUM: <20M ACRES HIGH: >20M ACRES

SM

ALL

: <$

10/ A

CR

EM

ED

IUM

: <$

30/ A

CR

EH

IGH

: >$

30/ A

CR

E

1. “Total Acre Opportunity” represents the maximum acre penetration by the trait individually and as a stacked trait during the three-year span of its peak; Second- and third-generation traits may cannibalize acre opportunities of preceding product offerings

2. “Retail Value Per Acre” represents the per-acre average value for the individual trait in the three-year span during the trait penetration peak


ROUNDUP RREADY2YIELDSOYBEANS

ROUNDUP RREADY2YIELDCANOLA

DICAMBA-TOLERANT SOYBEANS

DICAMBA-TOLERANT COTTON

2ND GEN YIELDGARDROOTWORM2ND GEN YIELDGARD CORN BORER

INSECT-PROTECTED SOYBEANS

YIELDGARDROOTWORM II

SOYBEAN NEMATODE RESISTANCE

BOLLGARD III

DROUGHT-TOLERANT CORN

HIGHER-YIELDING CANOLA

DROUGHT-TOLERANT SOYBEANS

DROUGHT-TOLERANT COTTON

NITROGEN-UTILIZATION CORN

HIGHER-YIELDING SOYBEANS

MAVERATM HIGH-VALUE CORN WITH LYSINE

MAVERATM HIGH-VALUE SOYBEANS

MAVERATM II HIGH-VALUE SOYBEANS

2ND GEN HIGH-VALUE CORN WITH LYSINE

FEED CORN WITH BALANCED PROTEINS

HIGH OIL SOYBEANS FOR PROCESSING

IMPROVED-PROTEIN SOYBEANS

VISTIVE II SOYBEANS

VISTIVE III SOYBEANS

OMEGA 3 SOYBEANS

21

90% penetration

80-85% penetration

AUSTRALIA COTTON TRAITS

KEY COMMERCIAL COMMITMENTS

1 – 2pts1 – 2 ptsUS CORN SHARE

5 – 10 cents per share

2 – 3M ACRES

1 – 2 POINTS

10M ACRES

34M ACRES

$825M - $900M

$2.35-$2.50 Toward upper end of range

2006 UPDATE

5 – 10 cents per share

BRAZIL RR EARNINGS CONTRIBUTION

$875-$950M

$2.82-$3.00 20% growth from 2006 projection

2007 TARGET

2006TARGET

2 – 3M ACRESUS RR FLEX

1 – 2 POINTSUS COTTON SHARE

8M ACRESUS YGRW

$825M - $900M

30M ACRESUS RR CORN

FREE CASH FLOW

EARNINGS PER SHARE

$2.35-$2.50 Up to 20%

growth from 2005

FY2006 AND FY2007 TARGETS FY2008 - FY2010

LEADERSHIP

Accelerate the Current Commercial Platform

Expanded long–term opportunity for corn traits, reflecting opportunity in licensing, stacking and price-to-value strategies

Expand in New MarketsPenetration of new markets in Asia, Europe and South America with existing traits

New opportunity in the high-margin Seminis business

Discover New Opportunities Through Research

Refreshing of first-generation trait portfolio

Breeding programs expand our genetic footprint

Translate Growth to ValueGross profit mix reflects higher-margin seeds and traits

Drivers of Growth in Mid-Term and Long-Term Horizons Are On Track

OVERVIEW

22

Reconciliation of Non-GAAP Financial Measures

Reconciliation of Free Cash Flow

N/A

N/A

$825 - $900

$(475)

$1,300 - $1,375

Fiscal Year2006

Target

N/ANet Increase in Cash and Cash Equivalents

N/ANet Cash Provided (Required) by Financing Activities

$875-$950Free Cash Flow

$(500)Net Cash Provided (Required) by Investing Activities

$1,375 - $1,450Net Cash Provided by Operations

Fiscal Year 2007

Target$ Millions

Economy & Finance

monsanto 02-14-06a