monsanto 02-14-06c

1

ROBB FRALEY, PH.D.CHIEF TECHNOLOGY OFFICER

GOLDMAN SACHS TENTH ANNUAL AGRICULTURAL BIOTECH FORUMFebruary 14, 2006

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 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 release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

Trademarks

Roundup, Roundup Ready, Roundup Ready2Yield, Bollgard, Bollgard II, YieldGard, Monsanto, Imagine, Vine Design, Asgrow, DEKALB, Monsanto Choice Genetics, Posilac, Processor Preferred, and Vistive 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.

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

OVERVIEW

Breeding and Biotech Provide Parallel R&D Paths to Commercial Products

PHASE II PHASE III PHASE IVPHASE IDISCOVERY LAUNCH

BREEDING and BIOTECHNOLOGY form two R&D pathways

Separate, but parallel, the BREEDING and BIOTECHNOLOGY pathways are linked by shared tools.

ELI

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BREEDING

BIOTECHNOLOGY

Germplasm

RSEED SOLD TO FARMERS

R&D PHASE:

5

OVERVIEW

Combination of Predictable Progress and Early-Phase Additions Created Milestone Year Across Pipeline

FIELD TESTING

July

Augu

stS

epte

mbe

r

December

January November

Febr

uary

Mar

ch

June

May

April

October

DATA COLLECTION

DATA ANALYSIS

PORTFOLIO UPDATE

PRIORITY UPDATE

ANNUAL R&D CYCLE: SEEDS & TRAITS

Strong breeding base in place, currently working on targets across farmer, processor and consumer segments, as well as converting open-pollinated crops

SEMINIS BREEDING

Breeding effort strengthens Stoneville’s offerings and enables entrance of Cotton States into cotton germplasm market

COTTON BREEDING

First-generation molecular breeding varieties showed better yield results than current competitive commercial set in field trials

SOYBEAN BREEDING

Field trial yield differentials versus competitors even greater than in 2004CORN BREEDING

BREEDING PIPELINE

Ten projects were added to Phase I or later as a result of Discovery work or collaborative partnerships

PIPELINE ADDITIONS

Fifteen projects either advanced from one phase to another or were added to the pipeline, representing positive movement in >50% of current pipeline projects

PIPELINE PROGRESS

BIOTECH TRAIT PIPELINE

2005 PERFORMANCE

R&D PIPELINE SCORECARDKEY METRICS MEASURING PIPELINE PROGRESS

6

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

ASI BRAZIL ARGENTINA80M 30M 6M

3% 35% 49%

LICENSEDBRANDU.S.

32%16%

Corn breeding

PIPELINE UPDATE

Corn Germplasm Improvements Are Tightly Linked to Market Share Gains

CREATING VALUE

2006 FOCUS

• Continue marker-based breeding approach• Continue focus on broadening genetic base of

commercial products, including strengthening our international portfolio

• On pace to gain market share in U.S. corn seed for fifth consecutive year

• Average yield differential of Monsanto versus competitors’ best material is better than one-third greater in 2005 compared with 2004 testing

• Strong yield advantages are consistent across maturity zones and outperform best competitive commercial material sold in 2005

Corn Breeding

2005 PERFORMANCE

PROJECT UPDATE

RE

SU

LTS

RE

SU

LTS

150

160

170

180

190

200

95 100 105 110 115RELATIVE MATURITIES (DAYS)

2005 CORN YIELD (BU/A) MONSANTO BRANDS

COMPETITORS

85

90

95

100

105

110

115

120

SE

LEC

TIO

N I

ND

EX

MONSANTO COMMERCIAL

LEADERS

MONSANTO NEW 2006 HYBRIDS

OTHER MONSANTO PIPELINE HYBRIDS

COMPETITIVE HYBRID

LEADERS

CORN PIPELINE HYBRID PERFORMANCE (110 RM)

7

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

14M

COTTON STATESSTONEVILLE

U.S.

0%14%

Cotton breeding

PIPELINE UPDATE

Cotton Breeding Program Provides Rich Source of Germplasm to Branded and Licensed Businesses

CREATING VALUE

2006 FOCUS

• Introduce 4-6 new, improved varieties with latest trait offerings

• Continue marker-based breeding approach• Expand breeding program and evaluations of additional

varieties

• Monsanto varieties competitive with current market leaders and include Roundup Ready Flex stacked with Bollgard II

• Stoneville will offer 9 varieties either with the Roundup Ready Flex trait or with Roundup Ready Flex stacked with Bollgard II

• Cotton States will have 5 licensees in 2006

Cotton Breeding

2005 PERFORMANCE

PROJECT UPDATE

RE

SU

LTS

0

200

400

600

800

1000

1200

1400

1600

LBS

LIN

T/A

CR

E

MONSANTO VARIETIES

2005 COMPETITIVE

LEADERS

2005 COTTON GERMPLASM PERFORMANCE(19 LOCATIONS)

8

Seminis Addition to Monsanto Quickly Contributes to Growth And Opens New Business and Research Opportunities

1Market Position

NORTH AMERICA

2005

34%Market Share

1Market Position

EUROPE-AFRICA

2005

19%Market Share

3Market Position

ASIA-PACIFIC

2005

7%Market Share

1Market Position

SOUTH AMERICA

2005

37%Market Share

OPPORTUNITYFruit & vegetable seeds only represent approximate farmgate value (corn: 13.2%; soybeans: 11.4%)Significant growth opportunities in hybrid creationSeminis has the largest global vegetable germplasm library; molecular breeding tools honed in row crops will be applied to vegetables

COMMERCIAL OPPORTUNITY

9

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

PHASE IIIAdvanced Development

PHASE IIEarly Development

PHASE IProof Of Concept

DISCOVERYGene/Trait Identification

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

10

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

11

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

U.S. INDIA

10-15M 10-15M

0% 0%

DISCOVERY PHASE IProof of Concept


PHASE IIIAdv. Development

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

ROUNDUP READY FLEX COTTON

(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

Anticipated trait launch of 2-3 million acres in U.S. in 2006 through 10 cotton seed suppliers

Roundup Ready Flex will be only stacked with Bollgard II at approximately 70-80% of mix

Introductory acres planted in Australia; full launch set for 2007

Trait in initial breeding phase with licensees in India in preparation for filing for regulatory field trials

AUSTRALIA

0.5-0.8M

0%

12

LEADERSHIP

Within Discovery Platforms, Products Are Maturing into Families


ROUNDUP READY CORN (1998)

ROUNDUP READY SOYBEANS

(1996)

ROUNDUP READY COTTON (1997)

FIRST-GENERATION TECHNOLOGY



SOYBEANS



(2006)


ROUNDUP READY CORN 2(2001)

DROUGHT-TOLERANT COTTON

2nd GEN DROUGHT-

TOLERANT CORN

DROUGHT-TOLERANT CORN

DROUGHT-TOLERANT SOYBEANS

HERBICIDE TOLERANCE

STRESS TOLERANCE

GRAIN YIELD

HIGHER-YIELDING CORN

NITROGEN-UTILIZATION

CORN

HIGHER-YIELDING SOYBEANS

HEALTHIER FOODS

VISTIVE LOW LIN SOYBEANS

VISTIVE II LOW LIN - MID OLEIC

SOYBEANS

VISTIVE III LOW LIN - MID OLEIC –

LOW SAT SOYBEANS

12

12

23

23

12

12

1

1

1

1

1

12 23

PHASE IVPre-launch





OMEGA-3 SOYBEANS

IMPROVED-PROTEIN SOYBEANS

13

LEADERSHIP

Weed Control Family Is Progressing Fastest on Multi-Generational, Multi-Crop Offerings


ROUNDUP READY CORN (1998)

ROUNDUP READY SOYBEANS

(1996)

ROUNDUP READY COTTON (1997)

FIRST-GENERATION TECHNOLOGY



SOYBEANS



(2006)


ROUNDUP READY CORN 2(2001)

HERBICIDE TOLERANCE

12

12

23

23

12

PHASE IVPre-launch





Herbicide Tolerance Family

• First-mover advantage has enabled development of family of products and extension into multiple crops

• Expansion possible because of strength of internal discovery program and licensing relationships

• Pricing on next-generation traits reflects flexibility in weed control, yield gains and other benefits that accrue to the farmer

14

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

U.S. BRAZIL ARGENTINA

70M 50M 35M

0% 0% 0%




PHASE IVPre-Launch

LAUNCH

Roundup RReady2Yieldsoybeans

PIPELINE UPDATE

Second-Generation Platform Expands Soybean Weed Control Window, Benefits for Growers

CREATING VALUE

PHASE IVPHASE IIDISCOVERY

2006 FOCUS

• Continued field testing to build data for regulatory submissions

• Continued field testing to confirm glyphosate activity in suppressing Asian rust in soybeans

PHASE IIIPHASE I

• Lead event confirmed in April of 2005• 2005 U.S. field trials confirmed target yield and wider

window of application benefits• Trait integration efforts started• Implementation of marker-assisted selection

Roundup RReady2Yield soybeans

2005 PERFORMANCE

PROJECT UPDATE

2005 U.S. field tests confirmed yield targets; The use of marker-assisted selection helped teams working on trait selection

RE

SU

LTS

15

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


70M 50M 35M

0% 0% 0%




PHASE IVPre-Launch

LAUNCH

Dicamba-tolerant soybeans

PIPELINE UPDATE

Third-Generation of Soy Weed Control Encouraging in 2005 Field Trials

CREATING VALUE


2006 FOCUS

• Continue to screen events in field conditions, screening for leads with commercial potential

PHASE IIIPHASE I

• Third-generation project enters pipeline in Phase II as a result of University of Nebraska collaboration announced in 2005

• Predicted value added in the range of $2.50-$12/acre, depending on the weed spectrum


2005 PERFORMANCE

PROJECT UPDATE

Tolerance demonstrated at both pre-emergence and post-emergence application timing, with no visual crop injury at rates of 1.5lb/acre, which is three times the labeled use rate (above)

RE

SU

LTS

WITHOUT TRAIT

WITH TRAIT

16

LEADERSHIP

Stress Family Has Already Entered Second-Generation Discovery, Expanded Into New Crops

TECHNOLOGY UPGRADES IN THE PIPELINE FIRST-GENERATION TECHNOLOGY



2nd GEN DROUGHT-

TOLERANT CORN



STRESS TOLERANCE

12

1

1

PHASE IVPre-launch





Stress Tolerance Family

• Initial discovery focus on drought tolerance

• Rapid pace of discovery has led to second-generation corn trait entering Phase I as first-generation advances to Phase II

• Expansion already made into multiple crops

17

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


80M 30M 6M

0% 0% 0%




PHASE IVPre-Launch

LAUNCH

Drought-tolerant corn

PIPELINE UPDATE

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

CREATING VALUE


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

• Moved into Phase II• In second year, lead genes tested in drought conditions

in 7 locations, broad-acre application in 10 locations• Physiological drought tolerance repeated over past 3

years


2005 PERFORMANCE

PROJECT UPDATE

-40

-20

0

20

40

60 80 100 120

LOCATIONS WITH INCREASING DROUGHT SEVERITY

% Y

IELD

AD

VA

NT

AG

E

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

Drought tolerance established through plant physiology (performance) over three years

RE

SU

LTS

RE

SU

LTS

2

4

6

8

2003 2004 2005% I

MP

RO

VE

D G

RO

WT

H

DU

RIN

G D

RO

UG

HT

ST

RE

SS

18

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

U.S. AUSTRALIA

7M 0.5M

0% 0%




PHASE IVPre-Launch

LAUNCH

Drought-Tolerant Cotton

PIPELINE UPDATE

Drought-Tolerant Cotton Performance Encouraging in Early Field Evaluation

CREATING VALUE

FROM GREENHOUSE TESTING TO….

…FIRST YEAR FIELD

TRIALS

DROUGHT-TOLERANTCONTROL

DROUGHT-TOLERANTCONTROL


2006 FOCUS

• Continue to evaluate to assess drought performance

PHASE IIIPHASE I

• Drought leads are working across crops• First leads into cotton are showing promise

Drought-tolerant cotton

2005 PERFORMANCE

PROJECT UPDATE

19

LEADERSHIP

Yield Family Expanding in Corn and Soy with Multiple Approaches to Enhancing Intrinsic Yield



GRAIN YIELD

HIGHER-YIELDING CORN

NITROGEN-UTILIZATION

CORN


1

1

1

PHASE IVPre-launch





Grain Yield Family

• Objective is to maximize intrinsic yield of germplasm

• Nitrogen utilization in corn is lead product in the family

20

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


80M 30M 6M

0% 0% 0%




PHASE IVPre-Launch

LAUNCH

Nitrogen utilization corn

PIPELINE UPDATE

Nitrogen Utilization Corn Emerged from Discovery Engine to First-Year Field Testing

CREATING VALUE


2006 FOCUS

• Enhanced nitrogen utilization is a challenging trait, so industrial scale genomics is continuing to identify more leads

• Continue to refine the gene constructs for optimal performance

PHASE IIIPHASE I

• Emerged from Discovery to Phase I field testing • Lead events show roughly 10 percent increase in yield

in multi-location field trials


2005 PERFORMANCE

PROJECT UPDATE

At standard nitrogen rates (120 lbs/ac) there is yield advantage over conventional check

Broad screens of hundreds of traits in low, medium and high nitrogen situations allow us to identify candidates for more intensive field testing

RE

SU

LTS

RE

SU

LTS

LOW N MED N HIGH N

Genes

POUNDS OF N APPLIED/ACRE

YIE

LD (

BU

/AC

RE

)

110

130

150

170

190

0 50 100 150 200

CONTROL

EVENT 1EVENT 2

21

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


80M 50M 35M

0% 0% 0%




PHASE IVPre-Launch

LAUNCH

Higher-yielding soybeans

PIPELINE UPDATE

Higher-Yielding Soybeans Showing Good Results in Second-Year Field Tests

CREATING VALUE


2006 FOCUS

• Initiate commercial transformations and optimization to improve trait performance

PHASE IIIPHASE I

• Advanced to Phase II• Tested hundreds of events in both first- and second-

year field testing over approximately 20 locations• Volume of current events in testing as a result of

partnership with Mendel


2005 PERFORMANCE

PROJECT UPDATE

Yield advantage over conventional checks improved in leads in second-year testing

Higher yield potential is being validated in field environment versus conventional checks, with visible plant height differences

RE

SU

LTS

RE

SU

LTS

0

2

4

6

8

10

Event 1 Event 2 Event 3

20042005

YIE

LD A

DV

AN

TA

GE

(% O

F C

ON

TR

OL)

CONTROL

WITH TRAIT

22

LEADERSHIP

Pipeline and Commercial Prospects Are Strong, Diverse Across Food-Trait Platforms



HEALTHIER FOODS

VISTIVE LOW LIN SOYBEANS

VISTIVE II LOW LIN - MID OLEIC

SOYBEANS

VISTIVE III LOW LIN - MID OLEIC –

LOW SAT SOYBEANS

12 23

PHASE IVPre-launch





OMEGA-3 SOYBEANS


Healthier Foods Family

• Vistive low-linolenic soybeans to expand to 500,000 acres in 2006

• Agreement signed with SolaeCompany to use improved-protein soybeans in a new product line

• Positive progress made across the family, including Omega-3 soybeans advancing phases

23

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


TBD TBD TBD

0% 0% 0%




PHASE IVPre-Launch

LAUNCH

Omega-3 soybeans

PIPELINE UPDATE

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

24

Bollgard III

2nd-Gen Drought-tolerant corn

2006 Pipeline AS OF JANUARY 1, 2006

OVERVIEW

YieldGard Rootworm II


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






Insect-protected soybeans

Soybean nematode-resistance

Higher-yielding canola

Roundup RReady2Yield canola

Roundup RReady2Yield soybeans



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

25

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 READYFLEX COTTON

ROUNDUP RREADY2YIELDSOYBEANS

ROUNDUP RREADY2YIELDCANOLA



2ND GEN YIELDGARDROOTWORM2ND GEN YIELDGARD CORN BORER

INSECT-PROTECTED SOYBEANS

YIELDGARDROOTWORM II

SOYBEAN NEMATODE RESISTANCE

BOLLGARD III


HIGHER-YIELDING CANOLA



NITROGEN-UTILIZATION CORN


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


VISTIVE II SOYBEANS

VISTIVE III SOYBEANS

OMEGA 3 SOYBEANS

26

90% penetration80-85% 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 FORECAST

5 – 10 cents per share

BRAZIL RR EPS

$875-$950M

$2.82-$3.00 20% GROWTH

FROM 2006 PROJECTION

2007COMMITMENT

2006 COMMITMENT

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 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

27

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 02-14-06c