3. Non-GAAP Financial Information
This presentation may use the non-GAAP financial measures of “free cash flow,” and earnings per share (EPS) on
an ongoing basis. 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.
3
4. PERFORMANCE SUMMARY
Ongoing and As-Reported Earnings
Second First Half
Second First Half
Quarter 2007 2007
Quarter 2008 2008
Diluted Earnings
$2.02 $0.98 $2.48 $1.14
Per Share
Solutia Claim
($0.23) - ($0.23) -
Settlement
Loss (Income) From
- -
$0.01 $0.02
Discontinued
Operations
Diluted Earnings
$1.79 $0.99 $2.25 $1.16
Per Share on an
Ongoing Basis
4
5. PERFORMANCE SUMMARY
Second-Quarter Financial Summary
Second
Second First
First Half
Change Change
Quarter
Quarter Half
2007
2007
2008 2008
45% 42%
NET SALES $3,779M $2,609M $5,878M $4,148M
GROSS
54% 54%
$2,229M $1,448M $3,284M $2,130M
PROFIT
108% 119%
NET INCOME $1,129M $543M $1,385M $633M
DILUTED
EPS ON AS-
106% 118%
$2.02 $0.98 $2.48 $1.14
REPORTED
BASIS
FREE CASH
408%
$1,473M $290M
FLOW
5
6. FINANCIAL OUTLOOK
Monsanto’s Strategic and Financial Opportunity Lies in
Seeds and Traits
GROSS PROFIT OUTLOOK BY SEGMENT
2007-2012F
Gross Profit
2008 STATUS $10,000
• New FY2008 targets of $3.6 - ALL OTHER AGRICULTURAL
PRODUCTIVITY
$3.7B gross profit for Seeds and
$8,000 ROUNDUP AND OTHER GLYPHOSATE-
Genomics; $1.7 - $1.8B for BASED HERBICIDES
Roundup and other glyphosate-
IN MILLIONS
$6,000
based herbicides SEEDS & GENOMICS
2012 OUTLOOK
2012F $4,000
SEEDS &
$6.5-7.0B
GENOMICS $2,000
ROUNDUP AND
OTHER $0
$1.8B
GLYPHOSATE-
2007 2008F 2012F
BASED
HERBICIDES SEEDS &
GENOMICS CAGR 15-18%
FROM 2008
ALL OTHER AG
$350M ROUNDUP AND
PRODUCTIVITY ALL OTHER
GLYPHOSATE-
FLAT
BASED
HERBICIDES CAGR
FROM 2008
6
7. FINANCIAL OUTLOOK
Monsanto Has Portfolio Balance That Carries Between Crops
When Acres Switch Year-to-Year
PORTFOLIO BALANCE: STATE OF AGRICULTURE:
INDEXED GROSS PROFIT FOR MONSANTO-BRANDED CROP OFFERINGS
Portfolio Balance
1.2
► In 2008, for every 1 million
1.00 acres that shift between
1 0.94
soybeans and corn or
cotton, on average, there is
0.8
an estimated $0.01 EPS
change for Monsanto
0.6
► With brands in corn, cotton
0.47
and soybeans, Monsanto is
0.4
positioned to meet demand
regardless of crop planting
0.2
patterns in any given year
0
CORN COTTON SOYBEANS
2008 U.S. TRAIT
PENETRATION – 1.6 1.4 0.95
ALL CHANNELS
7
8. FINANCIAL OUTLOOK
Vegetable Seed Business On Track; De Ruiter Seeds Boosts
Achievement of Identified Goals
VALUE CREATION FOR VEGETABLE SEED PLATFORM:
STAGED OPPORTUNITIES FOR INCREASING GROSS PROFIT
VALUE CREATION OPPORTUNITY
New product launches;
use of molecular markers
Aggressively shift mix via protected culture and hybrid conversion
Identify and implement opportunities to price products to value
Assemble genetic maps for key crops
Focus on operational excellence; working capital management
2007 2008 2009 2010 2011 2012
PIPELINE
OPERATIONAL EXCELLENCE NEW VALUE CREATION
ADVANCEMENT
~2010 2012
2007 De Ruiter Seeds accretive to Monsanto vegetable
Monsanto vegetable Monsanto vegetable seed EPS seeds projected to
seed sales top contribution in second full fiscal be >$1B in sales,
$600M in 2007; 7.5% year following closing mid-60s margin
top-line growth
2008 2012
De Ruiter Seeds Molecular marker platform
acquisition announced – begins transforming
strengthens protected- Seminis and De Ruiter
portfolios
culture portfolio
8
9. FINANCIAL OUTLOOK
2008 Again Projects Double-Digit Earnings Growth,
Strong Cash Generation and Improved Margins
2007 2008F
EARNINGS
$2.00 $3.15-$3.25
ONGOING EARNINGS PER SHARE 54% GROWTH 58-63% GROWTH
FROM 2006 FROM 2007
53%; two years ahead of
Gross Profit as a Percent of Sales 50%
2010 target of 52-54%
Seeds & Traits Gross Profit $3.0B $3.6 - $3.7B
Roundup and All Other Glyphosate-based
$1.7 – $1.8B
$854M
Herbicides Gross Profit
All Other Ag Productivity Gross Profit $418M ~$350M
CASH MANAGEMENT AND SPENDING
FREE CASH FLOW $(57)M ~$1.3B
Capital Expenditures $509M ~$950M
SG&A as a Percent of Sales 22% ~20%
R&D as a Percent of Sales 9% ~9%
Receivables as a Percent of Sales 18% High Teens
Inventories as a Percent of Sales 20% High Teens
9
10. FINANCIAL REVIEW
Earnings Growth of 58 to 63 Percent and Increased
Cash from Operations Reflect Strong Growth Drivers
EARNINGS PER SHARE GROWTH CASH FLOW PROJECTIONS
PROGRESSION OF ONGOING EPS (2004-2008F) 2007-2008F
2008F ONGOING EPS GUIDANCE: 2007 2008F
$3.50 58-63% GROWTH $3.15-$3.25 $3,000
$2,450
$3.25
$2,500
$3.00 $1,854
$2,000
$2.75
$1,500
$2.50
$1,000
$2.25
$500
$2.00
$0
$1.75 $2.00
($500)
$1.50 ($200)
($509)
$1.25 ($1,000)
($950)
$1.30
$1.00 ($1,500)
($1,402)
$1.04
$0.75 ($2,000)
$0.80
$0.50
2004 2005 2006 2007 2008F Cash Flows from Operations
30% 25% 54% 58-63% Cash Used in Investing,
Excluding Capital Expenditures
Capital Expenditures
Guidance previously
set as $2.70 to $2.80
per share
Note: EPS figures reflect the stock split effective July 28, 2006
10
11. OVERVIEW
On Track to Double Gross Profit From 2007 to 2012, Growth
Drivers Roll Out In Balanced, Additive Progression
GROSS PROFIT DRIVERS: • Yield & stress platform
DRIVERS:
R&D Pipeline
TIMELINE OF INCREMENTAL IMPACT • Breakthrough platforms
• Protected culture
Planned progression of significant new
DRIVERS:
Seminis • Molecular markers
gross-profit generation from each
strategic driver
• 2nd-gen trait acceleration
DRIVERS:
Cotton • Breeding inroads
• Roundup Ready 2 Yield platform
DRIVERS:
Soybean • Seed share growth
• Seed share growth
International Corn DRIVERS:
• New trait approvals in LA
• Trait penetration and seed share growth
U.S. Corn DRIVERS:
• SmartStax platform
2008 2009 2010 2011 2012
2012+
2011-2012
2009 2010
U.S. drought-
Delta and Pine
Roundup Ready 2 U.S. SmartStax
MILESTONES
tolerant corn launch
Land U.S.
Yield soybeans corn launch
portfolio
controlled
2012+
Large-scale converted to
commercial release
Stacked trait
Roundup Ready 2 second-
soybean launches,
First major selling Yield soybean generation stack
including dedicated
season for LA corn launch
product for Brazil
traits
2008 to 2012 Projected branded corn share gains globally
11
12. U.S. CORN
DEKALB and ASI Share Growth Ahead of Original Plan –
2008 Milestones Reinforce Acceleration
DEKALB AND ASI U.S. CORN SHARE EVOLUTION:
U.S. Corn
2001-2008F
GEOGRAPHY: U.S.
30%
OBJECTIVE: Grow footprint
25 - 26%
2008 STATUS
25%
• DEKALB brand expected to
gain 2- 3 points in 2008 for 23%
20%
total share of 25-to-26
20%
percent in U.S.
15%
• ASI expected to gain 1-to-2 16%
10 - 11%
share points organically in 14%
9%
13%
2008 season 10% 12%
2012 OUTLOOK 10% 5%
• DEKALB to grow share 4%
5%
through 2012 by up to 10
points cumulatively from 0%
2007 share of 23 percent
2001 2002 2003 2004 2005 2006 2007 2008F
• Continued organic share
growth in ASI
DEKALB Brand Share – U.S. ASI Share – U.S.
12
13. INTERNATIONAL CORN
Monsanto Expected to Gain Corn Share in Argentina and Hold
Share in Brazil; Retaining Leadership in Both Markets
International Corn
Argentina &
GEOGRAPHY:
Brazil
LATIN AMERICA: SEED FOOTPRINT
Expand
ARGENTINA BRAZIL
OBJECTIVE: international
2007 2008F 2007 2008F
footprint
2008 STATUS (06/07 SEASON) (07/08 SEASON) (06/07 SEASON) (07/08 SEASON)
HYBRID MARKET
• Expected to grow 5 share
8M1 10M1 23M 27M
SIZE
points in a market that is
25 percent larger than in
2007 in Argentina
MONSANTO 40% 45% 40% 40%
• DEKALB and Agroeste
SHARE
combined are forecasted
AVG. RETAIL
to be flat with 2007 in
PRICE FOR
Brazil, delivering on our
DEKALB HYBRID
goal to stabilize share $23/ac $29/ac $29/ac $34/ac
CORN SEED
2012 OUTLOOK
• Target 1-to-2 share points
of growth annually
through 2012
13
1. Source: KLEFFMANN Marketing Services
14. U.S. CORN
2008 Triple Penetration Ahead of Expectations – Reinforcing
Continued Opportunity and Setting Stage for SmartStax
U.S. CORN TRAIT OPPORTUNITY: 2005-2010F
60
220
200
U.S. TRIPLE-STACK ACRES
50
180
U.S. TRAIT ACRES
(IN MILLIONS)
160
(IN MILLIONS)
40
140
120
30
100
80
20
60
40 10
20
0
0
2008F
2005 2006 2007 2008 2010F
2010
2007 ORIGINAL Q2 Opportunity
OUTLOOK UPDATE
Rootworm Control 45-55M
20.8M 26-28M 27-29M
Corn Borer Control 60-70M
42.4M 40-42M 40-42M
Glyphosate Tolerance 80M
57.9M 63-65M 65-67M
Triple Stack 17.6M 25-27M 26-28M 45-55M
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.
14
15. INTERNATIONAL CORN
With Two Recent Approvals, New Growth Opportunity Exists
For Corn Traits in Latin America
International Corn
LATIN AMERICA: TRAIT OPPORTUNITY
Argentina &
GEOGRAPHY:
Brazil
ARGENTINA BRAZIL
OBJECTIVE: Trait Penetration
2008 STATUS
APPROVED • YieldGard Corn Borer
• Roundup Ready Corn 2 TRAITS
• Roundup Ready Corn 2
with YieldGard Corn Borer • YieldGard Corn Borer
• YieldGard Corn Borer +
stack received regulatory Roundup Ready Corn 2
approval in Argentina end Stack
of August 2007 RECENT Granted approval for Granted first corn trait
DEVELOPMENTS
• YieldGard Corn Borer stack in August 2007 approval in February
2009 OUTLOOK
received regulatory Seed production
30-40% of DEKALB seed underway for 1-2M
approval in Brazil from
will be double-stack commercial acres of
CTNBio and CNBS YieldGard corn
• Hybrid registrations just TRAIT RETAIL
On par with U.S. On par with U.S.
PRICING
received, opening door for
seed production CORN BORER
7M 15-20M
OPPORTUNITIES
CONTROL
2012 OUTLOOK
2010 TRAIT
GLYPHOSATE
9M 15-20M
• Increasing trait penetration TOLERANCE
sets the stage for
ROOTWORM
5M 5M
SmartStax introduction CONTROL
15
16. SOYBEANS
Roundup Ready 2 Yield on Track for 2009 Controlled
Commercial Release of One to Two Million Acres
ROUNDUP READY 2 YIELD SOYBEANS:
Soybeans LAUNCH PLANS
GEOGRAPHY: U.S.
U.S. Full-Scale
2nd-Gen
OBJECTIVE: Launch Target:
Launch P R O JE CT
5- 6M Acres
2008 STATUS
U.S. Controlled
• Consistent 7-to-11 Commercial
Release Target:
percent yield advantage
1- 2M Acres
with Roundup Ready 2
Yield versus Roundup Grower level marketing, awareness and trial
Ready
• U.S., Canadian and Licensee breeding
Japanese approvals
Industry coordination and communications
received; awaiting key
• American Soybean Association and key agri-food
export approvals from
stakeholders
China, Mexico and Europe
PRICING Pursuit of export approvals in China, Europe and
Mexico – JAPAN RECEIVED
• Yield improvement shared
with grower using a multi- Branded and licensed seed production
year soybean commodity
2007 2008 2009 2010
price
16
17. Reconciliation of Non-GAAP Financial Measures
Reconciliation of Free Cash Flow Fiscal Year
2008 Fiscal Year 6 Months Ended 6 Months Ended
$ Millions Forecast 2007 Feb. 29, 2008 Feb. 28, 2007
Net Cash Provided (Required) by Operations $2,450 $1,854 $1,877 $520
Net Cash Provided (Required) by Investing Activities (1,150) (1,911) (404) (230)
Free Cash Flow $1,300 ($57) $1,473 290
Net Cash Provided (Required) by Financing Activities N/A (583) (142) (200)
Effect of Exchange Rate Changes on Cash and Cash Equivalents N/A 46 88 15
Net Increase (Decrease) in Cash and Cash Equivalents N/A ($594) $1,419 $105
Reconciliation of Non-GAAP EPS
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
$ per share 2008F 2007 2006 2005 2004
Net Income (Loss) per Share $3.38 - $3.48 $1.79 $1.25 $0.47 $0.50
Cumulative Effect of Change in Accounting Principle - - $0.01 -- --
$3.38 - $3.48 $1.79 $1.26 $0.47 $0.50
Diluted Earnings (Loss) per Share Before Effect of
Accounting Change
Solutia Claim Settlement ($0.23)
--
Tax Charge on Repatriated Earnings -- $0.04 -- --
--
Seminis In-Process R&D -- -- $0.38 --
--
Solutia-Related Charge -- -- $0.32 --
--
Tax Benefit on Loss from European Wheat and -- -- $(0.19) --
Barley Business
Restructuring Charges -- Net -- --
-- $0.01 $0.18
1
-- --
Loss (Income) on Discontinued Operations ($0.13) $0.05 --
Impairment of Goodwill -- -- -- -- $0.12
In-Process R & D Write-Off Related to the Delta & Pine Land -- $0.34 -- -- --
(D&PL) Acquisition
$1.30
$3.15 - $3.25 $2.00 $1.04 $0.80
Diluted Earnings (Loss) per Share from Ongoing Business
Note: EPS figures reflect the stock split effective July 28, 2006
17
1. The operating results of Stoneville and Nexgen have been conformed to discontinued operations for all relevant years presented.
