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BMO CAPITAL MARKETS

CARL CASALE
EXECUTIVE VICE PRESIDENT,
STRATEGY AND OPERATIONS


MAY 15, 2008
Forward-Looking Statements

Certain statements contained in this presentation are quot;forward-looking statements,quot; 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; developments related to foreign currencies and
economies; successful 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 reports on Forms 10-Q and 10-K. 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.

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


© 2008 Monsanto Company
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
OVERVIEW

Market Forces Are Changing Supply-Demand Patterns
Globally, Creating a New Dynamic Across Agriculture

    EMERGENCE OF DEMAND-DRIVEN AGRICULTURE:                          STATE OF AGRICULTURE:
               NEW DEMAND AND PRODUCTION TRENDS                  The New Demand Environment
                                             
                                                                FACTORS:
                                             Growing wealth
    Expanding ethanol
                                                                 ► INCREASING PROTEIN
                                             and population in
            and export
                                                                   DEMAND
                                             Asia creates new
   demands favor U.S.
                                             demand for
      as low-cost corn                                             Wealth drives meat
                                             imported grain
             producer
                                                                   consumption – changing
                                                                   feed demand
                                                                 ► ASCENSION OF CHINA
                                                                   China’s growth is reaching
                                                                   limits of domestic
                                                                   production, driving huge
                                                                   changes in export
                         
                                                                  environment
                         Brazil exploits land
         Argentina                                               ► ESTABLISHMENT OF
                         availability advantage
         leverages       to become                                 BIOFUELS
       geographic        commodity soy
      proximity to                                                 Assuming only base-case
                         producer to meet
    supply corn to       demand from China                         adoption of biofuels, more
     Latin America
                                                                   corn and soy needed in next
                                                                   decade


                                                                                             4
OVERVIEW


Even with Record Corn Prices Spurring Planting, Global Corn
Production Per Acre Is Sub-Optimized Today
                               GLOBAL CORN PRODUCTION1:                                                   YIELD
                       CORE PRODUCTIVITY MEASURES AND EVALUATION
                                                                                                 Boosting yield-per-
                                                                                                 acre can make a
                                                                                                 meaningful difference
                                                                                                 in supply-demand
                      CANADA
                                                                                                 environment
                                                      EU 27
                      3M ACRES
                      136 BU/AC
                      500M BUSHELS                    27M ACRES                                  • If India, Mexico and
                                                      90% HYBRID
                            U.S.                                                                   Brazil moved to 100
                                                      99 BU/AC

                                                                                    CHINA
                                                      2B BUSHELS
                                                                                                   bushel per acre yields,
                            90M ACRES
                            151 BU/AC                                               69M ACRES
                                                                                                   they could produce
 MEXICO
                            13B BUSHELS                                             83 BU/AC
                                                                                    6B BUSHELS     nearly 4 billion
     18M ACRES
                                                                                                   additional bushels of
    25% HYBRID
                                                                      INDIA
       48 BU/AC
                                                BRAZIL                                             corn annually – equal to
  900M BUSHELS
                                                                      20M ACRES
                                                36M ACRES                                          total world corn exports
                                                                     45% HYBRID
                                                75% HYBRID              32 BU/AC
                                                                                                   in 2007.
                                                58 BU/AC           700M BUSHELS
                                                2B BUSHELS
                                                                                                 • If the EU27 and Brazil
                                                                                                   adopted the corn-borer
                                    ARGENTINA                                                      resistant biotech trait,
                                    10M ACRES
                                                                                                   they would have the
                                    111 BU/AC
                                    900M BUSHELS
                                                                                                   potential to increase
                                                                                                   yields by almost 200
                    Optimization of yield per acre                                                 million bushels – the
                                                                                                   amount used by U.S.
                                                                                                   food companies as
                                                                                                   sweeteners in 2007.
                     Poor/Subsistence                Sub-Optimized             Optimized
  1. Source: USDA FAS and internal estimates.
OVERVIEW


  Monsanto Has Created and Is Extending Its Leadership
  Through Innovation
                                                                                                       Monsanto Strategy
                           MONSANTO’S FINANCIAL INDICATORS:
                                                                                                  Monsanto is an innovation-
                  GROSS PROFIT BY SEGMENT AND ONGOING EPS – FY04 TO FY08F
                                                                  FY08F:                          driven R & D based company
                  $4,000                                                    $3.50
                                                             $3.15 -$3.25                         in Agriculture that creates
                                       Ag Productivity
                                                                                                  value through improved
                                       Gross Profit
                  $3,500                                                    $3.00
                                       Seeds & Genomics
                                                                                                  yields and seed
                                       Gross Profit
                                                                                                  performance.
(in $ millions)




                  $3,000               Ongoing EPS                          $2.50




                                                                                    Ongoing EPS
 Gross Profit




                                                                                                  SIX GROWTH DRIVERS
                  $2,500                                                    $2.00

                                                                                                   U.S. Corn
                  $2,000                                                    $1.50

                                                                                                   International Corn
                  $1,500                                                    $1.00
                                                                                                   Soybeans
                  $1,000                                                    $0.50
                                                                                                   Cotton
                   $500                                                     $0.00
                                                                                                   Vegetables
                             2004     2005     2006       2007     2008F
                                                                                                   R & D Pipeline
                                                                                                  Leadership extends as we
                                   2004-2008F: 41% CAGR in EPS
                                                                                                  deliver four game-changing
                                       driven by growth of Seeds &
                                                                                                  technologies between now
                              Genomics segment, where innovative
                                                                                                  and the middle of the next
                                solutions translate into seed share
                                                                                                  decade.
                                gains and trait penetration globally

                                                                                                                               6
OVERVIEW

 Foundation of Seeds and Traits Creates Unmatched
 Capabilities in Ag
                                                 CREATION OF UNMATCHED SEED BASE
                                           Monsanto’s Strategy Transforms Agriculture
                                                                                                        EXTENDING LEADERSHIP
      CREATING LEADERSHIP

                   1996 to 2007: BUILD SEED BASE                            2008 to 2012: INTENSIFY & EXPAND BASE



   1996:           1997:           1998:      2005: 2004 to 2006:    2007:              2008:
Acquired Acquired    Acquired Acquired Created ASI & Acquired                  Announced
 Asgrow Holden’s DEKALB, Seminis Acquired 25           Delta &                    intent to
        Foundation Cargill Intl       Regional Corn Pine Land                   acquire De
     Seeds Inc. and Corn Seed             & Soybean       and                 Ruiter Seeds
        Corn States                            Seed AgroEste
                                         Companies

                                           DEVELOPMENT OF GAME-CHANGING BIOTECH TRAITS
                                           Monsanto’s Strategy Transforms Agriculture
                                                                                                        EXTENDING LEADERSHIP
      CREATING LEADERSHIP
                                                                              2008 to 2012:FOCUS ON TRAITS TO
    1996 to 2007:FOCUS ON TRAITS TO PROTECT YIELD
                                                                                       ENHANCE YIELD

                                                                                2009:           2010:       ~2012:        ~2014:
                           1997:      1998:
           1996:                                                    2006:
                                                          2005:
                                                  2003:
    Roundup Roundup Roundup YieldGard Triple- Bollgard II Roundup SmartStax       First                               Nitrogen-
                                                            Ready 2    corn Generation                                Utilization
      Ready      Ready  Ready Rootworm stack Roundup
                                                               Yield          Drought                                       Corn
   soybeans, Cotton and  Corn                     Ready
                                        corn
                                                    Flex soybeans,            Tolerant
    Bollgard YieldGard
                                                          YieldGard              Corn
      Cotton CornBorer                           Cotton
                                                            VT PRO
                                                                                                                                7
CREATING LEADERSHIP

Monsanto Has Portfolio Balance That Carries Between Crops
Even as Planted Acres Fluctuate

                  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
          0.8
                                                              is an estimated $0.01 EPS
                                                              change for Monsanto
          0.6
                                                    0.47    ► With brands in corn,
                                                              cotton and soybeans,
          0.4
                                                              Monsanto is positioned to
                                                              meet demand regardless
          0.2
                                                              of crop planting patterns
                                                              in any given year
            0
                                                            ► With the 2009 controlled
                      CORN       COTTON          SOYBEANS
                                                              commercial release of
                                                              Roundup Ready 2 Yield
2008 U.S. TRAIT
                      1.6           1.4             0.95
PENETRATION –
                                                              and the 2010 launch of
 ALL CHANNELS
                                                              SmartStax this dynamic
                                                              portfolio will be re-
                                                              balanced


                                                                                             8
CREATING LEADERSHIP

 DEKALB and ASI Gain Share as Investment in Breeding
 Delivers Yield Advantage

        U.S. CORN                      DEKALB AND ASI U.S. CORN SHARE EVOLUTION:
                                                       2001-2008F
STATUS
                                 30%
• In June 2007, announced 3-                 DEKALB Brand Share – U.S.
  year, $610M plan to expand
                                                                                                    25 - 26%
                                               ASI Share – U.S.
  and build seed facilities in   25%
  the U.S.
• In 2008, plan has been                                                                   23%
                                 20%
  accelerated to reflect
                                                                                  20%
  growth in DEKALB and ASI
                                 15%
  combined with continued
                                                                          16%
  growth expectations                                                                                10 - 11%
                                                                  14%
                                                                                               9%
  through 2012                                          13%
                                 10%           12%
• Outlook to 2012:                     10%                                             5%
  •   DEKALB to grow share
                                 5%                                          4%
      through 2012 by up to 10
      points cumulatively from
      2007 share of 23 percent
                                 0%
  •   Continued organic share
                                        2001     2002     2003     2004    2005     2006     2007    2008F
      growth in ASI

                                                                                                      2008F
                                                                    Projecting 2-3% share gains for DEKALB
                                                                                and 1-2% share gains for ASI



                                                                                                                9
CREATING LEADERSHIP

2008 Triple Penetration Ahead of Expectations, Setting Stage
for SmartStax Launch

                                            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                   2010
                                 2005                     2006                     2007                     2008                    2010F
                                                                                  2007                                            Opportunity
                                                                                                   ORIGINAL            Q2
                                                                                                   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.


                                                                                                                                                                        10
CREATING LEADERSHIP

 Leading Brand Share Positions in Corn in Brazil and Argentina
 Provide Footprint for New Trait Launches

  International Corn
             Argentina &
GEOGRAPHY:
             Brazil
                                                             LATIN AMERICA: SEED FOOTPRINT
             Expand
                                                                   ARGENTINA                            BRAZIL
             international
OBJECTIVE:

             footprint                                          2007            2008F             2007            2008F
2008 STATUS                                                 (06/07 SEASON)   (07/08 SEASON)   (06/07 SEASON)   (07/08 SEASON)


• Expected to grow 5 share
                                                                 8M1             10M1             23M              27M
  points in a market that is            HYBRID ACRES
  25 percent larger than in
  2007 in Argentina
                                                                40%              45%              40%              40%
                                             MONSANTO
• DEKALB and Agroeste
                                                SHARE
  combined are forecasted
  to be flat with 2007 in                AVG. RETAIL
  Brazil, delivering on our                PRICE FOR
                                      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




                                                                                                                                 11
                   1. Source: KLEFFMANN Marketing Services
EXTENDING LEADERSHIP

 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
             Trait Penetration
OBJECTIVE:

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      stack in August 2007      approval in February
• YieldGard Corn Borer
  received final approvals in                    2009 OUTLOOK                                   Seed production
                                                                 30-40% of DEKALB seed         underway for 1-2M
  Brazil in early 2008
                                                                   will be double-stack       commercial acres of
• Pricing for new traits to be                                                                  YieldGard corn
  on par with the U.S. and                        TRAIT RETAIL
                                                                     On par with U.S.           On par with U.S.
  value sharing above 50%                              PRICING
  to promote adoption                               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


                                                                                                                        12
CREATING LEADERSHIP

 Monsanto’s Pricing Model Aimed at Total Value Created;
 Shared With Farmer to Build Stable Long-Term Growth

  EXAMPLE : LOW-PRICE ENVIRONMENT                                                           EXAMPLE : HIGH-PRICE ENVIRONMENT
  Farmer Value Proposition On Triple Stack at                                                Farmer Value Proposition On Triple Stack at
  $2.50 Corn Prices                                                                          $4.50 Corn Prices
  VALUE CREATION                                                                             VALUE CREATION

                                                           15-20 bu/ac                                                            15-20 bu/ac
  Improved Yield1                                                                            Improved Yield1
                                                              $2.50/bu                                                             $4.50/bu
                       Commodity Price:                                                                      Commodity Price:
                                                               $37-$50                                                             $67-$90
                                          Value:                                                                         Value:

                                                                    $5                                                                $5
  Indirect Benefits2                                                                         Indirect Benefits2
                                                               $42-$55                                                             $72-$95
          Incremental Value Created                                                                  Incremental Value Created
  PRICING APPROACH                                                                           PRICING APPROACH

                                                               $28-$36                                                             $28-$36
  Per-Acre Trait Cost3                                                                       Per-Acre Trait Cost3
                                                                 ($17)                                                               ($17)
  – Cost of Replacements4                                                                    – Cost of Replacements4
                                                               $16-$19                                                             $16-$19
            Incremental Farmer Cost                                                                    Incremental Farmer Cost



                                                    With $2.50 corn, about 50% of the incremental
                                                    yield value created is shared with the farmer;
                                                    With $4.50 corn, about two-thirds of that value
                                                                accrues to the farmer
1. Monsanto estimates, based on better insect and weed control over conventional options
2. Monsanto estimates, based on farmer surveys quantifying benefits such as convenience and peace of mind
3. Retail royalty range for YieldGard VT Triple in 2008, at normal seeding rates
4. Subtracts costs farmers would have spent had they not used a trait package

                                                                                                                                                13
EXTENDING LEADERSHIP

    Strong Pipeline Reflects Growing Innovation and Value of
    Emerging Yield and Stress Traits
                                      DISCOVERY           PHASE 1        PHASE 2            PHASE 3             PHASE 4

                                                                                                     Drought-
                                                                                            HIGH Tolerant
                                      FAMILY TRAITS►
                                                                                                     Family
                 CORN:
COLLABORATION
YIELD & STRESS




                                                                Nitrogen-
                 BROAD-ACRE                               HIGH Utilization
                                        FAMILY TRAITS►
                 YIELD                                          Family
                                                                                        Broad-Acre,
                                                                            MEGA        Higher-Yielding
                                      FAMILY TRAITS►
                                                                                        Family



                 SOYBEANS:                                                    Broad-Acre,
                 BROAD-ACRE                                              HIGH Higher-Yielding
                                         FAMILY TRAITS►

                 YIELD                                                        Family


  2020 VALUE RANGES:                                                                                            Roundup
                                                                                                 Omega-3
                                                                             Bollgard III                       Ready 2 Yield
                                                                                                 soybeans
                                                                                                                soybeans
                    MEGA                         HIGH                        Roundup
                                                                                            Insect-protected
                                                 $300M-$500M                 Ready 2
                   >$1BM                                                                    Roundup Ready
                                                                                                                    YieldGard
                                                                             Yield canola   2 Yield soybeans
                                                                                                                    VT PRO
                                                                                                Dicamba-            corn
                    MID                          LOW                                            tolerant
                                                                                                soybeans
                                                 <$150M
                   $150M-$300M                                                                  Vistive III        Improved-
                                                                                                                   protein
                                                                                                High-oil
                  Corn     Soybeans    Cotton      Canola                                                          soybeans
                                                                                                soybeans

                                                                                                                           14
EXTENDING LEADERSHIP

Roundup Ready 2 Yield Soybeans Raise the Performance
Bar with 7 to 11 Percent Yield Advantage

                                          ROUNDUP READY 2 YIELD SOYBEANS:                       STATE OF AGRICULTURE:
                                         SECOND-GENERATION WEED CONTROL FIELD RESULTS
                                                                                               A New Soybean Platform
                                                    Near-Isoline Comparisons:
                                              Roundup Ready 2 Yield vs. Roundup Ready
  % Yield Increase over Roundup Ready




                                        12%
                                                                                                    HIGHER-YIELDING

                                               11%
                                        10%                                                         DICAMBA-TOLERANT
                                                                                    9%
                                                                                                        VISTIVE III

                                                                  9%
                                        8%                                                       ROUNDUP READY 2 YIELD




                                                         7%                7%
                                        6%
                                                                                            ► Roundup Ready 2 Yield
                                                                                              becomes the platform for
                                        4%
                                                                                              soybean traits
                                                                                            ► Three soybean pipeline
                                        2%
                                                                                              traits advanced to Phase 3
                                        0%                                                    commercial development in
                                                                                   4 YEAR     recent R&D update
                                               2004     2005     2006     2007    AVERAGE

 Roundup Ready 2 Yield soybeans yield 7 to 11 percent higher than Roundup Ready soybeans
  based on 73 Monsanto field trials from 2004-2007
► Power in the pod; Over 200 observations indicate that Roundup Ready 2 Yield soybean plants
  produce significantly more 3-bean pods per plant compared to Roundup Ready soybeans


                                                                                                                           15
EXTENDING LEADERSHIP

SmartStax Corn Projected to Increase Value on Farm Through
Potential Refuge Reduction and Improved Insect Control

Projected SmartStax Value: On-Farm
    Increased Yield (per-acre and on-farm)
+
                                                                SmartStax Value:
                                        YIELD                   Refuge Reduction Considerations
        YIELD COMPONENT
                                       BENEFIT1
    PER-ACRE
                                                                U.S. EPA requires set-aside refuge
     Improved consistency:             1-2%
                                                                for current single-mode-of-action
       Primary pests
                                                                insect-protected traits in corn
     Improved protection:              1-2%

                                                                                                                 20%
       Secondary pests
    ON-FARM


                                                                               80%
     Reduced refuge                    3-6%
                                        4-10%
    Total Estimated Yield Benefit

    Flexibility to move to one technology
+
                                                                                               20 BU/AC
    platform on-farm                                                                                                    1
    Durability
+                                                                                            Yield Differential
    Flexibility to increase planting                            Farmers in Illinois in 2007 reported
+
    populations                                                 average 20 bu/acre yield difference
    Platform for future traits                                  between YieldGard VT Triple and
+
                                                                refuge acres
    Access to superior seed
+

    Total Projected SmartStax Value
=
                                                  1. Yield benefit reflects expected yield benefit above triple-stack standard, on a
                                                                                                                                       16
                                                     per-acre and whole-farm basis as noted. Ranges may overlap
EXTENDING LEADERSHIP

     First Generation Drought-Tolerant Corn Has First Mover
     Advantage In Yield and Stress Traits
                                                                                                                             Average Yield Improvement of Lead Event




                                                                                      Yield Difference (bu/acre)
                 R&D Pipeline                                                                                      16                    Percentage yield difference vs. control
                                                                                                                              13.4%           6.7%         10.6%          11.3%
                                                                                                                   14
Drought-Tolerant Corn Family:
Lead Project                                                                                                       12
                                                                                                                   10                                                                       PRODUCT
     HIT Project




                                                                   KEY RESULTS
                                                                                                                                                                                            CONCEPT
                                       Phase 3                                                                     8                                                                         TARGET
                                                                                                                                                                                             RANGE
                                                                                                                   6
PROJECT CONCEPT:
                                                                                                                   4
Drought-tolerance family aimed at
providing consistent yield and                                                                                     2
buffering against effects of water                                                                                 0
limitations                                                                                                                          a                 b                 b              b
                                                                                                                              2004             2005               2006           2007
VALUE:                                                                                                                                       15 TOTAL           9 TOTAL        11 TOTAL
                                                                                                                           8 TOTAL
                                                                                                                                            LOCATIONS          LOCATIONS      LOCATIONS
                                                                                                                          LOCATIONS
  LAUNCH-COUNTRY
                                          55M                                                                           a: data from two hybrids
          ACRES1:
                                                                                                                        b: data from three hybrids
                                   $300-$500M
         2020 VALUE2:
                                                                                                SEGMENTED VALUE OPPORTUNITY ACROSS MARKETS
SOURCES OF VALUE:
                                                                   KEY OPPORTUINITY




                                                                                                                                                                               First leads show
       Improved yield
                                                                                                                                                                                benefit under
       Targeting 8-10% yield
 1                                                                                                                                                                              water-stress
       improvement in water-stress                                                                                                                             WESTERN
       environments                                                                                                                                                             conditions
                                                                                                                                                               DRYLAND
                                                                                                                                                               10-12M Acres    First product
1. Acre opportunity reflects acres where technology fits at
   Monsanto's current 2007 market share in respective crops
                                                                                                                                                                                targeted at
2. 2020 value reflects gross sales opportunity in launch country
                                                                                                                                                                                western dryland
   in year 2020
                                                                                           Low annual                                          High annual                      region of 10-12M
                                                                                          precipitation                                        precipitation
                                                                                                                                                                                acres
                                                                                         Source: Spatial Climate Analysis Service, Oregon State University


                                                                                                                                                                                                      17
EXTENDING LEADERSHIP

      Second Generation Drought-Tolerant Corn Targeted to Expand
      Reach
                                                                                                                                      Drought Efficacy for Second-Gen Events




                                                                                           Yield Difference Over Controls (%)
                                                                                                                                16
                  R&D Pipeline
                                                                                                                                14
 Drought-Tolerant Corn Family:
                                                                                                                                12
 Second-Generation Project
                                                                                                                                10                                                                  PRODUCT
                                                                                                                                                                                                    CONCEPT
                                        Phase 2                                                                                  8
                   STATUS:
                                                                                                                                                                                                    TARGET




                                                                   KEY RESULTS
                                                                                                                                                                                                    RANGE
                                                                                                                                 6
 PROJECT CONCEPT:
                                                                                                                                 4
 Drought-tolerance family aimed at
                                                                                                                                 2
 providing consistent yield and
                                                                                                                                 0 EVENT 1EVENT 2 EVENT 3 EVENT 1 EVENT 2 EVENT 3
 buffering against effects of water
 limitations                                                                                                                                                          HIGHER-YIELDING ENVIRONMENT
                                                                                                                                    LOWER-YIELDING ENVIRONMENT
                                                                                                                                                                         AVERAGE YIELD: 166 BU/AC
                                                                                                                                      AVERAGE YIELD: 53 BU/AC
 VALUE:
                                                                                                                                                                                2007
                                                                                                                                            2006
   LAUNCH-COUNTRY
                                           55M                                        (All three events significant @ p≤0.10); Statistical significance determined by ANOVA (2006) or nonparametric test (2007)
           ACRES1:

                                    $300-$500M
           2020 VALUE2:

 SOURCES OF VALUE:                                                                      SEGMENTED VALUE OPPORTUNITY ACROSS MARKETS

        Improved yield                                                                                                                                                              Second generation
                                                                   KEY OPPORTUINITY




                                                                                                                                                                    IRRIGATED
        Targeting 8-10% yield                                                                                                                                                        demonstrates
  1     improvement in water-stress                                                                                                                                 8-12M Acres
                                                                                                                                                                                     performance over
        environments                                                                                                                                                WESTERN          broad range of stress
                                                                                                                                                                    DRYLAND
        Water substitution                                                                                                                                                           conditions in both
                                                                                                                                                                    10-12M Acres     low and high-yielding
  2     Variable costs in pumped
                                                                                                                                                                                     environments
        irrigation of >$100/ acre                                                                                                                                   STABILITY
                                                                                                                                                                                    Potential for a broad
                                                                                                                                                                    60-70M Acres
                                                                                         Low annual                                                 High annual
1. Acre opportunity reflects acres where technology fits at
                                                                                                                                                                                     acreage fit across all
                                                                                        precipitation
   Monsanto's current 2007 market share in respective crops                                                                                         precipitation
                                                                                                                                                                                     acres planted
2. 2020 value reflects gross sales opportunity in launch country                       Source: Spatial Climate Analysis Service, Oregon State University
   in year 2020

                                                                                                                                                                                                              18
EXTENDING LEADERSHIP

Nitrogen-Utilization Corn Designed to Create Value Via
Improved Yields or Reduced Nitrogen Usage
            PER-ACRE NITROGEN COST                                                                                   STATE OF AGRICULTURE:
    FOR CORN PRODUCTION IN THE U.S.: 1990-20071                                                         Breakthroughs in Nitrogen-Use Research
                                                                                Under normal nitrogen conditions, lead Nitrogen-
 $60                                                                            Utilization trait has demonstrated yield advantages
                                                                                in multiple backgrounds over multiple years
 $50

                                                                                                  12
                                                                                                         *
 $40




                                                                         Yield Increase (bu/Ac)
                                                                                                                                         **              ***
                                                                                                                                  *
                                                                                                  10
 $30                                                                                                8
                                                                                                    6
 $20                                                                                                4
                                                                                                    2
 $10
                                                                                                    0
                                                                                                   -2                                            TRIALS IN
  $0                                                                                                                          TRIALS IN
                                                                                                                                                 MULTIPLE
                                                                                                                              MULTIPLE
          1990     1993       1996       1999      2002   2005   2008B
                                                                                                                                                  HYBRID
                                                                                                                               HYBRID
 Nitrogen accounts for approximately one-fifth of                                                                                              BACKGROUNDS
                                                                                                                            BACKGROUNDS
 the direct operating costs for a corn producer2 and                                                                                              (15 LOC)
                                                                                                                               (16 LOC)
 continues to escalate with current estimates of
 nearly $780 per ton or approximately $70 per acre
                                                                                                        2005               2006                       2007
 by the fall.
 Nitrogen-Utilization corn offers the potential to
                                                                                            *       Statistically significant @ p≤0.10
 bring the value of nitrogen into the seed:
                                                                                              Bar color correlates with the specific hybrid background tested.
      •    Reducing farmers’ exposure to nitrogen                                             Same bar color in different tests and different years indicates same
           price volatility                                                                   hybrid was used.
      •    Boosting yield                                                                     All trials conducted under sufficient nitrogen application levels.
      •    Improving ease of use, flexibility

1. NASS
2. USDA and University of Illinois 2008 Crop Budgets

                                                                                                                                                                     19
USES OF CASH

Leadership and Innovation Underscored by Strong Cash
Generation for Investment in Next Wave of Growth

                     USES OF CASH                                    FY08F ESTIMATED USES OF CASH
               CUMULATIVE: 2005-2007                               ESTIMATED $2.5B CASH GENERATED BY
                                                                                OPERATIONS
                                    American Seeds,
                                    Inc. (2004-2007)
    FY2007
                                    Seminis (2005)
   Dividend
                                                                                                                   FY2008
  increased                                             $3,000
                                    Delta & Pine Land                                                            $313M of
  40% to 70                                                             $2,450
                                    (2007)                                                                    dividends &
                                                        $2,500
cents/share
                                                                                                                    share
                     $545           Agroeste (2007)
                                                        $2,000                                               repurchases
                                                                                     ($200)                   through Q2
                                                        $1,500
              $639
                                                        $1,000                                 ($950)
                               $3,161
        $266
                                                          $500
                                                                                                          ($830)
                                                            $0
                                                         ($500)
          $1,160
                                                                   FY2008
                                                        ($1,000)
                                                                   Estimated $2.5B
                                                                                          FY2008
                                                        ($1,500)   of Operating
                                                                                                           FY2008
                                                                   Cash Flows             CAPEX:
                                                                   generated
                              Acquisitions                                                Year two of      ACQUISITIONS:
                                                                                          $610M corn       Entered
 FY2007                                                                                   seed
                              Capital Spending                                                             agreement to
 Capex focused                                                                            expansion        purchase De
 on corn seed                                                                             project; year
                              Technology Investments                                                       Ruiter Seeds for
 expansion; year                                                                          one of $196M     €546M - ~$830M
 one of 3 year                                                                            glyphosate
                              Dividends                                                                    if closes in
 $610M project                                                                            expansion        FY08
                              Share Repurchases                      FY2008
                                                                     Technology
                              Operating Cash Flows                   Investments


                                                                                                                         20
ACQUISITION STRATEGY

Acquisition Strategy Set to Strengthen and Expand Core and
Drive Differentiation Through Innovation
                      INVESTMENT OPPORTUNITY

 In an expanding agriculture environment, value is defined by innovation –
 Monsanto’s strategy is targeted on innovation: discovering and developing
 technology that is game-changing
              CATEGORY                              EXAMPLES                            OUTLOOK
                                          ► Delta and Pine Land              •   ASI and Delta and Pine Land
  Intensify The Space
                                                                                 moving to integration
                                          ► American Seeds, Inc.
    Strengthen position of the                                               •   Leading position in
                                            (ASI) Companies                      protected-culture established
    core business, largely by
                                          ► Agroeste (Brazil)                    in vegetables
    building the germplasm
                                          ► De Ruiter Seeds                  •   Continued opportunity for
    footprint of seeds
                                                                                 add-on international corn and
                                                                                 vegetable seed companies
                                          ► Seminis                          •   Continually looking for areas
  Expand The Space
                                                                                 where Monsanto can apply
                                                                                 core technology quickly or
    Expansion to adjacent spaces
                                                                                 benefit from advanced
    – where core technology can
                                                                                 research
    be applied quickly and with
    transformational benefits
                                          ► Yield and Stress R&D             •   Most highly transformational,
  Redefine The Space
                                                                                 but rarest to find appropriate
                                            Collaboration with BASF
                                                                                 fit
    Investments that rewrite the          ► SmartStax agreement with
    landscape, providing new                Dow
    avenues, new technologies
                                          ► Global Seed Treatment
    and creating new markets
                                            Alliances
                                                                                                                  21
EXTENDING LEADERSHIP

  De Ruiter Seeds Helps Address Gap in Monsanto Vegetable
  Seed Portfolio in Growing Protected-Culture Segment



                                                                                         FY07 Annual net Sales = $145M
          FY07 Annual Net Sales = $612M
                                                                                       Portfolio Composition: Percent of Sales1
       Portfolio Composition: Percent of Sales1


                                                                                                               10%
                         12%

                                                                      Open-Field

                                                                       Protected-Culture




                                             88%                                                      90%
                                                      Pairing Seminis with De Ruiter Seeds
                                                      brings together the leading positions in
                                                          open-field and protected-culture
                                                                      segments
                                                   • Both segments benefit from the coordinated
                                                     molecular breeding infrastructure
1. Size of pies not to scale with revenue
   generated by Seminis or De Ruiter Seeds

                                                                                                                                  22
SUMMARY


Monsanto’s Strategy to Extend Competitive Lead Through
Innovation, Driving 2012 Growth
                                                                          2012 GROWTH RANGE
                GROSS PROFIT OUTLOOK BY SEGMENT
                                                                     Gross profit targeted to more
                               2007-2012F                            than double from 2007 through

                                                       >2X
                                                                     2012 including recent lift in
                                                                     Roundup to $1.8B gross profit
              $10,000
                                                     2007 BASELINE       STRATEGIC PLAYBOOK
                                                                     All growth is organic, from base
               $8,000
                                                                     business and pipeline
IN MILLIONS




                                                                      U.S. Corn
               $6,000
                                                                      International Corn
                                                                      Soybeans
                                                                      Cotton
               $4,000
                                                                      Vegetables
                                                                      R&D Pipeline
               $2,000
                                                                     Acquisitions to be pursued, but
                                                                     are not included in this growth
                                                                     projection
                  $0
                                                                     Earnings continue to translate
                        2007           2008F             2012F
                                                                     into operating cash, and value
                                                                     created for shareowners
                         All Other Agricultural Productivity
                                                                     through combination of
                         Roundup And Other Glyphosate-based
                                                                     acquisitions, technology
                         Herbicides
                                                                     investments, share repurchases
                         Seeds & Genomics
                                                                     and dividends
                                                                                                     23
Reconciliation of Non-GAAP Financial Measures

   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           --            --
    Diluted Earnings (Loss) per Share Before Effect of                                       $3.38 - $3.48               $1.79          $1.26         $0.47         $0.50
          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
          Loss (Income) on Discontinued Operations 1                                                 --                 ($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
    Diluted Earnings (Loss) per Share from Ongoing Business                                  $3.15 - $3.25               $2.00          $1.30         $1.04         $0.80




Note: EPS figures reflect the stock split effective July 28, 2006

                                                                                                                                                                                24
 1. The operating results of Stoneville and Nexgen have been conformed to discontinued operations for all relevant years presented.

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monsanto 05-15-08

  • 1. BMO CAPITAL MARKETS CARL CASALE EXECUTIVE VICE PRESIDENT, STRATEGY AND OPERATIONS MAY 15, 2008
  • 2. Forward-Looking Statements Certain statements contained in this presentation are quot;forward-looking statements,quot; 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; developments related to foreign currencies and economies; successful 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 reports on Forms 10-Q and 10-K. 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. Trademarks Trademarks owned by Monsanto Company and its wholly-owned subsidiaries are italicized in this presentation. All other trademarks are the property of their respective owners. © 2008 Monsanto Company
  • 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. OVERVIEW Market Forces Are Changing Supply-Demand Patterns Globally, Creating a New Dynamic Across Agriculture EMERGENCE OF DEMAND-DRIVEN AGRICULTURE: STATE OF AGRICULTURE: NEW DEMAND AND PRODUCTION TRENDS The New Demand Environment   FACTORS: Growing wealth Expanding ethanol ► INCREASING PROTEIN and population in and export DEMAND Asia creates new demands favor U.S. demand for as low-cost corn Wealth drives meat imported grain producer consumption – changing feed demand ► ASCENSION OF CHINA China’s growth is reaching limits of domestic production, driving huge changes in export   environment Brazil exploits land Argentina ► ESTABLISHMENT OF availability advantage leverages to become BIOFUELS geographic commodity soy proximity to Assuming only base-case producer to meet supply corn to demand from China adoption of biofuels, more Latin America corn and soy needed in next decade 4
  • 5. OVERVIEW Even with Record Corn Prices Spurring Planting, Global Corn Production Per Acre Is Sub-Optimized Today GLOBAL CORN PRODUCTION1: YIELD CORE PRODUCTIVITY MEASURES AND EVALUATION Boosting yield-per- acre can make a meaningful difference in supply-demand CANADA environment EU 27 3M ACRES 136 BU/AC 500M BUSHELS 27M ACRES • If India, Mexico and 90% HYBRID U.S. Brazil moved to 100 99 BU/AC CHINA 2B BUSHELS bushel per acre yields, 90M ACRES 151 BU/AC 69M ACRES they could produce MEXICO 13B BUSHELS 83 BU/AC 6B BUSHELS nearly 4 billion 18M ACRES additional bushels of 25% HYBRID INDIA 48 BU/AC BRAZIL corn annually – equal to 900M BUSHELS 20M ACRES 36M ACRES total world corn exports 45% HYBRID 75% HYBRID 32 BU/AC in 2007. 58 BU/AC 700M BUSHELS 2B BUSHELS • If the EU27 and Brazil adopted the corn-borer ARGENTINA resistant biotech trait, 10M ACRES they would have the 111 BU/AC 900M BUSHELS potential to increase yields by almost 200 Optimization of yield per acre million bushels – the amount used by U.S. food companies as sweeteners in 2007. Poor/Subsistence Sub-Optimized Optimized 1. Source: USDA FAS and internal estimates.
  • 6. OVERVIEW Monsanto Has Created and Is Extending Its Leadership Through Innovation Monsanto Strategy MONSANTO’S FINANCIAL INDICATORS: Monsanto is an innovation- GROSS PROFIT BY SEGMENT AND ONGOING EPS – FY04 TO FY08F FY08F: driven R & D based company $4,000 $3.50 $3.15 -$3.25 in Agriculture that creates Ag Productivity value through improved Gross Profit $3,500 $3.00 Seeds & Genomics yields and seed Gross Profit performance. (in $ millions) $3,000 Ongoing EPS $2.50 Ongoing EPS Gross Profit SIX GROWTH DRIVERS $2,500 $2.00  U.S. Corn $2,000 $1.50  International Corn $1,500 $1.00  Soybeans $1,000 $0.50  Cotton $500 $0.00  Vegetables 2004 2005 2006 2007 2008F  R & D Pipeline Leadership extends as we 2004-2008F: 41% CAGR in EPS deliver four game-changing driven by growth of Seeds & technologies between now Genomics segment, where innovative and the middle of the next solutions translate into seed share decade. gains and trait penetration globally 6
  • 7. OVERVIEW Foundation of Seeds and Traits Creates Unmatched Capabilities in Ag CREATION OF UNMATCHED SEED BASE Monsanto’s Strategy Transforms Agriculture EXTENDING LEADERSHIP CREATING LEADERSHIP 1996 to 2007: BUILD SEED BASE 2008 to 2012: INTENSIFY & EXPAND BASE 1996: 1997: 1998: 2005: 2004 to 2006: 2007: 2008: Acquired Acquired Acquired Acquired Created ASI & Acquired Announced Asgrow Holden’s DEKALB, Seminis Acquired 25 Delta & intent to Foundation Cargill Intl Regional Corn Pine Land acquire De Seeds Inc. and Corn Seed & Soybean and Ruiter Seeds Corn States Seed AgroEste Companies DEVELOPMENT OF GAME-CHANGING BIOTECH TRAITS Monsanto’s Strategy Transforms Agriculture EXTENDING LEADERSHIP CREATING LEADERSHIP 2008 to 2012:FOCUS ON TRAITS TO 1996 to 2007:FOCUS ON TRAITS TO PROTECT YIELD ENHANCE YIELD 2009: 2010: ~2012: ~2014: 1997: 1998: 1996: 2006: 2005: 2003: Roundup Roundup Roundup YieldGard Triple- Bollgard II Roundup SmartStax First Nitrogen- Ready 2 corn Generation Utilization Ready Ready Ready Rootworm stack Roundup Yield Drought Corn soybeans, Cotton and Corn Ready corn Flex soybeans, Tolerant Bollgard YieldGard YieldGard Corn Cotton CornBorer Cotton VT PRO 7
  • 8. CREATING LEADERSHIP Monsanto Has Portfolio Balance That Carries Between Crops Even as Planted Acres Fluctuate 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 0.8 is an estimated $0.01 EPS change for Monsanto 0.6 0.47 ► With brands in corn, cotton and soybeans, 0.4 Monsanto is positioned to meet demand regardless 0.2 of crop planting patterns in any given year 0 ► With the 2009 controlled CORN COTTON SOYBEANS commercial release of Roundup Ready 2 Yield 2008 U.S. TRAIT 1.6 1.4 0.95 PENETRATION – and the 2010 launch of ALL CHANNELS SmartStax this dynamic portfolio will be re- balanced 8
  • 9. CREATING LEADERSHIP DEKALB and ASI Gain Share as Investment in Breeding Delivers Yield Advantage U.S. CORN DEKALB AND ASI U.S. CORN SHARE EVOLUTION: 2001-2008F STATUS 30% • In June 2007, announced 3- DEKALB Brand Share – U.S. year, $610M plan to expand 25 - 26% ASI Share – U.S. and build seed facilities in 25% the U.S. • In 2008, plan has been 23% 20% accelerated to reflect 20% growth in DEKALB and ASI 15% combined with continued 16% growth expectations 10 - 11% 14% 9% through 2012 13% 10% 12% • Outlook to 2012: 10% 5% • DEKALB to grow share 5% 4% through 2012 by up to 10 points cumulatively from 2007 share of 23 percent 0% • Continued organic share 2001 2002 2003 2004 2005 2006 2007 2008F growth in ASI 2008F Projecting 2-3% share gains for DEKALB and 1-2% share gains for ASI 9
  • 10. CREATING LEADERSHIP 2008 Triple Penetration Ahead of Expectations, Setting Stage for SmartStax Launch 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 2010 2005 2006 2007 2008 2010F 2007 Opportunity ORIGINAL Q2 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. 10
  • 11. CREATING LEADERSHIP Leading Brand Share Positions in Corn in Brazil and Argentina Provide Footprint for New Trait Launches International Corn Argentina & GEOGRAPHY: Brazil LATIN AMERICA: SEED FOOTPRINT Expand ARGENTINA BRAZIL international OBJECTIVE: footprint 2007 2008F 2007 2008F 2008 STATUS (06/07 SEASON) (07/08 SEASON) (06/07 SEASON) (07/08 SEASON) • Expected to grow 5 share 8M1 10M1 23M 27M points in a market that is HYBRID ACRES 25 percent larger than in 2007 in Argentina 40% 45% 40% 40% MONSANTO • DEKALB and Agroeste SHARE combined are forecasted to be flat with 2007 in AVG. RETAIL Brazil, delivering on our PRICE FOR 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 11 1. Source: KLEFFMANN Marketing Services
  • 12. EXTENDING LEADERSHIP 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 Trait Penetration OBJECTIVE: 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 stack in August 2007 approval in February • YieldGard Corn Borer received final approvals in 2009 OUTLOOK Seed production 30-40% of DEKALB seed underway for 1-2M Brazil in early 2008 will be double-stack commercial acres of • Pricing for new traits to be YieldGard corn on par with the U.S. and TRAIT RETAIL On par with U.S. On par with U.S. value sharing above 50% PRICING to promote adoption 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 12
  • 13. CREATING LEADERSHIP Monsanto’s Pricing Model Aimed at Total Value Created; Shared With Farmer to Build Stable Long-Term Growth EXAMPLE : LOW-PRICE ENVIRONMENT EXAMPLE : HIGH-PRICE ENVIRONMENT Farmer Value Proposition On Triple Stack at Farmer Value Proposition On Triple Stack at $2.50 Corn Prices $4.50 Corn Prices VALUE CREATION VALUE CREATION 15-20 bu/ac 15-20 bu/ac Improved Yield1 Improved Yield1 $2.50/bu $4.50/bu Commodity Price: Commodity Price: $37-$50 $67-$90 Value: Value: $5 $5 Indirect Benefits2 Indirect Benefits2 $42-$55 $72-$95 Incremental Value Created Incremental Value Created PRICING APPROACH PRICING APPROACH $28-$36 $28-$36 Per-Acre Trait Cost3 Per-Acre Trait Cost3 ($17) ($17) – Cost of Replacements4 – Cost of Replacements4 $16-$19 $16-$19 Incremental Farmer Cost Incremental Farmer Cost With $2.50 corn, about 50% of the incremental yield value created is shared with the farmer; With $4.50 corn, about two-thirds of that value accrues to the farmer 1. Monsanto estimates, based on better insect and weed control over conventional options 2. Monsanto estimates, based on farmer surveys quantifying benefits such as convenience and peace of mind 3. Retail royalty range for YieldGard VT Triple in 2008, at normal seeding rates 4. Subtracts costs farmers would have spent had they not used a trait package 13
  • 14. EXTENDING LEADERSHIP Strong Pipeline Reflects Growing Innovation and Value of Emerging Yield and Stress Traits DISCOVERY PHASE 1 PHASE 2 PHASE 3 PHASE 4 Drought- HIGH Tolerant FAMILY TRAITS► Family CORN: COLLABORATION YIELD & STRESS Nitrogen- BROAD-ACRE HIGH Utilization FAMILY TRAITS► YIELD Family Broad-Acre, MEGA Higher-Yielding FAMILY TRAITS► Family SOYBEANS: Broad-Acre, BROAD-ACRE HIGH Higher-Yielding FAMILY TRAITS► YIELD Family 2020 VALUE RANGES: Roundup Omega-3 Bollgard III Ready 2 Yield soybeans soybeans MEGA HIGH Roundup Insect-protected $300M-$500M Ready 2 >$1BM Roundup Ready YieldGard Yield canola 2 Yield soybeans VT PRO Dicamba- corn MID LOW tolerant soybeans <$150M $150M-$300M Vistive III Improved- protein High-oil Corn Soybeans Cotton Canola soybeans soybeans 14
  • 15. EXTENDING LEADERSHIP Roundup Ready 2 Yield Soybeans Raise the Performance Bar with 7 to 11 Percent Yield Advantage ROUNDUP READY 2 YIELD SOYBEANS: STATE OF AGRICULTURE: SECOND-GENERATION WEED CONTROL FIELD RESULTS A New Soybean Platform Near-Isoline Comparisons: Roundup Ready 2 Yield vs. Roundup Ready % Yield Increase over Roundup Ready 12% HIGHER-YIELDING 11% 10% DICAMBA-TOLERANT 9% VISTIVE III 9% 8% ROUNDUP READY 2 YIELD 7% 7% 6% ► Roundup Ready 2 Yield becomes the platform for 4% soybean traits ► Three soybean pipeline 2% traits advanced to Phase 3 0% commercial development in 4 YEAR recent R&D update 2004 2005 2006 2007 AVERAGE  Roundup Ready 2 Yield soybeans yield 7 to 11 percent higher than Roundup Ready soybeans based on 73 Monsanto field trials from 2004-2007 ► Power in the pod; Over 200 observations indicate that Roundup Ready 2 Yield soybean plants produce significantly more 3-bean pods per plant compared to Roundup Ready soybeans 15
  • 16. EXTENDING LEADERSHIP SmartStax Corn Projected to Increase Value on Farm Through Potential Refuge Reduction and Improved Insect Control Projected SmartStax Value: On-Farm Increased Yield (per-acre and on-farm) + SmartStax Value: YIELD Refuge Reduction Considerations YIELD COMPONENT BENEFIT1 PER-ACRE U.S. EPA requires set-aside refuge  Improved consistency: 1-2% for current single-mode-of-action Primary pests insect-protected traits in corn  Improved protection: 1-2% 20% Secondary pests ON-FARM 80%  Reduced refuge 3-6% 4-10% Total Estimated Yield Benefit Flexibility to move to one technology + 20 BU/AC platform on-farm 1 Durability + Yield Differential Flexibility to increase planting Farmers in Illinois in 2007 reported + populations average 20 bu/acre yield difference Platform for future traits between YieldGard VT Triple and + refuge acres Access to superior seed + Total Projected SmartStax Value = 1. Yield benefit reflects expected yield benefit above triple-stack standard, on a 16 per-acre and whole-farm basis as noted. Ranges may overlap
  • 17. EXTENDING LEADERSHIP First Generation Drought-Tolerant Corn Has First Mover Advantage In Yield and Stress Traits Average Yield Improvement of Lead Event Yield Difference (bu/acre) R&D Pipeline 16 Percentage yield difference vs. control 13.4% 6.7% 10.6% 11.3% 14 Drought-Tolerant Corn Family: Lead Project 12 10 PRODUCT HIT Project KEY RESULTS CONCEPT Phase 3 8 TARGET RANGE 6 PROJECT CONCEPT: 4 Drought-tolerance family aimed at providing consistent yield and 2 buffering against effects of water 0 limitations a b b b 2004 2005 2006 2007 VALUE: 15 TOTAL 9 TOTAL 11 TOTAL 8 TOTAL LOCATIONS LOCATIONS LOCATIONS LOCATIONS LAUNCH-COUNTRY 55M a: data from two hybrids ACRES1: b: data from three hybrids $300-$500M 2020 VALUE2: SEGMENTED VALUE OPPORTUNITY ACROSS MARKETS SOURCES OF VALUE: KEY OPPORTUINITY  First leads show Improved yield benefit under Targeting 8-10% yield 1 water-stress improvement in water-stress WESTERN environments conditions DRYLAND 10-12M Acres  First product 1. Acre opportunity reflects acres where technology fits at Monsanto's current 2007 market share in respective crops targeted at 2. 2020 value reflects gross sales opportunity in launch country western dryland in year 2020 Low annual High annual region of 10-12M precipitation precipitation acres Source: Spatial Climate Analysis Service, Oregon State University 17
  • 18. EXTENDING LEADERSHIP Second Generation Drought-Tolerant Corn Targeted to Expand Reach Drought Efficacy for Second-Gen Events Yield Difference Over Controls (%) 16 R&D Pipeline 14 Drought-Tolerant Corn Family: 12 Second-Generation Project 10 PRODUCT CONCEPT Phase 2 8 STATUS: TARGET KEY RESULTS RANGE 6 PROJECT CONCEPT: 4 Drought-tolerance family aimed at 2 providing consistent yield and 0 EVENT 1EVENT 2 EVENT 3 EVENT 1 EVENT 2 EVENT 3 buffering against effects of water limitations HIGHER-YIELDING ENVIRONMENT LOWER-YIELDING ENVIRONMENT AVERAGE YIELD: 166 BU/AC AVERAGE YIELD: 53 BU/AC VALUE: 2007 2006 LAUNCH-COUNTRY 55M (All three events significant @ p≤0.10); Statistical significance determined by ANOVA (2006) or nonparametric test (2007) ACRES1: $300-$500M 2020 VALUE2: SOURCES OF VALUE: SEGMENTED VALUE OPPORTUNITY ACROSS MARKETS Improved yield  Second generation KEY OPPORTUINITY IRRIGATED Targeting 8-10% yield demonstrates 1 improvement in water-stress 8-12M Acres performance over environments WESTERN broad range of stress DRYLAND Water substitution conditions in both 10-12M Acres low and high-yielding 2 Variable costs in pumped environments irrigation of >$100/ acre STABILITY  Potential for a broad 60-70M Acres Low annual High annual 1. Acre opportunity reflects acres where technology fits at acreage fit across all precipitation Monsanto's current 2007 market share in respective crops precipitation acres planted 2. 2020 value reflects gross sales opportunity in launch country Source: Spatial Climate Analysis Service, Oregon State University in year 2020 18
  • 19. EXTENDING LEADERSHIP Nitrogen-Utilization Corn Designed to Create Value Via Improved Yields or Reduced Nitrogen Usage PER-ACRE NITROGEN COST STATE OF AGRICULTURE: FOR CORN PRODUCTION IN THE U.S.: 1990-20071 Breakthroughs in Nitrogen-Use Research Under normal nitrogen conditions, lead Nitrogen- $60 Utilization trait has demonstrated yield advantages in multiple backgrounds over multiple years $50 12 * $40 Yield Increase (bu/Ac) ** *** * 10 $30 8 6 $20 4 2 $10 0 -2 TRIALS IN $0 TRIALS IN MULTIPLE MULTIPLE 1990 1993 1996 1999 2002 2005 2008B HYBRID HYBRID Nitrogen accounts for approximately one-fifth of BACKGROUNDS BACKGROUNDS the direct operating costs for a corn producer2 and (15 LOC) (16 LOC) continues to escalate with current estimates of nearly $780 per ton or approximately $70 per acre 2005 2006 2007 by the fall. Nitrogen-Utilization corn offers the potential to * Statistically significant @ p≤0.10 bring the value of nitrogen into the seed: Bar color correlates with the specific hybrid background tested. • Reducing farmers’ exposure to nitrogen Same bar color in different tests and different years indicates same price volatility hybrid was used. • Boosting yield All trials conducted under sufficient nitrogen application levels. • Improving ease of use, flexibility 1. NASS 2. USDA and University of Illinois 2008 Crop Budgets 19
  • 20. USES OF CASH Leadership and Innovation Underscored by Strong Cash Generation for Investment in Next Wave of Growth USES OF CASH FY08F ESTIMATED USES OF CASH CUMULATIVE: 2005-2007 ESTIMATED $2.5B CASH GENERATED BY OPERATIONS American Seeds, Inc. (2004-2007) FY2007 Seminis (2005) Dividend FY2008 increased $3,000 Delta & Pine Land $313M of 40% to 70 $2,450 (2007) dividends & $2,500 cents/share share $545 Agroeste (2007) $2,000 repurchases ($200) through Q2 $1,500 $639 $1,000 ($950) $3,161 $266 $500 ($830) $0 ($500) $1,160 FY2008 ($1,000) Estimated $2.5B FY2008 ($1,500) of Operating FY2008 Cash Flows CAPEX: generated Acquisitions Year two of ACQUISITIONS: $610M corn Entered FY2007 seed Capital Spending agreement to Capex focused expansion purchase De on corn seed project; year Technology Investments Ruiter Seeds for expansion; year one of $196M €546M - ~$830M one of 3 year glyphosate Dividends if closes in $610M project expansion FY08 Share Repurchases FY2008 Technology Operating Cash Flows Investments 20
  • 21. ACQUISITION STRATEGY Acquisition Strategy Set to Strengthen and Expand Core and Drive Differentiation Through Innovation INVESTMENT OPPORTUNITY In an expanding agriculture environment, value is defined by innovation – Monsanto’s strategy is targeted on innovation: discovering and developing technology that is game-changing CATEGORY EXAMPLES OUTLOOK ► Delta and Pine Land • ASI and Delta and Pine Land  Intensify The Space moving to integration ► American Seeds, Inc. Strengthen position of the • Leading position in (ASI) Companies protected-culture established core business, largely by ► Agroeste (Brazil) in vegetables building the germplasm ► De Ruiter Seeds • Continued opportunity for footprint of seeds add-on international corn and vegetable seed companies ► Seminis • Continually looking for areas  Expand The Space where Monsanto can apply core technology quickly or Expansion to adjacent spaces benefit from advanced – where core technology can research be applied quickly and with transformational benefits ► Yield and Stress R&D • Most highly transformational,  Redefine The Space but rarest to find appropriate Collaboration with BASF fit Investments that rewrite the ► SmartStax agreement with landscape, providing new Dow avenues, new technologies ► Global Seed Treatment and creating new markets Alliances 21
  • 22. EXTENDING LEADERSHIP De Ruiter Seeds Helps Address Gap in Monsanto Vegetable Seed Portfolio in Growing Protected-Culture Segment FY07 Annual net Sales = $145M FY07 Annual Net Sales = $612M Portfolio Composition: Percent of Sales1 Portfolio Composition: Percent of Sales1 10% 12% Open-Field Protected-Culture 88% 90% Pairing Seminis with De Ruiter Seeds brings together the leading positions in open-field and protected-culture segments • Both segments benefit from the coordinated molecular breeding infrastructure 1. Size of pies not to scale with revenue generated by Seminis or De Ruiter Seeds 22
  • 23. SUMMARY Monsanto’s Strategy to Extend Competitive Lead Through Innovation, Driving 2012 Growth 2012 GROWTH RANGE GROSS PROFIT OUTLOOK BY SEGMENT Gross profit targeted to more 2007-2012F than double from 2007 through >2X 2012 including recent lift in Roundup to $1.8B gross profit $10,000 2007 BASELINE STRATEGIC PLAYBOOK All growth is organic, from base $8,000 business and pipeline IN MILLIONS  U.S. Corn $6,000  International Corn  Soybeans  Cotton $4,000  Vegetables  R&D Pipeline $2,000 Acquisitions to be pursued, but are not included in this growth projection $0 Earnings continue to translate 2007 2008F 2012F into operating cash, and value created for shareowners All Other Agricultural Productivity through combination of Roundup And Other Glyphosate-based acquisitions, technology Herbicides investments, share repurchases Seeds & Genomics and dividends 23
  • 24. Reconciliation of Non-GAAP Financial Measures 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 -- -- Diluted Earnings (Loss) per Share Before Effect of $3.38 - $3.48 $1.79 $1.26 $0.47 $0.50 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 Loss (Income) on Discontinued Operations 1 -- ($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 Diluted Earnings (Loss) per Share from Ongoing Business $3.15 - $3.25 $2.00 $1.30 $1.04 $0.80 Note: EPS figures reflect the stock split effective July 28, 2006 24 1. The operating results of Stoneville and Nexgen have been conformed to discontinued operations for all relevant years presented.