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ROBB FRALEY, PH.D.
CHIEF TECHNOLOGY OFFICER



MONSANTO BIENNIAL
U.S. INVESTOR DAY

NOVEMBER 8, 2007



                           1
OVERVIEW


Pipeline Leverages Power of Breeding and Biotech for Current
Commercial Growth and New Platforms in Next Decade

                                                                                                                 Pipeline Priorities Through 2012
                                                                                                              BREEDING
                                                                                                                Continue to Drive Breeding Gains
                                                                                                                Across Crop Platforms
                                                                                                              ► Continue corn breeding momentum
                MONSANTO’S R&D PIPELINE                                                                       ► Accelerate soybean breeding
                                                                                                              ► Elevate cotton and vegetable
                DISCOVERY          PHASE I             PHASE II
   R&D PHASE:                                                          PHASE III     PHASE IV       LAUNCH
                                                                                                                breeding
                                             BREEDING
                                                                                                              BIOTECHNOLOGY
                                                                                       COMMERCIAL
                                                         IT PLATFORM
                                           GERMPLASM




G
                                                                         ANALYTICS
                                 MARKERS
                      GENOMICS




                                                                                                    SEED
                                              ELITE




Germplasm                                                                                                       Deliver Value in Established Trait
                                                                                                    SOLD TO
                                                                                                    FARMERS
         R                                                                                                      Pipeline
                                                                                                              ► Launch Roundup RReady2Yield as
                                   BIOTECHNOLOGY
                                                                                                                soybean pipeline platform
                                                                                                                Unlock Opportunity in Yield and
                                                                                                                Stress Through BASF Collaboration
                                                                                                              ► Deliver industry’s first pure yield-
                                                                                                                and-stress traits
                                                                                                              ► Change trait-value opportunity with
                                                                                                                “product families”

                                                                                                                                                       2
CORN BREEDING


  Early Yield Trial Results Continue to Reinforce Yield
  Advantage of DEKALB Seed in U.S.

                                                                           2007 PRELIMINARY U.S. COMPETITIVE
                                                                    NEW:
                                                                           CORN YIELD COMPARISON: DEKALB
                                                                             DEKALB
                   U.S.
GEOGRAPHY:                                                          210




                                        (APPROXIMATE DIFFERENCES)
                                                                             COMPETITORS
                   Grow footprint
OBJECTIVE:
                                                                    205
2007 PERFORMANCE UPDATE
                                                                                                   204
                                              BUSHELS/ACRE
• In > 9,900 comparisons,                                           200
  Monsanto outyields                                                                                                       199
  competitive best by                                               195
                                                                                                               196
  8.3 bu/ac                                                                            195
                                                                    190
• In 110-day RM,                                                                                                     192
                                                                                                         191
                                                                           191                                                   191
                                                                                             190
  Monsanto’s lead is
                                                                    185
  13 bu/ac, extended from
  11.7 bu/ac in 2006
                                                                    180
                                                                                 181
Source: 2007 Monsanto
and third party trials
                                                                    175
through October 24,
2007. Weighted
average, calculated to
                                                                    170
15% moisture. DEKALB
products are compared
                                                                           100 RM      105 RM      110 RM      115 RM      Overall
with competitive          RELATIVE MATURITIES (DAYS)►
products that contain
                                                                            >500        >1,400      >4,000      >3,700     >9,900
                                    COMPARISONS:
similar crop protection
traits.
                              APPROXIMATE BU/AC
                                                                             10          4.5         13              4           8
                                    ADVANTAGE:


                                                                                                                                       3
CORN BREEDING


  Like National Brands, New ASI Hybrids Have Substantial Yield
  Advantage Over Competitive Offerings

                                                                         2007 PRELIMINARY U.S. COMPETITIVE
                                                                  NEW:
                                                                         CORN YIELD COMPARISON: ASI
                                                                                 ASI
                                                                  210




                                      (APPROXIMATE DIFFERENCES)
                  U.S.
GEOGRAPHY:
                                                                                 COMPETITORS
                                                                  205
                  Grow footprint
OBJECTIVE:

2007 PERFORMANCE UPDATE                                                                                        203         203
                                                                  200
                                            BUSHELS/ACRE

• Overall, 2007 yield
                                                                  195
                                                                                                   197
  comparisons showing
  7.5 bu/ac advantage for                                         190                                                            193
                                                                                                                     192
  ASI over competitive best                                                                              190
                                                                  185
                                                                                       184
Source: 2007 Monsanto
                                                                                             183
trials through October
                                                                  180
24, 2007.

                                                                  175

                                                                  170

                                                                  165    166 163
                                                                  160
                                                                          95RM         100 RM      105 RM      110 RM      115 RM
                         RELATIVE MATURITIES (DAYS)►


                                                                           54            128         87          147         158
                                      LOCATIONS:

                             APPROXIMATE BU/AC
                                                                           3.5               1       6.5         11.5       10.5
                                   ADVANTAGE:


                                                                                                                                       4
CORN BREEDING


Again in 2007, Best Combination of Germplasm and Traits in
Monsanto Brands Delivers Best Yield

                              PRELIMINARY TOTAL SEED & TRAIT YIELD PERFORMANCE IN 2007
          NEW:


                                 Seed & Trait: Head-to-Head
AVE. BUSHELS PER ACRE




                        210
                                                      13
                                     210.3
                        206
                                                     BU/AC
                        202                         ADVANTAGE
                        198
                                                                197.0
                        194
                        190
                                   MONSANTO                  Pioneer ®
                                                        Competitive Hybrids
                               DEKALB, ASI and
                                                                              Performance in Key Corn Belt States
                                                          with Herculex®
                              Corn States Hybrids
                                                        XTRA and Roundup
                               with YieldGard VT
                                                                                              NE       IA            IL
                                                           Ready Corn 2
                                     Triple

                                                                                              >70     >400          900
                        1,949 comparisons in 13 states: Monsanto’s            Comparisons:
                          seed, protected by YieldGard VT Triple,
                                                                                              210      214          219
                                                                                  Monsanto
                        outperformed the best competitive seed-and-                Brands:    bu/ac    bu/ac        bu/ac
                           trait package by >13 bu/ac on average
                                                                                              193      200          204
                                                                                Competitive
                                                                                   Brand:     bu/ac    bu/ac        bu/ac


                                                                                                                            5
SOYBEAN BREEDING


  Coming Off 2007 Share Gain, Initial Soybean Yield
  Performance Continues to Reinforce Breeding Leadership

                                                                       2007 PRELIMINARY U.S. COMPETITIVE
                                                    NEW:
                                                                       SOYBEAN YIELD COMPARISON: ASGROW
                                                                            ASGROW




                                      (APPROXIMATE DIFFERENCES)
                                                                            COMPETITORS
                                                                  60
                   U.S.
GEOGRAPHY:

                                                                  58
                   Grow footprint
OBJECTIVE:
                                                                                               58
                                                                                                        57
                                                                  56
                                            BUSHELS/ACRE
2007 PERFORMANCE UPDATE                                                                                      56
                                                                  54                                                55
• Yield data from 2007
  indicates continued yield                                       52
                                                                                                                                           52
  advantage for national                                                                                                            51
                                                                  50
  brands versus best-in-                                                         51
  class competitors                                                                       49
                                                                  48                                                     49
                                                                  46                                                           47
                                                                  44
                                                                       44
                                                                            43
                                                                  42

                                                                  40
                                                                            O         1             2          3           4         5
                              RELATIVE MATURITIES►
Source: 2007 Monsanto and
                                                                        >300      >400         >3,500        >3,400      >1,000      >30
                                    COMPARISONS:
third party trials through
October 30, 2007. Asgrow
                             APPROXIMATE BU/AC
products are compared to
                                                                            1     1.5               1         1.5          2         (1)
competitive products.              ADVANTAGE:




                                                                                                                                                6
R&D PIPELINE


  Yield and Stress Collaboration Resets Pipeline Structure and
  Approach to Value Considerations
                                                                                                                                  PHASE 3
                     DISCOVERY                             PHASE 1                            PHASE 2                                             PHASE 4
                                                                                                                                   Advanced
                 Gene/Trait Identification              Proof of Concept                 Early Development                                        Pre-Launch
                                                                                                                                  Development
                   24 TO 48 MONTHS                    12 TO 24 MONTHS                    12 TO 24 MONTHS                   12 TO 24 MONTHS      12 TO 36 MONTHS

                                                                                              JOINT-FUNDED DEVELOPMENT
                               Independent
                               Discovery
                               Program
                                                        2nd- Generation
COLLABORATION
YIELD & STRESS




                                                        drought-tolerant
                 Grain yield                                                             Drought-tolerant corn
                                                        corn
                 Environmental stress                                                    Higher-yielding
                                                        2nd-Generation
                 tolerance                                                               canola
                                                        higher-yielding
                               Independent                                               Higher-yielding
                                                        soybeans
                               Discovery                                                 soybeans
                                                        Drought-tolerant
                               Program
                                                                                         Higher-yielding corn
                                                        cotton
                 Yield increase
                                                        Nitrogen-
                 Environmental stress                   utilization corn
                 tolerance
                                                                                         Insect-protected
                 Pest control
                                                                                         Roundup
                 Herbicide tolerance                    Soybean                                                                                 Roundup
                                                                                         RReady2Yield
                 Disease resistance                     nematode-                                                                               RReady2Yield
                                                                                         soybeans                                High-oil       soybeans
                                                        resistance
                 Lipid enhancements                                                      Vistive III soybeans                    soybeans
                                                                                                                                                Improved-protein
                 (Increased oil, improved               Dicamba-tolerant                 Dicamba-tolerant                        Omega-3        soybeans
                 fatty-acid balance)                    cotton                           soybeans
                                                                                                                                 soybeans
                                                                                         Mavera II high-value
                 Protein enhancements                   Cotton lygus                                                                            YieldGard VT PRO
                                                                                                                                 Vistive II
                                                                                         soybeans
                 (Improved amino-acid                   control                                                                                 Extrax Corn
                                                                                                                                 soybeans
                                                                                         Bollgard III
                 balance)                                                                                                                       Processing
                                                        YieldGard
                                                                                                                                                System1
                 Carbohydrate                                                            Roundup
                                                        rootworm III
                                                                                         RReady2Yield canola
                 enhancements
                                                                                         Hybridization system
                 Bioactive compounds
                                                                                         for corn
1. Extrax is a part of the Renessen pipeline. Renessen is a Monsanto/Cargill joint venture. Mavera™ is a trademark of Renessen
                                                                                                                                                                   7
R&D PIPELINE


   Strong Pipeline Value Reflects Commercial Opportunity in
   Latter-Stage Projects and Emerging Value in Yield and Stress
                                      DISCOVERY           PHASE 1        PHASE 2             PHASE 3        PHASE 4

                                                                                  Drought-
                                                                        HIGH Tolerant
                                      FAMILY TRAITS►
                                                                                  Family
COLLABORATION




                 CORN:
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


                                                                             Insect-
  2020 VALUE RANGES:                                                         protected                      Roundup
                                                                                                 Omega-3
                                                                             RR2Y                           RReady2Yield
                                                                                                 soybeans
                                                                             soybeans                       soybeans
                    MEGA                         HIGH                        Bollgard III
                                                 $300M-$500M
                   >$1BM                                                                     High-oil          YieldGard
                                                                         Dicamba-
                                                                                             soybeans
                                                                         tolerant                              VT PRO
                                                                         soybeans                              corn
                    MID                          LOW                     Vistive III
                                                 <$150M
                   $150M-$300M                                                                              Improved-
                                                                         Roundup
                                                                                                            protein
                                                                         RReady2Yield
                  Corn     Soybeans    Cotton      Canola                canola                             soybeans


                                                                                                                        8
R&D PIPELINE


 Drought, Nitrogen Use and Intrinsic Yield Boosts Come
 Together In Broad-Acre Yield Value Opportunity for Corn
                VALUE ANALYSIS                                                           DROUGHT-TOLERANT FAMILY
                                                                            NEW:
                                                                                         INTRODUCTION HORIZON


                                                                                               Upgrade traits
                                                                                               come on line before
                                                                                               lead trait reaches
                                              DROUGHT-




                                                                         ACREAGE►
                                                                                               targeted goal►
                                              TOLERANT
         NITROGEN-
                                                FAMILY
         UTILIZATION
         FAMILY




                                    HIGHER-
                                    YIELDING                                              +1            +2    +3            +4       +5
                                     FAMILY                                                                              WINDOW FOR
                                                                                    YEARS►
                                                                                                                       2ND-GEN UPGRADE

                                                                                    LEAD DROUGHT                   UPGRADE 1
  With continuing                         Sources of value
  discovery,                                  can overlap,                                     Proof of                       Expansion to
  additional,                                depending on
                                                                                               commercial                     broad-acre
                                                                                     FOCUS:                          FOCUS:
  unassigned value                           functionality;
                                                                                               value                          insurance
  remains for                                 more overlap
  broad-acre yield                        between drought
                                                                                               U.S. dryland                   Applicability
                                                                               GEOGRAPHY:
  category                                       and yield
                                                                                                                              across Corn
                                                                                                              GEOGRAPHY:
                                                                                               7-10 M
                                                                               ACRE GOAL1:
                                                                                                                              Belt
1. Acre opportunity reflects acres where technology fits at Monsanto's
                                                                                                                              55 M
                                                                                                              ACRE GOAL1:
   current 2007 market share in respective crops


                                                                                                                                              9
R&D PIPELINE


    Drought Focuses First On Consistent Water Shortage Acres,
    Before Expanding to Broad-Acre Applicability
                                                        SEGMENTED VALUE OPPORTUNITY ACROSS
                                                        MARKETS: U.S. EXAMPLE
             R&D Pipeline
Drought-Tolerant Corn Family
    HIT Project        Phase 2                                                                                             High annual
                                                                                                                           precipitation
PROJECT CONCEPT:

Drought-tolerance family aimed at
providing consistent yield and
buffering against effects of water
                                                                                                                           Low annual
limitations                                            Source: Spatial Climate Analysis
                                                                                                                           precipitation
                                                       Service, Oregon State University
VALUE:
LAUNCH-COUNTRY
                               55M
        ACRES1:                                                    IRRIGATED                    WESTERN DRYLAND               STABILITY
                        $300-$500M
      2020   VALUE2:                                 8-12% of U.S. acres                   9-12% of U.S. acres        55-65% of U.S. acres
                                                     14-18” precipitation                  14-18” precipitation       17-19” precipitation
SOURCES OF VALUE:
                                                     Irrigated                             Non-irrigated              Non-irrigated
     Improved yield
     Targeting 8-10% yield                           Value: Reducing the                   Value: Improved yields     Value: Improved yields
1    improvement in water-stress
                                                     variable costs of                     annually                   when moisture is less
     environments
                                                     irrigation                                                       than optimal
     Water substitution
                                                                                           Initial trait commercial
2    Variable costs in pumped
                                                                                           launch will focus on
     irrigation of >$100/ acre
                                                                                           this segment, proving
                                                                                           applicability in
                        1. Acre opportunity reflects acres where technology fits at
                                                                                           consistent water
                           Monsanto's current 2007 market share in respective crops
                        2. 2020 value reflects gross sales opportunity in launch country
                                                                                           shortage
                           in year 2020

                                                                                                                                             10
R&D PIPELINE


      In Second Year of Off-Season Testing, Drought Lead
      Consistently Delivered Yield Advantages Under Water Stress
                                                                                          LATIN AMERICA: YIELD IMPROVEMENT OF
                                                                    NEW:
                  R&D Pipeline                                                            LEAD EVENT UNDER DROUGHT STRESS
 Drought-Tolerant Corn Family
                                                                                                                      Percent yield difference vs. control
      HIT Project                Phase 2                                                        7.3%                10.5% 10.9%    23.2% 9.0%                       7.6%
                                                                                     14
 PROJECT CONCEPT:




                                                                  YIELD DIFFERENCE
                                                                                     12
 Drought-tolerance family aimed at
                                                                                     10
 providing consistent yield and


                                                                      (BU/ACRE)
 buffering against effects of water
                                                                                      8
 limitations
                                                                                      6




                                                                                                                                                       NOT TESTED
                                                                                                       NOT TESTED
 VALUE:
                                                                                      4
  LAUNCH-COUNTRY
                                        55M
          ACRES1:
                                                                                      2
                                  $300-$500M
          2020 VALUE2:
                                                                                      0
                                                                                                                                      2006
                                                                                                  2004                 2005                               2006/07
 SOURCES OF VALUE:
                                                                                                                                                            LAS
                                                                                                                                      U.S.
                                                                                                  U.S.                 U.S.
        Improved yield                                                                    Hybrid 1: 2004, 4 locs; 2005 5 locs; 2006, 1 loc (20 reps)
        Targeting 8-10% yield
  1     improvement in water-stress                                                       Hybrid 2: 2004, not tested; 2005, 5 locs, 2006, 3 locs, LAS 2006 3 locs (20 reps)
        environments
        Water substitution                                                             In second-year South American trials, lead drought gene
  2     Variable costs in pumped                                                       tested in variable environmental conditions across
        irrigation of >$100/ acre
                                                                                       3 locations
                                                                                     • Yield benefit of up to 12 bu/ac in water-stress conditions
1. Acre opportunity reflects     2. 2020 value reflects gross
   acres where technology fits      sales opportunity in launch
   at Monsanto's current 2007       country in year 2020
   market share in respective
   crops
                                                                                                                                                                           11
R&D PIPELINE


 Second-Generation Drought-Tolerant Corn Continues to
 Deliver Consistent Performance Under Drought Conditions
                                      EARLY RESULTS ON SECOND-
                               NEW:
        R&D Pipeline                  GENERATION DROUGHT-TOLERANT CORN
Drought-Tolerant Corn Family
                                                        Lead gene increases
HIT Project      Phase 1                                photosynthesis and water
                                                        relations, suggesting
PROJECT CONCEPT:
                                                        improved source
Drought-tolerance family
                                                        performance under
aimed at providing
                                                        drought
consistent yield and
buffering against effects of                                Increased pollination
water limitations                                        success under flowering
                                                                 stress observed
PROJECT UPDATE:

• Second-generation lead
                                                       CONTROL      WITH GENE
  has been in field testing
  for last 3 years
• Consistent yield benefits
  observed under drought
  stress




                               CONTROL     WITH GENE

                                                                                   12
R&D PIPELINE


    Broad-Acre, Higher-Yielding Corn Focused on Relative Yield
    Gains, Rather Than Acreage Expansion
                                                             BROAD-ACRE, HIGHER-YIELDING FAMILY
                                              NEW:
                R&D Pipeline
                                                             INTRODUCTION HORIZON
Broad-Acre, Higher-Yielding Corn
Family
                                 Phase 2
       LEAD STATUS:
                                                                              Upgrade traits
PROJECT CONCEPT:
                                                                          target same acres
                                                                            with incremental
Broad-acre, higher-yielding corn



                                                ACREAGE►
aimed at boosting intrinsic yield                                                     yield►
potential of corn hybrids through
insertion of key genes
VALUE:
      LAUNCH-COUNTRY
                                       55M
              ACRES1:

                                       >$1B
              2020 VALUE2:
                                                                     +1          +2        +3            +4       +5
                                                                                                      WINDOW FOR
                                                            YEARS►
SOURCES OF VALUE:
                                                                                                    2ND-GEN UPGRADE
      Improved yield
1     Targeting incremental yield to                       LEAD HIGHER-YIELD                      UPGRADE 1
      U.S. average of 150 bu/ac
                                                                      Boost intrinsic                       Incremental
                                                            FOCUS:
                                                                      yield per acre                        yield over lead
                                                                                                   FOCUS:
1. Acre opportunity reflects
                                                                                                            trait
   acres where technology
                                                                      U.S. broad-acre
                                                  GEOGRAPHY:
   fits at Monsanto's current
                                                                                                            U.S. broad-acre
   2007 market share in                                                                        GEOGRAPHY:
                                                                      55 M
                                                    ACRE GOAL:
   respective crops

                                                                                                            55 M
                                                                                               ACRE GOAL:
2. 2020 value reflects gross
   sales opportunity in launch
   country in year 2020

                                                                                                                              13
R&D PIPELINE


    Broad-Acre, Higher-Yielding Soybeans Combine Benefits of
    Intrinsic Yield Gains and Water-Use Efficiency
                                                       BROAD-ACRE, HIGHER-YIELDING FAMILY
                                                NEW:
                                                       INTRODUCTION HORIZON
                R&D Pipeline
Higher-Yielding Soybeans Family                                          Upgrade traits
                                                                     target same acres
                                 Phase 2
       LEAD STATUS:




                                                        ACREAGE►
                                                                       with incremental
PROJECT CONCEPT:
                                                                                 yield►
Higher-yielding soybeans aimed at
boosting intrinsic yield potential of
soybeans through insertion of key
genes
VALUE:
                                                                     +1       +2      +3         +4     +5
    LAUNCH-COUNTRY
                                                                   YEARS►
                                      45M                                                     WINDOW FOR
            ACRES1:
                                                                                            2ND-GEN UPGRADE
                                   $300-$500M
           2020 VALUE2:
                                                    LEAD HIGHER-YIELD                         UPGRADE 1
SOURCES OF VALUE:                                                   Boost intrinsic                     Incremental yield
                                                       FOCUS:                                  FOCUS:
                                                                    yield per acre                      over lead trait
      Improved yield
                                                                    U.S. broad-acre                     U.S. broad-acre
                                                  GEOGRAPHY:                               GEOGRAPHY:
1     Targeting incremental yield to
      U.S. average of 42 bu/ac                                      45 M                                45 M
                                                   ACRE GOAL:                              ACRE GOAL:

1. Acre opportunity reflects
                                                 Discovery In Soybean Broad-Acre Yield
   acres where technology
   fits at Monsanto's current
                                                  DISCOVERY:
   2007 market share in
                                                                                           Discovery investigates intrinsic
   respective crops
                                                                                           yield and water use efficiency
                                                   INTRINSIC
2. 2020 value reflects gross
                                                     YIELD
                                                                                           A trait offering benefits to all
   sales opportunity in launch
   country in year 2020
                                                    WATER-                                 acres from water utilization is a
                                                  UTILIZATION                              broad-acre yield trait
                                                                                                                               14
R&D PIPELINE


    First Round of Phase 2 Testing Continues to Validate
    Commercial-Track Events for Higher-Yielding Soybeans

                                                                                    LATIN AMERICA: HIGHER-YIELDING
                                                               NEW:
                R&D Pipeline
                                                                                    SOYBEAN PERFORMANCE
Higher-Yielding Soybeans Family
                                                                                                            Percent yield difference vs. control




                                                (BU/A INCREASE OVER CONTROL)
                                 Phase 2
       LEAD STATUS:
                                                                                             10.5%            7.8%




                                                  AVERAGE YIELD ADVANTAGE
                                                                                                                                   7.5%
                                                                               8
PROJECT CONCEPT:
                                                                               7
Higher-yielding soybeans aimed at
                                                                               6
boosting intrinsic yield potential of
soybeans through insertion of key                                              5
genes
                                                                               4
VALUE:
                                                                               3
    LAUNCH-COUNTRY
                                      45M
            ACRES1:                                                            2

                                   $300-$500M
           2020 VALUE2:                                                        1

                                                                               0
SOURCES OF VALUE:
                                                                                          EVENT 1          EVENT 2             EVENT 3
      Improved yield
                                                                                                        10 Locations
1     Targeting incremental yield to
      U.S. average of 42 bu/ac

                                                                                   First of new Phase 2 commercial-track events
1. Acre opportunity reflects
   acres where technology
                                                                                   demonstrates up to 10% increase in yield across
   fits at Monsanto's current
                                                                                   10 environments in Argentina
   2007 market share in
   respective crops

                                                                               • Recently completed testing of additional 60 events in
2. 2020 value reflects gross
   sales opportunity in launch
                                                                                 U.S. during the 2007 growing season
   country in year 2020




                                                                                                                                                   15
R&D PIPELINE


    Insect-Protected Soybeans Are First-Ever Trait Developed
    Exclusively for Non-U.S. Opportunity
                                                                          INITIAL PERFORMANCE OF INSECT-
                                                          NEW:
                                                                          PROTECTED SOYBEANS
           R&D Pipeline
Insect-Protected Soybeans with                                            MONMOUTH, IL SCREENHOUSE – 2007
Roundup RReady2Yield
                    Phase 2
          STATUS:

PROJECT CONCEPT:

Insect-protected soybeans use Bt
technology widely adopted in corn
and cotton to control insect pests
especially economically important
for South American farmers
VALUE:
    LAUNCH-COUNTRY:            Brazil
  LAUNCH-COUNTRY
                                 50M
ACRE OPPORTUNITY1:
    2020 COMMERCIAL
                         $150-$300M
             VALUE2:
                                                                           CONTROL                                                        WITH GENE
                                                                      (NO INSECTICIDE)
SOURCES OF VALUE:                                                                                                                      (NO INSECTICIDE)

     Insecticide substitution
1                                                       First Monsanto trait product developed exclusively for non-U.S.
     Based on 2 current sprays
     costing almost $6/application                      market – Brazil and Argentina – where farmers spray 2 times
                                                        annually at a cost of $5.70/acre to control insect pests
     Improved yield
2
     Targeting 7-11% increase
                       1. Acre opportunity reflects acres where technology fits at Monsanto's current 2007 market share in respective crops
                       2. 2020 value reflects gross sales opportunity in launch country in year 2020
                                                                                                                                                          16
R&D PIPELINE


    Vistive III Positions Significant Portion of U.S. Soybean Crop
    For Higher-Value Food-Grade Oil Opportunity
                                                                     IMPROVING NUTRITIONAL PROFILE OF
            R&D Pipeline                                                       SOYBEAN OIL
Vistive III Soybeans
                                                                         LINOLENIC                         LINOLEIC                   OLEIC              SATS
 HIT Project              Phase 2
                                                                            18:3                              18:2                     18:1            18:0 / 16:0
PROJECT CONCEPT:                                         Standard
                                                         Soybean
Combining both breeding and
biotechnology, Vistive III trait
designed to lower linolenic and                           Target:
saturate content while boosting
                                                        Vistive III
oleic content for an oil profile
similar to olive oil with processing
                                                             MAJOR MARKET SEGMENTS FOR U.S. SOYBEAN OIL
and economic advantages
VALUE:                                                                                                       HYDROGENATED-
                                                                NON-HYDROGENATED                                                           HYDROGENATED-BAKING
                                                                                                                FRYING
    LAUNCH-COUNTRY
                                   20M
            ACRES1:
                                                                                                             For various
                                                                 For salad oils,                                                            For various baking
                                                                                                                frying
                                <$150M
         2020   VALUE2:
                                                                 household use                                                                 applications
                                                                                                             applications
SOURCES OF VALUE:
                                                               Uses 50% of total                             Uses 25% of                     Uses 25% of total
     Oil replacement value                                         crushing                                 total crushing                       crushing
     Fit for frying applications and
1                                                                (~20M acres)                                (~10M acres)                      (~10M acres)
     oil blends for baking, roughly
     20M of oil for food uses
                                                                                                             Applicable uses ideal for Vistive III
                                                                                                                                                  Source: Soyatech, USDA
                           1. Acre opportunity reflects acres where technology fits at Monsanto's current 2007 market share in respective crops
                           2. 2020 value reflects gross sales opportunity in launch country in year 2020

                                                                                                                                                                           17
SOYBEAN BREEDING


Roundup RReady2Yield and Molecular Breeding Rewrite
Historic Soybean Yield Trends

                                        SOYBEAN YIELD PROGRESSION: 2000-2012

                   52                                                                      MAB gains set new
                                  USDA AVERAGE YIELD/AC1
                                                                                           trajectory on top of
                                  TREND LINE OF USDA YIELD
                   50                                                                      Roundup RReady2Yield
                                                                                           step change
                                  SOYBEAN YIELD AT HISTORIC
                   48             RATE GAIN                                                Roundup
   AVERAGE YIELD




                                                                                           RReady2Yield creates
                                  EXPECTED TREND WITH APPLIED
                                                                                           step change of 7-11%
     (BU/ACRE)




                   46             MOLECULAR BREEDING (MAB)
                                                                                           across portfolio
                   44

                   42
                                                                                           All breeding going
                   40                                                                      forward is built on
                                                                                           Roundup RReady2Yield
                                                                        MAB-ROUNDUP
                                           HISTORIC GAIN: 0.50 BU/AC
                   38                                                                      foundation and uses
                                                                        RREADY2YIELD
                                                                                           applied MAB
                                                                        PLATFORM
                                                                                           technology
                   36
                        2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

                                                        2006            2009-2010
                            First varieties from MAB                    Roundup RReady2Yield
                           enter commercial portfolio                   controlled commercial
                                                                        release + commercial
                             Varieties show >3 bu/ac yield
                                                                        launch
                                          advantage over
                                       commercial checks
1. USDA NASS: http://www.nass.usda.gov/QuickStats/

                                                                                                              18
R&D PIPELINE


 U.S. Field Trials Continuing to Test Drought-Tolerance Proof
 of Concept in Cotton
                                        EARLY RESULTS ON DROUGHT-TOLERANT
                                NEW:
        R&D Pipeline                    COTTON TESTING IN U.S.
Drought-Tolerant Cotton
                                                                                                    GENE 2
                                          GENE 1
                  Phase 1
   LEAD STATUS:

PROJECT CONCEPT:

Drought-tolerant cotton
designed to minimize risk in
cotton farming by providing
yield stability in
environments experiencing
sporadic or consistent
water stress and by             WITH GENE         CONTROL                                 WITH GENE          CONTROL
reducing water needs on
irrigated acres




                                                       NUMBER OF FIELD TRIALS►
                                 As Phase 1 project,
PROJECT UPDATE:                  testing multiple
                                 genes for in-field
• Building a portfolio of
                                 proof of concept
  genes that confer drought
  tolerance in cotton          Field testing will ►
• Initial field results show   expand significantly
  positive phenotypes for      as drought-tolerant
  multiple genes in water-     cotton leads continue
  stressed conditions          through pipeline
                               evaluation and
                               development                                       2008 2009 2010 2011 2012 2013 2014 2015

                                                                                                                       19
R&D PIPELINE


   Strong Pipeline Reflects Growing Innovation, Opportunity in
   Latter-Stage Projects and Emerging Value in Yield and Stress
                                                                                               2020               COUNTRY            ADDITIONAL
                                                                              PHASE         COMMERCIAL               OF             GEOGRAPHIC                     SOURCES OF VALUE
                                                                                              VALUE                LAUNCH           OPPORTUNITY

                                                                                                                                                           • Improved yield
                                                                                                                                         BRAZIL
                                                                                               HIGH
                                                                              2 LEAD                                                   ARGENTINA
                                 Drought-Tolerant Corn Family                                                        U.S.
YEILD & STRESS




                                                                                                                                                           • Water replacement
                                                                                                                                          EU 27

                                                                                                                                                           • Improved yield
                                                                                                                                         BRAZIL
                                                                                               HIGH
                                                                              1 LEAD                                                   ARGENTINA
                              Nitrogen-Utilization Corn Family                                                       U.S.                                  • Nitrogen replacement
                                                                                                                                          EU 27

                                                                                                                                         BRAZIL
                                                                                               MEGA
                                                                              2 LEAD                                                                       • Improved yield
                  Broad-Acre, Higher-Yielding Corn Family                                                            U.S.              ARGENTINA
                                                                                                                                          EU 27

                       Broad-Acre, Higher-Yielding Soybean
                                                                                               HIGH                                      BRAZIL
                                                                              2 LEAD                                                                       • Improved yield
                                                                                                                     U.S.              ARGENTINA
                                                     Family
                                                                                               HIGH                                      BRAZIL
                                                                                 4                                                                         • Improved yield
                           Roundup RReady2Yield Soybeans                                                             U.S.              ARGENTINA

                                                                                                                                                           • Improved yield
                                                                                                                                         BRAZIL
                                                                                               HIGH
                                                                                 4                                                     ARGENTINA
                                                                                                                     U.S.
                                                YieldGard VT PRO                                                                                           • Improved insect protection
                                                                                                                                          EU 27


                                                                                                LOW
                                                                                 4
                                    Improved-Protein Soybeans                                                        U.S.                                  • Food industry functionality
                                                                                                                                           N/A


                                                                                                LOW                                      BRAZIL
                                                                                 3
                                                High-Oil Soybeans                                                    U.S.                                  • Food industry functionality
                                                                                                                                       ARGENTINA


                                                                                               HIGH
                                                                                 3
                                               Omega-3 Soybeans                                                      U.S.                                  • Food industry functionality
                                                                                                                                           N/A


                                                                                                                                                           • Improved yield
                                    Insect Protected + Roundup
                                                                                                 MID
                                                                                 2                                  Brazil             ARGENTINA
                                                                                                                                                           • Improved insect protection
                                       RReady2Yield Soybeans
                                                                                                LOW                                      BRAZIL
                                                                                 2
                                   Dicamba-Tolerant Soybeans                                                         U.S.                                  • Durable weed control
                                                                                                                                       ARGENTINA

                                                                                                                                          INDIA
                                                                                                 MID
                                                                                 2                                                                         • Improved insect protection
                                                Bollgard III Cotton                                                  U.S.               AUSTRALIA
                                                                                                                                         BRAZIL


                                                                                                LOW
                                                                                 2
                                               Vistive III Soybeans                                                  U.S.                                  • Food industry functionality
                                                                                                                                           N/A


                                                                                                LOW                                        U.S.
                                                                                 2                                                                         • Improved yield
                               Roundup RReady2Yield Canola                                                         Canada                 EU 27

                 COMMERCIAL VALUE RANGES AT 2020:
                  LOW        <$150M                  MID        $150-$300M             HIGH      $300-$500M              MEGA         >$1B

                 For further valuation information and valuation definitions, see “Valuing the R&D Pipeline” backgrounder, available at: http://www.monsanto.com/investors

                                                                                                                                                                                           20

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monsanto 11-08-07-5_v2

  • 1. ROBB FRALEY, PH.D. CHIEF TECHNOLOGY OFFICER MONSANTO BIENNIAL U.S. INVESTOR DAY NOVEMBER 8, 2007 1
  • 2. OVERVIEW Pipeline Leverages Power of Breeding and Biotech for Current Commercial Growth and New Platforms in Next Decade Pipeline Priorities Through 2012 BREEDING Continue to Drive Breeding Gains Across Crop Platforms ► Continue corn breeding momentum MONSANTO’S R&D PIPELINE ► Accelerate soybean breeding ► Elevate cotton and vegetable DISCOVERY PHASE I PHASE II R&D PHASE: PHASE III PHASE IV LAUNCH breeding BREEDING BIOTECHNOLOGY COMMERCIAL IT PLATFORM GERMPLASM G ANALYTICS MARKERS GENOMICS SEED ELITE Germplasm Deliver Value in Established Trait SOLD TO FARMERS R Pipeline ► Launch Roundup RReady2Yield as BIOTECHNOLOGY soybean pipeline platform Unlock Opportunity in Yield and Stress Through BASF Collaboration ► Deliver industry’s first pure yield- and-stress traits ► Change trait-value opportunity with “product families” 2
  • 3. CORN BREEDING Early Yield Trial Results Continue to Reinforce Yield Advantage of DEKALB Seed in U.S. 2007 PRELIMINARY U.S. COMPETITIVE NEW: CORN YIELD COMPARISON: DEKALB DEKALB U.S. GEOGRAPHY: 210 (APPROXIMATE DIFFERENCES) COMPETITORS Grow footprint OBJECTIVE: 205 2007 PERFORMANCE UPDATE 204 BUSHELS/ACRE • In > 9,900 comparisons, 200 Monsanto outyields 199 competitive best by 195 196 8.3 bu/ac 195 190 • In 110-day RM, 192 191 191 191 190 Monsanto’s lead is 185 13 bu/ac, extended from 11.7 bu/ac in 2006 180 181 Source: 2007 Monsanto and third party trials 175 through October 24, 2007. Weighted average, calculated to 170 15% moisture. DEKALB products are compared 100 RM 105 RM 110 RM 115 RM Overall with competitive RELATIVE MATURITIES (DAYS)► products that contain >500 >1,400 >4,000 >3,700 >9,900 COMPARISONS: similar crop protection traits. APPROXIMATE BU/AC 10 4.5 13 4 8 ADVANTAGE: 3
  • 4. CORN BREEDING Like National Brands, New ASI Hybrids Have Substantial Yield Advantage Over Competitive Offerings 2007 PRELIMINARY U.S. COMPETITIVE NEW: CORN YIELD COMPARISON: ASI ASI 210 (APPROXIMATE DIFFERENCES) U.S. GEOGRAPHY: COMPETITORS 205 Grow footprint OBJECTIVE: 2007 PERFORMANCE UPDATE 203 203 200 BUSHELS/ACRE • Overall, 2007 yield 195 197 comparisons showing 7.5 bu/ac advantage for 190 193 192 ASI over competitive best 190 185 184 Source: 2007 Monsanto 183 trials through October 180 24, 2007. 175 170 165 166 163 160 95RM 100 RM 105 RM 110 RM 115 RM RELATIVE MATURITIES (DAYS)► 54 128 87 147 158 LOCATIONS: APPROXIMATE BU/AC 3.5 1 6.5 11.5 10.5 ADVANTAGE: 4
  • 5. CORN BREEDING Again in 2007, Best Combination of Germplasm and Traits in Monsanto Brands Delivers Best Yield PRELIMINARY TOTAL SEED & TRAIT YIELD PERFORMANCE IN 2007 NEW: Seed & Trait: Head-to-Head AVE. BUSHELS PER ACRE 210 13 210.3 206 BU/AC 202 ADVANTAGE 198 197.0 194 190 MONSANTO Pioneer ® Competitive Hybrids DEKALB, ASI and Performance in Key Corn Belt States with Herculex® Corn States Hybrids XTRA and Roundup with YieldGard VT NE IA IL Ready Corn 2 Triple >70 >400 900 1,949 comparisons in 13 states: Monsanto’s Comparisons: seed, protected by YieldGard VT Triple, 210 214 219 Monsanto outperformed the best competitive seed-and- Brands: bu/ac bu/ac bu/ac trait package by >13 bu/ac on average 193 200 204 Competitive Brand: bu/ac bu/ac bu/ac 5
  • 6. SOYBEAN BREEDING Coming Off 2007 Share Gain, Initial Soybean Yield Performance Continues to Reinforce Breeding Leadership 2007 PRELIMINARY U.S. COMPETITIVE NEW: SOYBEAN YIELD COMPARISON: ASGROW ASGROW (APPROXIMATE DIFFERENCES) COMPETITORS 60 U.S. GEOGRAPHY: 58 Grow footprint OBJECTIVE: 58 57 56 BUSHELS/ACRE 2007 PERFORMANCE UPDATE 56 54 55 • Yield data from 2007 indicates continued yield 52 52 advantage for national 51 50 brands versus best-in- 51 class competitors 49 48 49 46 47 44 44 43 42 40 O 1 2 3 4 5 RELATIVE MATURITIES► Source: 2007 Monsanto and >300 >400 >3,500 >3,400 >1,000 >30 COMPARISONS: third party trials through October 30, 2007. Asgrow APPROXIMATE BU/AC products are compared to 1 1.5 1 1.5 2 (1) competitive products. ADVANTAGE: 6
  • 7. R&D PIPELINE Yield and Stress Collaboration Resets Pipeline Structure and Approach to Value Considerations PHASE 3 DISCOVERY PHASE 1 PHASE 2 PHASE 4 Advanced Gene/Trait Identification Proof of Concept Early Development Pre-Launch Development 24 TO 48 MONTHS 12 TO 24 MONTHS 12 TO 24 MONTHS 12 TO 24 MONTHS 12 TO 36 MONTHS JOINT-FUNDED DEVELOPMENT Independent Discovery Program 2nd- Generation COLLABORATION YIELD & STRESS drought-tolerant Grain yield Drought-tolerant corn corn Environmental stress Higher-yielding 2nd-Generation tolerance canola higher-yielding Independent Higher-yielding soybeans Discovery soybeans Drought-tolerant Program Higher-yielding corn cotton Yield increase Nitrogen- Environmental stress utilization corn tolerance Insect-protected Pest control Roundup Herbicide tolerance Soybean Roundup RReady2Yield Disease resistance nematode- RReady2Yield soybeans High-oil soybeans resistance Lipid enhancements Vistive III soybeans soybeans Improved-protein (Increased oil, improved Dicamba-tolerant Dicamba-tolerant Omega-3 soybeans fatty-acid balance) cotton soybeans soybeans Mavera II high-value Protein enhancements Cotton lygus YieldGard VT PRO Vistive II soybeans (Improved amino-acid control Extrax Corn soybeans Bollgard III balance) Processing YieldGard System1 Carbohydrate Roundup rootworm III RReady2Yield canola enhancements Hybridization system Bioactive compounds for corn 1. Extrax is a part of the Renessen pipeline. Renessen is a Monsanto/Cargill joint venture. Mavera™ is a trademark of Renessen 7
  • 8. R&D PIPELINE Strong Pipeline Value Reflects Commercial Opportunity in Latter-Stage Projects and Emerging Value in Yield and Stress DISCOVERY PHASE 1 PHASE 2 PHASE 3 PHASE 4 Drought- HIGH Tolerant FAMILY TRAITS► Family COLLABORATION CORN: 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 Insect- 2020 VALUE RANGES: protected Roundup Omega-3 RR2Y RReady2Yield soybeans soybeans soybeans MEGA HIGH Bollgard III $300M-$500M >$1BM High-oil YieldGard Dicamba- soybeans tolerant VT PRO soybeans corn MID LOW Vistive III <$150M $150M-$300M Improved- Roundup protein RReady2Yield Corn Soybeans Cotton Canola canola soybeans 8
  • 9. R&D PIPELINE Drought, Nitrogen Use and Intrinsic Yield Boosts Come Together In Broad-Acre Yield Value Opportunity for Corn VALUE ANALYSIS DROUGHT-TOLERANT FAMILY NEW: INTRODUCTION HORIZON Upgrade traits come on line before lead trait reaches DROUGHT- ACREAGE► targeted goal► TOLERANT NITROGEN- FAMILY UTILIZATION FAMILY HIGHER- YIELDING +1 +2 +3 +4 +5 FAMILY WINDOW FOR YEARS► 2ND-GEN UPGRADE LEAD DROUGHT UPGRADE 1 With continuing Sources of value discovery, can overlap, Proof of Expansion to additional, depending on commercial broad-acre FOCUS: FOCUS: unassigned value functionality; value insurance remains for more overlap broad-acre yield between drought U.S. dryland Applicability GEOGRAPHY: category and yield across Corn GEOGRAPHY: 7-10 M ACRE GOAL1: Belt 1. Acre opportunity reflects acres where technology fits at Monsanto's 55 M ACRE GOAL1: current 2007 market share in respective crops 9
  • 10. R&D PIPELINE Drought Focuses First On Consistent Water Shortage Acres, Before Expanding to Broad-Acre Applicability SEGMENTED VALUE OPPORTUNITY ACROSS MARKETS: U.S. EXAMPLE R&D Pipeline Drought-Tolerant Corn Family HIT Project Phase 2 High annual precipitation PROJECT CONCEPT: Drought-tolerance family aimed at providing consistent yield and buffering against effects of water Low annual limitations Source: Spatial Climate Analysis precipitation Service, Oregon State University VALUE: LAUNCH-COUNTRY 55M ACRES1: IRRIGATED WESTERN DRYLAND STABILITY $300-$500M 2020 VALUE2: 8-12% of U.S. acres 9-12% of U.S. acres 55-65% of U.S. acres 14-18” precipitation 14-18” precipitation 17-19” precipitation SOURCES OF VALUE: Irrigated Non-irrigated Non-irrigated Improved yield Targeting 8-10% yield Value: Reducing the Value: Improved yields Value: Improved yields 1 improvement in water-stress variable costs of annually when moisture is less environments irrigation than optimal Water substitution Initial trait commercial 2 Variable costs in pumped launch will focus on irrigation of >$100/ acre this segment, proving applicability in 1. Acre opportunity reflects acres where technology fits at consistent water Monsanto's current 2007 market share in respective crops 2. 2020 value reflects gross sales opportunity in launch country shortage in year 2020 10
  • 11. R&D PIPELINE In Second Year of Off-Season Testing, Drought Lead Consistently Delivered Yield Advantages Under Water Stress LATIN AMERICA: YIELD IMPROVEMENT OF NEW: R&D Pipeline LEAD EVENT UNDER DROUGHT STRESS Drought-Tolerant Corn Family Percent yield difference vs. control HIT Project Phase 2 7.3% 10.5% 10.9% 23.2% 9.0% 7.6% 14 PROJECT CONCEPT: YIELD DIFFERENCE 12 Drought-tolerance family aimed at 10 providing consistent yield and (BU/ACRE) buffering against effects of water 8 limitations 6 NOT TESTED NOT TESTED VALUE: 4 LAUNCH-COUNTRY 55M ACRES1: 2 $300-$500M 2020 VALUE2: 0 2006 2004 2005 2006/07 SOURCES OF VALUE: LAS U.S. U.S. U.S. Improved yield Hybrid 1: 2004, 4 locs; 2005 5 locs; 2006, 1 loc (20 reps) Targeting 8-10% yield 1 improvement in water-stress Hybrid 2: 2004, not tested; 2005, 5 locs, 2006, 3 locs, LAS 2006 3 locs (20 reps) environments Water substitution In second-year South American trials, lead drought gene 2 Variable costs in pumped tested in variable environmental conditions across irrigation of >$100/ acre 3 locations • Yield benefit of up to 12 bu/ac in water-stress conditions 1. Acre opportunity reflects 2. 2020 value reflects gross acres where technology fits sales opportunity in launch at Monsanto's current 2007 country in year 2020 market share in respective crops 11
  • 12. R&D PIPELINE Second-Generation Drought-Tolerant Corn Continues to Deliver Consistent Performance Under Drought Conditions EARLY RESULTS ON SECOND- NEW: R&D Pipeline GENERATION DROUGHT-TOLERANT CORN Drought-Tolerant Corn Family Lead gene increases HIT Project Phase 1 photosynthesis and water relations, suggesting PROJECT CONCEPT: improved source Drought-tolerance family performance under aimed at providing drought consistent yield and buffering against effects of Increased pollination water limitations success under flowering stress observed PROJECT UPDATE: • Second-generation lead CONTROL WITH GENE has been in field testing for last 3 years • Consistent yield benefits observed under drought stress CONTROL WITH GENE 12
  • 13. R&D PIPELINE Broad-Acre, Higher-Yielding Corn Focused on Relative Yield Gains, Rather Than Acreage Expansion BROAD-ACRE, HIGHER-YIELDING FAMILY NEW: R&D Pipeline INTRODUCTION HORIZON Broad-Acre, Higher-Yielding Corn Family Phase 2 LEAD STATUS: Upgrade traits PROJECT CONCEPT: target same acres with incremental Broad-acre, higher-yielding corn ACREAGE► aimed at boosting intrinsic yield yield► potential of corn hybrids through insertion of key genes VALUE: LAUNCH-COUNTRY 55M ACRES1: >$1B 2020 VALUE2: +1 +2 +3 +4 +5 WINDOW FOR YEARS► SOURCES OF VALUE: 2ND-GEN UPGRADE Improved yield 1 Targeting incremental yield to LEAD HIGHER-YIELD UPGRADE 1 U.S. average of 150 bu/ac Boost intrinsic Incremental FOCUS: yield per acre yield over lead FOCUS: 1. Acre opportunity reflects trait acres where technology U.S. broad-acre GEOGRAPHY: fits at Monsanto's current U.S. broad-acre 2007 market share in GEOGRAPHY: 55 M ACRE GOAL: respective crops 55 M ACRE GOAL: 2. 2020 value reflects gross sales opportunity in launch country in year 2020 13
  • 14. R&D PIPELINE Broad-Acre, Higher-Yielding Soybeans Combine Benefits of Intrinsic Yield Gains and Water-Use Efficiency BROAD-ACRE, HIGHER-YIELDING FAMILY NEW: INTRODUCTION HORIZON R&D Pipeline Higher-Yielding Soybeans Family Upgrade traits target same acres Phase 2 LEAD STATUS: ACREAGE► with incremental PROJECT CONCEPT: yield► Higher-yielding soybeans aimed at boosting intrinsic yield potential of soybeans through insertion of key genes VALUE: +1 +2 +3 +4 +5 LAUNCH-COUNTRY YEARS► 45M WINDOW FOR ACRES1: 2ND-GEN UPGRADE $300-$500M 2020 VALUE2: LEAD HIGHER-YIELD UPGRADE 1 SOURCES OF VALUE: Boost intrinsic Incremental yield FOCUS: FOCUS: yield per acre over lead trait Improved yield U.S. broad-acre U.S. broad-acre GEOGRAPHY: GEOGRAPHY: 1 Targeting incremental yield to U.S. average of 42 bu/ac 45 M 45 M ACRE GOAL: ACRE GOAL: 1. Acre opportunity reflects Discovery In Soybean Broad-Acre Yield acres where technology fits at Monsanto's current DISCOVERY: 2007 market share in Discovery investigates intrinsic respective crops yield and water use efficiency INTRINSIC 2. 2020 value reflects gross YIELD A trait offering benefits to all sales opportunity in launch country in year 2020 WATER- acres from water utilization is a UTILIZATION broad-acre yield trait 14
  • 15. R&D PIPELINE First Round of Phase 2 Testing Continues to Validate Commercial-Track Events for Higher-Yielding Soybeans LATIN AMERICA: HIGHER-YIELDING NEW: R&D Pipeline SOYBEAN PERFORMANCE Higher-Yielding Soybeans Family Percent yield difference vs. control (BU/A INCREASE OVER CONTROL) Phase 2 LEAD STATUS: 10.5% 7.8% AVERAGE YIELD ADVANTAGE 7.5% 8 PROJECT CONCEPT: 7 Higher-yielding soybeans aimed at 6 boosting intrinsic yield potential of soybeans through insertion of key 5 genes 4 VALUE: 3 LAUNCH-COUNTRY 45M ACRES1: 2 $300-$500M 2020 VALUE2: 1 0 SOURCES OF VALUE: EVENT 1 EVENT 2 EVENT 3 Improved yield 10 Locations 1 Targeting incremental yield to U.S. average of 42 bu/ac First of new Phase 2 commercial-track events 1. Acre opportunity reflects acres where technology demonstrates up to 10% increase in yield across fits at Monsanto's current 10 environments in Argentina 2007 market share in respective crops • Recently completed testing of additional 60 events in 2. 2020 value reflects gross sales opportunity in launch U.S. during the 2007 growing season country in year 2020 15
  • 16. R&D PIPELINE Insect-Protected Soybeans Are First-Ever Trait Developed Exclusively for Non-U.S. Opportunity INITIAL PERFORMANCE OF INSECT- NEW: PROTECTED SOYBEANS R&D Pipeline Insect-Protected Soybeans with MONMOUTH, IL SCREENHOUSE – 2007 Roundup RReady2Yield Phase 2 STATUS: PROJECT CONCEPT: Insect-protected soybeans use Bt technology widely adopted in corn and cotton to control insect pests especially economically important for South American farmers VALUE: LAUNCH-COUNTRY: Brazil LAUNCH-COUNTRY 50M ACRE OPPORTUNITY1: 2020 COMMERCIAL $150-$300M VALUE2: CONTROL WITH GENE (NO INSECTICIDE) SOURCES OF VALUE: (NO INSECTICIDE) Insecticide substitution 1 First Monsanto trait product developed exclusively for non-U.S. Based on 2 current sprays costing almost $6/application market – Brazil and Argentina – where farmers spray 2 times annually at a cost of $5.70/acre to control insect pests Improved yield 2 Targeting 7-11% increase 1. Acre opportunity reflects acres where technology fits at Monsanto's current 2007 market share in respective crops 2. 2020 value reflects gross sales opportunity in launch country in year 2020 16
  • 17. R&D PIPELINE Vistive III Positions Significant Portion of U.S. Soybean Crop For Higher-Value Food-Grade Oil Opportunity IMPROVING NUTRITIONAL PROFILE OF R&D Pipeline SOYBEAN OIL Vistive III Soybeans LINOLENIC LINOLEIC OLEIC SATS HIT Project Phase 2 18:3 18:2 18:1 18:0 / 16:0 PROJECT CONCEPT: Standard Soybean Combining both breeding and biotechnology, Vistive III trait designed to lower linolenic and Target: saturate content while boosting Vistive III oleic content for an oil profile similar to olive oil with processing MAJOR MARKET SEGMENTS FOR U.S. SOYBEAN OIL and economic advantages VALUE: HYDROGENATED- NON-HYDROGENATED HYDROGENATED-BAKING FRYING LAUNCH-COUNTRY 20M ACRES1: For various For salad oils, For various baking frying <$150M 2020 VALUE2: household use applications applications SOURCES OF VALUE: Uses 50% of total Uses 25% of Uses 25% of total Oil replacement value crushing total crushing crushing Fit for frying applications and 1 (~20M acres) (~10M acres) (~10M acres) oil blends for baking, roughly 20M of oil for food uses Applicable uses ideal for Vistive III Source: Soyatech, USDA 1. Acre opportunity reflects acres where technology fits at Monsanto's current 2007 market share in respective crops 2. 2020 value reflects gross sales opportunity in launch country in year 2020 17
  • 18. SOYBEAN BREEDING Roundup RReady2Yield and Molecular Breeding Rewrite Historic Soybean Yield Trends SOYBEAN YIELD PROGRESSION: 2000-2012 52 MAB gains set new USDA AVERAGE YIELD/AC1 trajectory on top of TREND LINE OF USDA YIELD 50 Roundup RReady2Yield step change SOYBEAN YIELD AT HISTORIC 48 RATE GAIN Roundup AVERAGE YIELD RReady2Yield creates EXPECTED TREND WITH APPLIED step change of 7-11% (BU/ACRE) 46 MOLECULAR BREEDING (MAB) across portfolio 44 42 All breeding going 40 forward is built on Roundup RReady2Yield MAB-ROUNDUP HISTORIC GAIN: 0.50 BU/AC 38 foundation and uses RREADY2YIELD applied MAB PLATFORM technology 36 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2006 2009-2010 First varieties from MAB Roundup RReady2Yield enter commercial portfolio controlled commercial release + commercial Varieties show >3 bu/ac yield launch advantage over commercial checks 1. USDA NASS: http://www.nass.usda.gov/QuickStats/ 18
  • 19. R&D PIPELINE U.S. Field Trials Continuing to Test Drought-Tolerance Proof of Concept in Cotton EARLY RESULTS ON DROUGHT-TOLERANT NEW: R&D Pipeline COTTON TESTING IN U.S. Drought-Tolerant Cotton GENE 2 GENE 1 Phase 1 LEAD STATUS: PROJECT CONCEPT: Drought-tolerant cotton designed to minimize risk in cotton farming by providing yield stability in environments experiencing sporadic or consistent water stress and by WITH GENE CONTROL WITH GENE CONTROL reducing water needs on irrigated acres NUMBER OF FIELD TRIALS► As Phase 1 project, PROJECT UPDATE: testing multiple genes for in-field • Building a portfolio of proof of concept genes that confer drought tolerance in cotton Field testing will ► • Initial field results show expand significantly positive phenotypes for as drought-tolerant multiple genes in water- cotton leads continue stressed conditions through pipeline evaluation and development 2008 2009 2010 2011 2012 2013 2014 2015 19
  • 20. R&D PIPELINE Strong Pipeline Reflects Growing Innovation, Opportunity in Latter-Stage Projects and Emerging Value in Yield and Stress 2020 COUNTRY ADDITIONAL PHASE COMMERCIAL OF GEOGRAPHIC SOURCES OF VALUE VALUE LAUNCH OPPORTUNITY • Improved yield BRAZIL HIGH 2 LEAD ARGENTINA Drought-Tolerant Corn Family U.S. YEILD & STRESS • Water replacement EU 27 • Improved yield BRAZIL HIGH 1 LEAD ARGENTINA Nitrogen-Utilization Corn Family U.S. • Nitrogen replacement EU 27 BRAZIL MEGA 2 LEAD • Improved yield Broad-Acre, Higher-Yielding Corn Family U.S. ARGENTINA EU 27 Broad-Acre, Higher-Yielding Soybean HIGH BRAZIL 2 LEAD • Improved yield U.S. ARGENTINA Family HIGH BRAZIL 4 • Improved yield Roundup RReady2Yield Soybeans U.S. ARGENTINA • Improved yield BRAZIL HIGH 4 ARGENTINA U.S. YieldGard VT PRO • Improved insect protection EU 27 LOW 4 Improved-Protein Soybeans U.S. • Food industry functionality N/A LOW BRAZIL 3 High-Oil Soybeans U.S. • Food industry functionality ARGENTINA HIGH 3 Omega-3 Soybeans U.S. • Food industry functionality N/A • Improved yield Insect Protected + Roundup MID 2 Brazil ARGENTINA • Improved insect protection RReady2Yield Soybeans LOW BRAZIL 2 Dicamba-Tolerant Soybeans U.S. • Durable weed control ARGENTINA INDIA MID 2 • Improved insect protection Bollgard III Cotton U.S. AUSTRALIA BRAZIL LOW 2 Vistive III Soybeans U.S. • Food industry functionality N/A LOW U.S. 2 • Improved yield Roundup RReady2Yield Canola Canada EU 27 COMMERCIAL VALUE RANGES AT 2020: LOW <$150M MID $150-$300M HIGH $300-$500M MEGA >$1B For further valuation information and valuation definitions, see “Valuing the R&D Pipeline” backgrounder, available at: http://www.monsanto.com/investors 20