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Robert T. Fraley, Ph.D.Robert T. Fraley, Ph.D.
Chief Technology Officer and Executive Vice PresidentChief Technology Officer and Executive Vice President
Chemicals and Paper and Packaging RoundtableChemicals and Paper and Packaging Roundtable
Morgan StanleyMorgan Stanley
November 3, 2004November 3, 2004
2
Certain statements contained in this presentation, such as stateCertain statements contained in this presentation, such as statements concerning the company's anticipated ments concerning the company's anticipated financial results, current and future product performance, regulfinancial results, current and future product performance, regulatory approvals, currency impact, business and atory approvals, currency impact, business and financial plans and other nonfinancial plans and other non--historical facts are "forwardhistorical facts are "forward--looking statements." These statements are based on looking statements." These statements are based on current expectations and currently available information. Howevecurrent expectations and currently available information. However, since these statements are based on factors that r, since these statements are based on factors that involve risks and uncertainties, the companyinvolve risks and uncertainties, the company’’s actual performance and results may differ materially from thoss actual performance and results may differ materially from those e described or implied by such forwarddescribed or implied by such forward--looking statements. Factors that could cause or contribute to sulooking statements. Factors that could cause or contribute to such differences ch differences include, among others: the company's exposure to various continginclude, among others: the company's exposure to various contingencies, including those related to Solutia Inc., encies, including those related to Solutia Inc., litigation, intellectual property, regulatory compliance (includlitigation, intellectual property, regulatory compliance (including seed quality), environmental contamination and ing seed quality), environmental contamination and antitrust; fluctuations in exchange rates and other developmentsantitrust; fluctuations in exchange rates and other developments related to foreign currencies and economies; related to foreign currencies and economies; increased generic and branded competition for the company's Rounincreased generic and branded competition for the company's Roundup herbicide; the accuracy of the companydup herbicide; the accuracy of the company’’s s estimates and projections, for example, those with respect to prestimates and projections, for example, those with respect to product returns and grower use of our products and oduct returns and grower use of our products and related distribution inventory levels; the effect of weather conrelated distribution inventory levels; the effect of weather conditions and commodity markets on the agriculture ditions and commodity markets on the agriculture business; the success of the companybusiness; the success of the company’’s research and development activities and the speed with which rs research and development activities and the speed with which regulatory egulatory authorizations and product launches may be achieved; domestic anauthorizations and product launches may be achieved; domestic and foreign social, legal and political d foreign social, legal and political developments, especially those relating to agricultural productsdevelopments, especially those relating to agricultural products developed through biotechnology; the company's developed through biotechnology; the company's ability to continue to manage its costs; the companyability to continue to manage its costs; the company’’s ability to successfully market new and existing products in s ability to successfully market new and existing products in new and existing domestic and international markets; the companynew and existing domestic and international markets; the company’’s ability to obtain payment for the products that s ability to obtain payment for the products that it sells; the company's ability to achieve and maintain protectiit sells; the company's ability to achieve and maintain protection for its intellectual property; the effects of the on for its intellectual property; the effects of the company's accounting policies and changes in generally accepted company's accounting policies and changes in generally accepted accounting principles; the company's ability to accounting principles; the company's ability to fund its shortfund its short--term financing needs; general economic and business conditions; term financing needs; general economic and business conditions; political and economic conditions political and economic conditions due to threat of future terrorist activity and related military due to threat of future terrorist activity and related military action; and other risks and factors detailed in the action; and other risks and factors detailed in the company's filings with the U.S. Securities and Exchange Commissicompany's filings with the U.S. Securities and Exchange Commission. Undue reliance should not be placed on these on. Undue reliance should not be placed on these forwardforward--looking statements, which are current only as of the date of thilooking statements, which are current only as of the date of this release. The company disclaims any s release. The company disclaims any current intention to revise or update any forwardcurrent intention to revise or update any forward--looking statements or any of the factors that may affect actual looking statements or any of the factors that may affect actual results, whether as a result of new information, future events oresults, whether as a result of new information, future events or otherwise. r otherwise.
ForwardForward--Looking StatementsLooking Statements
3
Additional DisclosuresAdditional Disclosures
This presentation uses the nonThis presentation uses the non--GAAP financial measure of earnings per share (GAAP financial measure of earnings per share (““EPSEPS””) excluding the effect of ) excluding the effect of certain items. A noncertain items. A non--GAAP EPS financial measure (which we sometimes refer to as EPS oGAAP EPS financial measure (which we sometimes refer to as EPS on an ongoing basis) may n an ongoing basis) may exclude the impact of restructuring charges, charges associated exclude the impact of restructuring charges, charges associated with the settlement of litigation, gains and losses with the settlement of litigation, gains and losses on the sale of assets, and certain other items. The specific iton the sale of assets, and certain other items. The specific items that are excluded from, and result in, our nonems that are excluded from, and result in, our non--GAAP EPS financial measure are clearly identified as such in thiGAAP EPS financial measure are clearly identified as such in this presentation. The presentation of EPS excluding s presentation. The presentation of EPS excluding the effect of certain items is intended to supplement investorsthe effect of certain items is intended to supplement investors’’ understanding of our operating performance. This understanding of our operating performance. This nonnon--GAAP financial measure may not be comparable to similar measuresGAAP financial measure may not be comparable to similar measures used by other companies. Furthermore, used by other companies. Furthermore, this nonthis non--GAAP financial measure is not intended to replace net income (loGAAP financial measure is not intended to replace net income (loss), cash flows, financial position, or ss), cash flows, financial position, or comprehensive income (loss), as determined in accordance with accomprehensive income (loss), as determined in accordance with accounting principles generally accepted in the counting principles generally accepted in the United States. The nonUnited States. The non--GAAP financial measure used in this presentation is reconciled tGAAP financial measure used in this presentation is reconciled to the most directly o the most directly comparable financial measure calculated and presented in accordacomparable financial measure calculated and presented in accordance with GAAP and can be found at the end of nce with GAAP and can be found at the end of this presentation.this presentation.
Fiscal YearFiscal YearIn this presentation, unless otherwise specified:In this presentation, unless otherwise specified:References to years, or to fiscal years, 2001 through 2006 are oReferences to years, or to fiscal years, 2001 through 2006 are on a fiscal year basis and refer to the 12n a fiscal year basis and refer to the 12--month period month period
ending August 31.ending August 31.
TrademarksTrademarksRoundup, Roundup Ready, Bollgard, Bollgard II, YieldGard, HarnesRoundup, Roundup Ready, Bollgard, Bollgard II, YieldGard, Harness, Posilac , VISTIVE, Processor Preferred and the s, Posilac , VISTIVE, Processor Preferred and the Monsanto, Imagine and vine logo are trademarks owned by MonsantoMonsanto, Imagine and vine logo are trademarks owned by Monsanto Company and its wholly owned subsidiaries. All Company and its wholly owned subsidiaries. All other trademarks are the property of their respective owners. other trademarks are the property of their respective owners. ©© 2004. Monsanto Company. All Rights Reserved.2004. Monsanto Company. All Rights Reserved.
4
Biotechnology Is Most Rapidly Adopted Technology in Biotechnology Is Most Rapidly Adopted Technology in History of AgricultureHistory of Agriculture
Global Monsanto Planted Biotech AcresGlobal Monsanto Planted Biotech AcresAcres in millionsAcres in millions
Source: Monsanto estimatesSource: Monsanto estimates
0
20
40
60
80
100
120
140
160
180
1996 1997 1998 1999 2000 2001 2002 2003 2004
Canola
Cotton
Corn
Soybeans
OverviewOverview
5
Source: Source: ““US Agriculture of Biotechnology Derived Crops Planted in 2003 US Agriculture of Biotechnology Derived Crops Planted in 2003 –– An Update of Eleven cases An Update of Eleven cases of Eleven Case Studies,of Eleven Case Studies,”” National Center for Food & Agriculture Policy. October 20, 20National Center for Food & Agriculture Policy. October 20, 200404
Effect of Biotech Crops on U.S. Pesticide UseEffect of Biotech Crops on U.S. Pesticide Usein 2003in 2003
Biotechnology Provides Better Economical and Biotechnology Provides Better Economical and Environmental SolutionsEnvironmental Solutions
(46)(46)Total Reduction in Total Reduction in Pesticide UsePesticide Use
(0.2)(0.2)CanolaCanola
(13)(13)CottonCotton
(13)(13)CornCorn
(20)(20)SoybeansSoybeans
Million Million Lbs.Lbs.
OverviewOverview
6
45% 48% 49%43%
0%
10%
20%
30%
40%
50%
60%
2001 2002 2003 2004
Early, Major Investment In Seeds Captured Value ShiftEarly, Major Investment In Seeds Captured Value ShiftOverviewOverview
Monsanto Licensed ShareMonsanto Licensed ShareMonsanto Brand ShareMonsanto Brand Share
Monsanto Genetic Market Share in U.S. Corn SeedMonsanto Genetic Market Share in U.S. Corn Seed
Source: Monsanto EstimatesSource: Monsanto Estimates
DupontDupont--Pioneer SharePioneer Share
7
Product Development, Regulatory and Commercial Product Development, Regulatory and Commercial Experience Generate MomentumExperience Generate Momentum
OverviewOverview
0123456
MON DD BAY DOW SYT BAS
Pipeline products Pipeline products in USDA in USDA
review processreview process
05
1015202530
MON DD BAY DOW SYT BAS
USDA BiotechUSDA BiotechApprovalsApprovals
020406080
100120140
MON DD BAY DOW SYT BAS
U.S. Trait Acres U.S. Trait Acres 20042004
8
Round 1:Round 1: Seed and SingleSeed and Single--Trait Positions Firmly Trait Positions Firmly Established and GrowingEstablished and Growing
•• Seed Breeding AdvancementsSeed Breeding Advancements
•• FirstFirst--Generation TraitsGeneration Traits
•• Geographic ExpansionGeographic Expansion
•• Value CaptureValue Capture
Round 1
9
Now Commercializing First InterNow Commercializing First Inter--Company Corn Company Corn Hybrids from Industry’s Most Diverse Genetic PoolHybrids from Industry’s Most Diverse Genetic Pool
Round 1: BreedingRound 1: Breeding
TemperateTemperateTemperate
Sub-TropicalSubSub--TropicalTropical
TropicalTropicalTropical
Sub-TropicalSubSub--TropicalTropical
TemperateTemperateTemperate
6-to-8 year process66--toto--8 year process8 year processLate 1990sLate 1990s
Acquired 36 major corn Acquired 36 major corn breeding programsbreeding programs
((12 countries x average of 3 12 countries x average of 3 companies per country)companies per country)
Early 2000sEarly 2000sCrossed genetic lines Crossed genetic lines
across acquired across acquired companiescompanies
TodayTodayLaunching new hybrids Launching new hybrids
from interfrom inter--company company crossescrosses
Monsanto Monsanto corn corn
germplasm germplasm flows flows
globallyglobally
10DiscoveryDiscovery Phase 1Phase 1
Proof of ConceptProof of ConceptPhase 2Phase 2
Early DevelopmentEarly DevelopmentPhase 3Phase 3
Adv. DevelopmentAdv. DevelopmentPhase 4Phase 4
PrePre--LaunchLaunchLaunchLaunch
Roundup Ready Soybeans Continue To Deliver ValueRoundup Ready Soybeans Continue To Deliver ValueRound 1: FirstRound 1: First--Generation TraitsGeneration Traits
Source: Monsanto and Doane Market ResearchSource: Monsanto and Doane Market Research
$48$48 $40$40
19951995 2005F2005F
$ per acre$ per acre Herbicide Herbicide CostCost
Trait Trait CostCost
19991999Roundup ReadyRoundup Ready
$52$52
ConventionalConventional
HerbicideHerbicide
SeedSeed
TraitTrait
11 U.S. Grower System CostU.S. Grower System Cost
Key Market AcresKey Market AcresKey Market Acres
100%100%100%15%15%15%96%96%96%Percent Penetrated (2004)Percent Penetrated (2004)Percent Penetrated (2004)30M30M30M50M50M50M70M70M70MAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.Contributing PlatformsContributing Platforms
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
11
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Roundup Ready Soybean Value Grows Through Roundup Ready Soybean Value Grows Through Geographic ExpansionGeographic Expansion
Round 1: Geographic Expansion and Value CaptureRound 1: Geographic Expansion and Value Capture
Key Market AcresKey Market AcresKey Market Acres
100%100%100%15%15%15%96%96%96%Percent Penetrated (2004)Percent Penetrated (2004)Percent Penetrated (2004)30M30M30M50M50M50M70M70M70MAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
22 Brazil Value CaptureBrazil Value Capture
BrazilBrazil
GrainGrain--based based system system implementedimplemented
Over 95% of grain originators in Over 95% of grain originators in the territory the territory under contract under contract
Provisional measure in place Provisional measure in place for for 2005 season2005 season
Sale of Roundup Sale of Roundup Ready soybean Ready soybean varieties for this varieties for this
area requires new area requires new regulatory regulatory approvalsapprovals
Varieties from Varieties from Argentina are Argentina are adaptable to adaptable to
this areathis area
40 million planted soybean acres40 million planted soybean acres
10 million planted soybean acres10 million planted soybean acres
System SuccessSystem Success
12
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
100%100%100%15%15%15%96%96%96%Percent Penetrated (2004)Percent Penetrated (2004)Percent Penetrated (2004)30M30M30M50M50M50M70M70M70MAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
33 Argentina, Uruguay, Paraquay Value CaptureArgentina, Uruguay, Paraquay Value Capture
Argentina, Uruguay, ParaguayArgentina, Uruguay, ParaguaySystem DevelopmentSystem Development
30 million planted soybean acres30 million planted soybean acres
GrainGrain--based based system being discussedsystem being discussed
2005 and 2006 2005 and 2006 guidance excludes earnings guidance excludes earnings effecteffect of this systemof this system
Roundup Ready Soybean Value Grows Through Roundup Ready Soybean Value Grows Through Geographic ExpansionGeographic Expansion
Round 1: Geographic Expansion and Value CaptureRound 1: Geographic Expansion and Value Capture
13DiscoveryDiscovery Phase 1Phase 1
Proof of ConceptProof of ConceptPhase 2Phase 2
Early DevelopmentEarly DevelopmentPhase 3Phase 3
Adv. DevelopmentAdv. DevelopmentPhase 4Phase 4
PrePre--LaunchLaunchLaunchLaunch
Available Market for Roundup Ready Corn Is GrowingAvailable Market for Roundup Ready Corn Is GrowingRound 1: Geographic ExpansionRound 1: Geographic Expansion
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%33%33%33%Percent Penetrated (2004)Percent Penetrated (2004)Percent Penetrated (2004)5M5M5M20M20M20M50M50M50MAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.Contributing PlatformsContributing Platforms
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
Regulatory ProcessesRegulatory ProcessesEuropean UnionEuropean Union
22 products in regulatory queue 22 products in regulatory queue under Directive 2001/18; 11 from under Directive 2001/18; 11 from MonsantoMonsanto
Roundup Ready corn (NK603) Roundup Ready corn (NK603) approved for importation and whole approved for importation and whole corn feed in July 2004; approved for corn feed in July 2004; approved for Novel Food in October 2004Novel Food in October 2004
Applications for stacks in queueApplications for stacks in queue
ArgentinaArgentina
NK603 approved for planting in NK603 approved for planting in Argentina in July 2004Argentina in July 2004
Application for stacks in queueApplication for stacks in queue
11
14
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Available Market for Roundup Ready Corn Is GrowingAvailable Market for Roundup Ready Corn Is GrowingRound 1: Geographic ExpansionRound 1: Geographic Expansion
22 Grain Channeling in the U.S.Grain Channeling in the U.S.
Business ApproachBusiness ApproachWebsite indicates to farmers Website indicates to farmers which elevators in their area which elevators in their area accept biotech grain not yet accept biotech grain not yet approved for import into the approved for import into the European UnionEuropean UnionCommunication and Communication and education program under wayeducation program under wayPercent of growers citing Percent of growers citing grain marketing concerns has grain marketing concerns has dropped from roughly 60% to dropped from roughly 60% to nearly 30% in past year*nearly 30% in past year*
*Based on Roundup Ready corn surveys taken in fall of 2003 and *Based on Roundup Ready corn surveys taken in fall of 2003 and spring of 2004 in Eastern Iowa/Northern Illinois regionspring of 2004 in Eastern Iowa/Northern Illinois region
www.866sellcorn.comwww.866sellcorn.com
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%33%33%33%Percent Penetrated (2004)Percent Penetrated (2004)Percent Penetrated (2004)5M5M5M20M20M20M50M50M50MAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
15DiscoveryDiscovery Phase 1Phase 1
Proof of ConceptProof of ConceptPhase 2Phase 2
Early DevelopmentEarly DevelopmentPhase 3Phase 3
Adv. DevelopmentAdv. DevelopmentPhase 4Phase 4
PrePre--LaunchLaunchLaunchLaunch
Round 1: FirstRound 1: First--Generation TraitsGeneration TraitsYieldGard Rootworm Continues High Satisfaction YieldGard Rootworm Continues High Satisfaction Pattern with Biotech TraitsPattern with Biotech Traits
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%9%9%9%Percent Penetrated (2004)Percent Penetrated (2004)Percent Penetrated (2004)1M1M1M5M5M5M15M-20M15M15M--20M20MAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
11 Grower SatisfactionGrower Satisfaction
11Based on all growers using specified seed and treatment and ableBased on all growers using specified seed and treatment and able to answer very satisfied, somewhat satisfied, neutral, or not sto answer very satisfied, somewhat satisfied, neutral, or not satisfied.atisfied.*Source: Marketing Horizons Trait Satisfaction Studies 2002*Source: Marketing Horizons Trait Satisfaction Studies 2002**Source: Marketing Horizons Trait Satisfaction Studies 2004**Source: Marketing Horizons Trait Satisfaction Studies 2004
0%
20%
40%
60%
80%
100%
RoundupRoundupReadyReady
Soybeans*Soybeans*
RoundupRoundupReady Ready Cotton*Cotton*
Bollgard/Bollgard/RoundupRoundup
ReadyReadyCotton*Cotton*
Roundup Roundup ReadyReadyCorn*Corn*
YieldGardYieldGardRootwormRootworm
Corn**Corn**
YieldGardYieldGardCornCorn
Borer*Borer*
Percent of customers very or somewhat satisfiedPercent of customers very or somewhat satisfied11
Contributing PlatformsContributing Platforms
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
16
22 Split planter 32Split planter 32--inch rows inch rows –– Rock County, MN Rock County, MN –– August , 2004August , 2004
Round 1: FirstRound 1: First--Generation TraitsGeneration TraitsYieldGard Rootworm Continues High Satisfaction YieldGard Rootworm Continues High Satisfaction Pattern with Biotech TraitsPattern with Biotech Traits
12121111886644151533
11
1.1. DEKALB DKC46DEKALB DKC46--22 22 –– YieldGard RootwormYieldGard Rootworm2.2. Mycogen 2K541 CruiserMycogen 2K541 Cruiser3.3. DEKALB DKC42DEKALB DKC42--88 88 –– YieldGard RootwormYieldGard Rootworm4.4. DEKALB DKC52DEKALB DKC52--40 40 –– YieldGard RootwormYieldGard Rootworm5.5. Wensman W6212RR untreatedWensman W6212RR untreated6.6. DEKALB DKC42DEKALB DKC42--88 88 –– YieldGard RootwormYieldGard Rootworm7.7. Pioneer 38H66 CruiserPioneer 38H66 Cruiser8.8. DEKALB DKC51DEKALB DKC51--39 39 –– YieldGard RootwormYieldGard Rootworm9.9. DEKALB DKC47DEKALB DKC47--10 P25010 P25010.10. DEKALB DKC46DEKALB DKC46--28 P25028 P25011.11. DEKALB DKC42DEKALB DKC42--88 88 –– YieldGard RootwormYieldGard Rootworm12.12. DEKALB DKC46DEKALB DKC46--22 22 –– YieldGard RootwormYieldGard Rootworm13.13. AgVenture 4882RR Cruiser CRWAgVenture 4882RR Cruiser CRW14.14. Channel 6965RR Cruiser CRWChannel 6965RR Cruiser CRW15.15. DEKALB DKC42DEKALB DKC42--88 88 –– YieldGard RootwormYieldGard Rootworm16.16. Kruger 93P92 untreatedKruger 93P92 untreated
17
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Round 1: FirstRound 1: First--Generation TraitsGeneration TraitsYieldGard Rootworm Continues High Satisfaction YieldGard Rootworm Continues High Satisfaction Pattern with Biotech TraitsPattern with Biotech Traits
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%9%9%9%Percent Penetrated (2004)Percent Penetrated (2004)Percent Penetrated (2004)1M1M1M5M5M5M15M-20M15M15M--20M20MAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
33 YieldGard Rootworm ProtectionYieldGard Rootworm Protection
18
Round 2:Round 2: Monsanto Is Uniquely Positioned To Monsanto Is Uniquely Positioned To Bring Next Generation of Traits to MarketBring Next Generation of Traits to Market
•• Continued Growth from Round 1 Continued Growth from Round 1
•• SecondSecond--Generation TraitsGeneration Traits
•• Greater Intensity of Stacked TraitsGreater Intensity of Stacked Traits
Round 2Round 1
19DiscoveryDiscovery Phase 1Phase 1
Proof of ConceptProof of ConceptPhase 2Phase 2
Early DevelopmentEarly DevelopmentPhase 3Phase 3
Adv. DevelopmentAdv. DevelopmentPhase 4Phase 4
PrePre--LaunchLaunchLaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent Penetrated0.5M – 0.8M0.5M 0.5M –– 0.8M0.8M10M-15M10M10M--15M15MAvailable MarketAvailable MarketAvailable MarketAustraliaAustraliaAustraliaU.S.U.S.U.S.
Upgrades in Technology Raise the Bar Upgrades in Technology Raise the Bar ---- Roundup Roundup Ready Flex CottonReady Flex Cotton
Round 2: SecondRound 2: Second--Generation TraitsGeneration Traits
11 Expanded Window of ApplicationExpanded Window of Application
EmergenceEmergence LaybyLayby Preharvest HarvestPreharvest Harvest
OverOver--thethe--top window of applicationtop window of applicationRoundup ReadyRoundup Ready®® Flex Cotton Flex Cotton
Roundup ReadyRoundup Ready®®
CottonCotton((< < 4 lf.)4 lf.)
Expanded window of overExpanded window of over--thethe--top applicationtop application-- Increased margin of crop safetyIncreased margin of crop safety-- More More ““flexibleflexible”” weed controlweed control
Increased grower convenienceIncreased grower convenienceReduced need for specialized spray equipmentReduced need for specialized spray equipment
Contributing PlatformsContributing Platforms
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
20
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent Penetrated0.5M – 0.8M0.5M 0.5M –– 0.8M0.8M10M-15M10M10M--15M15MAvailable MarketAvailable MarketAvailable MarketAustraliaAustraliaAustraliaU.S.U.S.U.S.
Upgrades in Technology Raise the Bar Upgrades in Technology Raise the Bar ---- Roundup Roundup Ready Flex CottonReady Flex Cotton
Round 2: SecondRound 2: Second--Generation TraitsGeneration Traits
Over 200 field trials conducted in 2004Over 200 field trials conducted in 2004
8 cotton seed companies participating in trial 8 cotton seed companies participating in trial programprogram
Cotton States launching exclusively on a Cotton States launching exclusively on a secondsecond--generation trait platformgeneration trait platform
22 Field Trial UpdateField Trial Update
Results from the Field
Coming in January 2005
Results from the FieldResults from the Field
Coming in January 2005Coming in January 2005
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
21
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent Penetrated0.5M – 0.8M0.5M 0.5M –– 0.8M0.8M10M-15M10M10M--15M15MAvailable MarketAvailable MarketAvailable MarketAustraliaAustraliaAustraliaU.S.U.S.U.S.
Round 2: SecondRound 2: Second--Generation TraitsGeneration Traits
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
Broad Licensing Supports Roundup Ready Flex Broad Licensing Supports Roundup Ready Flex IntroductionIntroduction
33 Broad LicensingBroad LicensingBroad licensing mitigates risk of seed market share Broad licensing mitigates risk of seed market share changeschanges
0%
25%
50%
75%
100%
1999 2000 2001 2002 2003 2004
DPLStonevilleFiberMaxPhytogenOthers
U.S. cotton seed market sharesU.S. cotton seed market shares
Source: USDASource: USDA
22
1.5
1.2
1.01
1.1
1.2
1.3
1.4
1.5
1.6
1996 1997 1998 1999 2000 2001 2002 2003 2004F 2005F 2006F
Cotton (2 Traits)
Corn (3 Traits)
Soybeans (1 Trait)
Stacking Biotech Traits Adds New Dimension to Stacking Biotech Traits Adds New Dimension to Market Potential Market Potential —— Multiplying Margin OpportunitiesMultiplying Margin Opportunities
Monsanto U.S. Biotech Intensity Index*Monsanto U.S. Biotech Intensity Index*
Average number of biotech traits per biotech acreAverage number of biotech traits per biotech acre
Round 2: Stacked TraitsRound 2: Stacked Traits
10 million 10 million biotech biotech AcresAcres
16 million16 millionbiotech biotech margin margin
opportunitiesopportunities
==XX1.5 1.5
intensity intensity indexindex
CottonCotton42 million 42 million biotech biotech acresacres
52 million52 millionbiotech biotech margin margin
opportunitiesopportunities
==XX1.2 1.2
intensity intensity indexindex
CornCorn
* Monsanto traits only* Monsanto traits only
U.S. Biotech Margin OpportunitiesU.S. Biotech Margin Opportunities
23
Round 3:Round 3: Pipeline Potential Builds on Established Pipeline Potential Builds on Established PlatformPlatform
•• Continued Growth from Rounds 1 & 2Continued Growth from Rounds 1 & 2
•• Improved Food and Feed Biotech TraitsImproved Food and Feed Biotech Traits
•• Biotech Yield TraitsBiotech Yield Traits
Round 2 Round 3Round 1
24
Pipeline Products Reach New Markets and Expand Pipeline Products Reach New Markets and Expand Base in Corn, Soybeans and CottonBase in Corn, Soybeans and Cotton
Round 3: Food, Feed and Yield TraitsRound 3: Food, Feed and Yield Traits
Roundup Ready Roundup Ready Flex CottonFlex Cotton
YieldGard YieldGard Rootworm Rootworm
CornCorn
YieldGard YieldGard Corn BorerCorn Borer
Bollgard I & II Bollgard I & II CottonCotton
Roundup Roundup Ready Corn, Ready Corn, Soy, CottonSoy, Cotton
Commercialized Agronomic TraitsCommercialized Agronomic Traits
YGCB II CornYGCB II Corn YGRW II CornYGRW II Corn22ndnd GenerationGenerationAgronomic TraitsAgronomic Traits
Nitrogen Nitrogen Utilization CornUtilization Corn
Cold Tolerant Cold Tolerant CornCorn
Drought Tolerant Drought Tolerant Corn, Soy, CottonCorn, Soy, Cotton
YieldYield
Low Linolenic Low Linolenic SoySoy
Healthier Oil SoyHealthier Oil Soy(Low Linolenic(Low Linolenic
Mid OleicMid OleicLow Saturate)Low Saturate)
OmegaOmega--3 Soy3 Soy(Stearidonic acid)(Stearidonic acid)
FoodFoodFeedFeed
High Lysine CornHigh Lysine Corn
Enhanced High Enhanced High Lysine CornLysine Corn
Improved Protein Improved Protein SoySoy
Improved Protein SoyImproved Protein Soy(Beta Conglycinin)(Beta Conglycinin)
25DiscoveryDiscovery Phase 1Phase 1
Proof of ConceptProof of ConceptPhase 2Phase 2
Early DevelopmentEarly DevelopmentPhase 3Phase 3
Adv. DevelopmentAdv. DevelopmentPhase 4Phase 4
PrePre--LaunchLaunchLaunchLaunch
High Lysine Enhances Essential Amino Acids in FeedHigh Lysine Enhances Essential Amino Acids in FeedRound 3: Feed TraitsRound 3: Feed Traits
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBDTBDTBDTBDAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.Contributing PlatformsContributing Platforms
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
11 High Lysine Corn High Lysine Corn Enhance level of limiting Enhance level of limiting essential amino acids in feedessential amino acids in feed
Lower cost of animal feed rationLower cost of animal feed ration
Improved amino acid balanceImproved amino acid balance
High Lysine Corn High Lysine Corn –– Total LysineTotal Lysine
Inde
xed
Inde
xed
00
5050
100100
150150
Neg.Neg. Neg.Neg.Pos.Pos. Pos.Pos.Event 1Event 1 Event 2Event 2
TargetTargetIncreased total Increased total energyenergy
U.S. regulatory U.S. regulatory packages packages submittedsubmitted
26
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
High Lysine Enhances Essential Amino Acids in FeedHigh Lysine Enhances Essential Amino Acids in FeedRound 3: Feed TraitsRound 3: Feed Traits
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBDTBDTBDTBDAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
22 Field and Feeding Trial Update Field and Feeding Trial Update
Results from the Field
Coming in January 2005
Results from the FieldResults from the Field
Coming in January 2005Coming in January 2005
Field trials conducted in U.S. and Field trials conducted in U.S. and Argentina this yearArgentina this yearEvaluating over 12 hybrid genotypes in Evaluating over 12 hybrid genotypes in this yearthis year’’s programs programExcellent performance demonstrated in Excellent performance demonstrated in feeding trials to datefeeding trials to date
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
27DiscoveryDiscovery Phase 1Phase 1
Proof of ConceptProof of ConceptPhase 2Phase 2
Early DevelopmentEarly DevelopmentPhase 3Phase 3
Adv. DevelopmentAdv. DevelopmentPhase 4Phase 4
PrePre--LaunchLaunchLaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBD5M5M5MAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
Preparing for 2005 Launch of FirstPreparing for 2005 Launch of First--Generation Output Generation Output Trait PreTrait Pre--Launch Launch —— VISTIVE SoybeansVISTIVE Soybeans
Round 3: Food TraitsRound 3: Food Traits
11 VISTIVE Low Linolenic SoyVISTIVE Low Linolenic Soy
Std SoybeanStd Soybean
VISTIVEVISTIVE
SatsSatsLinolenicLinolenic
18:318:3 OleicOleicLinoleicLinoleic
A more stable soy oil A more stable soy oil requiring less requiring less hydrogenation: hydrogenation: reduce/eliminate trans reduce/eliminate trans fatsfatsYield parity and Yield parity and stacked with Roundup stacked with Roundup Ready traitReady traitLinolenic acid < 3% Linolenic acid < 3%
Contributing PlatformsContributing Platforms
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
28
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBD5M5M5MAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
Preparing for 2005 Launch of FirstPreparing for 2005 Launch of First--Generation Output Generation Output Trait PreTrait Pre--Launch Launch —— VISTIVE SoybeansVISTIVE Soybeans
Round 3: Food TraitsRound 3: Food Traits
22 Field Trial UpdateField Trial Update
Advanced field testing Advanced field testing Shipping several tons of oil to food companies Shipping several tons of oil to food companies for food formulation testingfor food formulation testingFinalizing processor programs; Ag Finalizing processor programs; Ag Processing, Inc. (AGP) and Cargill Processing, Inc. (AGP) and Cargill participatingparticipatingLaunch in 2005Launch in 2005
Results from the Field
Coming in January 2005
Results from the FieldResults from the Field
Coming in January 2005Coming in January 2005
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
29DiscoveryDiscovery Phase 1Phase 1
Proof of ConceptProof of ConceptPhase 2Phase 2
Early DevelopmentEarly DevelopmentPhase 3Phase 3
Adv. DevelopmentAdv. DevelopmentPhase 4Phase 4
PrePre--LaunchLaunchLaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBDTBDTBDTBDAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
Round 3: Food TraitsRound 3: Food TraitsOmegaOmega--3 3 Biofortification Is a Food Industry Biofortification Is a Food Industry BreakthroughBreakthrough
11 Oilseed Produced OmegaOilseed Produced Omega--33American Heart Assn., American Heart Assn., American Dietetic American Dietetic Assn., and 1,600+ Assn., and 1,600+ research studies research studies support health benefitssupport health benefits
18.7
%18
.7%23
.1%
23.1
%
24.9
%24
.9%29.4
%29
.4%
30.9
%30
.9%
32.0
%39.1
%39
.1%
Soy
Prot
ein
Soy
Prot
ein
Om
ega
Om
ega --
33Fi
ber
Fibe
r
Who
le G
rain
sW
hole
Gra
ins
Vita
min
CVi
tam
in C
Vita
min
EVi
tam
in E
Folic
Aci
dFo
lic A
cid
% general population % general population stating they consider theirstating they consider their
Omega-3 Deficiency Implicated in CVD
Rat
io d
ieta
ry o
meg
a-6:
3
4:1
80:1
Japan
UKUS Diet
Canada
Recommendations are for a ratio of 4:1
omega-6 to omega-3
CV deaths/100,00050 200
Vegetable oils Vegetable oils enriched with bioenriched with bio--available Omegaavailable Omega--33OmegaOmega--3 promotes 3 promotes heart healthheart healthEnhanced stabilityEnhanced stability
diet deficient diet deficient inin……PIC?PIC?
Contributing PlatformsContributing Platforms
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
30
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBDTBDTBDTBDAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
Round 3: Food TraitsRound 3: Food TraitsOmegaOmega--3 3 Biofortification Is a Food Industry Biofortification Is a Food Industry BreakthroughBreakthrough
22 Field Trial UpdateField Trial Update
2004 field trials in U.S. Midwest2004 field trials in U.S. MidwestAnalyzing OmegaAnalyzing Omega--3 oil assay in Davis, California and 3 oil assay in Davis, California and St. Louis labsSt. Louis labsTesting for taste, odor and for agronomic performanceTesting for taste, odor and for agronomic performance
Results from the Field
Coming in January 2005
Results from the FieldResults from the Field
Coming in January 2005Coming in January 2005
PIC?PIC?
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
31DiscoveryDiscovery Phase 1Phase 1
Proof of ConceptProof of ConceptPhase 2Phase 2
Early DevelopmentEarly DevelopmentPhase 3Phase 3
Adv. DevelopmentAdv. DevelopmentPhase 4Phase 4
PrePre--LaunchLaunchLaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBDTBDTBDTBDAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
Round 3: YieldRound 3: YieldDrought Stress Tolerance Is One of Potential New Drought Stress Tolerance Is One of Potential New Agronomic Traits in PipelineAgronomic Traits in Pipeline
Contributing PlatformsContributing Platforms
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
11 Drought ToleranceDrought ToleranceYield protectionYield protectionon all acres to on all acres to protect against protect against water deficitswater deficits
Yield enhancementYield enhancementon all acres on all acres through improved through improved water usewater use
Cost savingsCost savingson irrigated acreson irrigated acres
Pricing depends on choice Pricing depends on choice of marketof market
Stack with weed and insect Stack with weed and insect control traits enhances control traits enhances margin opportunitymargin opportunity
32
22 Field Trial UpdateField Trial Update
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBDTBDTBDTBDAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
Round 3: YieldRound 3: Yield
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
Drought Stress Tolerance Is One of Potential New Drought Stress Tolerance Is One of Potential New Agronomic Traits in PipelineAgronomic Traits in Pipeline
33
Contributing PlatformsContributing Platforms
DiscoveryDiscovery Phase 1Phase 1Proof of ConceptProof of Concept
Phase 2Phase 2Early DevelopmentEarly Development
Phase 3Phase 3Adv. DevelopmentAdv. Development
Phase 4Phase 4PrePre--LaunchLaunch
LaunchLaunch
Key Market AcresKey Market AcresKey Market Acres
0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBDTBDTBDTBDAvailable MarketAvailable MarketAvailable Market
ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.
Round 3: YieldRound 3: YieldDrought Stress Tolerance Is One of Potential New Drought Stress Tolerance Is One of Potential New Agronomic Traits in PipelineAgronomic Traits in Pipeline
GenomicsGenomics
ConventionalConventionalBreedingBreeding
Crop AnalyticsCrop Analytics
BiotechnologyBiotechnology
MolecularMolecularBreedingBreeding
33 Field Trial UpdateField Trial Update
With With TraitTrait
ControlControl
Results from the Field
Coming in January 2005
Results from the FieldResults from the Field
Coming in January 2005 Coming in January 2005
34
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
2003 2004 2005F 2006F
Momentum and Acceleration Are Reflected in Momentum and Acceleration Are Reflected in 2005 and 2006 Earnings Guidance2005 and 2006 Earnings Guidance
$1.42$1.42
$1.61$1.61
$1.77 $1.77 to to
$1.90$1.90
13% 13% growthgrowth
10% 10% -- 18% 18% growthgrowth
Diluted Earnings per Share on an Ongoing BasisDiluted Earnings per Share on an Ongoing Basis
Earnings per ShareEarnings per Share$1.95 $1.95
to to $2.09$2.09
10% 10% growthgrowth
††2006F is GAAP basis (i.e. ongoing basis is expected to equal GAA2006F is GAAP basis (i.e. ongoing basis is expected to equal GAAP basis)P basis)
††
SummarySummary
35
Value Shift to Seed Continues…Value Shift to Seed Continues…SummarySummary
Source: U.S. 1996Source: U.S. 1996--2003 Doane AgroTrak & Seed Studies; 2008 Monsanto Estimate2003 Doane AgroTrak & Seed Studies; 2008 Monsanto Estimate
Crop ChemicalsCrop Chemicals GermplasmGermplasm Biotech TraitsBiotech Traits
$4.5$4.5
$3.0$3.0
$0.1$0.1
1996 1996 $7.5 Billion$7.5 Billion
$3.6$3.6
$3.5$3.5 $1.3$1.3
20032003$8.4 Billion$8.4 Billion
$2.6$2.6$3.8$3.8
$2.7$2.7
2008F 2008F $9.2 Billion$9.2 Billion
Industry value shift from crop chemicals to Industry value shift from crop chemicals to seeds and traits is well under wayseeds and traits is well under way
36
Value Shift to Food, Feed and YieldValue Shift to Food, Feed and YieldSummarySummary
SeedSeed
CropChemicals
CropCropChemicalsChemicals Value ShiftValue ShiftValue Shift
AnimalNutritionAnimalAnimal
NutritionNutrition Value ShiftValue ShiftValue Shift
HumanHealthHumanHumanHealthHealth Value ShiftValue ShiftValue Shift
Water and Soil
Nutrients
Water and Water and Soil Soil
NutrientsNutrientsValue ShiftValue ShiftValue Shift
37
Questions?Questions?
38
Reconciliation of NonReconciliation of Non--GAAP Financial MeasuresGAAP Financial Measures
Reconciliation of NonReconciliation of Non--GAAP EPSGAAP EPS
Net Income (Loss)
Cumulative Effect of Change in Accounting Principle
Income (Loss) Before Cumulative Effect of Accounting Change
Restructuring Charges – Net
Estimated 2004 Discontinued Operations and Related Restructurings – Net
Goodwill Impairment Charge for Global Wheat Business
Net Income (Loss) from Ongoing Business
12 Months Ended Aug.31, 2004
12 Months Ended Aug. 31, 2003
$ per share$ per share
$0.99
--
$0.99
$0.36
$0.02
$0.24
$1.61
$0.26
$0.05
$0.31
$0.10
$0.05
--
$1.42
Solutia PCB Litigation Settlement Expense – Net -- $0.96
Fiscal Year 2005 Target
$2.16 - $2.29
--
$2.16 - $2.29
-
-
-
$1.77 - $1.90
--
Tax Benefit Related to Loss on Wheat and Barley Business -- --$(0.39)