Wells Fargo Industrial & Construction Conference

MICHAEL J. FRANK
Vice President, Global Commercial

May 6, 2015

Forward-Looking Statements
Certain statements contained in this presentation are "forward-looking statements," such as statements concerning the
company's anticipated financial results, current and future product performance, regulatory approvals, business and
financial plans and other non-historical facts. These statements are based on current expectations and currently
available information. However, since these statements are based on factors that involve risks and uncertainties, the
company's actual performance and results may differ materially from those described or implied by such forwardlooking statements. Factors that could cause or contribute to such differences include, among others: continued
competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including
those related to intellectual property protection, regulatory compliance and the speed with which approvals are
received, and public acceptance of biotechnology products; the success of the company's research and development
activities; the outcomes of major lawsuits and the previously announced SEC investigation; developments related to
foreign currencies and economies; successful operation of recent acquisitions; fluctuations in commodity prices;
compliance with regulations affecting the companys manufacturing; the accuracy of the company's estimates related to
distribution inventory levels; the recent increases in and expected higher levels of indebtedness; the company's ability
to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the
agriculture business or the company's facilities; and other risks and factors detailed in the company's most recent
periodic report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current
only as of the date of this presentation. The company disclaims any current intention or obligation to update any
forward-looking statements or any of the factors that may affect actual results.
Trademarks
Trademarks owned by Monsanto Company and its wholly-owned subsidiaries are italicized in this presentation. All other
trademarks are the property of their respective owners.

2015 Monsanto Company

Non-GAAP Financial Information

This presentation may use the non-GAAP financial measures of free cash flow, earnings per share (EPS) on an
ongoing basis, EBIT and EBITDA on an ongoing basis, EBITDA on an as reported basis, and net debt. We define free
cash flow as the total of cash flows from operating activities and investing activities. A non-GAAP EPS financial
measure, which we refer to as ongoing EPS, excludes certain after-tax items that we do not consider part of ongoing
operations, which are identified in the reconciliation. EBIT is defined as earnings (loss) before interest and taxes,
ongoing EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization and excludes certain
after-tax items that we do not consider part of ongoing operations, as defined in the reconciliation, and as reported
EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization. Earnings (loss) is intended
to mean net income (loss) attributable to Monsanto Company as presented in the Statements of Consolidated
Operations under GAAP. Net debt is defined as the sum of both short-term debt and long-term debt, less cash and
cash equivalents. Our presentation of non-GAAP financial measures is intended to supplement investors
understanding of our operating performance, not replace net income (loss) attributable to Monsanto Company, cash
flows, financial position, or comprehensive income (loss), as determined in accordance with GAAP. Furthermore, these
non-GAAP financial measures may not be comparable to similar measures used by other companies. The non-GAAP
financial measures used in this presentation are reconciled to the most directly comparable financial measures
calculated and presented in accordance with GAAP.

FISCAL YEAR:
References to year, or to fiscal year, are on a fiscal year basis and refer to the 12-month period ending August 31.

Proven Investment Thesis

Grounded in Long-Term Ag Demand Trends,
Innovation, and Value Capture

Rising incomes drive higher protein consumption

Projected population of >9 billion by 2050
Demand drives annual growth of >500M BU of corn and
>200M BU of soybeans through 2019
Recent estimates indicate global demand for corn has
grown by >800M BU compared to prior season

INNOVATION

Continuous R&D pipeline fuels mid-term and long-term

gross profit growth drivers across six technology
platforms
Longstanding leadership in innovation attracts top talent,
partnerships & licensing opportunities

CORN DEMAND
(IN BILLION BUSHELS)

DEMAND

GLOBAL CORN DEMAND ESTIMATES (20072019F)1

Actual

40

Forecast

37
34

~500M bushels / yr increase

over next 5 years based on
conservative estimates

31
28
2007

2010

2013

2016

INTEGRATED YIELD PIPELINE

CORE PLATFORM OPPORTUNITY

NEW PLATFORM OPPORTUNITY

CROP PROTECTION
INTEGRATED
YIELD
PIPELINE

BIOTECHNOLOGY

MICROBIALS

BREEDING

VALUE CAPTURE
Track record of strong earnings growth and conversion to
free cash flow
Commitment to returning value to shareowners through a
balanced capital allocation with a Net Debt to EBITDA
target ratio of 1.5

1. USDA historical data, future forecast and projections represent Monsanto internal estimates

2019

FINANCIAL STRATEGY: KEY FOCUS AREAS

FINANCIAL
DISCIPLINE

BUSINESS
GROWTH

RETURN VALUE
TO SHAREOWNERS

Monsantos 5-Year Growth

With Strong Core Business and Expanding Drivers,
Target to At Least Double Ongoing EPS By FY19
ONGOING EPS FY2010-FY2019F

KEY TECHNOLOGY UPGRADES

LONG-TERM GROWTH:
FY2014-FY2019F
$10.00

ONGOING EPS

$8.00

$6.00

$4.00

$2.00

$0.00

FY2010-FY2014
During first half of
decade Monsanto
delivered strong midteens-plus ongoing
EPS CAGR growth

Monsanto growth
strategy provides
opportunity to
at least double ongoing
EPS over 5-year period

2X

ROUNDUP READY 2 YIELD

Penetrated ~53M acres in 6 years (2014)
Licensees to drive further penetration

INTACTA RR2 PRO

Penetrated ~15M acres in FY15
Targeting 30M acres in FY16

ROUNDUP READY 2 XTEND

$5.23

Pre-commercial activities on track

Targeting >3M acre launch in FY16

2ND GEN SOY INSECT PROTECTION

$2.39

Phase 4 product designed to provide additional

modes-of-action, durability and broader spectrum

FY2010

FY2014

FY2019F

CAPITAL STRUCTURE OPPORTUNITY

Strong cash generation and capital structure, along with growth from core
and new platforms, create shareowner value.

CORN GERMPLASM UPGRADES

Core breeding capabilities and predictive analytics
drive refresh, mix lift and demand for new hybrids

NEXT-GEN CORN INSECT CONTROL

Additional modes of action for both above and below
ground pests targeting across the Americas

Global Corn Portfolio Growth

Breeding and Technology Upgrades
Enable Growth in Key Markets
REGION

U.S.

~80-90M ACRES

MULTI-STACK GLOBAL CORN PORTFOLIO

GROWER
VALUE
BREEDING

CURRENT

GERMPLASM UPGRADES: ~10-20% HYBRIDS REFRESHED ANNUALLY

Yield
Disease

GOSSS WILT
GRAY LEAF SPOT

BREEDING/BIOTECH
COMBINATION
Drought

SMARTSTAX PRO

Weed Control
Insect Control

SOUTH AMERICA
BREEDING
~40M ACRES
SHARE: ~40-50%+

Weed Control
Insect Control

EUROPE
~55M ACRES

3RD GEN ABOVE-GROUND

INSECT PROTECTION
GERMPLASM UPGRADES: ~10-20% HYBRIDS REFRESHED ANNUALLY

Yield

BIOTECH

STALK ROT COMPLEX

DROUGHTGARD EXPANSION1

BIOTECH

SHARE: MID-30S%

5-YEAR OUTLOOK ADDITIONS

Creating a step change by pairing temperate with tropical material for Brazil

NEW

VT DOUBLE PRO
VT TRIPLE PRO
Launched in Brazil summer season

SMARTSTAX PRO
3RD GEN ABOVE-GROUND
INSECT PROTECTION

GERMPLASM UPGRADES: ~10-20% HYBRIDS REFRESHED ANNUALLY

BREEDING

Yield
Silage Benefits

SHARE: MID-TEENSTO-20+%
1. Part of the Monsanto-BASF R&D Collaboration.

Leading yield performance across Europe (East and West)

Emphasis on Silage Hybrids for 20M Acre Market in 5-Year Plan
MID TO LATE MATURITY CORN

SILAGE QUALITY, EARLY CORN

Global Corn Performance

Despite Currency, Expect Positive Germplasm Mix,
and to Hold or Grow Share in Every Major Market
FY2015 GLOBAL CORN REGIONS
PERFORMANCE IN KEY AREAS

Q2 PERFORMANCE UPDATE
GLOBAL HIGHLIGHTS

U.S.
Position: #1
Share: Mid-30s%

Brazil
Position: #1
Share: >40%

LAS
Position: #1
Share: >50%

Eastern
Europe
Position: #1
Share: >20%
Monsantos global corn performance advantage
enables expected positive full year germplasm price
mix, exclusive of currency effects

Western

Europe

Position: #2
Share: Mid-teens

Reduced Refuge Family

maintains same % of
portfolio; Expected growth
in Genuity DroughtGard
Hybrids
More than 2 point share
growth in branded corn
share to date; Introduced
first rootworm trait with
launch of VT Triple PRO
Maintaining strong share
position; Triples continue
to be the trait of choice
Leveraging strength of our
existing genetics provides
yield advantage similar to
the U.S.; making
investments to accelerate
yield gains

Launched several new

silage hybrids in Western
Europe.

Decade of the Soybean

Multi-Stack Portfolio Upgrades Address Primary
Needs for Growers From North to South America
REGION

GROWER
VALUE

MULTI-STACK SOYBEAN PORTFOLIO UPGRADES

NORTH
AMERICA
>80M
ACRES
BRAZIL

WEED
CONTROL

YIELD

Planning for Seed Production of

> 60 Varieties Across Branded
and Licensed Seed Partners
Reached
~53M Acres
in 2014

WEED
CONTROL

>70M
ACRES

INSECT
CONTROL

YIELD

ARGENTINA

Record ~15M
Acres Across S.
America in 2015

WEED
CONTROL

YIELD

2ND
GENERATION
INSECT
PROTECTION

2nd GENERATION
INSECT
PROTECTION

INSECT
CONTROL

>50M
ACRES

Potential for Largest Technology

Launch Ever

Record ~15M
Acres Across S.
America in 2015

2nd GENERATION
INSECT PROTECTION

2nd GENERATION
INSECT PROTECTION

Intacta RR2 PRO Soybeans

Fastest Expected Ramp of any Soybean Trait
Targeting 100 Million Acre Opportunity
INTACTA RR2 PRO

KEY MILESTONES

U.S. Genuity Roundup Ready 2 Yield Soybeans

Intacta RR2 PRO Soybeans

60

FASTEST RAMP OF ANY

SOYBEAN TRAIT

55

Strong performance and

broad licensing drove
penetration to 5 times
Year 1 launch of 3M acres

ACRES (IN MILLIONS)

50
45
40
35

GENETIC DIVERSITY DRIVES

ADOPTION

Years 3 & 4 of new

technologies typically
represent largest step up
in penetration

More than twice the level

of U.S. Genuity Roundup
Ready 2 Yield Soybeans
in Year 2

30M
ACRE
TARGET

53

43

32

Intacta RR2 PRO Soybeans penetrated

~15M acres in FY15, five times our
record year one launch
Expanded production of varieties for
2016 sales to >150 varieties in Brazil
alone
Now expect ~30M acres across South
America for FY16
Technology licensed to germplasm
providers with >90% share in South
America

30
25
20

15

15
10
5

1.5

OUTLOOK: 2ND GENERATION INSECT

PROTECTION (PHASE 4)

17

MARKET
OPPORTUNITY:

Multiple modes-of-action designed to

enhance durability and expanded
spectrum including armyworm and
podworm

Full Canadian approval enabled China

regulatory import submission

0
1

Year
TRAIT PENETRATION STARTING WITH PRODUCT LAUNCH

>100M ACRES

Strong Second-Year Yield Performance

Results for INTACTA RR2 PRO Soybeans Validate
Yield Benefits and Growth Opportunity
UPDATE

INTACTA RR2 PRO FIELD PERFORMANCE FY15

FIELD PERFORMANCE: BALSAS, MARANHAO STATE FEB 06, 2015

UPDATE

BRAZIL SECOND-YEAR
COMMERCIAL YIELD DATA1

>4

BUSHELS/ACRE

60

58.7

BU/AC

YIELD
ADVANTAGE

55

54.4
50

Roundup Ready
Soybeans
WITH INSECTICIDE
TREATMENT

COMPARISONS:
PERCENT HARVESTED:

1,923
89%

2015 PERFORMANCE
INTACTA RR2 PRO

ROUNDUP READY PLOT WITH 3

INSECTICIDE APPLICATIONS

In Brazil, approximately 55,000 growers experienced the benefits of Intacta

RR2 PRO first hand in its second year of commercialization.
Intacta RR2 PRO has shown unsurpassed insect protection in commercial
side-by-side trials this season.

With 89% harvest data complete, the Intacta

RR2 PRO second-year commercial yield
performance continues to show >4 bu/ac
average advantage
Average yield performance advantage in
Monsanto commercial products is >5 bu/acre

1. Yield data based on approximately 89 percent of harvest data in commercial field strip trials across 187 locations comparing top RR1 varieties for each region managed with
insecticides as needed to untreated Intacta varieties.

10

Roundup Ready Xtend Crop System

Integrated Soybean Agronomic System
Targets Almost 200 Million Acres Globally
ROUNDUP READY XTEND CROP SYSTEM TRIALS HUXLEY, IA 2014

CURRENT STATUS
OPPORTUNITY:

COMMERCIAL
LICENSES:
REGULATORY
STATUS:

NEW

UNTREATED CONTROL

ROUNDUP READY XTEND CROP SYSTEM

AND ROUNDUP READY PLUS SYSTEM

LAUNCH
PLANS:

Majority of 200M ACRES

N. AND S. AMERICA SOY ACRES

TARGETING SEED
COMPANIES WITH >90%
OF U.S. SOYBEAN ACRES
ON TRACK FOR 2016
LAUNCH1
EU IMPORT APPROVAL
RECEIVED
EXPECT >3M ACRE
LAUNCH WITH >60
VARIETIES COVERING
ALL MATURITY GROUPS

THREE SOURCES OF VALUE IN ROUNDUP READY XTEND CROP SYSTEM

Innovative Traits in Leading

Germplasm

Enhanced Chemistry Options

1. USDA deregulation received. Awaiting EPA approval for in-crop use .

Greater Flexibility,
Weed Control and Yield Potential

11

Bollgard II XtendFlex Cotton

Roundup Ready XTEND Crop System Update
2014 GROUND BREAKERS TRIALS
Gordon, AL

SYSTEM BENEFITS
Bollgard II XtendFlex Cotton is the industrys first 3-way
stack of herbicide tolerant technologies in cotton,
including Bollgard II with Roundup Ready FLEX cotton
stacked with dicamba1-and-glufosinate-tolerant cotton;
designed to be the most effective weed management
system available
Glyphosate application window
Glufosinate application window

UPDATE

Dicamba1 application window

Bollgard II Roundup Ready FLEX

System
Weed Management Program:
PRE-PLANT:Treflan(1.5pt) +
Reflex(12 oz)
POST: Roundup PowerMax plus
Warrant at 4-5 nodes

Bollgard II XtendFlex Variety

Weed Management Program:
PRE-PLANT: Treflan (1.5pt) +
Reflex (12 oz) + 0.5 lbs dicamba1
POST : 48 ounce application of
dicamba1 and glyphosate premix

Limited introduction for 2015 season now estimated to be on more than 700,000 acres, above target of 500,000 acres
With 100% of current supply on order in the U.S., we are in a sold-out position and now expect Deltapine to take over as the
#1 planted cotton brand this season due to high demand for new herbicide tools and new varieties
Glyphosate and glufosinate approved for in-crop use; in-crop use of dicamba pending regulatory approval
$6/acre price premium; fully rebated in 2015 as an introductory XtendFlex Chemistry discount
Five Deltapine varieties available in 2015, in maturities that fit across the entire upland cotton belt
Trained more than 1,600 growers and stakeholders on the weed management system since January 1st

1. Pending final regulatory approvals. In-crop use of Dicamba pending regulatory approvals; not authorized for in-crop use in 2015.

12

New Ag Biological Platforms

Potential New Breakthrough Agriculture
Solutions for Farmers
MONSANTO AG BIOLOGICALS
TECHNOLOGY PLATFORMS

MONSANTO AG BIOLOGICALS
PLATFORM
FACTORS:

Ag Biologicals is a growing market which

complements Monsantos focus on yield and
productivity
Leverages Monsantos R&D and genomics
capabilities as well as field testing capabilities
Potential manufacturing and commercial
synergies for cost effective farmer solutions
Market fit across regions and across crops

PLATFORM HIGHLIGHTS:
BIODIRECT

TECHNOLOGY:

THE BIOAG
ALLIANCE:

BioDirect project work

reflects breadth of the
technology with focus across
disease, insect and weed
control and bee health targets
Novozymes and Monsanto
establish industrys only
integrated platform for
microbials elevating
opportunity in multi-billiondollar market

ESTABLISHED MICROBIAL
LEADERSHIP

Microbials

WEED
Weed
CONTROL
Control

BioYield
CONTROL

WEED
Disease
CONTROL
Control

BioControl

WEED
Insect
CONTROL
Control

MICROBIALS
New approaches to yield and protection
in seed treatments - increasingly new
technologies like seed treatments provide
an added layer of protection and
enhancement for the seed itself

WEED
Bee
CONTROL

Health

BIODIRECT TECHNOLOGY
New topically-applied RNAi-based tools
would provide new ways to target
weeds, bugs, and disease

13

The Climate Corporation Platform

Significant Commercial Progress Across Key
FY2015 Priorities
COMMERCIAL MILESTONES

INVESTMENT MILESTONES:

STEP UP INVESTMENT TO
LEVERAGE HEAD START

Continued investment in new platform to enhance modeling,

insights, capabilities and data connectivity
Successful 640 Labs acquisition to improve connectivity and
ease of data transfer

CULTIVATE ACTIVE ENROLLMENT

TO BUILD PLATFORM

+50%
Increase active

acres1

by 50%

BUILD RUNWAY FOR PREMIUM

OFFERING
Targeting to double acres of premium
offerings in FY15, including Climate
PRO and FieldScripts offerings
Long-term and operating agreements
with key partners enable broad
distribution

ENROLLMENT MILESTONES:

75M ACRES

Registered CLIMATE BASIC acres now exceed

Enrollment and usage trends put us on track to meet or

exceed active usage target of 45M acres

PREMIUM OFFERING MILESTONES

Launched Enhanced Climate Pro Offerings

NITROGEN

FIELD HEALTH

Orders for premium offerings now exceed

3M ACRES

Continued progress developing partnerships across retail,

distribution, and equipment companies.

1. Active acres are defined as the acre base by a Climate BASIC user averaging more than one visit per week during the season

14

Proven Investment Thesis

Grounded in Long-Term Ag Demand Trends,
Innovation, and Value Capture

Rising incomes drive higher protein consumption

Projected population of >9 billion by 2050
Demand drives annual growth of >500M BU of corn and
>200M BU of soybeans through 2019
Recent estimates indicate global demand for corn has
grown by >800M BU compared to prior season

INNOVATION

Continuous R&D pipeline fuels mid-term and long-term

gross profit growth drivers across six technology
platforms
Longstanding leadership in innovation attracts top talent,
partnerships & licensing opportunities

CORN DEMAND
(IN BILLION BUSHELS)

DEMAND

GLOBAL CORN DEMAND ESTIMATES (20072019F)1

Actual

40

Forecast

37
34

~500M bushels / yr increase

over next 5 years based on
conservative estimates

31
28
2007

2010

2013

2016

INTEGRATED YIELD PIPELINE

CORE PLATFORM OPPORTUNITY

NEW PLATFORM OPPORTUNITY

CROP PROTECTION
INTEGRATED
YIELD
PIPELINE

BIOTECHNOLOGY

MICROBIALS

BREEDING

VALUE CAPTURE
Track record of strong earnings growth and conversion to
free cash flow
Commitment to returning value to shareowners through a
balanced capital allocation with a Net Debt to EBITDA
target ratio of 1.5

1. USDA historical data, future forecast and projections represent Monsanto internal estimates

2019

FINANCIAL STRATEGY: KEY FOCUS AREAS

FINANCIAL
DISCIPLINE

BUSINESS
GROWTH

RETURN VALUE
TO SHAREOWNERS

15

Reconciliation of Non-GAAP
Financial Measures
RECONCILIATION OF ONGOING EPS

Fiscal Year
2014

2010

$5.22

1.99

--

$0.41

Income on Discontinued Operations

$(0.03)

$(0.01)

Legacy Environmental Settlements

$0.04

--

$5.23

$2.39

$ Per share
Diluted Earnings per Share
Restructuring Charges, Net

Diluted Earnings per Share from Ongoing Business

16