Monsanto's Seventh Whistle Stop Tour - AUGUST 20-21, 2014
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Monsanto’s Seventh Whistle Stop Tour
AUGUST 20-21, 2014
Forward-Looking Statements
Certain statements contained in the Whistle Stop 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 forward-looking statements. Factors that could cause or contribute to such differences include, among others:
continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies,
including those related to intellectual property protection, regulatory compliance and the speed with which approvals are
received, and public acceptance of biotechnology products; the success of the company's research and development
activities; the outcomes of major lawsuits 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 our manufacturing; the accuracy of the company's estimates related to distribution
inventory levels; 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 the 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.
© 2014 Monsanto Company
2
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.
3
Innovation Differentiates Monsanto and Enables
Sustainable Growth
HUGH GRANT
Chairman and Chief Executive Officer
August 20, 2014
Innovation Differentiates Monsanto:
Combination of Innovation and Portfolio Strength
Supports Growth in Variable Environment
ONGOING EPS FY2010-FY2014F
®
Ongoing EPS CBOT Corn Futures
$5.50 $5.10-
Agriculture may be $5.20
$8.00
commodity oriented, but $5.00
COMMODITY VOLATILITY
Monsanto is differentiated
CBOT FUTURES (USD/BU)1
$4.56 $7.00
by innovation $4.50
ONGOING EPS
$6.00
Over the past five years: $4.00
$3.70
Corn commodity price $5.00
$3.50
has swung more than
100 percent … $2.96
$3.00 $4.00
...while Monsanto has
delivered consistent, $2.50 $2.39 $3.00
strong business growth
$2.00 $2.00
Monsanto’s innovation 20102010 2011
2011 2012
2012 2013
2013 2014F
2014
advantage is the strategic
differentiator: creating more
INNOVATION
HIGHLIGHTS
Upgrade track for Launch and expansion Launch of next-generation
growth drivers and more Genuity Reduced- of corn traits in LatAm soybean platform targeting
levers in both the current Refuge corn family and 100M+ acre opportunity,
environment and over the long Genuity Roundup Ready featuring Intacta RR2 PRO
term opportunity 2 Yield soybeans
ANNUAL GERMPLASM UPGRADES
1. CBOT 5
Monsanto Affirms Full-Year Outlook:
Growth is on Track in More Challenging Macro
Environment
NEAR-TERM OUTLOOK TRACKING OPERATIONAL GROWTH:
ONGOING EBITDA FY2011-FY2014F
Despite increased headwinds across the CORE BUSINESS GROWTH: ONGOING EBITDA
macro agriculture industry, Monsanto is on Given dilution effect of The Climate Corporation on bottom-
$4,650-
$5,000 line, a useful way to see core business growth is through
track for current guidance to be at high end of operational metrics – where Ongoing EBITDA growth is $4,800
its initial FY14 ongoing EPS and Free Cash expected at mid-to-high teens for FY14
Flow guidance ranges $4,500
ONGOING EBITDA
$4,059
CURRENT-YEAR GROWTH
IN MILLIONS
$4,000
Despite industry headwinds, Monsanto $3,693
delivering growth commitments in $3,500
toughest macro ag environment in
several years $3,000
$3,000
CONTINUED GROWTH
$2,500
• Monsanto has portfolio in place with
more drivers and more levers,
$2,000
reinforcing confidence in continuing FY2011 FY2012 FY2013 FY2014F
growth, with projected annual growth
continuing from FY15 through FY19 ONGOING EPS $2.96 $3.70 $4.56 $5.10-$5.20
FREE CASH $700M -
$1,839M $2,017M $1,963M
FLOW $800M
6
Mega-Trends Matter:
Demand-Driven Global Need for Grain Sets
Important Runway for Ag Sector
CORN DEMAND MOMENTUM SOY DEMAND MOMENTUM
EX: GLOBAL CORN DEMAND ESTIMATES (2007 – 2019F)1 EX: GLOBAL CORN DEMAND ESTIMATES (2017 – 2019F)1
Actual Forecast CORN DEMAND Actual Forecast SOY DEMAND
40 12
(IN BILLION BUSHELS)
(IN BILLION BUSHELS)
CORN DEMAND
37
SOY DEMAND
10
34 ~500M bushels / yr ~200M bushels / yr
increase over next 5 increase over next 5
years based on 8
31 years based on
conservative estimates conservative estimates
28 6
2007 2010 2013 2016 2019 2007 2010 2013 2016 2019
LAST 5 YEARS NEXT 5 YEARS LAST 5 YEARS NEXT 5 YEARS
ADD’L CORN PRODUCTION
ADD’L SOY PRODUCTION
(YIELD VS ACRES %)
(YIELD VS ACRES %)
~5% ~15% ~15%
ACRES YIELD ACRES
~40% ~60% ~95%
YIELD ACRES YIELD
~85% ~85%
ACRES YIELD
1. USDA historical data, future forecast and projections represent Monsanto internal estimates 7
Demand Response:
In Years Following Corn Price Pressure, Feed
Demand Response is Historically Strong
PERIODS OF CORN PRICE DECLINE FEED DEMAND FOLLOWING PRICE DECLINES2
CBOT Corn
$8.00 Historical Corn Price Declines
❸
CBOT FUTURES (USD/BU)1
$7.00
1996 to 1998 2 Year Global Feed
Demand Response
$6.00 May ‘96 Aug’98 ∆%
❹
$5.05 $2.00 -60% ~1B Bushels
$5.00 ❶
$4.00
2004 2 Year Global Feed
$3.00 ❷ Apr ‘04 Dec ’04 ∆% Demand Response
$3.37 $2.01 -40% ~1.1B Bushels
$2.00
$1.00
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
2008 to 2009 2 Year Global Feed
Jun ‘08 Sep ’09 ∆% Demand Response
$7.68 $3.06 -60% ~0.8B Bushels
2014 =
Average Feed Demand Growth in corn over the Apr ’14 Aug ’14 ∆% Average Demand
last 15 years has been ~300M bushels per year, $5.22 $3.65 -43%
Response of
~500M Bu / Year
but in years following significant price declines it
Leading Indicator: Investments in animal food
has been ~500M Bushels per year production point to increase in feed demand
driving sustainable demand growth
1. CBOT
2. USDA historical demand data 8
Monsanto’s 5-Year Growth:
With Strong Core Business and Expanding Drivers,
Monsanto Targets At Least Double Ongoing EPS By FY19
5-YEAR GROWTH TARGET
ONGOING EPS FY2010-FY2019F
Given strength of business and
compelling line of sight, Monsanto sees
sustained opportunity for long-term growth
LONG-TERM GROWTH:
FY2014F-FY2019F
KEY FACTORS:
$10.00 Monsanto growth
CORE BUSINESS GROWTH strategy provides
opportunity to
2X
Strong embedded growth from the core business $8.00 at least double ongoing
is expected to deliver more than $4 billion of total FY2010-FY2014F
ONGOING EPS
EPS over 5-year period
gross-profit growth from core seeds-and-traits
engine alone During first half of decade
$6.00 Monsanto delivered
strong mid-teens-plus
NEW PLATFORM OPPORTUNITY ongoing EPS CAGR
growth
$4.00
Opportunity for growth on top of core from
transformational new platforms: Expect The
Climate Corporation platform to emerge as
$2.00 $2.39
meaningful contributor to earnings and growth in
5-year horizon
$0.00
CAPITAL STRUCTURE OPPORTUNITY FY2010 FY2014F FY2019F
Strong cash generation and capital structure
strengthen growth from core and new platforms
and create shareowner value
9
Whistle Stop 7
Highlights
Despite significant ag industry ®
headwinds, Monsanto on track DIFFERENTIATED GROWTH
to deliver strong growth in FY14 OPPORTUNITY The Climate Corporation
• Built on a core with momentum holds potential as
On track to more than
$4B double ongoing EPS and strong embedded organic
growth
integrating platform for ag
on 1B acre opportunity
through 2019 on the
• Cultivating transformational Better-than-expected user
strength of $4B total GP
new platforms with compelling base using flagship 2.5X
growth from core growth opportunity products frequently sets
• Leveraging business strength foundation for ramp
$1B+ Three $1B+
$1B+
and cash-generation to
platforms drive strengthen long-term growth Biologicals poised as next major
$1B+ core GP growth new technology advance in
industry
BioAg Alliance with Novozymes position
“Decade of the Soybean”
microbial solutions as important “beyond-
the-seed” technologies
Growing portfolio and expanding BioDirect technology
holds promise of new
footprint across global corn
set of tools for farmers
10With Multiple Drivers in Diverse Portfolio, Core
Business Drives Growth
BRETT BEGEMANN
President and Chief Operating Officer
August 20, 2014Three $1B+ Platforms Power $4B Growth:
With 3 Key Platforms, Core Seeds-and-Traits Engine is
Positioned for >$4 Billion in Expected Total GP Growth
GROSS PROFIT PROFILE: FY2014-FY2019F Strong embedded growth from the
core business expected as largest
>$4B EXPECTED TOTAL GP GROWTH
driver through FY2019, leveraging
multiple, $1B-plus-opportunities
$11,000 KEY $1B+ PLATFORMS
Backing the growth in the core seeds- Majority of growth comes from three
and-traits engine are 3 key platforms $1B-plus-potential platforms:
expected to deliver $1B+ each
$10,000
COMPLEMENTARY
GROWTH IN
BLOCKBUSTER SOYBEAN UPGRADES
SEEDS & TRAIT Significant opportunity created by build
PORTFOLIO
GROSS PROFIT
out of soy platform with Intacta RR2 PRO
$9,000
EXPANDING ramp up combined with Roundup Ready
CORN Xtend platform
FOOTPRINT &
$8,000
PORTFOLIO
LEVERAGE GLOBAL GERMPLASM UPGRADES
GLOBAL
GERMPLASM Ability to upgrade global portfolio every
UPGRADES year in every key corn-growing region
drives reliable portfolio mix uplift annually
$7B $7,000
BLOCKBUSTER and important cumulative growth factor
SOYBEAN
GLOBAL CORN FOOTPRINT EXPANSION
$6.6B+ UPGRADES
AND PORTFOLIO LEVERAGE
$6,000
FY2019F
FY2014F FY2019F FY2014F
Global opportunity drives growth through
SEEDS & TOTAL CORE operational efficiency, volume opportunity
GENOMICS GP GROSS-PROFIT
GROWTH
via market expansion and footprint
growth, along with further penetration of
CORE ENGINE CATEGORIES: SOYBEANS CORN OTHER CROPS trait portfolio
12The Opportunity in Soybeans:
With Rapid Upgrade Cycle Driving Most Significant
New Driver, Soybeans Expected as $1B+ Platform
$1B+ INTACTA RR2 PRO
PLATFORMS
BLOCKBUSTER SOYBEAN UPGRADES U.S. Genuity Roundup Ready 2 Yield Soybeans
WHAT DRIVES GROWTH? Intacta RR2 PRO Soybeans
1. Roundup Ready 2 Yield expansion and licensing 45 43
FASTEST RAMP OF ANY
2. Intacta RR2 PRO ramp up to 100M-acre opportunity SOYBEAN TRAIT
3. Roundup Ready Xtend platform upgrade to 150M- 40
• With early view on supply
acre opportunity availability, targeting step up
35 32
ACRES (IN MILLIONS)
of 3 to 4 times the reach
WHAT IS THE STATUS IN FY2014? across Latin America
30 • Twice the level of U.S. Genuity
• Reflecting early contribution from key factors, Roundup Ready 2 Yield
soybeans on track for record year 25 Soybeans
• With successful first-year launch in Brazil, Intacta
RR2 PRO is largest ever soybean trait launch 20
17
setting up further ramp up 10-12M
15
WHAT ARE THE NEXT MILESTONES? ACRES
• With early view on supply availability, targeting 10
6
step of 3 to 4 times first-year volume for FY15 –
5 3
with an expected 10-12M acres 1.5
• Commercial scale up begins in Argentina, 0
Paraguay and Uruguay, marking next step in ramp
1 2 3 4 5
trajectory
Year
TRAIT PENETRATION STARTING WITH PRODUCT LAUNCH
13Global Corn Portfolio Upgrades:
New Products Drive Annual Portfolio Upgrades
Across Largest Global Platform
FY14 EXAMPLE: ACTUAL U.S. DEKALB
$1B+ BRANDED PORTFOLIO COMPOSITION
PLATFORMS
GLOBAL GERMPLASM UPGRADES
WHAT DRIVES GROWTH? 60.0%
PORTFOLIO VOLUME
• Industry-leading breeding program allows
(IN SEED UNITS)
Monsanto to upgrade its seed portfolio every year 40.0%
in every key corn-growing region creating a
steady mix uplift in the biggest global business 20.0% In FY14, new
WHAT ARE THE NEXT MILESTONES? offerings
represented
• Into FY15, portfolio mix continues to be one 0.0% strong portion
MATURE PROVEN
CORE HYBRIDS NEW HYBRIDS
of the largest drivers of global growth: HYBRIDS HYBRIDS 2-3 YEARS IN FIRST-YEAR of volume in
4+ YEARS IN 3-4 YEARS IN PORTFOLIO INTROPDUCTIONS
• As in FY14, on track for upgrade of significant
PORTFOLIO PORTFOLIO DEKALB
portfolio … in
portion of global portfolio, with higher-value
FY15, on track
new products driving realized price-mix lift in EXAMPLE: U.S. DEKALB for similar
portfolio PORTFOLIO OUTLOOK percent of new
products –
2015 Priorities: 60.0% creating
• Keep business in touch with grower customers and primary source
PORTFOLIO VOLUME
the critical operational decisions they make, as seed of portfolio
(IN SEED UNITS)
is important 40.0% refresh, new
• Mix drives the portfolio and Monsanto is on track to value creation
introduce a similar percent of new better-performing and sustained
20.0%
products to the portfolio mix uplift
• Offer even more product choices to ensure
customers have the right portfolio choice to meet 0.0%
MATURE PROVEN
their agronomic and economic needs HYBRIDS HYBRIDS
CORE HYBRIDS
2-3 YEARS IN
NEW HYBRIDS
FIRST-YEAR
4+ YEARS IN 3-4 YEARS IN PORTFOLIO INTROPDUCTIONS
PORTFOLIO PORTFOLIO
14Expanding Global Corn Footprint:
Technology Upgrades Drive Market Expansion,
Mix Lift and Volume Growth Opportunity
EMERGING MARKET OPPORTUNITIES
$1B+
PLATFORMS
EXPANDING CORN FOOTPRINT WESTERN CANADA EASTERN EUROPE
PORTFOLIO LEVERAGE
DRIV
WHAT DRIVES GROWTH?
ERS U.S. underscores
• Genetic strength in Northern
performance
• New, higher-growth markets drive volume • Investments in breeding for early maturities
• Continued upgrades drive expansion opportunities improves economics in growing markets
49°N
in existing core markets
• Expanding footprint allows for continued growth of
trait penetration
WHAT ARE THE NEXT MILESTONES?
• Continued focus on new market opportunities,
including Eastern Europe, which holds potential to NORTHERN U.S. “DAKOTA EFFECT”
be among the fastest-growing corn regions
• Leverages unique mix of market growth, increasing “DAKOTA EFFECT” DRIVES GROWTH IN CORN MARKET EXPANSION
share and portfolio mix upgrade NEW MARKETS EXAMPLE: NORTH & SOUTH DAKOTA1
Yield Improvements WHEAT ACRES CORN ACRES
As yields improve to levels that make corn 14
more profitable vs. other crops, like wheat and
barley, acres convert to corn 12
10
Macro Factors
Environments and infrastructure become 8
more supportive for corn production and
transportation to expanding markets 6
Proven Germplasm and Seed 4
Footprint
Performance and investments in breeding 2
and capacity enables volume growth through
share and market expansion 0
1998 2001 2004 2007 2010
1. NASS USDA
15Innovation is the Proven Strategic Advantage
Differentiating Monsanto and Creating Opportunity
DR. ROBB FRALEY
Chief Technology Officer
August 20, 2014R&D Advantage in Action:
Monsanto Has More Platforms and Proven
Technology Driving Commercial Opportunity
APPLYING TECHNOLOGY TO DRIVE YIELD AND PRODUCTIVITY:
R&D ENGINE R&D TECHNOLOGIES YIELD & PRODUCTIVITY OPPORTUNITY
BREEDING YIELD IS A SYSTEM
Multiple components come together to
ANNUAL UPGRADES drive yield, with more platforms coming
BREEDING BREEDING TRAITS
together in more ways than ever
INTEGRATED BIOTECH
YIELD
BIOTECH PIPELINE
AGRONOMIC TRAITS
YIELD & STRESS1
DATA SCIENCE AGRONOMIC Innovation hub positions Monsanto to
SOLUTIONS drive on-farm productivity across more
platforms than anyone in the industry:
CHEMISTRY
NEW AND EXPANDING PLATFORMS IN THE SEED Seed is centerpiece as it establishes
+
yield potential of the whole system
More data is being leveraged to integrate
BIOLOGICALS Seed treatments provide added layer
the platforms IN THE BAG
+
of protection & enhancement
CLIMATE CORP
Technology that improves in-field
PLATFORM IN THE FIELD performance – like crop-protection &
= precision ag – matter more than ever
ON-FARM YIELD & PRODUCTIVITY
1. Part of the Monsanto-BASF Yield-and-Stress R&D Collaboration 17Monsanto’s Technology Leadership:
Provides Strength in FY14 & Sets Up
Runway of Continued Growth
MONSANTO’S TECHNOLOGY LEADERSHIP
Drives Monsanto’s business opportunity – this is reflected in a number of key FY14
milestones which highlight the strength of the core seed-and-trait business and our
platform for continued growth GROWTH OUTLOOK:
FUTURE GROWTH HIGHLIGHTS
IN THE FIELD 1B-ACRE PRECISION AG OPPORTUNITY
The Climate Corporation products and services
BIODIRECT: • CLIMATE CORP
can be deployed globally and across crops,
NEW PLATFORMS reaching market opportunity of >1B acres
PLATFORM:
Launch of The Climate NEW BIOLOGICALS PLATFORM
CLIMATE CORP: Corporation Platform on track
NEW PLATFORMS
New topically-applied RNAi-based tools
to exceed original targets would provide new ways to target weeds,
bugs, and disease
IN THE BAG
MICROBIALS: NEXT MAJOR
• BIOAG ALLIANCE: “BEYOND-THE-SEED” PLATFORM
Novozymes and Monsanto establish
MICROBIALS: Created BioAg Alliance with Novozymes –
industry’s only integrated platform for
NEW PLATFORMS initiating premier microbial R&D engine in
industry microbials – elevating opportunity in multi-
billion-dollar market
IN THE SEED THREE $1B+ PLATFORMS DRIVE
CORE GROSS PROFIT GROWTH
• MIX LIFT: Mix lift validated in global corn seed portfolio,
BREEDING: despite currency headwinds Strong embedded growth from the core
GENETICS PIPELINE business expected as largest driver through
• COGS IMPROVEMENT & VOLUME: Corn cost FY2019, with blockbuster soybean upgrades,
improvement visible in U.S. & overall corn volume on par with
global corn germplasm upgrades, and
BIOTECH: record-volume years despite acre decline in highest-value markets
expanding corn footprint opportunities
NEXT-GEN TRAITS • INTACTA RR2 PRO LAUNCH:
3M acre launch, largest soybean trait launch ever
18Breeding a Cornerstone Capability:
Drives Annual Portfolio Upgrades and Targeted
Plant Health Opportunities
BREEDING R&D ADVANTAGES ANNUAL BREEDING GAINS
EXAMPLE: GLOBAL CORN GERMPLASM PORTFOLIO UPGRADE
ANNUAL MIX BENEFIT:
GLOBAL PLANT
DEKALB PORTFOLIO
New higher-value seed
GENETIC DATABASE
RELATIVE MIX IN
hybrids replace hybrids
Large & most diverse collection of plant that average 4-6 years
old, creating a
genetics drives continuous product compounding
improvement benefit
LEADING DISCOVERY
TECHNOLOGIES
Revolutionizing breeding using high- LOWEST VALUE HIGHEST VALUE
throughput screening & advanced marker 10-20% 25-40% 25-40% 10-20%
PROVEN CORE
technologies creates valuable new solutions MATURE HYBRIDS HYBRIDS HYBRIDS
FIRST-YEAR HYBRIDS
for farmers
TESTING CAPABILITY
TARGETED BREEDING OPPORTUNITIES
EXAMPLE: DISEASE RESISTANCE PROGRAM
AND SCALE ENHANCING GENETIC
Largest global testing network to identify, ANTHRACNOSE STALK ROT:
RESISTANCE: 2013 FIELD TRIALS
select and deploy the best performing Advanced breeding tools are used
products locally to identify, select and deploy Elite germplasm with
disease resistance genes enhanced resistance shows
9
Disease Rating
HIGHLIGHT: 8 significant reduction in
DATA SCIENCE
(1-9 Scale)
7 damage from ASR
DRIVES SOLUTIONS CORN BREEDING PROJECTS1 6
5
Data Science tools drive more efficient Anthracnose Stalk Rot 4
Resistance (Lead Project) 3
predictive analytics increasing our 2
probability of success
Goss’s Wilt Resistance 1
Gray Leaf Spot Resistance Susceptible Resistant
2nd Gen Stalk Rot Resistance
Our breeding capability matters for two key reasons:
►Provides the horsepower to upgrade the global germplam portfolio every year Field Trials – 2013: Field trials demonstrate enhanced
resistance to Anthracnose Stalk Rot
►Allows breeders to unlock specific, targeted breeding opportunities
1. Commercial product may be a combination of projects or the individual projects themselves
19Whistle Stop Highlight:
Roundup Ready 2 Xtend
Crop System
$1B+
PLATFORMS U.S. TRAIT LICENSING PROFILE
BLOCKBUSTER SOYBEAN UPGRADES
Targeting seed companies with total
market share access representing:
ROUNDUP READY >90%
XTEND CROP SYSTEM OF U.S. SOYBEAN ACRES
With commercial licensing structure
150M+ ACRES for the Roundup Ready Xtend crop
MARKET OPPORTUNITY: N. AND S. AMERICA SOY
ACRES system. Many are actively breeding
products for commercial
PROGRESS MILESTONES: introduction … establishing the
soybean weed-control platform of
REGULATORY STATUS:
choice
THREE SOURCES OF VALUE IN ROUNDUP READY XTEND CROP SYSTEM
Innovative Traits in Enhanced Greater Flexibility,
Leading Germplasm Chemistry Options Weed Control and Yield Potential
20Whistle Stop Highlight:
SmartStax PRO
$1B+ EMERGED ROOTWORM BEETLES ROOT SAMPLES UNDER HIGH
PLATFORMS EXPANDING CORN FOOTPRINT
BEETLES
PER VIAL/
ROOTWORM PRESSURE
1000/ 300/ 5/ 1/
BEETLES
1,000,000 300,000 5,000 1000
PER
ACRE*
SMARTSTAX PRO
(CORN ROOTWORM III)
100M+ ACRES
MARKET OPPORTUNITY: N. AND S. AMERICA CORN
ACRES
GENVT SMARTSTAX GENVT SMARTSTAX
CONTROL SMARTSTAX CONTROL SMARTSTAX
3P PRO 3P PRO
PROGRESS MILESTONES:
PRODUCT CONCEPT: SmartStax PRO designed to offer increased
REGULATORY STATUS:
durability and increased control against corn rootworm through a
distinct mode-of-action using cutting-edge RNAi technology
WHAT IS THE STATUS IN FY2014?
CORN ROOTWORM III TRIALS:
• Lead event advances to Phase 4; Major Stromsburg, NE, August 2013
milestone in commercial path for novel mode-
of-action beyond Bt genes In 2013 summer field trials, CRWIII stacks exhibited excellent root protection
• Transitions to product branded as SmartStax 2.0
Root Damage
1.5
(0-3 Scale)
PRO, a stack with HXRW
Ratings
• Licensing structure in place to allow for broad 1.0
0.5 ECONOMIC THRESHOLD
commercial access in 100M+ acre opportunity
0.0
CONTROL SMARTSTAX PRO
CRWIII+HXRW
21Whistle Stop Highlight:
BioAg Alliance Unlocks Potential of
Microbial Solutions
+
BIOLOGICALS BECOME NEW TECHNOLOGY PLATFORM
WHAT DRIVES GROWTH?
ESTABLISHED INDUSTRY-LEADING R&D CAPABILITY
• Transformational alliance between Monsanto and MICROBIAL LEADERSHIP & COMMERCIAL FOOTPRINT
Novozymes position microbial solutions as one of
important “beyond-the-seed” technologies
WHAT IS THE STATUS IN FY2014?
• Joint technology and commercialization alliance THE BIOAG ALLIANCE
established – combining expertise of both
companies to create industry-first microbial Important New Alliance builds on most advanced
platform capabilities for inside-the-seed and beyond-
“Beyond-the-Seed”
• Alliance operational – significant progress 1 Tools To Drive Yield
the-seed technology to deliver most
complete platform of sustainable yield
advancing on both commercial scale and R&D and Sustainability technology
collaboration
Scale and capability of R&D testing and
WHAT ARE THE NEXT MILESTONES?
Better-Performing manufacturing elevates early microbial
• Monsanto and Novozymes, with combined library 2 Products industry work to greater level of reliability
of microbial candidates, expect to significantly and performance
scale-up the field testing program over the next Combined and complementary resources
several years for a faster opportunity to identify More Rapid allow for rapid discovery, development and
and commercialize the next generation microbes 3 Innovation commercialization of new technology
approaches
Distribution to be built on Monsanto’s broad
Immediate global footprint, enabling distribution
4 Commercial Portfolio through multiple brands, multiple channels
Delivered to Farmers and multiple geographies to give farmers
more choice
22Whistle Stop Highlight:
Climate Corporation Platform Targets
Farmers’ Most Critical Decisions
FARMER LENS PRODUCTIVITY TOOLS: MONSANTO LENS
DRIVING KEY FACTORS TO MAXIMIZE ON-FARM OPERATIONS
GOAL:
MAXIMIZE NET
RETURN PER ACRE
IN-SEASON
CRITICAL DECISION DECISIONS
SETS: Diseases, nutrient, IN-SEED YIELD
PLANNING DATA etc. approaches
Seed Selection PEST-
CONTROL
based on in-field
Weed-Control Program
Insect-Control Program FACTORS environment INSECT CONTROL
PRE-PLANTING DATA
Focus on insect-
Fertility Program and weed-control
Tillage Program PLANTING regimens WEED CONTROL
PLANTING DATA FACTORS
Focus on best field
PLANT HEALTH
Plant Population Dynamics
Seed Depth configuration,
IN-SEASON DATA preparation and
SEED
DATA-BASED
Post-Emergent Pest Control planting elements
Crop Diagnostics Seed is lynchpin
decision – key to PRECISION AG
HARVEST DATA
Equipment establishing
Crop Marketing yield potential
40+ KEY DECISIONS in face tcomes at local farm
BROADEST AND
a farmer makes that influence
TOUCHING THE DECISIONS THAT MATTER TO FARMERS level
on-farm yields and productivity DEEPEST PIPELINE
Farmers drive income by
Combination of Monsanto and The Climate Corporation’s core Through innovation, Monsanto has
maximizing productivity – ability competencies provides a suite of comprehensive decision unique opportunity to create new
to achieve realized on-farm yield driven tools for the Precision Ag space to help improve the 40+ sources of farm value from
in face of environmental stress improving yield and overall farm
and variability
key decisions a farmer makes each year productivity within the value chain
23Climate Corporation Platform:
Significant Progress Underscores
Transformational Opportunity
THE CLIMATE CORPORATION PLATFORM
AUGUST 2014
WHAT DRIVES GROWTH?
• The Climate Corporation platform holds potential
PARTNERS SIX2
PARTNERSHIPS
as integration point for information, seed, MULTIPLE RETAIL,
equipment and other inputs TYPE DISTRIBUTION & EQUIPMENT
• Continued roll out of The Climate Corporation PARTNERS
platform focuses on opportunity of 1B acres and
$20 market LOCATIONS THOUSANDS
WHAT IS THE STATUS IN FY2014?
• In short time since acquisition of The Climate
AG SALES1 >$60 BILLION
Corporation, Monsanto has developed partnerships
with all major retail partners as well as key players >50M
GATEWAY TOOLS
PENETRATION
in ag markets
INSTALLED ACRES EXPECTED
• Number of acres enrolled in flagship offerings has CLIMATE BASIC WITH >30M ACTIVE-USER
been stronger than anticipated, providing account
ACRES
base as foundation for expansion
WHAT ARE THE NEXT MILESTONES? PREMIUM SERVICES
• While still in investment phase, first relevant CLIMATE PRO >1M
FIELDSCRIPTS ACRES EXPECTED
commercial scale up in FY15 with focus on upgrade
conversion of Climate Basic to Climate PRO
opportunity Progress continues with strong interest
2.5X and trial driving significant step up in
user base of flagship products in FY14
… more than 2.5X original targets
1. Includes Total Agricultural Related Sales for Monsanto and Partners from most recent annual reporting period
2. Partners include Winfield, Agrium’s Crop Production Services, GROWMARK, Wilbur Ellis, Helena, and CNH Industrial 24Whistle Stop Logistics
Agenda
DAY ONE: HUXLEY LEARNING CENTER DAY TWO: FARM PROGRESS SHOW
First-hand look at products and technology Behind-the-scenes look at Monsanto’s display for
backing Monsanto’s growing core business Farm Progress, highlighting how technology
and new platform opportunity comes together for our farmer-customers
1:30 P.M. FIELD TOURS 7:30 A.M. BREAKFAST
LOCATION: DES MOINES MARRIOTT
Focus: Seed Science
Focus: Data Science 7:30 A.M. SPECIAL FOCUS: THE CLIMATE
CORPORATION
FIELD
Focus: The Climate Corp. Platform
PRESENTATION WITH DAVID FRIEDBERG, CEO
Focus: Breeding Capability
Focus: Biotech Pipeline
Focus: BioAg Alliance 8:30 A.M. BUSES DEPART
Focus: BioDirect Technology FOR FARM PROGRESS
5:30 P.M. COCKTAILS 9:30 A.M. “VIP PREVIEW”:
MONSANTO @ FARM PROGRESS
6:15 P.M. DINNER
INCLUDING CUSTOMER DINNER PANEL FIELD Monsanto Exhibition:
• Products and Technology in Different Farm
Management Approaches
8:15 P.M. BUSES DEPART The Climate Corporation Exhibition
FOR DES MOINES
12:00 P.M. BUSES DEPART
8:30 P.M. HOSPITALITY ROOM FOR DES MOINES AIRPORT
LOCATION: DES MOINES MARRIOTT
26Special Customer
Guests
LEADING GROWER AND GROWER LEADERS AND
RETAILER PERSPECTIVES CUSTOMERS FROM
FROM THE “I” STATES ACROSS IOWA
DAVE NELSON
Fort Dodge, Iowa BROCK HANSEN BRENT KUEHNAST
Baxter, Iowa Humboldt, Iowa
BILL COUSER
Central Iowa
RON LITTERER MARK RECKER
KENT SCHROF Greene, Iowa Arlington, Iowa
Marketing Manager, Agriland FS Inc
Winterset, Iowa
JOHN SCOTT BJ WAYSON
KIP TOM Odebolt, Iowa Vinton, Iowa
Leesburg, Indiana
JEFF NORTON
Quincy, Illinois
27Facility & Field Tours
Biotech: Breeding: Data Science:
Next-Gen Weed & Insect Data Unlocks Yield
A Cornerstone Capability
Platforms
Precision:
Planting with Precision
BioDirect:
BioAg Alliance: Novel Modes of Control
Unlocks Microbial
Potential Seed Science:
Genetics & Yield
Lobby Intro
Welcome
Applied Data Science: Climate:
Insight in the Field Applied Data Science
28Additional Information
Reconciliation of Non-GAAP
Financial Measures
RECONCILIATION OF FREE CASH FLOW
Fiscal First Nine
Fiscal Year Months
$ Millions 2014 Target 2013 2012 2011 2014 2013
Net Cash Provided by Operating Activities $2,900 - $3,300 $2,740 $3,051 $2,814 $371 $786
Net Cash Required by Investing Activities ($2,200 - $2,500) $(777) $(1,034) $(975) $(1,734) $(387)
Free Cash Flow $700-$800 $1,963 $2,017 $1,839 $(1,363) $399
Net Cash Required by Financing Activities N/A $(1,485) $(1,165) $(864) $(420) $(739)
Cash Assumed From Initial Consolidations of Variable Interest Entities N/A -- -- $77 -- --
Effect of Exchange Rate Changes on Cash and Cash Equivalents N/A $(93) $(141) $35 $13 $(22)
Net Increase/(Decrease) in Cash and Cash Equivalents N/A $385 $711 $1,087 $(1,770) $(362)
RECONCILIATION OF ONGOING EPS
Fiscal Third Fiscal First Nine
Fiscal Year Quarter Months
2014
$ Per share Guidance 2013 2012 2011 2010 2014 2013 2014 2013
Diluted Earnings per Share $5.12-$5.22 $4.60 $3.79 $2.96 1.99 $1.62 $1.68 $5.45 $5.05
Restructuring Charges, Net -- -- $(0.02) -- $0.41 -- -- -- --
Income on Discontinued Operations $(0.02) $(0.02) $(0.01) -- $(0.01) -- -- $(0.02) $(0.02)
Nitro Claims Settlement -- -- $0.05 -- -- -- -- -- --
Resolution of Legacy Tax Matter -- $(0.02) $(0.11) -- -- -- $(0.02) -- $(0.02)
Diluted Earnings per Share from Ongoing
$5.10-$5.20 $4.56 $3.70 $2.96 $2.39 $1.62 $1.66 $5.43 $5.01
Business
30Reconciliation of Non-GAAP
Financial Measures
RECONCILIATION OF ONGOING EBITDA RECONCILIATION OF EBITDA
Fiscal Year
$ Millions 2014 Guidance 2013 2012 2011
As Reported Net Income Attributable to
$2,702-$2,758 $2,482 $2,045 $1,607
Monsanto Company
Restructuring Charges, Net -- -- $(10) $(1)
Income on Discontinued Operations $(13) $(11) $(6) $(2)
Nitro Claims Settlement -- -- $29 --
Resolution of Legacy Tax Matter -- $(11) $(62) --
Ongoing Net Income $2,689-$2,745 $2,460 $1,996 $1,604
Interest Expense – Net $130 - $150 $80 $114 $88
Income Tax Provision $1,131 – $1,205 $926 $978 $721
Tax Expense Related to Noncontrolling Interest -- $(22) $(17) $(26)
Ongoing EBIT $3,950-$4,100 $3,444 $3,071 $2,387
Depreciation and Amortization $700 $615 $622 $613
Ongoing EBITDA $4,650-$4,800 $4,059 $3,693 $3,000
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