Wells Fargo Industrial & Construction Conference - Kerry Preete Executive Vice President, Global Strategy
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Wells Fargo Industrial & Construction
Conference
Kerryy Preete
Executive Vice President, Global Strategy
1
Forward-Looking Statements
Certain statements contained in this presentation are "forward-looking g statements," such as statements concerning g 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
p in seeds, traits and agricultural
g chemicals; the company's
p y exposure
p to various contingencies,
g including
g
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
inventoryy levels;; the company's
p y ability y to fund its short-term financing
g needs and to obtain p
payment
y for the p
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.
© 2013 Monsanto Company
2
Corn Mega-Trends:
International Productivityy Important
p to
Meeting Increasing Global Grain Demand
GLOBAL CORN PRODUCTION INCREASE GLOBAL SUPPLY BY REGION1,2
EX: PRODUCTION GROWTH BY REGION (2002 – 2012)1 2012
EX: 2012 PRODUCTION OF 33B BUSHELS
40 17% 32%
9 Billion Bushel Increase US
35 Cummulative Market 16% 17%
Value: ~$200B3 China
32%
DUCTION
30 Europe
16%
ELS)
(BILLION BUSHE
GLOBAL CORN PROD
25 Latin America
20 International Corn Production: 11% 24%
ROW
80% of the Increase
11%
15 24%
G
• 80% of the increase has come from outside
10
the U.S.
U.S. Corn Production:
5 • In 2012, 2/3rd of the overall production came
20% of the Increase
from Ex-U.S.
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
DEMAND VS. PRODUCTION
Production 24 25 28 28 28 31 31 32 33 35 33 EX: 2007 – 2012 5-YR CAGR
Demand 25 26 27 28 29 30 31 32 33 34 34
• Demand growth has outpaced supply in the
last 5 years decreasing ending stocks by
nearly 600M bushels in that time period.
Gl b l Corn
Global C Production
P d ti (5-YR
(5 YR CAGR):
CAGR) 1 1%
1.1% • Even with conservative demand
assumptions, it could take multiple years of
Global Corn Demand (5-YR CAGR): 2.0% above-trend production to get caught up
1. USDA 2. Monsanto estimates 3. Market Value is calculated assuming a weighted commodity price of $2.85 /bu and a cummulative production increase of 67 billion bushels accumulated from the period of
2002 - 2012
3
Soybean Mega-Trends:
Oil and Feed Drive Oil Seed Demand;;
The Americas Play a Key Role
GLOBAL OIL SEED CROPS DEMAND WORLD SOYBEAN SUPPLY1
EXAMPLE: OIL DEMAND (2008 – 2018F)1,2,3 EX: 2012 PRODUCTION BY REGION
Soybeans Oilseed Rape Palm Sunflower
30 9%
NORTH
AMERICA
25
~31%
AND
LS)
20
OIL DEMA
(BILLION BUSHEL
15 SOUTH
AMERICA
GLOBAL
10 ~56%
G
5
VALUE TRANSLATION
0
20082008
2009 2010 2011 2012 2013F 2014F 2015F 2016F 2017F
2013F 2018F
2018F • Nearly 90 percent of world soybean
production comes from the
A i
Americas
• These regions represent
approximately 200M planted acres
Oil and Feed Demand Requires in Excess of 2.5 Billion Monsanto’s R&D investment in yield
Bushels of Oil Seeds Growth from 2013 to 2018 creation and its trait footprint in the
Americas sets up the opportunity
for steady growth
1. USDA 2. Monsanto estimates 3. Oil consumption calculated by correcting for oil content. One bushel yields 19% oil and 81% meal. Soybean basis applied to OSR (Oilseed Rape), Palm and Sunflower 4
“Yield Company” Strategy:
Monsanto’s Competitive
p Advantages
g Define
Yield Opportunity
STRATEGIC With the rising demand for grain and protein over the next decade, the
OPPORTUNITY: need to sustainably increase productivity drives opportunity for
companies that can deliver more yield per acre
COMMERCIAL ADVANTAGES R&D ADVANTAGES
INDUSTRY’S Monsanto has more
ONLY R&D platforms
INTEGRATED linked to drive yield
than ever before
LEADING GLOBAL POSITION YIELD PIPELINE
Monsanto has #1 or #2 positions in every
key target seed geography
® LARGEST
With biggest germplasm
INDUSTRY-BEST PRODUCTS YIELD: GLOBAL
GERMPLASM
library and industry
leading biotech, Monsanto
Across crops, Monsanto’s products The Business & LEADER IN is best positioned to drive
consistently outyield competitors Strategy BIOTECH new advances in yield
™
BROADEST COMMERCIAL CHANNEL BREAKTHROUGH NEW PLATFORMS
Monsanto has multiple brand and licensing channels to New initiatives like BioDirect and Integrated Farming
meett ffarmers th
through
h their
th i preferred
f d venue Systems (IFS) expected to unlock new yield opportunities
MORE TECHNOLOGY ACROSS MORE INDUSTRY LEADING
STRATEGIC KEYS: PLATFORMS KEY CROPS GLOBAL POSITION
5
Yield Enables Gross Profit Growth:
Recurring
g Innovation Drives Sustainable
Growth
SEEDS & GENOMICS GROSS PROFIT GROWTH DRIVERS
BUSINESS SEGMENT VIEW
CORE EMERGING NEW GROWTH R&D
FY2012
GROWTH MODELS GROWTH MODELS MODELS PIPELINE
R&D Platforms
ROWTH
GROWTH EVOLUTION
BREEDING
Strategy that worked in
GIC SOURCES OF INCREMENTAL GR
BIOTECH
FY2012 carries forward
TH DRIVERS
BIOLOGICALS
Growth is more balanced IFS
with contribution from U.S. Next-Gen Upgrades CHEMISTRY
and international
INTACTA RR2 PRO
New layers of growth added
KEY GROWT
ROUNDUP READY 2 XTEND
as drivers come on line Geographic Multiplier
FIELDSCRIPTS
EASTERN EUROPE
ARGENTINA
North America BRAZIL
U S COTTON
U.S.
STRATEG
U.S. SOY
U.S. CORN
SEEDS &
GENOMICS FUTURE
NEAR-TERM GROWTH GROWTH
GROSS PROFIT
GROWTH DRIVER ROLL OUT OVER TIME
CORN DRIVERS SOYBEAN DRIVERS COTTON DRIVERS MULTIPLE CROPS
6
Leverage in Increased Yield:
Increasingg Yield Generates More Opportunity
pp y
Globally in Corn Than Any Other Growth Driver
YIELD IS VALUED IN EVERY KEY GEOGRPAHY IMPROVED YIELD DRIVES PORTFOLIO VALUE GROWTH
EXAMPLE: BRANDED CORN NET SELLING UNIT PRICE1 EXAMPLE: COMBINED KEY CORN-GROWING REGIONS 2003-2013F2 FACTORS
• YIELD DRIVES VALUE – the th proportional
ti l value
l off yield-
i ld • YIELD INCREASES PORTFOLIO VALUE – Yield
to-seed-price is similar across all key geographies increases reflect the mix benefit of new hybrids, with annual
GROWTH
• INCREMENTAL YIELD IS INCREMENTAL VALUE –
CORE
turnover driving net-selling price growth
Because yield value is captured proportionally, as new yield
2.5
comes on line in any geography, it boosts the realized value
XED)
of that region’s portfolio
RN
$90
BLENDED GLOBAL BRANDED COR
LLING PRICE (INDEX
$80 U.S.
2.0
EMERGING
$70
GROWTH
BRANDED NET SELLING
LATIN
AVERAGE UNIT NSP/AC
USD/AC)
$60 AMERICA
$50
UNIT PRICE (U
SEED NET SEL
SOUTH EASTERN 1.5
$40 AFRICA EUROPE
$30
$20
ROWTH
NEW
1.0
$10
N
2003 2005 2007 2008 2009 2011 2013F
2013F
GR
2003
$0 AVERAGE CORN YIELDS
50 60 70 80 90 100 110 120 130 140 150 160 EXAMPLE: Branded Net Selling Price Growth
HYBRID CORN YIELD (BU/AC)
EXAMPLE: Emerging Growth Areas In the last decade, the annual germplasm turnover
ELINE
enabled germplasm net sales to grow $2 billion in
R&D PIPE
In emerging geographies – like Brazil and Eastern Europe – the that period - increasing branded net selling price
absolute yield is less than the U.S., however the proportional for corn in the range of 5-10% compounded each
value of the yield is the same – and, as yields have increased, year
the predicted increased portfolio value has been demonstrated
1. Based on 2011 whole bag unit prices.
2. Combined key countries included U.S., Brazil, LAS (Argentina, Paraguay, Uruguay and Bolivia) and EMEA (Europe, Middle East and Africa). 7
U.S. Corn Growth:
Continued Mix Benefit Drives Growth in
Monsanto’s Core Seed Business
SPOTLIGHT: U.S. CORN OPPORTUNITY UPDATE 2013 GROWTH DRIVERS GROWTH
FACTORS
MACRO CORN DATA FACTOR: GENUITY REDUCED-REFUGE FAMILY EXPANSION
2012 PLANTED
~97M 40
ACRES (IIN MILLIONS)
ACRES1: In 2013, Genuity Reduced-
GROWTH
Refuge Family is expected to
CORE
2012 AVERAGE reach the high end of the
YIELD1: ~123 bu/ac 30 original 36M-38M acre target
2013 HIGHLIGHTS: 20
• Comprehensive Refuge-in-a-Bag Platform 10
(RIB Complete)
EMERGING
All of the products in Monsanto's reduced-refuge corn 0
GROWTH
2010 2011 2012 2013F
family are refuge-in-the-bag enabled for the Corn Belt
TOTAL
• Stewarded launch of DroughtGard Hybrids in ACRES ~3M ~13M ~27M 36M-38M
E
2013
• FieldScripts Ground Breakers on-farm trials FACTOR: U.S. BRANDED PORTFOLIO UPGRADE
planned for 2013 ANNUAL MIX
BENEFIT
RTFOLIO
SEASONAL UPDATE:
ROWTH
MIX IN
New higher-value seed
NEW
hybrids replace hybrids
that average 4-6 years
RELATIVE M
N
• Biggest growth driver is the mix benefit from
DEKALB POR
GR
old, creating a
compounding benefit
upgrades, including germplasm portfolio and as the portfolio adds
new products each
step up in total acres of Genuity Reduced-Refuge year
Family
ELINE
• On track to reach the high end of the original
target of 36M-38M
36M 38M acres in the Genuity Reduced
Reduced- LOWEST VALUE HIGHEST VALUE
R&D PIPE
Refuge Family 10-20% 25-40% 25-40%
10-20%
PROVEN CORE
MATURE HYBRIDS HYBRIDS
FIRST-YEAR HYBRIDS
HYBRIDS
1. USDA, World Agricultural Supply and Demand Estimates, April 2013 8
Building Momentum in U.S. Soy:
Strong
g 2012 Performance Creates Continued
Growth Opportunity in 2013
SPOTLIGHT: U.S. SOY OPPORTUNITY 2013 GROWTH DRIVERS GROWTH
FACTORS
MACRO SOYBEAN DATA FACTOR: GENUITY ROUNDUP READY 2 YIELD EXPANSION
2012 PLANTED
ACRES1: ~77M
GROWTH
In 2013, Genuity Roundup
CORE
2012 AVERAGE
40
ACRES (IN MIILLIONS)
Ready 2 Yield is expected to
YIELD1: ~40 bu/ac reach the high end of the
30 original 39M-41M acre target
2013 SET UP:
• 2012 Growth Sets Momentum for 2013 20
• U.S. branded seed volume growth outpaced the
10
EMERGING
GROWTH
market growth in 2012
• Genuity Roundup Ready 2 Yield established as a 0
2010 2011 2012 2013F
platform in 2012
E
TOTAL
Genuity Roundup Ready 2 Yield represented ~75% ACRES 6M 17M 32M 39M-41M
of our branded seed sales and ~50% of the licensed
ROUNDUP READY 2 YIELD VARIETIES
seed sales in 2012 FACTOR:
EXPANSION ACROSS YEARS
ROWTH
SEASONAL UPDATE:
NEW
READY 2 YIELD VARIEITIES
N
ER OF ROUNDUP P
INFLECTION
GR
POINT:
• Monsanto well positioned for seed availability ESTABLISHED
ROUNDUP
• On target for mix upgrade, continuing the step- READY 2 YIELD
up of Genuity Roundup Ready 2 Yield acres PLATFORM AS
ELINE
THE NEW
STANDARD
R&D PIPE
NUMBE
2009 2010 2011 2012
PLATFORM
NEW PLATFORM BUILDOUT ESTABLISHED
1. USDA, World Agricultural Supply and Demand Estimates, April 2013 report 9
Cotton Plays Key Role:
Cotton Business Provides a Natural Hedge
g to
Portfolio Acre Shifts
U.S. COTTON BELT ACRE SHIFTS ACROSS CROPS GROWTH
EXAMPLE: 2012 COTTON PLANTINGS EXAMPLE: COTTON AND SOY ACRES SHIFTS 2010-20121
FACTORS
Cotton Soy
GROWTH
4
CORE
MILLIONS OF ACRES
2
GES IN
NORTHERN TIER
PLANTED ACRES: ~2M
WEST TEXAS -
CHANG
PLANTED ACRES: ~6M
SOUTHERN TIER (2)
PLANTED ACRES: ~3M
EMERGING
EAST TEXAS (4)
GROWTH
PLANTED ACRES: ~1M
11' vs 10' 12' vs 11'
E
PORTFOLIO BALANCE:
INDEXED GROSS PROFIT PER ACRE FOR MONSANTO
ROWTH
BRANDED CROP OFFERINGS
NEW
OFIT
2.5
N
NTO U.S. GROSS PRO
GR
2013 OPERATIONAL DRIVERS
2.0
ER ACRE: SCALED
2.0 2.0 • For every 1 million acres that shift from soy to corn or
1.5
cotton, we would expect an estimated $0.03 EPS
1.0
ELINE
increase on average
1.0 g margin
• Monsanto’s high g cotton business provides
p a
05
0.5
R&D PIPE
MONSAN
PE
natural hedge against acre fluctuations in corn or soy
0.0
SOYBEAN CORN COTTON
1. USDA 2013 February WASDE report 10Brazil Corn Opportunity:
Long
g Runwayy for Continued Trait-Upgrade
pg
Opportunity
BRAZIL CORN GROWTH DRIVERS GROWTH
FACTORS
GERMPLASM 1ST WAVE BIOTECH NEXT GENERATION
FY2012 UPGRADES UPGRADES BIOTECH UPGRADES
MENTAL GROWTH
H
GROWTH
CORE
RIVERS
New Growth
TRAIT LAUNCHES
STRATEGIC SOURCES OF INCREM
Y GROWTH DR
VT PRO MAX
Biotech VT PRO 3
EMERGING
TRAIT ADOPTION
GROWTH
YieldGard Corn Borer,
YieldGard VT PRO , VT PRO 2
Seed
E
KEY
GERMPLASM
#1 Share Position
NEAR-TERM GROWTH
BRAZIL CORN
ROWTH
NEAR-TERM GROWTH FUTURE GROWTH
NEW
SEEDS & GENOMICS
GROSS PROFIT
N
GR
GROWTH DRIVER ROLL OUT OVER TIME
BRAZIL
EMERGING GROWTH MODEL
ELINE
#1 hybrid
y corn seed share p p product
position with rapid p refresh
R&D PIPE
First biotech trait launches in FY09 rapidly adopted
New layers of growth added as additional traits come on line
11Argentina Corn:
Upgrade
pg to Triple
p Stack Driving
g Continued
Expansion of Corn Portfolio
LATIN AMERICA SPOTLIGHT: ARGENTINA UPDATE 2013 HIGHLIGHTS GROWTH
FACTORS
MACRO CORN DATA • As expected,
expected somewhat lower planted corn acres
2012 HYBRID ACRES1: ~11M year-over-year
GROWTH
• Early rain delayed some planting, but corn season
CORE
2012 AVERAGE YIELD2: ~93 bu/ac on track
MACRO SOYBEAN DATA • Trait upgrade on track, focused on Genuity VT
p PRO opportunity
Triple pp y
2012 PLANTED ACRES1: ~47M
• In second year of commercial sales, Genuity VT
Triple PRO expected to be more than 40% of the
2012 AVERAGE YIELD2: ~35 bu/ac
EMERGING
GROWTH
total Argentine branded corn portfolio
E
ARGENTINA CORN TRAIT PENETRATION AND MIX ARGENTINA: TRAIT VALUE
2009 – 2013F AVERAGE TRAIT NET SELLING PRICE-PER-ACRE INDEX
N UPGRADE DRIVERS
SINGLES AND DOUBLES GENUITY VT TRIPLE PRO
ROWTH
1ST-GEN ABOVE- GENUITY VT
GROUND DOUBLE TRIPLE PRO
NEW
100%
MIX
15
1.5
N
PERCENT OF PORTFOLIO M
GR
75% LLING PRICE-PER-
1.2 - 1.3
50% 1.0
CRE INDEX
25%
ELINE
1.0
0% 0.5
CORN
AC
R&D PIPE
NET SEL
2009 2010 2011 2012 2013F
PLANTED
ACRES1 ~8M ~8M ~10M ~11M ~10M 0.0
1. Monsanto estimated acres
2. USDA 12Eastern Europe Opportunity:
Intersection
e sec o o of Mega-Trends
ega e ds a and
d Business
us ess
Opportunity Drive Growth
EASTERN EUROPE CORN YIELD IMPROVEMENT INNOVATION DRIVES GROWTH GROWTH
EXAMPLE: CORN VS. WHEAT YIELDS (1996 – 2011)1 FACTORS
IN EASTERN EUROPE
CORN SUBSTITUTION EFFECT
100 Higher-yielding corn hybrids
GROWTH
Higher relative corn yields drive animal feed value per acre
CORE
Introduction of new corn germplasm drives
Wheat acres transitioning to corn
yield improvements throughout the region
80
S/ACRE)
ELDS
~25 BU/AC
Yield creates value
60
(IN BUSHLES
CROP YIE
Higher yields translate into increased
grower profitability per acre increasing the
40
EMERGING
preference to grow corn
GROWTH
20 WHEAT CORN Monsanto’s business growth
TREND LINES
Linear (WHEAT) Linear (CORN) Monsanto’s
Monsanto s share growth significantly
E
0 outpacing market expansion
1996 1999 2002 2005 2008 2011
MONSANTO’S GROWTH OUTPACES MARKET EXPANSION
ROWTH
EXAMPLE: EASTERN EUROPE CORN MARKET LONG-TERM GROWTH OPPORTUNITY
NEW
SUPPORTED BY CURRENT INVESTMENTS
N
20%
GR
BRANDED SHARE
RN SEED SHARE
Corn breeding facilities being added to
15%
MONSANTO
accelerate germplasm yield gains
10%
Investments in new corn seed
production in the region will add
ELINE
5% significant capacity to support future
R&D PIPE
COR
growth
th
0%
2009
2009 2010
2010 2011
2011 2012
2012
PLANTED
21M 23M 27M 33M
HYBRID ACRES2
1. FAO
2. Monsanto estimated acres. Includes: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey, Ukraine 13Next-Generation Soybean Platforms:
Multi-Billion-Dollar Opportunity
pp y Emerging
g g in
Soybeans
SOYBEAN PLANTED ACRES GENUITY ROUNDUP READY 2 YIELD
GROWTH
FACTORS
HIGHLIGHT: OPPORTUNITY IN THE AMERICAS1
Nearly 90 percent of world soybean production2 comes from • On track to reach high-end of FY2013 original target of
39M-41M acres in North America
GROWTH
the Americas
CORE
• Expanded platform opportunity with multi-year licensing
agreement with DuPont Pioneer through 2030
The license carries a minimum commitment of $1.75 billion
NORTH
AMERICA INTACTA RR2 PRO
~80M ACRES
EMERGING
GROWTH
• New 100-million acre opportunity for Latin America
Next layer of growth in Latin America, building on step-change in
yield combined with insect control for Brazil’s first soybean stack
E
~20% SOUTH • Brazil’s Ground Breakers Update
AMERICA Completed 2013 Intacta RR2 PRO Ground Breakers on-farm trials
~120M ACRES with 1,000 Brazilian farmers demonstrating its performance
outyielding Roundup Ready soybean by >4 bu/ac
ROWTH
NEW
• Launch of Intacta RR2 PRO expected to outpace
N
GR
previous soybean trait launches
Brazil commercial launch expected in FY2014 followed by Argentina
in FY20153
NEXT-GENERATION SOYBEAN OPPORTUNITY
OPENS UP ~200M-ACRE OPPORTUNITY GLOBALLY
ROUNDUP READY 2 XTEND
ELINE
Expect to realize ~20% of the global opportunity, with the
R&D PIPE
targeted step up in Genuity Roundup Ready 2 Yield in 2013
• The other 100-million acre opportunity in the Americas
Over the next five years, expect significant upgrades will
have practical fit on the balance of the 200M global acre With practical fit on more than 100M soybean acres, the Roundup
opportunity with continued build-out of the platforms Ready Xtend crop system holds potential across the Americas
1. 2012 USDA and Monsanto estimated planted acres. 2. USDA 2012 production 3. Received “in-country” regulatory approvals. Commercial launch pending import approvals in key export markets 14Integrated Farming Systems:
One
O eoof Monsanto’s
o sa to s Newest
e est Platforms
at o s
Demonstrates Step Change in Corn Yields
INTEGRATED FARMING SYSTEMS INITIAL PRODUCT OFFERING TARGETS GROWTH
2012 FIELDSCRIPTS ON-FARM TRIALS 2014 DEPLOYMENT
FACTORS
INITIAL LAUNCH GEOGRAPHY
FieldScripts On-Farm Trials Across 56 Locations
GROWTH
CORE
Showed a 5-10 bu/ac Performance Advantage vs.
Current Fixed and Variable Rate Seeding Practices
Launch
155 p in
FieldScripts
2014 targeting
select areas of
MN
MN, IA, IL, & IN
5-10 BU/AC
EMERGING
GROWTH
145 IA
ADVANTAGE
U/AC
IL IN
BU
E
135
ROWTH
Distribution through Integrated Farming Systems Certified
125
NEW
Seed Dealers
N
VS FIXED RATE SEEDING VS VARIABLE RATE SEEDING DEKALB brand
GR
b d seed
d corn initially;
i iti ll other
th Monsanto
M t brands
b d
PRACTICES1: PRACTICES1:
and licensees in the future
FieldScripts enters Ground Breakers in 2013
FIELDSCRIPTS
ELINE
DRIVES INCREMENTAL YIELD FOR FARMERS
R&D PIPE
Optimal hybrid match and variable planting density prescriptions backed by proprietary algorithms
Simple and convenient tool for farmers to realize additional yield benefits
FieldScripts are expected to improve over time as additional data is incorporated into the algorithms
1. Data as of Nov. 16, 2012. FieldScripts on-farm trials across 56 locations. Results compare FieldScripts plots with plots planted using fixed rate seeding populations of 30K, 34K, and 38K seeds/acre
and variable rate seeding plots based on USDA SSURGO maps 15R&D Advantage in Action:
Monsanto’s R&D Pipeline
p Deepest
p and
Most Successful in Industry
INTEGRATED YIELD PIPELINE: 2012 STATUS AND UPDATE MONSANTO’S R&D GROWTH
ADVANTAGE FACTORS
CORN SOYBEANS COTTON VEGETABLES No one else in the industry has
the number of technology
BREEDING
GROWTH
ANNUAL GERMPLASM
1 ANNUAL GERMPLASM
1 ANNUAL GERMPLASM
1 ANNUAL GERMPLASM
1 platforms or capability that
CORE
UPGRADE UPGRADE UPGRADE UPGRADE
matches Monsanto’s
NEXT-GEN MARKER-
BASED BREEDING 3 NEXT-GEN MARKER-
BASED BREEDING 3 NEXT-GEN MARKER-
BASED BREEDING 2 NEXT-GEN MARKER-
BASED BREEDING 3 HISTORICAL SUCCESS
B
M
Monsantot hhas launched
l h d more
biotech trait and new-product
BIOTECH
AGRONOMIC-TRAIT
UPGRADES 8 AGRONOMIC-TRAIT
UPGRADES 5 AGRONOMIC-TRAIT
UPGRADES 4 technologies than any other
EMERGING
GROWTH
company in the industry
YIELD & STRESS
SYSTEMS1 4 YIELD & STRESS
SYSTEMS1 1 YIELD & STRESS
SYSTEMS1 1 With R&D funding of more
than $1.5 billion, Monsanto
E
spending leads the Ag Sector
1
IFS
INTEGRATED
FARMING SYSTEMS 2012 PROGRESS
With 18 advancements,
OGICALS
NEW BIODIRECT NEW BIODIRECT NEW BIODIRECT NEW BIODIRECT
APPLICATIONS APPLICATIONS APPLICATIONS APPLICATIONS
ROWTH
Monsanto marked record
NEW
progress in 2012:
N
Balanced
GR
MISTRY BIOLO
B l d progress across
crops, phases and
platforms indicating strong
outlook for continued
CHEMISTRY & SEED
1
CHEMISTRY & SEED
TREATMENT 2 CHEMISTRY & SEED
2 commercial innovation
ELINE
TREATMENT TREATMENT
Seven new additions to the
CHEM
R&D PIPE
pipeline
Three projects come online
Platform Category reflects key research areas within each crop and platform; There may be multiple projects per category through Monsanto’s
LEGEND: PLATFORM
CATEGORY # Number reflects estimate of current distinct projects within category; If any projects in the category advanced as
Ground Breakers program
a part of the 2012 Pipeline Update (as of Jan. 8, 2013) , the category is designated with the arrow symbol
1. Part of the Monsanto-BASF Yield-and-Stress R&D Collaboration 16Becoming an Innovation Hub:
Monsanto is an Increasing
g Focal Point for
Building Technology Combinations in Industry
INNOVATION HUB BROAD-LICENSING PLATFORM
1,000s of Broad-licensing of technology
M
MORE
Recent agreements like agreementst & supports wide availability and more
FARMER--CUSTOMERS
F
those with DuPont, Dow cross-licenses for options for farmers
and Bayer reinforce foundation
industry-collaboration technology
trend – and Monsanto is
INN
well positioned in the
NOVATION
center of that trend
COMMERCIAL
PARTNERSHIPS
Agreements like Genuity
MONSANTO
SmartStax work with Dow help
build important commercial
R&D ENGINE
® platforms
N FOR
INNOVATION HUB:
Most robust and resourced COMMERCIAL
Monsanto well
pipeline in industry drives LICENSES
innovation positioned at center Through licenses, Monsanto
of industry makes technology available
through more brands
COMMERCIAL
NON-COMMERCIAL
Programs that make Monsanto-
developed technology available for
1,000s of annual
public research and public-benefit
agreements for
private and public- initiatives
sector testing and PUBLIC-SECTOR SUPPORT
trials
17Turning Yield Into Growth:
Monsanto s Business Focus for FY2013
Monsanto’s
Growth
Key take-aways:
Monsanto is in a g
growth mode - With back-to-back y
years of
strong performance, our business has momentum
We’ve taken the business to a global stage - Our growth is more
global, with more drivers coming from more geographies than
ever before
We’re a yield company - We have the best R&D to deliver yield
and we expect even more differentiation with future waves of
innovation
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