United Bank of Switzerland Presentation on Monsanto Corporation September 12th, 2013

7/27/2019 United Bank of Switzerland Presentation on Monsanto Corporation September 12th, 2013

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September 12, 2013

UBS Best of Americas 2013 Kerry PreeteExecutive Vice President, Global Strategy


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Forward-Looking Statements

Certain statements contained in this presentation are "forward-looking statements," such as statements concerning thecompany's anticipated financial results, current and future product performance, regulatory approvals, business andfinancial plans and other non-historical facts. These statements are based on current expectations and currentlyavailable information. However, since these statements are based on factors that involve risks and uncertainties, thecompany'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: continuedcompetition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, includingthose 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 developmentactivities; the outcomes of major lawsuits and the previously announced SEC investigation; developments related toforeign 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 distributioninventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products thatit sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company'sfacilities; and other risks and factors detailed in the company's most recent periodic report to the SEC. Undue relianceshould 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 thefactors that may affect actual results.

TrademarksTrademarks 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

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CORN DEMAND MOMENTUMEX: GLOBAL CORN DEMAND ESTIMATES (2002 2022F)

SOY DEMAND MOMENTUMEX: GLOBAL SOY DEMAND ESTIMATES (2002 2022F)

1. USDA 2. Monsanto internal estimates

MONSANTOSOPPORTUNITY

Drivers of global agricul tural growth are real and ongoing strainon future acres illus trates that only by stepping up yields can

agriculture meet grain demand over the long term

Agriculture Mega-Trends:Increasing Demand Requires More FromSustainable Yield Gains Globally

World Corn Demand Estimates 2013F 2022F 2 World Corn Demand 2002 - 2012 1

3

C O R N D

E M A N D

( I N B I L L I O N

B U S H E L S )

9B BUGROWTH

9B BUGROWTH

Trend Line World Soy Demand Estimates 2013F 2022F 2 World Soy Demand 2002 - 2012 1

S O Y D E M A N D

( I N B I L L I O N B U S H E L S )

2.5B BUGROWTH

2.5B BUGROWTH

Trend Line

Corn and soy demand increased by 9B bu and 2.5B bu respectively over the past decade. Estimatingat least 500M bu per year incr eases in corn and at least 200M bu i ncreases in soy o ver the next decade

2002 2012 2022F6

7

8

9

10

11

12

13

F O R E C A S T

H I S T O R I C A L

20

25

30

35

40

45

50

F O R E C A S T

H I S T O R I C A L

2002 2012 2022F


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On-Farm Productivity Strategy:Unique Technology Toolkit Allows Monsantoto Target Critical Productivity Drivers

FARMER LENS

Farmers drive income bymaximizing yield ability t o

achieve realized on-farmyield in face tcomes at local

farm level

GOAL:MAXIMIZE NET

RETURN PER ACRECRITICAL DECISION

SETS:

PLANNING DATA

Seed SelectionWeed-Control ProgramInsect-Control Program

PRE-PLANTING DATAFertility ProgramTillage Program

PLANTING DATAPlant Population DynamicsSeed Depth

IN-SEASON DATAPost-Emergent Pest ControlCrop Diagnostics

HARVEST DATAEquipmentCrop Marketing

Farmers drive income bymaximizing productivity abilityto achieve realized on-farm yieldin face of environmental stress

and variability

MONSANTO LENS

Farmers drive income bymaximizing yield ability t o

achieve realized on-farm yieldin face tcomes at local farm

levelThrough innovation, Monsanto hasunique opportunity to create new

sources of farm value fromimproving yield and overall farm

productivity within th e value chain

40+ DECISIONSa farmer makes that influence

on-farm yields and productivity

PRODUCTIVITY TOOLS:DRIVING KEY FACTORS TO MAXIMIZE ON-FARM OPERATIONS

MONSANTOS PRODUCTIVITY TOOLKIT

MONSANTOBIOTECH

Platforms lik e IFSand Biologicals offer

the potential toleverage information

MONSANTOTECHNOLOGY

PEST-CONTROLFACTORS

Focus on insect-and w eed-control

regimens

IN-SEASON CROPMANAGEMENT

FACTORS

Diseases, nutri ent,etc. approaches

based on in-fieldenvironment

Focus on best fieldconfiguration,

preparation andplanting elements

Seed is lynchpin

decisio n key toestablishing

yield potential

SEED

BROADEST ANDDEEPEST PIPELINE

PLANTINGFACTORS

Industry-bestgenomics, breedingand biotechnology

Industry-firstRefuge-In-the-Bag RIB agronomic

systems

Industry-firstsystems for weedand insect control

MONSANTOGENETICS

MONSANTONEW PLATFORMS

IN-SEED YIELD

INSECT CONTROL

PLANT HEALTH

DATA-BASEDPRECISION AG

WEED CONTROL

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Monsanto Technology Toolkit:Delivering Most Comprehensive System of Technology for On-Farm Yield & Productivity

With the leading trackrecord of innovation,Monsanto delivers mostcomprehensive productsuite for improving on-farm productivity

More data is being usedin more ways, andopportunity to leveragedata to improve yieldand productivity is thenext major opportunityin agriculture

R&D ENGINE DATA INSIGHT STRATEGY

INNOVATION HUB DATA

Convergence

Multiple components come together todrive yield, with more platforms co ming

together in more ways than ever

Innovation hub positions Monsanto todrive on-farm productiv ity across moreplatforms than anyone in the industry

R&DCOLLABORATION

INDUSTRYSLEADING R&D

ENGINE

CENTRAL POINT FORBUILDING TECNOLOGY

COMBINATIONS

MONSANTO

DEPLOYMENT

PRODUCTS

D E P L O Y

D E P L O Y

YIELD IS A

ON-FARM YIELD &PRODUCTIVITY

IN-THE-BAGSeed & traits establish found ation for yield

+OUTSIDE-THE-BAGChemistry & treatment protect

& drive productivity+

INFORMATIONInformed decision-making used

to maximize system

+

+

INFORMATION

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1.0

1.5

2.0

2.5

2003 2005 2007 2009 2011 2013 $2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

Aug-03 Aug-05 Aug-07 Aug-09 Aug-11 Aug-13

Yield Matters Most:Monsantos Consistent Pricing PhilosophyBased on Yield and Conservative Price Bands

IMPROVED YIELD DRIVES PORTFOLIO VALUEEXAMPLE: COMBINED KEY CORN-GROWING REGIONS (2003-2014F) 1

1. Combined key countries included U.S., Brazil, LAS (Argentina, Paraguay, Uruguay and Bolivia) and EMEA (Europe, Middle East and Africa).2. CBOT

B L E N D E D G L O B A L B R A N D E D C O R N

S E E D N E T S E L L I N G P R I C E ( I N D E X E D )

2003 2008 2014F

COMMODITY PRICESEXAMPLE: CORN COMMODITY PRICES (2003 2013) 2

CBOT Corn Futures 2014F PRICINGLIFT: 5%-10%

Price growthexpected in FY2014

from hybrid miximprovements

Primary driver of price growth is innovation & yieldCommodity prices play a lesser role as conservative pric e bands supportlong term pricing approach and smooth volatilityFY14F global branded corn seed port fol io pri ce expected to l ift by 5%-10%

Conservative priceband assumptionsaddress volatility

by not chasingpeaks or valleys

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C B O T D E C E M B E R F U T U R E S

( U S D / B U )


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R&D SpendSeeds-and-Genomics Gross Profit

U.S.

LATINAMERICA

EASTERNEUROPE

SOUTHAFRICA

$0

$10

$20

$30

$40

$50

$60

$70$80

$90

50 60 70 80 90 100 110 120 130 140 150 160

IMPROVED TEHNOLOGY DRIVES VALUECUMULATIVE R&D SPEND VS SEEDS-AND-GENOMICS GROSS PROFIT

1. Based on 2011 whole bag unit prices.

Leverage in Increased Yield:Increasing Yield Generates More OpportunityGlobally in Corn Than Any Other Growth Driver

YIELD IS VALUED IN EVERY KEY GEOGRPAHYBRANDED CORN NET SELLING UNIT PRICE 1

C U M M U L A T I V E ( I N U S D B I L L I O N S )

B R A N D E D N E T S E L L I N G

U N I T P R I C E ( U S D / A C )

2001 2006 2012

HYBRID CORN YIELD (BU/AC)

A V E RA

GE

UNI T

N S P

/ A C

YIELD DRIVES VALUE the proportional value of yield-to-seed-price is similar across all key geographies

INCREMENTAL YIELD IS INCREMENTAL VALUE Because yield value is captured proportionally, as new yieldcomes on line in any geography, it boosts the realized valueof that regions portfolio

EXAMPLE: Emerging Growt h Areas

In emerging geographi es like Brazil and Eastern Europe theabsolute yield is less than the U.S., however the proportionalvalue of the yield is th e same and, as yields have increased,the increased portfolio value has been demonstrated

AVERAGE CORN YIELDS

TECHNOLOGY INCREASES PORTFOLIO VALUE Investments in research and development drives significantbusiness growth

EXAMPLE: Seeds-and-Genomics GP Growth

In the last d ecade, Seeds-and-Genomics g rossprofit com pounded annual growth has outpacedR&D spend growt h by a ratio of 2-to-1 for a grossprofit return thats nearly 4-to-1 in this tim e period

CumulativeSeeds-and-

Traits GrossProfit >$35B

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R&DPIPELINE

NEW GROWTHMODELS

BREEDING

BIOTECHBIOLOGICALS

CHEMISTRY

COREGROWTH MODELS

EMERGINGGROWTH MODELS

Yield Enables Gross Profit Growth:Layers of Growth Come Together to DefineRunway of Opportunity for Monsanto

PORTFOLIO GROWTH DRIVERSSTRATEGIC SOURCES OF INCREMENTAL GROWTH

PIPELINEOPPORTUNITYGROWTH LAYERS

GROWTH DRIVER ROLL OUT OVER TIME

CORN DRIVERS SOYBEAN DRIVERS

U.S. CORN

U.S. SOYU.S. COTTON

BRAZIL

ARGENTINAEASTERN EUROPE

ROUNDUP READY 2 XTEND

INTACTA RR2 PRO

FIELDSCRIPTS

North America

Geographic Multiplier

Next-Gen Upgrades

MULTIPLE CROPSCOTTON DRIVERS

IFS

R&D Platforms

K E Y

G R O W T H D R I V E R S

S T R A T E G I C S O U R C E S O F I N C R E M E N T A L G R O W T H

NEAR-TO-MID TERM MID-TO-LONG TERM

GROWTH TRENDS

Global growthcontinuesGlobal corn platformdrives annual mix

upgrades throughgermplasm and traitacceleration

New gro wth layersstep upIn the near-to-mid term,new growth driversbecome a contributingfactor with new growthfrom soybean platforms

Entirely newplatforms emergeIn the mid-to-long term,breakthrough newplatforms like IFS andBiologicals unlock totaltool belt creating newyield opportunities

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GROWTH

FACTORSPRICINGOPPORTUNITY

I N F L U E N C I N G

F A C T O R 10%-20%

Ann ualGermplasmTurnover

P R I C I N G

F A C T O R 5%-10%

Ann ual Pri ceImprovements

MONSANTOS INVESTMENT IN BREEDING DRIVESSUSTAINABLE PRICING OPPORTUNITY

Ann ual p or tfo lio up gradesDrive consistent mix improvements

Across key target s eed geographiesOpportunity in k ey geographies represent more than 200M of the the 300M productive corn acres

On industry leading share positions Monsanto has #1 or #2 positions in every key target seed geography

1.0

1.5

2.0

2.5

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F

I N D E X E D

B R A N D E D S E E D

N E T S E L L I N G P R I C E

KEY CORNGROWING REGIONS

HIGHLIGHTED 1 :HYBRIDACRES 2

MONSANTOSSHARE

POSITION

U.S. ~97M #1

BRAZIL ~31M #1

LAS ~14M #1

EMEA ~67M #2

TOTAL ~209M

GROWTH IN PORTFOLIO VALUE OVER THE PAST DECADE

BRANDED CORNSEED NET SELLING

PRICE GROWTH

Because of the mixbenefit of new hybrids,

the portfolio valueincreases annually

MONSANTO 10-YR GLOBAL BRANDED CORN PRICING CAGREXAMPLE: COMBINED KEY CORN-GROWING REGIONS 2003-2014F 1

1. Combined key countries included U.S., Brazil, LAS (Argentina, Paraguay, Uruguay and Bolivia) and EMEA (Europe, Middle East and Africa).2. USDA, World Agricultural Supply and Demand Estimates, August 12, 2013 report. Ex-U.S. acres represent Monsanto 2012 planted hybrid acres.

R & D P I P E L I N E

N E

W

G R O W T H

C O R E

G R O W T H

E M E R G I N G

G R O W T H

Global Germplasm Refresh:Underlying Blockbuster Generated $2 Billionin Seed Sales Growth Over Last Decade

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GROWTH

FACTORS

Corn in the Americas:Upgrade Opportunity, Strong Technology

Appetite Fuels Runway Over Next Decade

1. USDA, WASDE 2012 harvested acres. LAS (Argentina, Paraguay, Uruguay and Bolivia). North America figures includes U.S., Canada. L.A. North includes Mexico and Central America countries

CORN PLANTED ACRES IN THE AMERICAS1

HIGHLIGHT: HYBRID PLANTED ACRES BY REGION


N E

W

G R O W T H

C O R E

G R O W T H

E M E R G I N G

G R O W T H

GROWTH DRIVERSFACTOR : GERMPLASM PORTFOLIO UPGRADE

FACTOR: UPGRADEABLE TECHNOLOGY OPPORTUNITY

HIGHEST VALUELOWEST VALUE

R

E L A T I V E M I X I N

D E K A L B P O R T F O L I O

10-20%MATURE HYBRIDS

25-40%PROVENHYBRIDS

25-40%CORE

HYBRIDS

10-20%FIRST-YEAR HYBRIDS

ANNUAL MIXBENEFIT

New higher-value seedhybrids replace hybridsthat average 4-6 yearsold, creating acompounding benefit asthe portfolio adds newproducts each year

CORN TECHNOLOGY PLATFORMS

FUTURE

PRODUCTSTECHNOLOGY UPGRADES

REGION 1 BREEDINGWEED

CONTROLBIOTECH

INSECTCONTROLBIOTECH

IFSRWIII

(NEXT-GENSMARTSTAX )

L.A. SOUTH

U.S./CAN.

L.A. NORTH

BRAZIL

NORTH AMERICA (U.S./CAN)

LATIN AMERICA NORTH

BRAZILLATIN AMERICA SOUTH

NORTH AMERICA 100M PLANTED ACRES#1 POSTION

LATIN AMERICA NORTH7M HYBRID ACRES

#1 POSTION

LATIN AMERICASOUTH

14M PLANTED ACRES#1 POSTION

BRAZIL31M HYBRID ACRES

#1 POSTION

GENUITY REDUCED REFUGE FAMILY

GENUITY VT TRIPLE PRO (Lead)

VT PRO 2 (Lead Product)

#1 GERMPLASM

With More than 150Mhybrid acres and

Monsantos footprint inthe region , the Americasrepresent a signifi cant

runway for upgradeableacres that fuels growt h

through next decade10


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GROWTH

FACTORSINNOVATION DRIVES GROWTH INEASTERN EUROPE

Higher-yielding corn hybri dsIntroduction of new corn germplasm drivesyield improvements throughout the region

Yield creates valueHigher yields translate into increased grower

profitability per acre increasing the preferenceto grow corn

Monsantos business growthMonsantos share growth significantlyoutpacing market expansion

0%

5%

10%

15%

20%

2009 2010 2011 2012

Eastern Europe Opportunity: Intersection of Mega-Trends and BusinessOpportunity Drive Growth


N E

W

G R O W T H

E M E R G I N G

G R O W T H

EASTERN EUROPE CORN YIELD IMPROVEMENTEXAMPLE: CORN VS. WHEAT YIELDS ( 1996 2011) 1

2009 2010 2011 2012PLANTED

HYBRID ACRES 2 21M 23M 27M 33M

0

20

40

60

80

100

1996 1999 2002 2005 2008 2011

WHEAT CORNLinear (WHEAT) Linear (CORN)

~25BU/AC

C R O P Y I E L D S

( I N B U S H L E S / A C R E )

CORN SUBSTITUTION EFFECT

Higher relative corn yields driv e animal feed value per acreWheat acres transitioning to corn

MONSANTOS GROWTH OUTPACES MARKET EXPANSIONEXAMPLE: EASTERN EUROPE CORN MARKET

M O N S A N T O

C O R N S E E D S H A R E LONG-TERM GROWTH OPPORTUNITY

SUPPORTED BY CURRENT INVESTMENTS

Corn breeding facilities being added toaccelerate germplasm yield g ainsInvestments in new corn seed pro ductionin the region will add sign ificant capacityto support future growth

1. FAO 2. Monsanto estimated acres. Includes: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey, Ukraine

TREND LINES

BRANDED SHARE

C O R E

G R O W T H

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GROWTH

FACTORS

Next-Generation Soybean Platforms:Decade of the Soybean Creates Multi-Billion-Dollar Opportunity as Soybean Platforms Roll Out

ROUNDUP READY 2 XTEND

The other 100-millio n acre opportun ity in th e AmericasWith practical fit on more than 100M soybean acres, the RoundupReady Xtend crop system holds potential across the Americas

INTACTA RR2 PRO

New 100-millio n acre opportunit y for Latin AmericaNext layer of growth in Latin America, building on step-change in yieldcombined with insect control for first soybean stack

Brazil launch in FY2014 targeting around 3M acres

Argentina Ground Br eakers in FY2014 with br oadcommercial launch expected in FY2015Limited but strategically significant opportunity for early sales of INTACTA RR2 PRO in Northern Argentina in FY2014

GENUITY ROUNDUP READY 2 YIELD On track to reach or exceed the high-end of origin al target

of 39M-41M Genuity Roun dup Ready 2 Yield acres

Expanded platform opportunity with multi-year licensingagreement with DuPont Pioneer through 2030. The licenseincludes fixed annual royalty payments totaling $1.75B from 2014-2023

1. 2012 USDA and Monsanto estimated planted acres.2. USDA 2012 production

SOYBEAN PLANTED ACRESHIGHLIGHT: OPPORTUNITY IN THE AMERICAS 1

SOUTHAMERICA

~120M A CRES

NORTHAMERICA

~80M A CRES

~20%

Nearly 90 percent of world soybean producti on comes f romthe Americas 2

MULTI-BILLION-DOLLAR OPPORTUNITY EMERGINGIN SOYBEANS IN THE NEXT FIVE YEARS

Roundup Ready 2Yield Base PlatformCurrent Penetration

Opportunity

~80%

NEXT-GENERATION SOYBEAN OPPORTUNITY OPENS UP ~200M-ACRE OPPORTUNITY GLOBALLY

Expect to realize ~20% of the global opport unity, wi th thetargeted step up in Genuity Roundu p Ready 2 Yield in 2013Over the next five years, expect signifi cant upgrades wil lhave practical fit on the balance of the ~200M global acre

opportunity with continued build-out of the platforms

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N E W

G R O W T H

E S T A B L I S H E D

G R O W T H

E M E R G I N G

G R O W T H


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GROWTHFACTORS

R&D Advantage in Action:Monsantos R&D Pipeline Deepest andMost Successful in Industry

BIOTECHAGRONOMIC TRAITS

YIELD & STRESS 1

BREEDINGANNUAL UPGRADES

BREEDING TRAITS

1. Part of the Monsanto-BASF Yield-and-Stress R&D Collaboration

INFORMATION

IN-THE-BAG

YIELD & PRODUCTIVITY OPPORTUNITY

YIELD IS A SYSTEMMultiple components come together to

drive yield, with mor e platforms comi ngtogether in more ways than ever

Innovation hub positions Monsanto todrive on-farm productivity across moreplatforms than anyone in the industry:

Seed & yield protectionestablish foundation for yield

ON-FARM YIELD & PRODUCTIVITY

Chemistry & treatmentprotect and drive productivity

Informed decision-makingused to m aximize system

+

+

=DATA CONVERGENCE

AGRONOMICSOLUTIONSINTEGRATED FARMING

SYSTEMS

AG BIOLOGICALS

CHEMISTRY

APPLYING TECHNOLOGY TO DRIVE PRODUCTIVITY:R&D TECHNOLOGIESR&D ENGINE

BREEDING

BIOTECH

INTEGRATEDYIELD

PIPELINE

NEW AND EXPANDING PLATFORMSMore data is being leveraged in more ways


N E W

G R O W T H

E S T A B L I S H E D

G R O W T H

E M E R G I N G

G R O W T H

OUTSIDE-THE-BAG

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GROWTH

FACTORS


N E W

G R O W T H

E M E R G I N G

G R O W T H

C O R E

G R O W T H

New R&D Platforms:Integrated Farming Systems and Ag BiologicalsCreate New Yield Platform Opportunity

INTEGRATED FARMING SYSTEMS

FIELDSCRIPTS DRIVES INCREMENTAL YIELD FOR FARMERS

Optimal hybrid match and variable planting densityprescriptions backed by proprietary algorithms

Simple and convenient tool f or farmers to r ealizeadditional yield benefits

FieldScripts on-farm trials across 56 locations sho wed a5-10 bu/ac performance advantage vs. cur rent fixed andvariable rate seeding practices

AG BIOLOGICALS

MONSANTOS BIODIRECT TECHNOLOGYNEW TECHNOLOGY FOR AG BIOLOGICALS

BioDirect expected to be the first pl atformtechnology within biologicals for Monsanto

Leverages Monsantos core capability ingenomics, using genome sequences toidentify mor e precise, effective tools for pestcontrol

PRECISION SEEDINGVARIABLE-RATE

FERTILITY

FERTILITY &DISEASEMANAGEMENT

YIELD MONITOR

USER INTERFACE

BREEDING

DATABASE BACKBONE

UNTREATED TOMATOVIRUS PLANTS

BIODIRECT APPLICATION

BIODIRECT TECHNOLOGY APPLICATION

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Turning Yield Into Growth:Monsantos Business Focus

Key take-aways:

Monsanto is in a growth mode - With multip le years of strongperformance, our business has momentum

Weve taken the business to a global stage - Our growth is moreglobal, with more drivers coming from more geographies thanever before

Were a yield and product ivity company - We have the best R&Dto deliver yield and w e expect even more differentiation withfuture waves of innovation

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United Bank of Switzerland Presentation on Monsanto Corporation September 12th, 2013

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