Monsanto s Expanding R&D Opportunity DR. ROBB FRALEY

Transcription

1 Monsanto s Expanding R&D Opportunity DR. RO FRALEY Executive Vice President, Chief Technology Officer

2 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 activities; the outcomes of major lawsuits and the previously announced SEC investigation; s 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; the company's ability to fund its short-term financing needs and 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 Monsanto Company 2

3 R&D Advantage in Action: With Capability in Products and Information, Monsanto est Positioned to Drive On-Farm Yields APPLYING TECHNOLOGY TO DRIVE YIELD AND PRODUCTIVITY: R&D ENGINE R&D TECHNOLOGIES YIELD & PRODUCTIVITY OPPORTUNITY REEDING IOTECH 1. Part of the Monsanto-ASF Yield-and-Stress R&D Collaboration INTEGRATED YIELD PIPELINE AND EXPANDING PLATFORMS More data is being leveraged in more ways DATA CONVERGENCE REEDING ANNUAL UPGRADES REEDING TRAITS IOTECH AGRONOMIC TRAITS YIELD & STRESS 1 AGRONOMIC SOLUTIONS CHEMISTRY IOLOGICALS PRECISION AG YIELD IS A SYSTEM Multiple components come together to drive yield, with more platforms coming together in more ways than ever Innovation hub positions Monsanto to drive on-farm productivity across more platforms than anyone in the industry: IN-THE-AG Seed & yield protection establish foundation for yield + Chemistry and seed treatment OUTSIDE-THE-AG protect and drive productivity + Informed decision-making INFORMATION used to maximize system = ON-FARM YIELD & PRODUCTIVITY 3

4 Monsanto's Leading R&D Pipeline: With Industry's Only Integrated Yield Pipeline, Monsanto Continues to Extend Leadership HIGHLIGHT: With expanding R&D platforms, risk-adjusted pipeline NPV has increased 30% in past 5 years Yield Other Weed Control Disease Control Insect Control Innovation is coming from more platform across more crops and regions to drive more value Pipeline value increased by more than 30% in past 5 years Overall pipeline expected peak sales reaches up to $25 billion opportunity Pipeline reaches more than 70 projects across crops and grower focus HIGHLIGHT: 2013 performance data reinforces Monsanto advantage across crops and platforms reeding is a global blockbuster that delivers performance and value in every geography DEKAL advantage remains strong significantly outperforming competitors Roundup Ready 2 Yield is established as the new standard Successful Ground reakers results from FieldScripts, Roundup Ready 2 Xtend, and Intacta RR2 PRO HIGHLIGHT: Monsanto s pipeline has expanded to represent industry s only Integrated- Yield R&D pipeline YIELD IS A Multiple components come together to drive yield, with more platforms coming together in more ways than ever In the last two years alone: 32 pipeline projects advanced in the portfolio 10 projects combined entered Ground reakers or launched commercially Two completely new technology platforms added 4

5 Pipeline Value Increasing: More Projects than Ever Targeting a Truly Integrated Approach to Yield and Productivity PIPELINE VALUE INCREASING PORTFOLIO NET PRESENT VALUE INDEXED ( ) 1 Risk-Adjusted Pipeline Present Value (Index based on 2010 expected value) NUMER OF PROJECTS GROWING 2013 PORTFOLIO SPLIT Y CATEGORY More than 70 pipeline R&D projects focused on enhancing yield and productivity for growers In Past 5 Years Pipeline Value has Grown by 30% PIPELINE VALUE INCREASING: With newer and expanding platforms, increasing global technology opportunities, and our ability to leverage R&D further, Monsanto continues to lead with the most valuable, deepest and broadest pipeline of the Seeds and Traits industry Yield Other Weed Control Disease Control Insect Control Pipeline Value Expanded by 30 Percent Reaching Up To $25 illion in Peak Sales Opportunity LEADERSHIP EXPANDING Monsanto s pipeline is expanding creating additional innovation and enhanced grower value to support long term growth With more than 70 projects spanning different crops and platforms, Monsanto has more platforms in its R&D pipeline than any other company in the industry 1. Pipeline value excludes expanded IFS platform and iodirect projects 5

6 R&D Investments Fuels usiness Growth: Commercial Application of Pipeline Drives Return on Investment FACTOR: R&D LEVERAGE EXAMPLE: HISTORICAL CAGR ANALYSIS OF R&D EXPENSES VS SEEDS & GENOMICS GROSS PROFIT FACTOR: RETURN ON INVESTMENT EXAMPLE: ROW CROPS PIPELINE PROJECTS INTERNAL RATE OF RETURN (IRR) IN USD ILLIONS $7.0 $5.0 $3.0 $1.0 -$1.0 -$3.0 -$5.0 -$7.0 9% CAGR R&D EXPENSES INVESTMENTS % CAGR S&G GROSS PROFIT PROFITS RATE OF RETURN 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Yield Disease Yield Yield Weed Disease Insect Disease MEDIAN Insect Insect Weed Weed M 75 ACRE 100 MARK ~2.0X HISTORICAL CAGR Seeds and Genomics gross profit growth has outpaced R&D investments pace by approximately 2X ACRES OPPORTUNITY Corn Cotton Soy ubble Size is Directional and Varies by Peak Sales Value 6

7 Integrated Yield Pipeline: Corn Pipeline Anchored on Grower enefit and Integrated Systems CORN INTEGRATED PIPELINE PHASE 1 R&D TARGET TECHNOLOGY D VALUE 2 YIELD: Targeting products that enhance yield ANNUAL GERMPLASM UPGRADES YIELD & STRESS SYSTEMS 3, 4 Higher-Yielding Corn - (Lead) 2 nd -Gen Drought-Tolerant Corn Nitrogen-Utilization Corn IFS FIELDSCRIPTS Refer to IFS Pipeline r r io INSECT CONTROL: Products that improve insect-control durability and spectrum ELOW GROUND CONTROL Corn Rootworm III (Lead) Next-Gen Corn Rootworm AOVE GROUND CONTROL Corn orer III (Lead) Next-Gen Corn orer ACCELERON UPGRADES r io LEAD LEAD LAUNCHING r io LEAD r io r io io LEAD $7 $10 $1.5 - $2.0 WEED CONTROL: Products that improve weed-control durability and spectrum NEXT-GEN WEED CONTR0L SYSTEM Dicamba Tolerant Corn Glufosinate Tolerant Corn Glyphosate Tolerant Corn FOPs-TOLERANT r io r io DISEASE CONTROL: Products that improve plant vigor and resistance to disease PLANT HEALTH SYSTEMS 4 Anthracnose Stalk Rot Resistance (Lead) Goss s Wilt Resistance Gray Leaf Spot Resistance 2 nd Gen Stalk Rot Resistance NEMATICIDE SEED TREATMENT ACCELERON UPGRADES OTHER: ROUNDUP HYRIDIZATION SYSTEM RHS I (Lead) RHS II r io r r io io PHASE 1 R&D TARGET TECHNOLOGY D VALUE 2 LEAD r io LEAD $1 - $1.5 $0.5 - $1.0 <$0.5 Legend r reeding applications of technology that use genomics, advanced breeding and other tools from Monsanto s breeding pipeline iotech applications drawing primarily from the application of genomics and biotechnology traits io iologicals Foliar or seed treatment applications of iodirect or microbials using genome sequences to identify more precise effective tools to control for pests ronomic Tools applications using agronomic data insight and technology, ranging from new platforms such as IFS to improved chemistry applications and agronomic practices 1. Phase shown represents the phase of the latest project in the family. 2. Value reflects global sales opportunity around peak penetration year. Values exclude expected financial contributions from Climate or iologicals 3. Part of the Monsanto-ASF R&D Collaboration. 4. Commercial product may be a combination of projects or the individual projects themselves 7

8 Integrated Yield Pipeline: Soybean Pipeline Anchored on Grower enefit and Integrated Systems SOYEAN INTEGRATED PIPELINE PHASE 1 R&D TARGET TECHNOLOGY D VALUE 2 PHASE 1 R&D TARGET TECHNOLOGY D VALUE 2 YIELD: Targeting products that enhance yield $1.5 $2 DISEASE CONTROL: Products that improve plant vigor and resistance to disease $0.5 - $1 ANNUAL GERMPLASM UPGRADES YIELD & STRESS SYSTEMS 3, 4 Next-Gen Higher-Yielding Soy IFS FIELDSCRIPTS 4 Refer to IFS Pipeline r io r io r io PLANT HEALTH SYSTEMS 4 2 nd Gen Cyst Nematode Resistance SOYEAN CYST NEMATODE RESISTANCE NEMATICIDE SEED TREATMENT r io r io r io INSECT CONTROL: Products that improve insect-control durability and spectrum $0.5 - $1 ACCELERON UPGRADES r io INTACTA RR2 PRO PIPELINE 2 ND -Gen Insect Protection (Lead) 3 RD -Gen Insect Protection ACCELERON UPGRADES r io LEAD WEED CONTROL: Products that improve weed-control durability and spectrum r io $0.5 - $1 OTHER: SDA OMEGA-3 VISTIVE GOLD r io r io <$0.5 ROUNDUP READY 2 XTEND CROP SYSTEM Genuity Roundup Ready 2 Xtend Improved Dicamba Formulation r io IODIRECT GLYPHOSATE - RESISTANT WEED-CONTROL Palmer Amaranth/Waterhemp r io Legend r reeding applications of technology that use genomics, advanced breeding and other tools from Monsanto s breeding pipeline iotech applications drawing primarily from the application of genomics and biotechnology traits io iologicals Foliar or seed treatment applications of iodirect or microbials using genome sequences to identify more precise effective tools to control for pests ronomic Tools applications using agronomic data insight and technology, ranging from new platforms such as IFS to improved chemistry applications and agronomic practices 1. Phase shown represents the phase of the latest project in the family. 2. Value reflects global sales opportunity around peak penetration year. Values exclude expected financial contributions from Climate or iologicals 3. Part of the Monsanto-ASF R&D Collaboration. 4. Commercial product may be a combination of projects or the individual projects themselves 8

9 Integrated Yield Pipeline: Other Seeds and Traits Pipeline Anchored on Grower enefit and Integrated Systems COTTON INTEGRATED PIPELINE PHASE 1 R&D TARGET TECHNOLOGY 5 D VALUE 2 VEGETALES PIPELINE PHASE 1 R&D TARGET TECHNOLOGY 5 D VALUE 2 YIELD: Targeting products that enhance yield <$0.5 PIPELINE: Targeting products that enhance yield and disease resistance $1.5 - $2 ANNUAL GERMPLASM UPGRADES r io GENETICS PIPELINE UPGRADES r io INSECT CONTROL: Products that improve insect-control durability and spectrum NEXT GEN INSECT CONTROL Genuity ollgard III (Lead) Next-Gen ollgard r io LEAD $0.5 - $1 PLANT HEALTH SYSTEMS Phytophthora-Resistant Peppers (Lead) Gemini Virus-Resistant Tomato r io r io LEAD COTTON LYGUS CONTROL ACCELERON UPGRADES WEED CONTROL: Products that improve weed-control durability and spectrum XTENDFLEX CROP SYSTEM Dicamba-Glufosinate Tolerance Improved Dicamba Formulation IODIRECT GLYPHOSATE - RESISTANT WEED-CONTROL Palmer Amaranth/Waterhemp r io DISEASE CONTROL: Products that improve plant vigor and resistance to disease PLANT HEALTH SYSTEMS 4 Root Knot Nematode Reistance NEMATICIDE SEED TREATMENT ACCELERON UPGRADES r r r io r r io io io io r io <$0.5 <$0.5 CANOLA WHEAT OTHER SEEDS AND TRAITS PIPELINE OTHER SEEDS AND TRAITS PIPELINE YIELD: Targeting products that enhance yield ANNUAL GERMPLASM UPGRADES WEED CONTROL: Products that improve weed-control durability and spectrum TRUEFLEX ROUNDUP READY Trueflex Roundup Ready Next-Gen Roundup Ready + Liberty Link r io DICAMA-TOLERANT CANOLA r io r io YIELD: Targeting products that enhance yield ANNUAL GERMPLASM UPGRADES YIELD & STRESS SYSTEMS 3, 4 Yield-and-Stress Wheat r r io io WEED CONTROL: Products that improve weed-control durability and spectrum LEAD $1 - $1.5 HERICIDE-TOLERANT WHEAT r io SUGAR CANE INSECT AND WEED CONTROL: Stacked products that improve weed and insect control INSECT PROTECTED + ROUNDUP READY SUGARCANE r io 1. Phase shown represents the phase of the latest project in the family. 2. Value reflects global sales opportunity around peak penetration year. Values exclude expected financial contributions from Climate or iologicals 3. Part of the Monsanto-ASF R&D Collaboration. 4. Commercial product may be a combination of projects or the individual projects themselves 5. Technology legend referenced in corn or soy pipeline slides 9

10 New R&D Platforms: Precision and iologicals Create New Yield and Productivity Platform Opportunity PLATFORMS PHASE 1 PRECISION AG PIPLINE D PHASE 1 AG IOLOGICALS PIPELINE D YIELD: Targeting products that enhance yield YIELD: Targeting products that enhance yield IFS FIELDSCRIPTS Corn Fieldscripts (Lead) Variable Rate Soy FieldScripts Weather-Enhanced FieldScripts Variable Rate Fertility Fieldscripts Multi-Hybrid Corn Fieldscripts Multi-Variety Soybeans FieldScripts LEAD LAUNCHING MICROIALS TECHNOLOGY: YIELD FOCUS radis Microbials Yield Performance INSECT CONTROL: Products that improve insect-control durability and spectrum IODIRECT TECHNOLOGY: INSECT CONTROL Colorado Potato eetle PRODUCTIVITY AND RISK MITIGATION: Targeting products that reduce variability CLIMATE PRO.COM Pest & Disease Advisor Planting Advisor Harvest Advisor Nitrogen Advisor Variable Rate Advisor PRECISION PLANTING: Targeting enabling technologies that focus on delivery of IFS PRECISION PLANTING EQUIPMENT 20/20 Yield Sense FieldView DeltaForce VDrive LEAD LAUNCHING LEAD LAUNCHING WEED CONTROL: Products that improve weed control durability and spectrum IODIRECT TECHNOLOGY: GLYPHOSATE RESISTANT WEED CONTROL Palmer Amaranth/Waterhemp DISEASE CONTROL: Products that improve plant vigor and resistance to disease IODIRECT TECHNOLOGY: VIRUS CONTROL iodirect Tospovirus Control MICROIALS TECHNOLOGY: PlANT HEALTH FOCUS Microbials Plant Health EE HEALTH: Products that improve bee health through resistance to diseases or predatory mites IODIRECT TECHNOLOGY: EE HEALTH iodirect ee Health 1. Phase shown represents the phase of the most advanced project in the family 10

11 2013 Yield Performance: Data Reinforces Monsanto s Enduring Yield Advantage Across Crops and Regions HIGHLIGHT: 2013 performance data reinforces Monsanto advantage across crops and platforms reeding is a global blockbuster that delivers performance and value in every geography DEKAL advantage remains strong significantly outperforming competitors Roundup Ready 2 Yield is established as the new standard Successful Ground reakers results from FieldScripts, Roundup Ready 2 Xtend, and Intacta RR2 PRO PRELIMINARY UPDATE: DEKAL PERFORMANCE RR2Y PERFORMANCE SYSTEM PERFORMANCE GROUND REAKERS U.S. HARVEST UPDATE: 2013 SUMMARY DEKAL results on track for record-level total performance and continued advantage relative to competitors 2013 results demonstrate year-in, year-out yield advantage in the historic 7-10 bushel-per-acre band delivered consistently over the last decade Genuity Roundup Ready 2 Yield results reinforce platform s industry-leading yield advantage With another year of strong performance results the platform s enduring yield advantage is clear DroughtGard Hybrids and other leading DEKAL products out perform competitive drought products In first year of commercial launch, DroughtGard Hybrids demonstrate strong performance advantage Ground reakers data shows strong performance advantage of new technologies FieldScripts, Roundup Ready 2 Xtend and Intacta RR2 PRO demonstrate strong performance advantage in on-farm trials 11

12 DEKAL Performance: Year-in, Year-out Performance Confirms Overall Advantage for DEKAL PRELIMINARY UPDATE: 2013 U.S. COMPETITIVE CORN YIELD COMPARISON 1 : DEKAL VS. COMPETITIVE PRODUCTS USHELS PER ACRE DEKAL NATIONAL YIELD U.S. COMPETITIVE SET NATIONAL YIELD 2013 PERFORMANCE DEKAL on track for recordlevel total yields Reflects continued advancement in industry-best yields driven by best totalyield package Year-in, year-out performance confirms DEKAL s overall advantage Over the past decade DEKAL advantage has been in the band of 7-10 bu/ac underscoring its consistent advantage DEKAL performs in both highand low-yielding conditions Results confirm DEKAL ability to deliver industry-leading yield under a gamut of growing conditions, with varying degrees of stress Harvest results status: 48% complete Early harvest results show strong performance advantage with >7 bu/ac advantage 1. Annual yield advantage calculated each year by comparing 5 leading DEKAL volume products within each relative maturity zone to national competitor products containing similar crop protection traits as of October 30, All comparisons are head-to-head comparisons using +- 2RMs and weighted average calculated using 15% moisture 12

13 DroughtGard Hybrid Performance: Data Confirms Strong Yield Performance Advantage Over Competitive Drought Products PRELIMINARY UPDATE: DROUGHTGARD HYRIDS PERFORMANCE VS. COMPETITIVE DROUGHT PRODUCTS 1 : FOCUS: WESTERN DRYLAND FOCUS: WESTERN DRYLANDS USHELS PER ACRE >5 U/AC ADVANTAGE 155 DROUGHTGARD HYRIDS COMPETITIVE DROUGHT PRODUCTS Low annual precipitation High annual precipitation 2013 PERFORMANCE: DroughtGard Hybrids demonstrate strong yield performance advantage DroughtGard Hybrids targeting Western dryland acres demonstrate strong yield performance advantage over competitive drought products in first year of commercial sale LAUNCH AREA: DroughtGard Hybrids targeted for the Western dryland acres DroughtGard Hybrids demonstrate hydroefficiency capability under drought stress conditions imposed around flowering 1. DroughtGard Hybrids head-to-head comparisons vs. DuPont-Pioneer Aquamax TM and Syngenta risureartesian TM. Data as of October 30, All comparisons are head-to-head comparisons using +- 2RMs and calculated using 15% moisture. 13

14 DEKAL Performance Highlight: Data Confirms Strong Yield Performance Advantage Over Competitive Drought Products PRELIMINARY UPDATE: DEKAL PRODUCT PERFORMANCE VS. COMPETITIVE DROUGHT PRODUCTS 1 : FOCUS: CENTRAL CORN ELT FOCUS: CENTRAL CORN ELT USHELS PER ACRE >7 U/AC ADVANTAGE 195 DEKAL COMPETITIVE DROUGHT PRODUCTS Low annual precipitation High annual precipitation 2013 PERFORMANCE: Leading DEKAL products demonstrate strong yield performance advantage Head-to-head comparisons across the central corn belt show leading DEKAL products out yield competitive drought products by >7 bushels per acre DEKAL base genetics bred for yield, overall plant health and protection against stressors such as drought Looking at DroughtGard Hybrids in the West and other leading DEKAL products across the corn belt, data confirms strong yield performance advantage over competitive drought products 1. Leading DEKAL products vs. DuPont-Pioneer Aquamax TM and Syngenta risureartesian TM.. Data as of October 30, Comparisons are head-to-head comparisons using +- 2RMs and calculated using 15% moisture 14

15 Genuity Roundup Ready 2 Yield: 2013 Harvest Results Reinforce Platform s Industry-Leading Yield Advantage PRELIMINARY UPDATE: 2013 GENUITY ROUNDUP READY 2 YIELD PERFORMANCE 1 : VS. COMPETITIVE PRODUCTS WITH ROUNDUP READY TRAIT USHELS PER ACRE PERFORMANCE Genuity Roundup Ready 2 Yield platform established Reached 43 million acres across licensed and branded customers, and a deal with DuPont that expands the overall opportunity Demonstrates enduring yield performance advantage Data shows >4 bu/ac advantage 3 consecutive years Harvest results status: 63% complete Early harvest results show strong performance advantage of >4.5 bu/ac advantage GENUITY ROUNDUP READY 2 YIELD COMPETITIVE PRODUCTS WITH ROUNDUP READY TRAIT 1. Data as of October 30, Includes all breeding and commercial strip trial data. All head-to-head comparisons are within +/- 0.4 day maturity. Data represents the top performing Genuity Roundup Ready 2 Yield products (with a minimum of 30 comparisons per product) versus competitor Roundup Ready products 15

16 Soybean Strategy: With Genuity Roundup Ready 2 Yield Platform Established randed Genetics ecomes Key FACTOR ESTALISHED RR2Y TRAIT PLATFORM FACTOR ASGROW PERFORMANCE ACRES (IN MILLIONS) U.S. Genuity Roundup Ready 2 Yield Trait Acres Genuity Roundup Ready 2 Yield platform established Reached 43 million acres across licensed and branded customers, and a deal with DuPont that expands the overall opportunity PRELIMINARY UPDATE: USHELS PER ACRE ASGROW GENUITY ROUNDUP READY 2 YIELD PERFORMANCE 1 : VS. COMPETITIVE PRODUCTS >4 U/AC ADVANTAGE ASGROW YIELD 2013 ADVANTAGE 2013 PERFORMANCE: ASGROW varieties demonstrate strong yield performance advantage Complete portfolio of products with superior genetics across all regions drives better yield performance 1. Data as of October 30, Includes all breeding and commercial strip trial data. All head-to-head comparisons are within +/- 0.4 day maturity. Data represents the top performing ASGROW Genuity Roundup Ready 2 Yield products (with a minimum of 30 comparisons per product) versus competitor Genuity Roundup Ready 2 Yield and Roundup Ready products 16

17 R&D Pipeline Progress: Strong Progress Across All Areas of Pipeline Reinforces Long-Term usiness Opportunity HIGHLIGHT: Monsanto s pipeline has expanded to represent industry s only Integrated- Yield R&D pipeline YIELD IS A Multiple components come together to drive yield, with more platforms coming together in more ways than ever In the last two years alone: 32 pipeline projects advanced in the portfolio 10 projects combined entered Ground reakers or launched commercially Two completely new technology platforms added GENETICS PIPELINE PLATFORMS NEXT-WAVE TECHNOLOGIES NEXT-GEN REAKTHROUGHS PROGRESS ACROSS PIPELINE: KEY TRENDS iggest lockbuster is Germplasm Investments in advanced breeding continue to deliver the industry s best pipeline of genetics across crops and regions More leverage in data insight than ever translates to better products and new platforms: Monsanto added two new platforms in the last 2 years: Precision and iologicals to its pipeline R&D extending its lead with unique biotechnology breakthroughs that add incremental new value Monsanto is working on multiple novel biotechnolgies to improve yield and productivity through its work with ASF in Yield and Stress and through its novel RNAi-based projects Pipeline delivering 3 rd and 4 th generation upgrades while others still pursuing first-gen technologies Next -gen solutions for insect and weed control like Intacta RR2 PRO and Roundup Ready 2 Xtend poised to significantly improve soybean farming 17

18 New Precision Platform: On Heels of FY2014 Launches, Upgrades Already Reflected in R&D Pipeline CURRENT OFFERING PRECISION-AGRICULTURE R&D PIPELINE: PIPELINE PROGRESSION FIELDSCRIPTS OFFERINGS PRODUCT CONCEPT: Optimal hybrid match and variable planting density prescription backed by proprietary algorithm STATUS: Move from Ground reakers to commercial offering in FY14 FIELDSCRIPTS ENHANCED WITH WEATHER DATA Designed to improve corn performance and win rates through tailored hyper-local weather data CAPAILITY ENHANCEMENT FIELDSCRIPTS APPLICATIONS FOR SOYEANS Designed to expand opportunity to other row crops like soybeans leveraging unique genetic response enhanced with hyperlocal weather data SOYEANS FIELDSCRIPTS ENHANCED WITH VARIALE RATE FERTILITY Designed to improve performance leveraging unique genetic response to nutrition variables FIELDSCRIPTS WITH MULTI- HYRID VARIALE RATE SEEDING Designed to improve performance through enhanced Fieldscripts recommending 2+ optimal hybrids with variable rate planting populations IN-SEASON DECISION TOOLS CLIMATE PRO CLIMATE ASIC STATUS: Move to commercial offering in FY14 CLIMATE PRO VARIALE-RATE ADVISOR NITROGEN ADVISOR PLANTING ADVISOR HARVEST ADVISOR PEST & DISEASE ADVISOR CAPAILITY ENHANCEMENT Access to Monsanto s proprietary genetics data enhances power of analytics and algorithms RAPID-CYCLE UPGRADES Multi-generational upgrade cycle adding features and functionality for in-season decision support capabilities ecause the technology doesn t have the regulatory component involved in biotech or chemistry, expected to move more like rapid-cycle upgrades for computer software 18

19 New Precision Platform: 2013 IFS FieldScripts Trial Results Validate Step Change in Corn Yields and Ease of Use PLATFORMS Precision : IFS FieldScripts Completed successful 2013 Ground reakers program, validating both on-farm experience with delivery and ease of use and yield performance of commercial prescription FACTOR ON-FARM EXPERIENCE AND EASE OF USE 1 Evaluating delivery and ease of use of prescription ~80% of respondents reported system worked well or very well 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Interest and intentions for using FieldScripts ased on the operational simplicity and optimizing seed selection and seeding rates, Ground reakers growers plan on utilizing FieldScripts on more acres in 2014 NO YES 90% % OF GROWERS WHO INTEND TO USE FIELDSCRIPTS NEXT YEAR ~80% 70% FIELDSCRIPTS INTENDED % OF FIELDSCRIPTS ACRE PENETRATION NEXT YEAR FACTOR PRELIMINARY UPDATE: YIELD (U/AC) YIELD PERFORMANCE 2013 GROUND REAKERS 2 FIELDSCRIPTS PRESCRIPTION WITH LIMITED DATA LAYERS FIELDSCRIPTS PRODUCT FOR 2014 LAUNCH 5-10 U/AC ADVANTAGE FIELDSCRIPTS HIGH-RESOLUTION PRESCRIPTION WITH OPTIMIZED DATA LAYERS Value of Ground reakers uilding grower experience and providing practical, on-farm feedback that drive commercial advancement decisions Learning from 2013 Trials The use of the right data layers is important to the outcome and testing of multiple data-management approaches confirms the power of robust, high-resolution proprietary method over current offerings 2014 Commercial Advancements Launch FieldScripts across key states on hundreds of thousands of acres with an introductory price of $10/acre focused on delivering a premium grower experience leading to widespread adoption 1. Survey of Ground reakers participant growers, n= Data as of October 25, FieldScripts on-farm Ground reakers trials across 62 locations. Results compare Ground reakers FieldScripts trials against farmer s normal planting practices. 19

20 New iologicals Platforms: Microbials Technology Added to Platform with Discovery Concepts in Yield and Disease Focus PLATFORMS iologicals: Microbials Monsanto adds Microbials as the newest technology platform to complement its iologicals platform advancing discovery concepts that deliver yield and productivity gains AG IOLOGICALS INDUSTRY OVERVIEW: AG IOLOGICALS INDUSTRY OVERVIEW: $2.3 SALES $X.X SALES 1 1 SECTOR GROWTH DRIVEN Y INCREASING DEMAND FOR GREEN AG CHEMICAL OPTIONS OTHER PROJECT: Microbials Yield Focus STATUS: Discovery TECHNOLOGY Discovery Phase 1 Proof of concept PRODUCT CONCEPT Phase 2 Early Phase 3 Advanced Phase 4 Pre-launch Future class of seed treatment applications selected in part for their ability to improve and optimize row crop farm yields Leverages radis microbials library and core capability in microbial genomics r io PLANT HEALTH NEMATICIDES HERICIDES FUNGICIDES PROJECT UPDATE INSECTICIDES Y IOLOGICAL MARKETS MICROIAL INNOCULANTS ENEFICIAL INSECTS IOCHEMICAL MICROIAL PESTICIDES Y IOLOGICAL PRODUCT CLASS Monsanto has been building its iologicals platform with breakthrough technology like iodirect and now has added Microbials to its discovery effort: Recent investments in the Microbials platform include the radis and Synthetic Genomics deals PROJECT: Microbials Plant Health Focus STATUS: Discovery TECHNOLOGY Discovery Phase 1 Proof of concept PRODUCT CONCEPT Phase 2 Early Phase 3 Advanced Phase 4 Pre-launch Future class of seed treatment with applications in row crops with potential to deliver effective and precise plant and beneficial species protection Complements or replaces synthetic ag chemical products 1. Monsanto estimates of iologicals industry based on a combination of research data from DunhamTrimmer, row, MarketsandMarkets, Frost & Sullivan, oston Consulting Group, CC Research r io 20

21 New iologicals Platform: iodirect Leverages Genomics Capability to Create New, reakthrough Solutions PLATFORMS iologicals: iodirect Three iodirect projects advance, reflecting the breadth and depth of the technology with phase advancements in insect control, disease control, and bee health platforms COLLINSVILE, IL : IODIRECT GR WEED CONTROL TRIALS 2013 field demonstration of iodirect technology control of Glyphosate- Resistant Palmer PROJECT: iodirect GR Weed Control STATUS: Lead Phase 1 TECHNOLOGY Discovery Phase 1 Phase 2 Phase 3 Phase 4 PRODUCT CONCEPT PROJECT: iodirect Colorado Potato eetle STATUS: Advances Phase 1 TECHNOLOGY Non-transgenic weed control topical technology designed to target glyphosateresistant weeds and provide more effective spectrum of control r r io io Discovery Phase 1 Phase 2 Phase 3 Phase 4 PRODUCT CONCEPT iological pesticide with broad applications potential protecting specialty and row crops from colorado potato beetle infestations 2013 MONSANTO CP FIELD TRIALS: GR PALMER SPRAYED WITH GLYPHOSATE ALONE GR PALMER SPRAYED WITH IODIRECT TECHNOLOGY + GLYPHOSATE PROJECT UPDATE New trials reflect the potential to provide control of weeds resistant to glyphosate using the eeologics acquisition dsrna production process Project work demonstrated in either lab or field trials control of glyphosate resistant weeds like Palmer and Waterhemp UNTREATED PLANTS TREATED WITH IODIRECT TECHNOLOGY 21

22 Yield & Stress Update: Launch of DroughtGard Hybrids Underscores Value of Systems Approach to Yield and Stress NEXT-WAVE TECHNOLOGY Yield & Stress Systems Yield and Stress Systems Pipeline Successful commercial introduction of DroughtGard Hybrids underscores benefit of systems approach to Yield & Stress TRAIT PACKAGES GERMPLASM TOTAL YIELD PROJECT UPDATES AGRONOMIC PRACTICES Using proven example of DroughtGard Hybrids, best approach to target broad effect on Yield & Stress is system approach of multi-stack packages: Drawing on best-adapted germplasm, trait packages and recommendations on bestmanagement agronomic practices Multiple genes and multiple generations can be combined in core product concept The next class of Yield-and-Stress projects leverages both the deeper pipeline of leads in the ASF collaboration and applied learnings from forerunner work: Yield-and-Stress targets are complex, so deep pipeline of candidates is key There is a greater emphasis on a combined system to use packages of multiple genes and germplasm to achieve best performance and win rates With success of DroughtGard Ground reakers, 2013 introductory year and recently China import approvals expect broader launch in 2014 PROJECT: Yield & Stress Corn System 1,2 STATUS: Lead Phase 3 TECHNOLOGY Discovery Phase 1 Proof of concept PRODUCT CONCEPT Phase 2 Early Phase 3 Advanced Phase 4 Pre-launch This next-generation product is designed to maximize yield opportunity Higher-yielding corn has shown consistent improved yield performance across multiple years and growing environments r io PROJECT: Yield & Stress Soybean System 1,2 STATUS: Lead Phase 2 TECHNOLOGY Discovery Phase 1 Proof of concept PRODUCT CONCEPT Phase 2 Early Phase 3 Advanced Phase 4 Pre-launch Product designed to launch as a multi-gene stack Focusing effort on broad-acre product This next-generation product is designed to maximize yield opportunity r io 1. Part of the Monsanto-ASF R&D Collaboration. 2. Commercial product may be a combination of projects or the individual projects themselves 22

23 RNAi Applications for Rootworm: Lead Product Submitted for Regulatory; Milestone Toward Commercial Introduction NEXT- WAVE TECHNOLOGY Corn Rootworm III Lead submitted for regulatory review, marking major milestone in commercial path for totally new mode-of-action beyond traditional t genes ROOT DAMAGE RATINGS (0-3 SCALE) FIELD TRIALS: RNAI STACKED EVENTS Rootworm III RNAi stacked events demonstrate superior root protection across all trials GENSS = Genuity SmartStax GENVT3P = Genuity VT Triple PRO PROJECT UPDATES ECONOMIC THRESHOLD RNAi STACKS GENSS GENVT3P CONTROL Error bars are SE(standard error) Locations: 9 Reflects first products to use RNAi-based proteins as novel mode of action for rootworm control, offering new approach beyond traditional t genes Next-Generation Corn Rootworm IV the next RNAi-based generation product advanced into the pipeline in 2013 PROJECT: Corn Rootworm III STATUS: Phase 3 TECHNOLOGY Discovery Phase 1 Proof of concept PRODUCT CONCEPT Phase 2 Early Phase 3 Advanced Phase 4 Pre-launch Project designed to offer increased control and durability against corn rootworm insects Project concept aims to add a distinct mode of action using cutting-edge RNA interference (RNAi) technology ROOT PROTECTION SAMPLES UNDER HIGH ROOTWORM PRESSURE CONTROL RNAi GENVT3P RNAi STACKS GENSS r io 23

24 Roundup Ready Xtend Crop System: First Integrated Soybean ronomic System with Fit on More than 100 Million Acres Globally NEXT-GEN REAKTHROUGH Roundup Ready Xtend Crop System Completed successful on-farm Ground reakers trials with nearly 90% of surveyed growers citing broader spectrum weed control as the most important advantage of the system GROUND REAKERS 1 : 2013 Grower Feedback Results More MOA to Help Manage Resistance roader Spectrum of Weed Control PROJECT UPDATE Successful Ground reakers trials citing benefits of Roundup Ready Xtend Crop System Provides High Speed of Kill Other Greater Application Flexibility etter Seed Vigor 2% 2% 2% 2% TOP SYSTEM ADVANTAGE ACCORDING TO GROWERS: roader Spectrum of Weed Control 0% 50% 100% Dicamba/glyphosate pre-mix and tank-mix shows strong efficacy and potential residual activity up to 14 days 2 Great results managing off-site movement including particle drift and volatility Received Canadian in-country regulatory trait approvals. On track for over-the-top chemistry approval later in the fiscal year 4% 87% PROJECT: Roudup Ready Xtend Crop System STATUS: Phase 4 TECHNOLOGY Discovery Phase 1 Proof of concept Phase 2 Early Phase 3 Advanced Phase 4 Pre-launch 1. Field Trials Under Permit 2. Pending EPA registration 24 PRODUCT CONCEPT Designed to provide additional mode-ofaction for farmers to manage tough-tocontrol broadleaf weeds through the use of glyphosate, dicamba, or tank mix/premix combinations of both herbicides for pre-plant burndown and in-season over-the-top applications 2013 VOLATILITY TEST RESULTS r io New VaporGripTechnology coupled with application requirements will provide customers confidence in on-target application of dicamba anvel Relative volatility as measured in humidome testing Clarity SIGNIFICANT REDUCTION IN VOLATILITY POTENTIAL WHEN USING LOW VOLATILITY FOMULATIONS AND VAPORGRIP TECHNOLOGY XtendiMax with VaporGrip Technology Candidate

25 Intacta RR2 PRO Pipeline: Industry s First Yield and Productivity Stack System Designed for Latin America NEXT-GEN REAKTHROUGH Intacta RR2 PRO Launched Intacta RR2 PRO this fall targeting the largest soybean trait launch ever on 3 M acres after successful completion of Ground reakers trials with 1000 farmers RAZIL GROUND REAKERS: INTACTA RR2 PRO TRIALS USHELS/ACRE No. of Growers INTACTA RR2 PRO Roundup Ready / / / /2013 No. of Groun 500 1,000 SIGNIFICANT YIELD ADVANTAGE: >4 bu/ac PROJECT: 2 nd -Gen Insect Protected Soy STATUS: Phase 3 TECHNOLOGY Discovery Phase 1 Proof of concept PRODUCT CONCEPT Phase 2 Early Phase 3 Advanced Phase 4 Pre-launch Second-generation insect-protected project contains multiple modes-of-action to improve durability and expand the spectrum of insect protection Spectrum of protection expanded to include armyworms 2011 SOUTHERN ARMYWORM TRIALS Events Show Good Protection ainst Southern armyworm in screen house trials r io PROJECT UPDATE Targeting 3M acres Intacta RR2 PRO acres in the first year of launch Argentina Ground reakers expected in FY2014 with broad commercial launch expected in FY2015 Pipeline already includes two other next-gen insect protection projects CONTROL MULTIPLE MODES OF ACTION 25

26 Monsanto's Leading R&D Pipeline: With Industry's Only Integrated Yield Pipeline, Monsanto Continues to Extend Leadership HIGHLIGHT: With expanding R&D platforms, risk-adjusted pipeline NPV has increased 30% in past 5 years Yield Other Disease Control Weed Control Insect Control Innovation is coming from more platform across more crops and regions to drive more value Pipeline value increased by more than 30% in past 5 years Overall pipeline expected peak sales reaches up to $25 billion opportunity Pipeline reaches more than 70 projects across crops and grower focus HIGHLIGHT: 2013 performance data reinforces Monsanto advantage across crops and platforms reeding is a global blockbuster that delivers performance and value in every geography DEKAL advantage remains strong significantly outperforming competitors Roundup Ready 2 Yield is established as the new standard Successful Ground reakers results from FieldScripts, Roundup Ready Xtend, and Intacta RR2 PRO HIGHLIGHT: Monsanto s pipeline has expanded to represent industry s only Integrated- Yield R&D pipeline YIELD IS A Multiple components come together to drive yield, with more platforms coming together in more ways than ever In the last two years alone: 32 pipeline projects advanced in the portfolio 10 projects combined entered Ground reakers or launched commercially Two completely new technology platforms added 26