monsanto 06-02-06

1

HUGH GRANTCHAIRMAN, PRESIDENT AND CEOMONSANTO COMPANY

SANFORD C. BERNSTEIN STRATEGIC DECISIONS CONFERENCEJune 2, 2006

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 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, including proceedings related to Solutia Inc.; developments related to foreign currencies and economies; successful completion and operation of recent and proposed 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 filings with the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

3

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, and Return on Capital (ROC). 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 on-going EPS, excludes certain after-tax items that we do not consider part of ongoing operations, which are identified in the reconciliation. ROC means net income (without the effect of certain items) exclusive of after-tax interest expenses, divided by the average of the beginning year and ending year net capital employed, as defined in the reconciliation. Our presentation of non-GAAP financial measures is intended to supplement investors’ understanding of our operating performance. These non-GAAP financial measures are not intended to replace net income (loss), cash flows, financial position, or comprehensive income (loss), as determined in accordance with accounting principles generally accepted in the United States. 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, which can be found at the end of this presentation.

Trademarks

Roundup, Roundup Ready, Roundup RReady2Yield, Bollgard, Bollgard II, YieldGard, Monsanto, Imagine, Vine Design, Asgrow, DEKALB, Monsanto Choice Genetics, Posilac, Processor Preferred, Vistive, Stoneville and Seminis are trademarks owned by Monsanto Company and its wholly-owned subsidiaries and are italicized the first time they appear in this presentation.

All other trademarks are the property of their respective owners.

© 2006 Monsanto Company

4

Increased Grain Production Will Be Required to Meet the World’s Changing Food Demands

OVERVIEW

UNITED STATES

20102005

81M MT86M MTSOY

297M MT278M MTCORN

ARGENTINA

20102005

40M MT38M MTSOY

27M MT23M MTCORN

BRAZIL

20102005

81M MT60M MTSOY

53M MT44M MTCORN

EUROPE

20102005

3M MT1M MTSOY

55M MT52M MTCORN

ASIA

20102005

23M MT22M MTSOY

132M MT122M MTCORN

NET EXPORTER NET IMPORTER PRODUCTION = CONSUMPTION

Source: U.S.D.A. Foreign Agricultural Service, ABIOVE, Independent Economists & Monsanto Estimates

THE THREE LEADING SOYBEAN EXPORTERS – U.S., BRAZIL, AND ARGENTINA ACCOUNT FOR > 90% OF WORLD TRADEE.U. REMAINS WORLD’S PRINCIPAL DESTINATION FOR SOYBEAN MEALIN BRAZIL, DESPITE INCREASING DOMESTIC FEED USE, INCREASING AREA ALLOWS SHARE GROWTH IN CORN AND SOY

WORLD AREA GRAIN PRODUCTION

CHINA: NET IMPORTS

-10

0

10

20

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2005 2010

CORN SOY

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OVERVIEW

Monsanto’s Seeds And Traits Strategy Is Played Out Across Four Core Crop Franchises

BIOTECH AND

BREEDING R&D

PLATFORM

• YIELDGARD FAMILY• ROUNDUP READY

FAMILY

KEY TRAITS

• DEKALB/ASGROW• ASI, INC.• HOLDEN’S/CORN

STATES

SEED CHANNELS

CORN

• ROUNDUP READYFAMILY

• VISTIVE FAMILY

KEY TRAITS

• DEKALB/ASGROW• ASI, INC.• HOLDEN’S/CORN

STATES

SEED CHANNELS

SOYBEANS

• BOLLGARD FAMILY• ROUNDUP READY

FAMILY

KEY TRAITS

• STONEVILLE• COTTON STATES

SEED CHANNELS

COTTON

• TOMATOES, MELONS, PEPPERS

KEY CROPS

• SEMINIS AND RELATED BRANDS

SEED CHANNELS

VEGETABLES

6

OVERVIEW

Farmers ‘Buy Yield,’ Creating Opportunity for Seeds and Traits Growth

+

=

MONSANTO’S POSITION: CORN

The elegance of a seed and trait approach is that the seed is the package and traits can be ‘stacked’ for maximum effect

In 2005, Monsanto introduced the first triple-stack of biotech traits

FARMERS’ DECISION EQUATION

SEED(GENETIC GAIN)The starting point of all agriculture; farmers need to maximize ‘genetics’ in seed for yield

TECHNOLOGY(% OF GENETIC GAIN PRESERVED)Technology is used to protect and maximize the yield potential of the seed

MAXIMUM YIELD POTENTIAL

The basic equation represents the maximum yield potential multiplied by the percent of that yield preserved by technology

Retail brands

Licensing

Regional brands

‘Above ground’ protection

Weed control system

‘Below ground’ protection

+

=

7

OVERVIEW

Breeding and Biotech Provide Parallel R&D Paths to Commercial Products That Enhance Yield

PHASE II PHASE III PHASE IVPHASE IDISCOVERY LAUNCH

BREEDING and BIOTECHNOLOGY form two R&D pathways

Separate, but parallel, the BREEDING and BIOTECHNOLOGY pathways are linked by shared tools.

ELI

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BREEDING

BIOTECHNOLOGY

GGermplasm

RSEED SOLD TO FARMERS

R&D PHASE:

8

Opportunity for Breeding and Biotechnology Is to Continue to Deliver Yield for Farmers

OVERVIEW

NA

TU

RA

L Y

IELD

S

UP

PR

ES

SIO

N

INSECT PRESSURE

WEED PRESSURE

NUTRIENT DEFICIENCY

WATER DEFICIENCY

CU

RR

EN

T Y

IELD

P

RO

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CT

ION

SEED MANUFACTURING

WEED-CONTROL TRAITS

ABOVE-GROUND INSECT CONTROL

BELOW-GROUND INSECT CONTROL

FOCUS: YIELD

NET REALIZED YIELD

PERCENT OF GENETIC GAIN PRESERVEDX

GENETIC POTENTIAL

WHAT MATTERS TO FARMERS IS THE YIELD HE SEES AT HARVEST, WHICH IS A FUNCTION OF HOW MUCH POTENTIAL A SEED HAS AND HOW IT’S PROTECTED:

NET REALIZED YIELD WITH CURRENTPROTECTION

NET REALIZED YIELD WITHFUTURE PROTECTION OPPORTUNITIES

GENETIC POTENTIAL IS PRESERVED THROUGH BIOTECH TRAITS AND PRODUCTION ADVANCES

GENETIC POTENTIAL (FUTURE)

GENETIC POTENTIAL (CURRENT)

NET REALIZED YIELD WITH NO PROTECTION

SECOND-GENERATION INSECT CONTROL

DROUGHT TOLERANCE

IMPROVED NITROGEN UTILIZATION

BR

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U.S. CORN MARKET SHARE

0%

10%

20%

30%

40%

50%

60%

2001 2002 2003 2004 2005 2006F

2006 FRONTLINE UPDATE:ASGROW AND DEKALB AND ASI BRANDS ARE EXPECTED TO GROW MARKET SHARE IN 2006

43%

54%

69%

2006F20052006F2005

27%60%44%HOLDEN’S/CORN STATESLICENSEES

36%76%66%AMERICAN SEEDS, INC. (ASI)

60%90%87%DEKALB AND ASGROW BRANDS

STACKED PENETRATIONTRAIT PENETRATIONCHANNEL TO MARKET

COMMERCIAL

Breeding and Biotechnology Create Enough High-Performing Products to Supply Three Channels

10

0%

5%

10%

15%

20%

2001 2002 2003 2004 2005 2006F 2007F 2008F

0%

1%

2%

3%

4%

5%

6%

Corn Market Share Gains Still To Fully Reflect Power of Molecular Breeding Application

U.S

. MA

RK

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PROGRESSION OF BREEDING TECHNOLOGY

IN THE COMMERCIAL

PORTFOLIO

CYCLE 1: INTEGRATION OF GLOBAL GERMPLASM

• ASSEMBLED 36 MAJOR CORN BREEDING PROGRAMS IN 12 COUNTRIES

• FIRST INTRA-COMPANY CROSSES; BY CYCLE 3, >50% OF HYBRIDS IN THE U.S. PORTFOLIO MADE THROUGH INTRA-COMPANY CROSSES

CYCLE 2:APPLICATION OF MOLECULAR BREEDING TO SELECTION

CYCLE 3: SELECTION POWER OF MOLECULAR BREEDING

• MOLECULAR BREEDING IMPROVES GENETIC POTENTIAL BY 2X VERSUS CONVENTIONAL BREEDING

• BY 2006, FIRST MOLECULAR BREEDING HYBRIDS ENTER COMMERCIAL PORTFOLIO

• PREDICTIVE COMBINATIONS ALLOW MORE EFFICIENT BREEDING

• MOLECULAR BREEDING ACCELERATES TRAIT INTEGRATION BY SHORTENING ‘BACKCROSSING’ CYCLES

MOLECULAR-BREEDING HYBRIDS AS A PERCENT OF BRANDED

UNITS SOLD IN COMMERCIAL CORN PORTFOLIO

DEKALB AND ASGROW U.S. BRAND MARKET SHARE

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FOLIO

2005 BRANDED U.S. MARKET SHARE: 16%

COMMERCIAL

11

1Market Position

NORTH AMERICA

2005

34%Market Share

1Market Position

EUROPE-AFRICA

2005

19%Market Share

3Market Position

ASIA-PACIFIC

2005

7%Market Share

1Market Position

SOUTH AMERICA

2005

37%Market Share

SEMINISOPPORTUNITY

Seminis has the largest global vegetable germplasm libraryMolecular breeding tools honed in row crops will be applied to vegetables

COMMERCIAL

Seminis addition to Monsanto opens new business and research opportunities

Successful Application of Technology in Corn Opens Opportunities to Replicate Strategy in Other Crops

12

In 2005, approximately 11M U.S. acres were planted with cotton traits, most in first-generation traits

OPPORTUNITY:

In 2006, Roundup ReadyFlex cotton was introduced, allowing for the first second-generation stack with Bollgard II.

Of the 80M acres of U.S. corn, in 2005, approximately 14M included stacked traits

OPPORTUNITY:

Stacked traits will soon overtake the number of single-trait acres

There are 50M acres of soybeans in BrazilOPPORTUNITY:

In 2006, approximately 20-25M acres will be planted to Roundup Ready soybeans

CURRENT STATUS:

EXAMPLE: SECOND-GENERATION U.S. COTTON TRAITS

MULTI-GENERATION

CURRENT STATUS:

EXAMPLE: CORN TRAITS IN THE UNITED STATES

STACKING

CURRENT STATUS:

PENETRATION AND EXPANSION

EXAMPLE: ROUNDUP READY SOYBEANS IN BRAZIL

Existing Biotech Traits Set Up Three Pathways for Mid-Term Growth

COMMERCIAL

13

Penetration: Market Potential for Biotech Traits by 2010 Highlights Continued Growth Opportunity

COMMERCIAL

BIOTECH ACRES PLANTED 2005

REMAINING AVAILABLE ACRES

76% 0% 35% 19% 40% 10%

25-30M50-60M60M6-8M10-15M70MUNITED STATES

36-41M84-96M118-120M28.5-35.8M34.5-44.8M156.2MTOTAL ACRES IN

KEY MARKETS

-4M6M10M11M0.2MAFRICA

CORNCOTTONSOYBEANS

---0.5M-0.8M0.5M-0.8M-AUSTRALIA

5M8M24M--1MEUROPE

-3 – 5M3 – 5M10-15M10-15M-INDIA

1M4M5M--35MARGENTINA

5M15M20M2M3M50MBRAZIL

YIELDGARDROOTWORM

YIELDGARDCORN BORER

ROUNDUP READY CORN 2

BOLLGARD AND

BOLLGARD II

ROUNDUP READYFLEX

ROUNDUP READYKEY MARKETS

14

Stacking: Increasing Demand for Stacked Traits Leads Overall Acreage Gains for Each Individual Corn Trait

COMMERCIAL

0

10

20

30

40

50

60

2001 2002 2003 2004 2005 2006F

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.611.351.211.161.081.06TRAIT INTENSITY2

~5~20~24

1.313.030.6

08.733.6

000U.S. TRIPLE TRAIT ACRES

5.12.21.2U.S. DOUBLE TRAIT ACRES

27.323.817.7U.S. SINGLE TRAIT ACRES

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N M

ILLI

ON

S2006 FRONTLINE UPDATE:

“TRAIT INTENSITY” – A

MEASURE OF MARGIN

OPPORTUNITY PER ACRE – WILL

STEP UP CONSIDERABLY

AS THE MARKET MOVES

INCREASINGLY TOWARD TRIPLE-STACKED TRAITS

U.S. CORN ACRES1 (IN MILLIONS)

1 U.S. Corn Acres represent the total number of acres with at least one Monsanto brand trait – representing “absolute” acres2 “Trait Intensity” represents the average number of traits per acre, calculated by comparing the “trait” acres with the number of absolute acres

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KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

U.S. INDIA

10-15M 10-15M

0% 0%

DISCOVERY PHASE IProof of Concept

PHASE IIEarly Development

PHASE IIIAdv. Development

PHASE IVPre-Launch

LAUNCH

Roundup ReadyFlex Cotton

Multi-Generation: Roundup Ready Flex Launch Brings First Double-Stacked Second-Generation Traits to Market

• U.S. pricing at a premium of $6-$11 an acre over the first-generation of Roundup Readycotton

COMMERCIAL

CREATING VALUE

ROUNDUP READY FLEX COTTON

The Roundup ReadyFlex cotton trait will be coupled with our

Stoneville brand and our Cotton States

licensee brands as a showcase of

Monsanto’s cotton technologies

Launch of 2+ million acres in U.S. this season through 10 cottonseed companiesRoundup Ready Flex will only be stacked with Bollgard II at approximately 70 – 80% of mix

Introductory acres planted in Australia; full launch set for 2007

Trait in initial breeding phase in India in preparation for filing for regulatory field trials

AUSTRALIA

0.5-0.8M

0%

16

PIPELINE

Efficient Discovery Program Is in Full Gear, Fueling Pipeline Expansion and Performance

1<510sTHOUSANDSTENS OF THOUSANDSGENES IN TESTING

•REGULATORY SUBMISSION

•SEED BULK-UP•PRE-MARKETING

•TRAIT INTEGRATION•FIELD TESTING•REGULATORY DATA GENERATION

•TRAIT DEVELOPMENT

•PRE-REGULATORY DATA

•LARGE-SCALE TRANSFORMATION

•GENE OPTIMIZATION•CROP TRANSFORMATION

•HIGH-THROUGHPUT SCREENING

•MODEL CROP TESTING

KEY ACTIVITY

90 PERCENT75 PERCENT50 PERCENT25 PERCENT5 PERCENTAVERAGE PROBABILITY OF SUCCESS2

12 to 36 MONTHS12 to 24 MONTHS12 to 24 MONTHS12 to 24 MONTHS24 to 48 MONTHSAVERAGE DURATION1

PHASE IVPre-launch

PHASE IIIAdvanced Development


PHASE IProof Of Concept

DISCOVERYGene/Trait Identification

MONSANTO DISCOVERY + COLLABORATIVE PARTNERS

KEY INFLECTION POINT:AFTER PHASE II COMMERCIAL SUCCESS GOES TO >50% WITH LEADS ON COMMERCIAL TRACK

1. Time estimates are based on our experience; they can overlap. Total development time for any particular product may be shorter or longer than the time estimated here.2. This is the estimated average probability that the traits will ultimately become commercial products, based on our experience. These probabilities may change over time.

TRAIT INTEGRATION

FIELD TESTING

REGULATORY DATA GENERATIONREGULATORY SUBMISSIONSEED BULK UP

17

Bollgard III

2nd-Gen Drought-tolerant corn

2006 Pipeline AS OF JANUARY 1, 2006

PIPELINE

YieldGard Rootworm II

Dicamba-tolerant soybeans

Omega-3 soybeans

Vistive III Low Lin – Mid Oleic – Low Sat soybeans

Vistive II Low Lin – Mid Oleic soybeans

Improved-protein soybeans

High oil soybeans for processing1

Feed Corn with balanced proteins1

2nd-Gen High-value corn with lysine1

Mavera™ II High-value soybeans1

Mavera™ I High-value soybeans1

Mavera™ High-value corn with lysine1

PHASE IVPre-launch

PHASE IIIAdvanced Development


PHASE IProof Of Concept

DISCOVERYGene/Trait Identification

Drought-tolerant corn

Insect-protected soybeans

Soybean nematode-resistance

Higher-yielding canola

Roundup RReady2Yield canola

Roundup RReady2Yield soybeans

Higher-yielding soybeans

Nitrogen utilization corn

Higher-yielding corn

Drought-tolerant cotton

Drought-tolerant soybeans

2nd-Gen YieldGard Corn Borer

2nd-Gen YieldGard Rootworm

Dicamba-tolerant cotton

Roundup Ready Flex cotton

FAR

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1. These product candidates are in the Renessen pipeline. Renessen is a Monsanto/Cargill joint venture

18

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED

U.S. BRAZIL ARGENTINA

80M 30M 6M

0% 0% 0%

DISCOVERY PHASE IProof of Concept


PHASE IIIAdv. Development

PHASE IVPre-Launch

LAUNCH

Farmer Benefits: Multi-Generational Drought-Tolerant Corn Is Advancing Closer to Commercial Reality

RE

SU

LTS

SEGMENTED VALUE OPPORTUNITY

BROAD ACRE WATER USE EFFICIENCY

STATES WITH CONSISTENTDROUGHT STRESS AND IRRIGATION REQUIREMENTS

WITH TRAIT WITHOUT TRAITWITH TRAIT WITHOUT TRAIT

4032 34oC 4032 34oC

Drought tolerance established through plant physiology (performance) over three years of testing

PIPELINE

STATES WITH INCONSISTENTDROUGHT STRESS

19

•With roughly 5 bushel per acre yield improvement, Roundup RReady2Yieldadvances 10 years of conventional breeding gains

•Research under way on potential for additional insurance for Asian soybean rust

•Provides platform for future soy technologies, including third-generation of weed control in soybeans

•Product currently in Phase III of pipeline

Roundup RReady2Yield Soybeans

PIPELINE

Farmer Benefits: Roundup RReady2Yield Soybeans Advances 10 Years of Yield Gains With One Trait

HISTORICAL SOY YIELD GAINS OF HALF BUSHEL PER YEAR

y = 0.4246x - 811.11

20

25

30

35

40

45

1970 1980 1990 2000

BU

SH

ELS

/AC

RE

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SU

LTS

Indications are Roundup RReady2Yield soybeans demonstrate roughly a 10 percent yield gain both in the U.S. and Brazil.

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


70M 50M 35M

0% 0% 0%

20

Consumer Benefits: Vistive Family of Improved Oils Meets Multiple Needs in Food Industry

PIPELINE

IMPROVED SOYBEAN QUALITY FOR LIQUID OILS

OIL FOR FRYING AND SPRAYINGCrackersSnack chips

CONSUMER MARKET

TARGET: LOW LINOLENIC

VISTIVE SOYBEANS2005 LAUNCH

500K ACRES IN US

TARGET: LOW LINOLENIC

VISTIVE RAPESEED2005 LAUNCH40K ACRES IN EUROPE

TARGET: INCREASED OLEIC + LOW LINOLENIC

VISTIVE II LOW LIN –MID OLEIC SOYBEANSPHASE III

TARGET: LOW SAT +INCREASED OLEIC + LOW LINOLENIC

VISTIVE III LOW LIN –MID OLEIC – LOW SAT SOYBEANSPHASE IIVISTIVE

FAMILY

OIL PROFILES ALONG THE THREE-STEP CHANGE IMPROVEMENT

LOW LIN

ZERO SAT + MID OLEIC + LOW LIN

LINOLENIC18:3

LINOLEIC18:2

OLEIC18:1

SATS18:0 / 16:0

MID OLEIC + LOW LIN

STANDARD SOYBEAN

21

KEY MARKET ACRES

AVAILABLE MARKET

PERCENT PENETRATED


5M 2M 1M

0% 0% 0%

MaveraTM High-Value Corn with Lysine

PIPELINE

Processor Benefits: High-Lysine Is First Biotechnology Quality Trait for Animal Feed Industry

CREATING VALUE

MILESTONES

• Final U.S. regulatory clearance received in February• Initially, high-lysine trait will be offered in stacked

combination with YieldGard Corn Borer, with the opportunity to move to additional combinations with YieldGard Rootworm and Roundup Ready Corn 2

• Final commercial evaluation under an experimental field program in 2006, with limited commercial acreage in 2007

• High-Value Corn with Lysine enhances level of limiting essential amino acids and corn oil content in feed and lowers cost of animal feed ration

MaveraTM High-Value Corn with Lysine

CONCEPT

PROJECT OVERVIEWMonsanto’s joint

venture with Cargill, Renessen, is researching new products with enhanced componentsfor animal feed and processing grain. Today, Renessenis using both biotechnology and breeding to produce corn and soybeans with higher levels of oil, protein, and aminoacids.

22

-0.30

-0.10

0.10

0.30

0.50

0.70

Most Significant Cost Leverage in Production of Ethanol Is Corn

AVERAGE COST: $1.09/GALLON AT 40M GALLON FACILITY

PIPELINE

CO

RN

DE

NA

TU

RA

NT

OT

HE

R*

UT

ILIT

IES

LAB

OR

S

UP

PLI

ES

&

OV

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HE

AD

DE

PR

EC

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ION

CO

-P

RO

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CT

V

ALU

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$ / G

ALL

ON

*OTHER INCLUDES ENZYMES - AMYLASE

COST COMPOSITION: ONE GALLON OF ETHANOL

Molecular breeding increases the rate of yield gain 2X annually and biotech traits protect that yield potential

KEY TOOLS:

A 5% increase in yield reduces ethanol production costs by ~4 cents per gallon

REDUCE THE INPUT COST OF CORN

OPPORTUNITY:

Renessen corn processing technology builds on high-lysine product to create new feed opportunity from co-product

KEY TOOLS:

Increasing the nutrient value of the co-product –or ‘waste stream’ – of ethanol production opens new revenue streams that defray cost of production

INCREASE THE VALUE OF THE CO-PRODUCT

OPPORTUNITY:

23

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2003 2004 2005 2006F

Seeds and Traits Strategy Comes Together to Drive Ongoing EPS Performance

SUMMARY

CORE SEEDS-AND-TRAITS

MILESTONES AND

STRATEGIC DRIVERS

2003-2004: 12% ONGOING EPS GROWTH

• IN 2003, GROSS PROFIT FROM SEEDS AND TRAITS SURPASSES ROUNDUP AND OTHER GLYPHOSATE-BASED HERBICIDES

• BEGINNING OF THE TRANSITION FROM SINGLE TRAITS TO STACKED TRAITS

2004-2005:31% ONGOING EPS GROWTH

2005-2006: 20%+ ONGOING EPS GROWTH

• EXPECTED ONGOING EPS IN 3Q: $1.15-$1.20

• U.S. CORN MARKET SHARE GAINS FOR 5TH STRAIGHT YEAR

• INCREASED PENETRATION OF STACKED CORN TRAITS

• LAUNCH OF ROUNDUP READYFLEX COTTON

• EU APPROVALS UNLOCK U.S. CORN GROWTH

• VALUE-CAPTURE SYSTEM ESTABLISHED IN BRAZIL FOR ROUNDUP READYSOYBEANS

• LAUNCH OF VISTIVE –THE FIRST CONSUMER-ORIENTED TRAIT

$1.42$1.59

$2.08

$2.50 - $2.55

ON

GO

ING

EP

S (

$/S

HA

RE

)

24

Reconciliation of Non-GAAP Financial Measures

Reconciliation of Non-GAAP EPS

$1.15-$1.20

--

--

--

--

--

--

--

$1.15-$1.20

--

$1.15-$1.20

Third Quarter Fiscal Year

2006 Forecast

$0.96------PCB Litigation Settlement Expense – Net

$0.05------Cumulative Effect of Change in Accounting Principle

$0.26$0.99$0.94$2.50-$2.55Net Income per Share

$1.42

--

$0.06

$0.09

--

--

--

$0.31

12 Months Ended Aug. 31,

2003

--$(0.04)--Income on Discontinued Operations and Related Restructuring

--$(0.39)--Tax Benefit on Loss from European Wheat andBarley Business

--$0.64--Solutia-Related Charge and Tax Benefit

--$0.91--In-Process R&D Write-off Related to the Seminis and Stoneville Acquisitions

$2.08

--

$0.02

$0.94


2005

$1.59$2. 50-$2.55Diluted Earnings per Share from Ongoing Business

$0.24--Impairment of Goodwill

$0.36--Restructuring Charges -- Net

$0.99$2.50-$2.55Diluted Earnings (Loss) per Share Before Effect of Accounting Change


2004


2006Forecast$ per share

monsanto 06-02-06

Economy & Finance