Agriculture is a Changing Industry Driven by Monsanto

Strong and growing Roundup business

Growing biotechnology business with great upside

Leadership position in genomics/seeds

Broadest and deepest pipeline in industry

Monsanto is Transforming AgricultureMonsanto is Transforming Agriculture

Overview of Monsanto

Leading provider of agricultural products for growers

$5.5BN in sales and $1.1BN EBITDA in 2001

14,600 employees worldwide

Successfully completed IPO in October 2000

Spin-off from Pharmacia to be completed August 13, 2002

2001 Sales Breakdown by Segment

2001 Geographic Sales Breakdown

Biotech/seed31%

U.S.62%

Latin America17%

Europe/Africa11%

Canada3%Asia Pacific

7%

Leading Global Brands

Herbicides Seeds

BiotechnologyIndustrial, Turf, & Ornamental

Leadership in Key Markets

Ag Chem Biotech / TotalSeed

Syngenta $5.4 $0.9 $6.3Bayer/Aventis 6.1 0.2 6.3Monsanto 3.5 1.7 5.2DuPont/Pioneer 1.9 1.9 3.8BASF 3.1 0.0 3.1Dow AG/Rohm & Haas 2.6 0.2 2.8Sumitomo 0.7 0.0 0.7FMC 0.7 0.0 0.7

2001 Sales Revenues$BN

Source: Phillips McDougall

Agricultural Productivity Segment

Crop protection products

– Leading Roundup business

– Stable selective chemistry businesses

Animal agriculture products

– Leading Posilac business

Recent developments

– New line extensions

69% of total sales

Historical EBITDA¹

$1,082$1,308

$997$689

1999 2000 2001 LTM

$MM

$3,586 $3,885 $3,755 $3,348

1999 2000 2001 LTM

Historical Revenue$MM

Note: LTM numbers as of June 30, 2002 ¹EBITDA numbers include special items

Roundup: World’s Largest Selling Crop Protection Brand

0.4

2.6

0.30.30.30.30.40.40.50.5

0.0

0.5

1.0

1.5

2.0

2.5

Roundup

Imid

aclo

prid

Gram

oxone

Azoxy

stro

bin

Aceto

chlo

r

Chlorp

yrifos

Atrazin

e

Met

olach

lor

Man

coze

b2,

4-D

Monsanto Others

2000 Sales

$BN

Source: Phillips McDougall and company

Roundup Strategy Creates incremental value for grower and retailer

Brand premium focus

Build unique portfolio

Supply agreements

Differentiated products – new and unique formulations

Low cost position

Superior logistical capabilities

Capture price elasticity gains

Grow con-till acres

Roundup Ready crop expansion

Integrated Solutions With Seed and Biotech

Build Customer/Distribution Relationships

Maintain Molecule and Brand Leadership

Grow Capacity While Reducing Cost

Build Large Market And Grow Volume

020406080

100120

’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01

Indexed (1994 = 100)

Note: Cost and price are expected to trend at historical rates, while volume growth rate will decline, thus causing grossprofit to trend lower

Roundup: Historical Results

020406080

100120

’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01

0

50

100

150

200

250

’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01

0

100

200

300

400

’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01

Volume

Cost Gross Profit

Price

CAGR = 21%CAGR = (9%)

CAGR = (6%) CAGR = 8%

Moving from Chemicals to Biotech

Maximized output with chemical usage

High cost structure

Deteriorating soil conditions

Past Future

Increased use of biotech

Rapid addition of favorable input traits

Improved crop protection

Future for genetically conveying quality and output traits

Soil preservation through Con-Till

Multiple Waves of Agricultural Technology Fueled byAdvancements in Genomics and Biotech

Bio-materialsPlants as sustainableProduction facilities

Quality TraitsProducing better

Food and fiber

Agronomic TraitsEnhancing crop

production

First Wave Second Wave Third Wave

First Mover Advantage In Traits And Technology

27

10

43

2

0

5

10

15

20

25

3027

10

43

2

0

5

10

15

20

25

30

MonsantoMonsanto

AventisAventis DuPont PioneerDuPont Pioneer

SyngentaSyngenta DowDowMore than 90% global share of biotech traitsMore than 90% global share of biotech traits

28% of all agricultural biotech/genomics patents filed

28% of all agricultural biotech/genomics patents filed

USDA ApprovalsUSDA Approvals

52% of all USDA product approvals received

52% of all USDA product approvals received

Invested in Growth Segment of Industry

0

5

10

15

20

2000 2004

$BN$1.8BN

Gross Profit Gain

$1.6BNGross Profit

Loss

Biotech/Seed Ag Chem

Biotech& Seeds

83%

Ag Chem17%

Biotech& Seeds

29%Ag Chem

71%

Monsanto 2001 R&D

Rest of Industry Average 2001 R&D

Source: Phillips McDougall and Monsanto estimates

Seeds and Genomics Segment

Global seeds and related traits business

Genetic technology platforms

2001 key performance factor

– Change to royalty-based marketing strategy

New line extensions

Historical Revenue31% of total sales

$1,662 $1,608 $1,707 $1,598

1999 2000 2001 LTM

$MM

Historical EBITDA¹

$85

($26)($244)($29)1999 2000 2001 LTM

$MM

Note: LTM numbers as of June 30, 2002 ¹EBITDA numbers include special items

Biotech share of crop acreage:

Monsanto’s trait share 90+%

Monsanto 2001 acreage grew 19% overall in 13 countries

Monsanto U.S. acreage growth in 2002 estimated at 5%

Traits have operating margins of 60–80%

Global Biotech Crop Acreage Continues to Grow

0

20

40

60

80

100

120

140

1996 1997 1998 1999 2000 2001

Monsanto Other

Acres in Millions

4

22

68

95110

129

Seeds and Genomics Strategy Expand core trait business

Successfully launch new products– Roundup Ready corn– Corn Rootworm– Bollgard II

Accelerate mid-term growth – Yield– Roundup Ready Wheat– Advance Genomic Leads

Enhance long-term pipeline growth– Yield traits– Quality traits– Input traits 2nd generation

Drive downstream alliances for food, feed and other

“Best in Class” R&D Platforms

Integrated global seed assets

Differentiated genomics, breeding,and biotech programs

Continue to focus on best opportunities

Launch industry shaping new products

Historical Financial Summary

($MM)

Total sales $5,248 $5,493 $5,462 $4,946EBITDA 1,053 1,064 1,082 663EBIT 506 518 532 153Net interest expense 243 184 73 58Total debt 4,367 1,755 1,710 2,102¹Total book capitalization 9,012 9,096 9,193 7,815¹

1999 2000 2001

EBITDA margin 20.1% 19.4% 19.8% 13.4%EBIT margin 9.6% 9.4% 9.7% 3.1%

Total Debt / EBITDA 4.1x 1.6x 1.6x 3.2xEBITDA / Interest expense 4.3x 5.8x 14.8x 11.4xTotal debt / Total capitalization 48.5% 19.3% 18.6% 26.9%

LTM

Note: EBITDA and EBIT numbers include special items; LTM numbers as of June 30, 2002¹As of June 30, 2002

Current and Pro Forma Capital Structure

Cash and cash equivalents $277$277

Short-term debt 1,221 971

CP classified as long-term debt 5000Other long-term debt 3811,131

Total debt 2,102 2,102

Shareholder’s equity 5,7135,713

Total book capitalization 7,8157,815

($MM) June 30, 2002 Pro-forma¹

¹Assumes $750mm bond offering

CFOCFO

BusinessBusiness SupportSupport

StrategyStrategy TreasuryTreasury AuditAudit ControllerController InvestorInvestorRelationsRelations

TaxTax Europe/Europe/ AfricaAfrica

Asia/PacAsia/Pac

LatinLatinAmericaAmerica

Monsanto Finance OrganizationMonsanto Finance Organization

Increase Organizational EffectivenessIncrease Organizational Effectiveness– People Development, Placement & GoalsPeople Development, Placement & Goals– TrainingTraining– RecruitingRecruiting– Employee SatisfactionEmployee Satisfaction

Improve Operations & SystemsImprove Operations & Systems– Approval ProcessApproval Process– Budget & Forecasting ProcessBudget & Forecasting Process– System Optimization and Closing Process ImprovementSystem Optimization and Closing Process Improvement– Internal & External ReportingInternal & External Reporting

Achieve Financial ObjectivesAchieve Financial Objectives– Balance Sheet ManagementBalance Sheet Management– Working Capital ManagementWorking Capital Management– Long Term Financial PlanLong Term Financial Plan

Key InitiativesKey Initiatives

What Influences Career Progression?What Influences Career Progression?

WorkWorkExperiencesExperiences

AndAndPerformancePerformance

Competency Competency DevelopmentDevelopment

Personal &Personal &ProfessionalProfessional

GoalsGoals

Willing to relocateWilling to relocateDesire to learn moreDesire to learn moreabout the businessabout the business

An Example of an Early Career PathAn Example of an Early Career Path

WorkWorkExperiencesExperiences

Competency Competency DevelopmentDevelopment

GoalsGoals

Business InternshipBusiness Internship

Communication SkillsCommunication SkillsAccounting SkillsAccounting Skills

Want to live in St. LouisWant to live in St. LouisInterested in TreasuryInterested in Treasury

Job #1Job #1CreditCredit

AnalystAnalyst

Credit AnalystCredit Analyst Mfg AccountingMfg Accounting

Job #2Job #2 MfgMfg

Analyst Analyst IowaIowa

Job #3Job #3StaffStaff

AuditorAuditor

Improve Improve Team Team SkillsSkills

Improve Improve Problem Solving Problem Solving SkillsSkills

Interest in globalInterest in globalexperienceexperience

Potential Entry OrganizationsPotential Entry Organizations

CreditCredit

Business AnalysisBusiness Analysis

Manufacturing AnalysisManufacturing Analysis

R&D AnalysisR&D Analysis

General Accounting General Accounting

Global Consolidations & AnalysisGlobal Consolidations & Analysis

Travel AccountingTravel Accounting

Disbursement Controls AnalysisDisbursement Controls Analysis

Management ReportingManagement Reporting

External ReportingExternal Reporting

Budgets/Forecast/PlanningBudgets/Forecast/Planning

Strategy & Long Range PlanningStrategy & Long Range Planning