EX-99.2 3 c59895ex99-2.txt SLIDE PRESENTATION 1 EXHIBIT 99.2 2 [MONSANTO LOGO] Hendrik Verfaillie Chief Executive Officer Goldman Sachs AgChemicals / AgBiotechnology Conference Feb. 6, 2001 3 Safe Harbor Certain statements contained in this presentation, such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, currency impact, business and financial plans and other non-historical facts are "forward-looking statements." These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others: management's ability to achieve its cost-cutting objectives; the company's ability to successfully market new and existing products in new and existing domestic and international markets; the success of the company's research and development activities and the speed with which regulatory authorizations and product roll-outs may be achieved; the company's ability to achieve and maintain protection for its intellectual property; fluctuations in exchange rates; the effects of the company's accounting policies and changes in generally accepted accounting principles; the company's exposure to lawsuits regarding intellectual property and product liability, and other lawsuits and contingencies related to actual or alleged environmental contamination; domestic and foreign social, legal and political developments, especially those relating to agricultural products developed through biotechnology; increased generic and branded competition for the company's Roundup herbicide following the expiration of U.S. patent protection in September 2000; the seasonal nature of the company's agriculture business and the effect of weather conditions and commodity markets on that business; the company's ability to fund its short-term financing needs; general economic and business conditions; the company's ability to attract and retain current management and other employees of the company; and other risks and factors detailed in the company's filings with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to revise or update any forward-looking statements or any factors that may cause results to differ, whether as a result of new information, future events or otherwise. [MONSANTO LOGO] 4 Investment Highlights Monsanto is transforming agriculture [ ] Strong and growing core business [ ] Great upside from biotechnology and genomics - First mover advantage in biotechnology with more than 90% of biotech trait acres [ ] Broadest and deepest pipeline in industry || || || \/ Steady profit growth through innovation and margin expansion [MONSANTO LOGO] 5 Monsanto Is Unique Chemistry / \ / \ / \ Roundup Ready & / \ Integrated channel & Insect Resistant crops/ \ Technology Transfer / Customer \ / Solutions \ / \ Traits ------ ------- Seeds [MONSANTO LOGO] 6 2001 Focus Areas [ ] Grow sales of Roundup through brand leadership and volume growth [ ] Gain key regulatory approvals for biotech crops and accelerate global commercialization [ ] Realize full value of R&D through effective commercialization of pipeline [MONSANTO LOGO] 7 Conservation Tillage Potential [ ] Market conditions: [ ] Roundup ideally suited for con-till [ ] Roundup on 70% of con-till acres [ ] Acres less than 30% penetrated [ ] Grower benefits: - Reduced labor, fuel and equipment costs - Higher soil moisture - Increased yield potential - Reduced soil erosion [GRAPH] (Acres In Millions) 1996 113 1999 208 Market Potential 750
8 Roundup Ready Growth Potential [GRAPH] (Acres In Millions)
Remaining Potential Acres in 2000 Total Corn 210 3 210 Soybeans 58 72 130 Canola 64 5 70 Cotton 27 8 35
[MONSANTO LOGO] 9 Roundup Strategy Delivers Brand Leadership [ ] New formulations [ ] Distribution breadth [ ] Integrated portfolio Best Cost [ ] Technology [ ] Scale [ ] Supply agreements Volume Growth [ ] Conservation tillage [ ] Price elasticity [ ] Roundup Ready crops [MONSANTO LOGO] 10 2001 Focus Areas [ ] Grow sales of Roundup through brand leadership and volume growth [ ] GAIN KEY REGULATORY APPROVALS FOR BIOTECH CROPS AND ACCELERATE GLOBAL COMMERCIALIZATION [ ] Realize full value of R&D through effective commercialization of pipeline [MONSANTO LOGO] 11 First Mover Advantage In Traits And Technology [GRAPH] USDA Approvals Monsanto 27 Aventis 11 DuPont Pioneer 3 Zeneca 2 Novartis 2 Dow 2
[ ] 28% of all agricultural biotech/genomics patents filed || || \/ [ ] 53% of all USDA product approvals received || || \/ [ ] More than 90% global share of biotech traits [MONSANTO LOGO] 12 Brazilian Roundup Ready Soybean Approval [ ] Effect of Provisional Measure - Establishes CTNBio as national authority on biotech [ ] Next steps - Provisional Measure finalized with Congress - Environmental assessment completed and approved - State permits obtained; labeling rules and other regulations met for commercial planting [GRAPH] Soybean (Acres In Millions)
Biotech Conventional Total U.S. 45 30 75 Brazil 0 33 33 Argentina 23 1 24
[MONSANTO LOGO] 13 Roundup Ready Corn EC Status Member State Actions European Commission Actions (completed) (pending) Rapporteur countries (Spain, Formal vote on revisions to UK) recommend Roundup Ready corn ==== biotech rules (90/220) including for approval || general labeling and traceability /\ || || || || || || || \/ Spain recommended approval for || Draft approval decision on EU production (May 1999) ===> Roundup Ready corn completed by Commission /\ || || || || \/ UK recommended approval for 15 member states vote on import (November 1999) final approval for Roundup Ready corn [MONSANTO LOGO] 14 Indian Cotton Potential [ ] Focus on hybrid cotton for value capture and quality [ ] Third year of Bt field tests with limited seed production [GRAPH] Cotton (Acres In Millions) Total 23 Hybrid 11 Conventional 11 Suitable for Bt 11
[MONSANTO LOGO] 15 2001 Focus for Biotech Acceptance [ ] United States - U.S. regulatory system remains strong - Acceptance grows with U.S. consumers - U.S. food system regains confidence in biotech - YieldGard corn and Bollgard cotton receive U.S. re-registrations [ ] Japan - Japanese regulatory system and commercial market remains open [ ] Europe - European regulatory system reopens for product approvals [ ] Brazil - Government establishes effective regulatory system [ ] Global - Growers increase purchases of biotech traits - Global market penetration accelerates [MONSANTO LOGO] 16 Monsanto has Strong Brand Shares [GRAPH] CORN BRAND SHARE NA 11% E/A 9% LA 59% AP 27% TOTAL 21% PIONEER 30%
[GRAPH] SOYBEAN BRAND SHARE NA 21% E/A 40% LA 4% AP 0% TOTAL 14% PIONEER 13%
[MONSANTO LOGO] 17 Monsanto has Leading Genetic Shares [GRAPH] CORN GENETICS SHARE
LICENSED BRAND TOTAL NA 30% 11% 41% E/A 7% 9% 16% LA 3% 59% 62% AP 15% 27% 42% TOTAL 17% 21% 38% PIONEER 0% 30% 30%
[GRAPH] SOYBEAN GENETICS SHARE
LICENSED BRAND TOTAL NA 14% 21% 35% E/A 0% 40% 40% LA 5% 4% 8% AP 0% 0% 0% TOTAL 10% 13% 23% PIONEER 0% 13% 13%
[MONSANTO LOGO] 18 Monsanto's Seed/Trait Strategy Customer Portfolio Value added PRICING; provide unique CUSTOMER SOLUTIONS. Brands Strengthen BRAND EQUITY and global brand positioning Traits Technology Platform Maximize TRAIT PENETRATION and share via strategic use of brands and licensing Germplasm Accelerate rate of GENETIC GAIN through genomics and global germplasm leverage [MONSANTO LOGO] 19 2001 Focus Areas [ ] Grow sales of Roundup through brand leadership and volume growth [ ] Gain key regulatory approvals for biotech crops and accelerate global commercialization [ ] REALIZE FULL VALUE OF R&D THROUGH EFFECTIVE COMMERCIALIZATION OF PIPELINE [MONSANTO LOGO] 20 PRODUCT PIPELINE
PLATFORM/ SHORT-TERM MEDIUM-TERM LONG-TERM LAUNCH* (2001-2002) (2003-2005) (2006 and beyond) -------- ------------ ------------ ------------------ CROP YIELD AND Refresh Current Seed o Higher-Yielding o Higher-Yielding PRODUCTIVITY Portfolio with: Soybeans Corn o 130 New Corn o Higher-Yielding o Higher-Yielding Hybrids Canola Cotton o 150 New Soybean o Additional New o Specialized Varieties Hybrids and Seed Corn Varieties in Key o 20 New Other Crops o Drought-Tolerant Oilseed Varieties Corn o Cold-Tolerant Corn o 20 New Wheat Varieties o Additional New Hybrids and Varieties in Key Crops INSECT AND DISEASE o MaxGard o Roundup Ready and o Enhanced MANAGEMENT Insect-Protected Insect-Protected Bollgard Cotton Corn Soybeans o Second-Generation o Second-Generation Bollgard Cotton YieldGard Corn o Latitude Fungicide o Extended Control Seed Treatment WEED o Roundup Ready Corn o Roundup Ready Wheat o Enhanced MANAGEMENT Roundup Ready o Roundup Ready o Roundup Ready Rice Cotton Sugar Beets o Roundup Ready Alfalfa FEED o Improved-Energy Corn o Corn Enhanced AND FOOD with Essential o Corn Enhanced with Amino Acids Essential Amino Acids o Improved-Protein Soybeans o High-Oil Canola o High-Oil Soybeans o Improved-Oil Soybeans o Zero-Saturate Soybeans
* Subject to technological success and regulatory approval. 21 MaxGard Corn Provides CRW Protection Benefits: o Consistent, season long control of CRW o Insecticide savings of $12-14 per acre Market: o Fit on 50 million acres globally Status: o U.S. and Japanese regulatory submissions made Source: University Research Trials (15 locations, 1999) Control [PHOTO] Rating=5.1 MaxGard [PHOTO] Rating=2.1 MaxGard Corn vs. Insecticides (Root Rating 1-5) Economic Threshold (Yield & Lodging) MaxGard 1.43 Lorsban 2.36 Counter 2.16 Force 2.17 Check 3.58
22 Bollgard(R) II Cotton Improves Current Product Benefits: o Bollgard II gives improved performance against cotton Bollworm, Beet & Fall Armyworms and Soybean Loopers. o Insect resistance management Status: o US regulatory filings made Bollgard II Protected [PHOTO] Control [PHOTO] 23 Growth Drivers Short Term 2001-2002 [ ] Grow Roundup, seeds, existing traits [ ] Increase margins [ ] Win biotech acceptance Medium Term 2003-2005 Plus... [ ] Accelerating biotech growth [ ] Accelerating seed business growth Long Term 2006 and beyond Plus... [ ] Pipeline growth - Yield traits [ ] Downstream businesses 24 [MONSANTO LOGO]