EX-99.1 2 c63071ex99-1.txt SLIDE PRESENTATION DATED MAY 31, 2001 1 EXHIBIT 99.1 MONSANTO [MONSANTO LOGO] 2 INVESTMENT HIGHLIGHTS Monsanto is transforming agriculture o Strong and growing Roundup business o Growing biotechnology business with great upside o Acceptance of biotechnology improving globally o Broadest and deepest pipeline in industry Steady profit growth through innovation and margin expansion [MONSANTO LOGO] 3 MULTIPLE MARGIN OPPORTUNITIES EXIST IN TODAY'S AG ECONOMY Global Acres by Crop In Millions [GRAPH]
Wheat Corn Soy Cotton ----- ---- --- ------ 1994 530 335 154 80 1999 536 345 177 80 2004 548 353 189 86
Source: Sparks Companies Industry Sales by Product Type $ in Billions [GRAPH]
1994 1999 2004 ---- ---- ---- Herbicides 13 14 14 Insecticides 7 7 7 Fungicides 5 6 6 Seeds & Traits 11 12 15
Source: Phillips McDougall, Monsanto estimates [MONSANTO LOGO] 4 MONSANTO IS UNIQUE [CHART] INNOVATION IN: Technology Production Marketing [MONSANTO LOGO] 5 ROUNDUP BRAND IS LEADING GLOBAL HERBICIDE 2000 Glyphosate Revenues $ in Billions [GRAPH]
Monsanto Syngenta DOW Chinese and (Roundup) (Touchdown) (Glyphomax) Other Generics --------- ----------- ----------- -------------- 2.6 0.2 0.1 0.15
Sources of value and differentiation o Brand equity o Formulation innovation o Service o Integrated solutions Source: Phillips McDougall [MONSANTO LOGO] 6 ROUNDUP HISTORICAL TRENDS Indexed (1994 = 100) [CHART] '94 '95 '96 '97 '98 '99 '00 Volume 100 133 160 202 258 314 372
[CHART] '94 '95 '96 '97 '98 '99 '00 Cost 100 96 89 79 76 70 68
[CHART] '94 '95 '96 '97 '98 '99 '00 Price 100 92 89 80 72 64 58
[CHART] '94 '95 '96 '97 '98 '99 '00 GP 100 117 142 162 173 186 192
[MONSANTO LOGO] 7 SUBSTANTIAL GROWTH REMAINS FOR ROUNDUP BRAND IN TWO KEY SEGMENTS Con-Till Opportunity Acres in Millions [CHART] Roundup on 70% of Con-Till Acres
1996 2000 Market Potential 113 245 750
Roundup Ready Potential Acres in Millions [CHART]
Corn Soybeans Canola Cotton ---- -------- ------ ------ Remaining Potential 3 68 5 8.5 Acres in 2000 210 63 64 25.5
[MONSANTO LOGO] 8 CAPABILITIES IN PLACE TO SUSTAIN VALUE Capabilities o Manufacturing capacity in place to meet demand growth o Distribution and logistics capabilities demonstrated o Marketing and sales resources integrated Competencies o Manufacturing scale and cost o Logistics support o Distributor/retailer relationships [MONSANTO LOGO] 9 BIOTECH IS TRANSFORMING AGRICULTURE [CHART] INNOVATION IN: Technology Production Marketing [MONSANTO LOGO] 10 FIRST MOVER ADVANTAGE IN BIOTECH [GRAPH]
Patents filed Field tests USDA product approvals Trait acreage ------------- ----------- ---------------------- ------------- By percent 28 50 53 94
[MONSANTO LOGO] 11 BIOTECH PLATFORM UNMATCHED o Significant R&D investment o Broad patent estate o Deep market penetration o Seed position as delivery vehicle for technology o Power of integrated solutions [GRAPH] MONTANTO TRAIT ACREAGE GROWTH ACRES IN MILLIONS
1996 1997 1998 1999 2000 ---- ---- ---- ---- ---- Trait Acreage 4 18 63 89.6 103.1
[MONSANTO LOGO] 12 GLOBAL GROWTH POTENTIAL FOR BIOTECH TRAITS [CHART] $ Sales in Millions
Corn Soybeans Cereals Cotton ---- -------- ------- ------ 1999 879 987 0 391 2004 1690 1218 50 887 2009 2090 1760 913 1683
Source: Phillips McDougall [MONSANTO LOGO] 13 BIOTECH ACCEPTANCE STRATEGY AND PROGRESS o Secure markets for customers' products o Continue to build consumer support o Expand regulatory approvals [MONSANTO LOGO] 14 BRAZILIAN ROUNDUP READY SOYBEAN STATUS o Regulatory Steps Remaining Before Commercialization: - Gain approval for environmental assessment - Obtain state permits; meet labeling rules and other regulations for commercial planting o Successful launch of Roundup Ready soybeans paves way for additional biotech product launches [GRAPH] Soybeans (2000 Acres in Millions)
U.S. Brazil Argentina Biotech 44.9 0.0 22.7 Conventional 29.6 33.3 1.6
[MONSANTO LOGO] 15 ROUNDUP READY CORN EC STATUS Member State Actions European Commission Actions (completed) (pending) Rapporteur countries (Spain, Formal vote on revisions to UK) recommend Roundup ==== biotech rules (90/220), including Ready corn for approval || labeling and traceability /\ || || || || || || || \/ Spanish approval for || Draft approval decision on EU production (May 1999) ===> Roundup Ready corn completed by Commission /\ || || || || \/ UK approval for 15 member states vote on import (November 1999) final approval for Roundup Ready corn [MONSANTO LOGO] 16 SEEDS AND GENOMICS ARE FOUNDATION FOR FUTURE [CHART] INNOVATION IN: Technology Production Marketing 17 COMPREHENSIVE PLANT GENETICS CAPABILITIES FROM GENOMICS TO SEED TO PLANT PRODUCTS o Leading industry investment in technology platforms - Plant genomics capabilities rival Millennium and Celera human genomics o Leading global seed infrastructure o Product pipeline focused in five areas - Near-term: 5 products - Medium-term: 10 products - Long-term: 13 products - Continuous improvements to hybrids/varieties o Currently only input traits commercialized; substantial potential in food, feed and quality traits [MONSANTO LOGO] 18 GROWTH DRIVERS LONG TERM MEDIUM TERM 2006 and beyond SHORT TERM 2003 - 2005 Plus... 2001 - 2002 Plus... o Pipeline growth o Grow Roundup, seeds, o Accelerating biotech - Yield traits existing traits growth o Downstream businesses o Increase margins o Accelerating seed business growth o Win biotech acceptance
[MONSANTO LOGO] 19 [MONSANTO LOGO] 20 FINANCIAL INFORMATION [CHART] 2000 Results (excluding special items)
Ag Productivity Seeds & Genomics Total Monsanto Sales 3,885 1,608 5,493 EBITDA 1,330 (5) 1,325
Q1 2001 Results (excluding special items) [CHART]
Ag Productivity Seeds & Genomics Total Monsanto Sales 833 488 1,321 EBITDA 250 20 270
[MONSANTO LOGO] 21 SG&A AND R&D TRENDS Percent of sales [CHART]
1997 1998 1999 2000 SG&A 24 26 24 23 R&D 11 12 13 11
[MONSANTO LOGO] 22 FREE CASH FLOW [CHART]
1996 1997 1998 1999 2000 Dollars in millions (741) (1,630) (5,072) (295) (264)
[MONSANTO LOGO] 23 PRODUCT PIPELINE
PLATFORM/ SHORT-TERM MEDIUM-TERM LONG-TERM LAUNCH* (2001-2002) (2003-2005) (2006 and beyond) CROP YIELD Refresh Current Seed o Higher-Yielding Soybeans o Higher-Yielding Corn AND Portfolio with: o Higher-Yielding Canola o Higher-Yielding Cotton PRODUCTIVITY o 130 New Corn Hybrids o Additional New Hybrids and o Specialized Seed Corn o 150 New Soybean Varieties Varieties in Key Crops o Drought-Tolerant Corn o 20 New Other Oilseed o Cold-Tolerant Corn Varieties o Additional New Hybrids and o 20 New Wheat Varieties Varieties in Key Crops INSECT AND o MaxGard Insect-Protected o Roundup Ready and Insect- o Enhanced Bollgard Cotton DISEASE Corn Protected Soybeans MANAGEMENT o Second-Generation Bollgard o Second-Generation Cotton YieldGard Corn o Latitude Fungicide o Extended Control Seed Treatment WEED o Roundup Ready Corn o Roundup Ready Wheat o Enhanced Roundup Ready MANAGEMENT o Roundup Ready Sugar Beets o Roundup Ready Rice Cotton o Roundup Ready Alfalfa FEED AND FOOD o Improved-Energy Corn o Corn Enhanced with o Corn Enhanced with Essential 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