Delivering Value to Corn Growers through Advances in Pest Control

Dusty Post, Ph.D. Global Corn Technology Lead Monsanto Company Notes

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; developments 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 reports on Forms 10-Q and 10-K. 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.

Monsanto Imagine and the Vine Design, Channel, Channel Bio, D&PL, Deltapine, DEKALB, DEKALB and Winged Ear Design, When Performance Counts, Asgrow, Asgrow and Design, Acceleron, Acceleron and Design, Apex, Biotech Yield Endorsement, BYE, Bollgard, Bollgard II, Bollgard and Design, Bollgard II and Design, Corn States Triangle Design, Cotton States, Cotton States and Design, Discovering, Delivering, Yielding., EarthMap Solutions and Design, Growing Yield Sustainably, Our Science Your Success and Design, Processor Preferred, Produce More, Conserve More, Roundup, Roundup PowerMax, Roundup Pro, Roundup ProMax, Roundup Ready, Roundup Ready 2 Yield, Roundup Powerful Performance and Design, Roundup Ready Rate and Design, Roundup Rewards, Roundup Technology, Roundup WeatherMax, SmartStax, SmartStax and Design, Vistive, Vistive and Design, YieldGard, YieldGard Rootworm and Design, YieldGard Corn Borer and Design, YieldGard Plus and Design, YieldGard VT, YieldGard VT and Design, YieldGard VT Triple, YieldGard VT Rootworm/RR2, VT Double PRO, VT Triple PRO, Genuity, Genuity and Design and Genuity Icons, Seminis, Seminis Vegetable Seeds and Design and De Ruiter are trademarks and service marks owned by Monsanto Company and its wholly owned subsidiaries. All other trademarks are the property of their respective owners.

RR = Roundup Ready; YGCB = YieldGard Corn Borer; RR2 = Roundup Ready Corn 2; YGVT = YieldGard VT; YGRW = YieldGard Rootworm; RR2Y = Roundup Ready 2 Yield; RRF = Roundup Ready Flex

© 2010 Monsanto Company. All Rights Reserved. 2 A History of Multi-Gene Insect Control Products at Monsanto

2004 2007 2009 • Combined Lepidopteran • Vector stack of • Improved Lepidopteran control with corn Lepidopteran control control rootworm (CRW) control with improved CRW • Dual mode above-ground control insect protection • Broader spectrum & improved consistency: corn borer, corn earworm & fall armyworm protection 3 Planting Zone Shifts Already Seen in the US

After USDA Plant Hardiness Zone Maps, USDA National Arbor Day Foundation Plant Hardiness Miscellaneous Publication No. 1475, Issued Jan 1990 Zone Map published in 2006

4 Potential Impacts of Climate Change on Crop Pests

Weeds • Range and reproductive increases • Pathogen and insect host implications © Clint Calhoun Insects • Lepidopteran and Coleopteran range expands • Insect-vectored mycotoxin increases • Potential new pest targets (aphids, spider mites) © Chris Manley Diseases/Nematodes • Nematode populations increase under hot dry conditions • Foliar and stalk diseases under hot and wet conditions General • Increased pest resistance pressure

5 Genuity™ SmartStax™ Delivers Multiple Modes of Action Against Key Pests

PRIMARY PESTS Durability European Corn Borer (Ostrinia nubilalis)  • Combining multiple traits in single seed can help to sustain insect protection and Southwestern Corn Borer (Diatraea grandiosella)  weed control year after year: • Combined modes-of-action for insect Northern Corn Rootworm  Single mode activity (Diabrotica barberi)  protection • Combined herbicide tolerant traits  Dual mode activity Western Corn Rootworm (Diabrotica virgifera virgifera)  Triple mode activity  Corn Earworm Performance (Helicoverpa zea)  • Research is demonstrating that Fall Armyworm complementary trait platforms can offer (Spodoptera frugiperda)  excellent, season-long performance, Western Bean Cutworm notably: (Richia albicosta)  • Enhanced control of a broader Black Cutworm spectrum of insects (Agrotis ipsilion)  • Comprehensive protection against established, emerging secondary pests Herbicide Tolerance  • Excellent weed control system Refuge (Corn Belt) 5%

6 2009 GenuityTM SmartStaxTM Efficacy against Key Corn Pests Data from Northern Geography as of 1-24-10

WBC Damaged Kernels per Ear 1,00 CEW Larvae per Ear 0,90 0,80 0,70 0,60 0,47 0,50 0,37 0,40 0,35 0,30

Larvae per per Ear Larvae 0,20

0,10 0,05 Damaged Kernels/Ear Damaged 0,00 RR2 HXX/RR2 VT3 GENSS Trait System Trait System

RR2= Roundup Ready® Corn 2 GENVT3P= Genuity™ VT Triple PRO™ GENSS = Genuity™ SmartStax™ VT3= YieldGard VT Triple® HXX= Herculex® Xtra

SAI = Soil-applied insecticide Damaged Kernels/Ear Damaged

Trait System 7 2009 Corn Rootworm Damage Ratings Data from Trait Integration

3.00 100 NIS (0-3) 97.4 2.75 90 2.50 % Consistency (<0.24) 89.7

3) 80 - 2.25 2.07 2.00 70 1.75 60 1.50 50 1.25 40

1.00 30 Consistency% 0.75 Node Injury Injury (0Score Node 0.50 20 0.25 0.12 0.05 10 0.00 0.00 0 Non-Bt GENVT3P GENSS N=7766 N=903 N=7766

GENVT3P= Genuity™ VT Triple PRO™ GENSS = Genuity™ SmartStax™8 Genuity™ SmartStaxTM Corn Increases Yield Potential through Better Weed and Insect Control

Monsanto Learning Center, Scott, MS 2008

9 Anatomy of a Combined Insect Resistance Trait Product

Herculex® Herculex® I Rootworm MON 89034 x MON 88017 x TC1507 x DAS-59122-7 Cry1A.105 Cry3Bb1 Cry1F Cry34/35Ab1

Cry2Ab2 EPSPS PAT PAT TRAITS

Broad-spectrum Corn Rootworm Broad-spectrum Corn Rootworm Lep control - control - Lep control - control - Dual Effective Moderate dose High dose Moderate dose Dose (high dose)

FUNCTION Glyphosate Glufosinate Glufosinate tolerance tolerance tolerance

10 RefugeRefuge ReductionAcres Can withSignificantly Genuity TMImpactSmartStax WholeTM- Corn Farm Yield Potential

80% In 2009 Monsanto trials, average yield difference between U.S.Genuity™ EPA requires SmartStax™ For Corn Beltstructuredand refuge refuge acres acres was 15.8 BU/AC for15.8 current bu/ac single* Yield Differential mode-of-action insect- • Insect resistance management (IRM)protected strategy traits built in corn around key target pests: European corn borer, southwestern corn borer, corn earworm, Western corn rootworm

* Results from 2009 Monsanto trials, Roundup Ready® isoline refuge hybrid with soil applied insecticide averaged 15.8 bushel yield loss compared to Genuity™ SmartStax™ hybrid in > 200 comparisons 11 Obtaining Approval for Reduced Refuge for Genuity™ SmartStax™

• Demonstrated that Genuity™ SmartStax™ met Dual Effective Dose (DED) criteria for key Lepidoptera and rootworms – DED = two distinct modes of action and >95% control by each protein for superior IRM value • By meeting DED criteria, reduced refuge (compared to current single-trait products) is justifiable for both traits

• MON 89034 shown to meet DED criteria for key lepidopteran pests • To obtain approval, research focus shifted to demonstrate that the rootworm component also met the DED criteria

12 Genuity™ SmartStax™ Dose Estimation

Mean # Reduction in adults adult Estimated Larval Treatment emerged emergence Mortality Control 1032.8 DAS-59122-7 35.0 96.61% Actual larval mortality expected to be at least as MON 88017 17.1 98.34% high as adult mortality SmartStax 11.1 98.93%

6 locations across 5 states, 4 – 8 reps per location 3300 eggs per row meter Cages 4 m x 3 rows or 3.7 m x 4 rows 80 or 100 plants per cage

13 Probability of Cross-Resistance

Cry3Bb1 and Cry34Ab1/35Ab1 (corn rootworms): • Substantial sequence and structural differences • Differences in binding patterns in CRW midgut • Additive efficacy against CRW in vitro and in planta

Cry1A.105, Cry2Ab2 and Cry1F (Lepidoptera): • Differences in binding patterns in Lep midgut • Little or no cross-resistance in Bt-resistant insects • Additive efficacy against targets in vitro and in planta

In both cases, all data indicate differences in mode of action and therefore low likelihood of cross-resistance

14 Different Protein Structures Indicate a Low Probability of Cross Resistance

Cry3Bb Cry34Ab Cry35Ab

• Single polypeptide • Binary toxin • Binary toxin • MW 65 kDa • MW 14 kDa • MW 44 kDa • Sequence related to • Sequence similarity • Sequence similarity other Bts to other Cry34 to other Cry35 and B. sphaericus toxins • Pfam: Typical 3 proteins domain Bt • Pfam: aegerolysins • Pfam: lectin domain and Bin proteins15 Sources: Galitsky et al. (2001), U.S. Patent Applications 2009/0205087(A1) and 2008/085856(A1) Approved Insect Resistance Management Plan for Genuity™ SmartStax™

5% refuge

20% refuge

Required refuge area in-field or adjacent to area planted with Genuity™ SmartStax™ 16 The Value of Genuity™ SmartStax™ is More than Just a Reduced Refuge Genuity™ SmartStax™ delivers value by…

• Increased yield opportunity from: – Improved Genetics and Better Trait Integration – Trait Advantage (broader spectrum, multiple modes of action) – Acceleron™ Seed Treatment Products • Increased yield opportunity from reduced refuge – 15% more acres are insect protected by traits (in the Corn Belt) – Savings from less soil applied insecticide • Total Peace of Mind – Risk Reduction/Yield Stability – Crop Insurance Savings through the Biotechnology Endorsement – Convenience – Maximum protection available in the market today • Respect the Refuge®

Respect the Refuge and Corn Design is a registered trademark of National Corn Growers Association 17 Next Step: Refuge In a Bag

80% 20% CURRENT

95%

Blended in the Bag

FUTURE 5%

This information is provided for technical purposes only. Genuity SmartStax with RIB is not yet registered by the U.S. EPA and is not available for sale. Growers of Genuity™ SmartStax™18 are required to plant a structured refuge as mandated by the EPA. See the IRM Guide for details Commercialization is dependent on many factors, including successful conclusion of the regulatory process. Ignite, Liberty Link and the Water Droplet logo are registered trademarks of Bayer CropScience AG. Genuity™ SmartStaxTM Refuge In a Bag (RIB) Submission Completed

GENUITYTM SMARTSTAX TM- REFUGE Trial Data Confirms 5 Percent RIB Concept IN A BAG (RIB) 180 STATUS: ADVANCED: PHASE 4 175 OVER 12 YEARS OF RIB TESTING 170 • 5 percent refuge is preferred acceptable level for yield parity 165 GROWER BENEFITS OF 5 PERCENT RIB

BUSHELS/ACRE 160 REFUGE IN CORN BELT: N=55 • Grower convenience – one field, one bag 155 Locations of seed • Competitive yield with greater protection 150 SmartStax RIB SmartStax • Ease of compliance with Insect- 95:5 RIB SmartStax Resistance Management (IRM) requirement • Improved stand, ease of harvest

In collaboration with Dow AgroSciences, completed U.S. regulatory submission filed 12/09

This information is provided for technical purposes only. Genuity SmartStax with RIB is not yet registered by the U.S. EPA and is not available for sale. Growers of Genuity SmartStax are required to plant a structured refuge as mandated by the EPA. See the Herbicide (which is not a Roundup® agricultural IRM Guide for details Commercialization is dependent on many factors, including herbicide) screen used to identify refuge plants successful conclusion of the regulatory process 19 Structural & Functional Genomics Create New Opportunities in Pest Control

Early products developed through cloning of microbial genes with insecticidal activity

Sequence data are inputs for protein design and Non-Bt Bt engineering to create 'designer toxins' that will target new pests, crops and geographies R e p e a t D e s i g n C y c l e Ear and Root Protection

15 nt overlap

x x Sense primers x (24-30 nt) x Antisense primer S e q u e n c i n g (21-24 nt) Tic807

Single alanine scan

CAM002741 (1st Polar) Expression 600.00 P r o t e i n 500.00 P r o t e i n G e n e 400.00

300.00 Conc.(ug/ml) 200.00 V a r i a n t s D e s i g n E n g i n e e r i n g 100.00 0.00 A n a l y z e d P r o t e i n E x p r e s s i o n X Y Y Z P u r i f i c a t i o n X Y Y Z Q u a n t i f i c a t i o n X Y Y Z

X scaffold gene Y Insect feeding assay

G e n e L e a d I m p r o v e d p r o t e i n D i s c o v e r y C o n c e p t P r o t e i n O p t i m i z a t i o n P l a t f o r m N o v e l L e a d Sequencing identifies novel genes 20 Pest Control from RNAi Plant Cell Corn Rootworm Cell Ingestion (uptake) Dicer 21-24mers

systemic spread 21-24mers

cleavage & Dicer RISC amplification 5’cap AAAAA mRNA

recognition RISC X transcription transcription no cleavage

target gene transcription

transgene allelic variant

21 Cry3Bb Stacked with RNAi Offers Root Protection and Reduced Adult Emergence

YieldGard YieldGard

Rootworm X RNAi Rootworm

ATPase - V RNAi Technology Non-transgenic P-e35S I-Hsp70 Spacer V-ATPase

2008 Field Data – RDR vs. Event/Stack 1,80

1,60

1,40 3 3 scale) - 1,20

1,00

0,80 Dual MOA approaches high 0,60 effective dose with significant reduction in

0,40 beetle emergence Root Damage Ratings (0 Ratings DamageRoot 0,20

0,00

YieldGard® V-ATPase RNAi events Non-transgenic % Beetle% Emergence Rootworm YieldGard® Rootworm x V-ATPase RNAi Non-- YGRWYGRW V-ATPase YGRW x transgenic RNAi RNAi 22 Providing Our Customers with the Tools to Sustainably Double Yields by 2030

23