ROBB FRALEY MONSANTO EUROPEAN INVESTOR DAY CHIEF TECHNOLOGY OFFICER. November 10, 2006

Transcription

1 1 ROBB FRALEY CHIEF TECHNOLOGY OFFICER MONSANTO EUROPEAN INVESTOR DAY November 10, 2006

2 OVERVIEW R&D Focus Aligns With Growth Drivers to Extend Leadership Through MONSANTO S R&D OPPORTUNITY Application of our breeding and biotech capabilities fully supports our six gross profit drivers R&D PHASE: DISCOVERY PHASE I PHASE II PHASE III PHASE IV Germplasm R GENOMICS MARKERS ELITE GERMPLASM IT PLATFORM ANALYTICS COMMERCIAL BIOTECHNOLOGY LAUNCH SEED SOLD TO FARMERS FACTOR U.S. corn International corn Global biotech traits Cotton platform SITUATION ANALYSIS Growing demand pressures feed and fuel supply Better yields needed to improve global competitiveness Opportunity exists to upgrade plant performance with traits Improve global productivity through technology infusion R&D APPLICATION BIOTECH BIOTECH BIOTECH Seminis R&D pipeline Highly fragmented market, ready for new technology Deliver higher value technologies faster BIOTECH

3 OVERVIEW Farmers Buy Yield; Our R&D Approach Oriented Around Meeting That Customer Need W FARM APPROACH R&D APPROACH X YIELD Farmer s Purchase Decision = = GENETIC POTENTIAL Inherent yield possible from the seed GERMPLASM X PERCENT OF GENETIC GAIN PRESERVED Amount of yield potential protected SEED Starting point of all agriculture; farmers maximize genetics in seed for yield 60% of farmers select Germplasm library seed first, then assembled from decide on biotech traits 36 programs in 12 X TECHNOLOGY Technology is used to protect and maximize yield potential of seed countries >100 breeding research centers worldwide >2,000 genetic markers used by breeders for corn today 50% of breeding population comes from inter-company, inter-country crosses Molecular breeding improves genetic potential by 2X versus conventional breeding Monsanto is only company to develop and commercialize complete aboveground, below-ground insect-control and weed-control traits 3

4 Monsanto s Global Breeding Engines Deliver Yield Advantages Over Best-in-Class Competitors PRELIMINARY U.S. COMPETITIVE CORN YIELD COMPARISON U.S. Corn Top 3 purchase drivers for farmers buying DEKALB corn seed all relate to performance of underlying germplasm OUTLOOK: Preliminary yield data from 2006 indicates continued yield advantage versus best-in-class competitors Final data will be shared in January BUSHELS/ACRE DEKALB COMPETITORS RELATIVE MATURITIES (DAYS) YIELD ADVANTAGE In 2006, across the 110-day maturity zone that covers one-third of U.S. corn production, DEKALB outperformed the competition by roughly 11 bushels per acre on average 4

5 5 Best Combination of Germplasm and Traits Delivers Best Yield U.S. Corn In 2006, across four states and 267 locations, DEKALB seed with YieldGard Rootworm or YieldGard Plus outperformed competitive seed and trait performance by roughly 10 bu/ac on average In 2006, across 81 locations, statistically there is no difference between the performance of YieldGard Rootworm or YieldGard Plus and competitive traits OUTLOOK: Farmers make their seed purchase decision on the total system performance of the seed-and-trait package versus the trait or germplasm individually BUSHELS PER ACRE FOCUS: YIELD PER ACRE (PRELIMINARY) YieldGard bu/ac bu/ac DEKALB PIONEER Rootworm or YieldGard Plus Herculex Rootworm or Herculex XTRA FOCUS: TRAIT PERFORMANCE - ROOT PROTECTION (PRELIMINARY) NODE INJURY SCALE Difference between two traits statistically insignificant YieldGard Rootworm or YieldGard Plus Herculex Rootworm or Herculex XTRA 0.00 DEKALB PIONEER

6 6 Breeding Advances in France Fuel Market Share Growth International Corn From , Monsanto led the way with 36 new corn grain hybrids or 19% of the total new product entrants approved in France DEKALB market share has grown 5 points over last two years For first time ever, DEKALB is co-leading brand in France OUTLOOK: Yield data will be shared in January Corn grain hybrid registration in France will be updated CORN GRAIN HYBRID REGISTRATION FRANCE ACCELERATION 4 6 MONSANTO PIONEER SYNGENTA ALL OTHER From , Monsanto registered more hybrids than its primary competitors across broadest growing regions, accounting for 19% of all newly registered hybrids in France

7 Corn Market Share Gains Still To Fully Reflect Power of Molecular Breeding Application U.S. and International Corn Conventional breeding improves genetic gain on average by 1.5% per year OUTLOOK: Molecular breeding improves genetic potential by 2X versus conventional breeding By 2010, over 12% of commercial portfolio will be derived from molecular breeding U.S. MARKET SHARE PROGRESSION OF TECHNOLOGY IN THE COMMERCIAL PORTFOLIO 20% 15% 10% 5% 0% 2006 BRANDED U.S. MARKET SHARE: 19% DEKALB AND ASGROW U.S. BRAND MARKET SHARE MOLECULAR- HYBRIDS AS A PERCENT OF BRANDED UNITS SOLD IN COMMERCIAL CORN PORTFOLIO F 2008F 2009F 2010F CYCLE 1: INTEGRATION OF GLOBAL GERMPLASM ASSEMBLED 36 MAJOR CORN PROGRAMS IN 12 COUNTRIES FIRST INTRA-COMPANY CROSSES CYCLE 2: APPLICATION OF MAB TO SELECTION PREDICTIVE COMBINATIONS ALLOW MORE EFFICIENT APPLY MOLECULAR TO TROPICAL MARKETS, SUCH AS BRAZIL AND ASIA CYCLE 3: SELECTION POWER OF MOLECULAR BY 2006, FIRST MOLECULAR HYBRIDS ENTER U.S. COMMERCIAL PORTFOLIO EU IS ROUGHLY 2 YEARS BEHIND THE U.S. FOLLOWED BY LATIN AMERICA AND ASIA PACIFIC 12% 10% 8% 6% 4% 2% 0% PERCENT OF BRANDED UNITS SOLD IN COMMERCIAL CORN PORTFOLIO 7

8 8 Seminis R&D to Focus on Top Five Crops Supported by Molecular Marker Platforms Seminis TOP 5 CROPS STRATEGIC FOCUS INVESTMENTS In 2006, narrowed commercial focus to 25 crops that generate most profit Tomato Consumer benefits such as flavor and seedless Grower benefits such as disease resistance Advance molecular markers OUTLOOK: Significant marker platforms to support advancements in quality and consumer traits for top 5 crops Sweet pepper Hot pepper Consumer benefit traits such as shape, sweetness and color Novel flavor for consumers Grower yield through hybrid conversion and disease resistance Advance molecular markers Increase breeding investments in NAFTA Melon Consumer benefits such as firmness, sugars, shelf life and flavor Advance molecular markers Strengthen germplasm Onion Aggressive hybrid conversion for yield and uniformity Reduce pungency for consumers Strengthen germplasm Advance molecular markers

9 9 Genetic Mapping Timetable Supports Commercial Launches of Molecular Breeding Hybrids by End of Decade Seminis MARKER PLATFORMS MARKER APPLICATION FOR KEY CROPS ( ) Began application of breeding technology, with genome-wide marker platform for tomatoes and peppers Melons, watermelons and brassica family of cabbage, broccoli and cauliflower next OUTLOOK: By 2009, Seminis should have 1,000+ markers for 9 crops NUMBER OF MARKERS DEVELOPED 5,000 1, SWEET CORN BRASSICA TOMATO MELON WATERMELON TARGET: 1,000 markers PEPPER ONION, CUCUMBER, LETTUCE Current Status 2007F 2008F 2009F

10 BIOTECHNOLOGY Top-Ten Traits Poised to Deliver Significant Value PIPELINE VALUE: TOP-TEN PROJECTS REFLECTING COMMERCIAL VALUE 1 HIT PHASE SOURCE OF VALUE VALUE PER ACRE ACRE BASE Renessen Corn Processing System and Mavera High-Value Corn with 4 Feed and fuel $10 - $30 20M Lysine 2 Roundup RReady2Yield soybeans 3 Yield enhancement $10 - $30 155M CORE MARKETS U.S Brazil Europe U.S. Brazil Argentina Omega-3 soybeans 3 Improved health >$30 5M U.S. HIT YieldGard VT PRO 2 nd -GEN YIELDGARD CORN BORER 3 Insect protection $10 - $30 41M Drought-tolerant corn 2 Water replacement and yield $10 - $30 164M U.S. Brazil Europe U.S Brazil Europe HIT Vistive III soybeans 2 Improved health $10 - $ M U.S. Higher yielding soybeans 2 Yield enhancement $10 - $30 155M Insect-protected soybeans WITH ROUNDUP RREADY2YIELD Drought-tolerant cotton 1 Nitrogen utilization corn 1 2 Yield and insect protection $20 - $40 95M Water replacement and yield $10 - $30 36M Nitrogen replacement and yield $10 - $30 164M U.S. Brazil Argentina Brazil Argentina U.S. India Brazil Australia U.S Brazil Europe 1. Top ten not presented in ranked order; Commercial value calculated by penetration and retail value during three-year span at peak. 2. Value and acres are for direct feed piece only and do not include value for Renessen s corn processing system, which is to be determined 10

11 11 BIOTECHNOLOGY Roundup RReady2Yield Soybeans Offer Yield Improvement Over First-Generation Roundup Ready Soybeans KEY MARKET ACRES U.S. BRAZIL ARGENTINA P R O J E C T Roundup RReady2Yield Soybeans AVAILABLE MARKET 70M 50M 35M PERCENT PENETRATED 0% 0% 0% HIT Project R&D Pipeline Roundup Ready2Yield soybeans 2006 STATUS: On Track Yield data from 45 trials will be shared in January VALUE CONSIDERATIONS: Value is additive, with target of up to 5 bushel-per-acre yield improvement over comparable Roundup Ready soybeans RETAIL VALUE/ACRE: $10 - $30/acre LOCATION: Stonington, Illinois ROUNDUP RREADY2YIELD IN THE FIELD FIELD TRIAL PHOTOS FROM 2006 ACTIVITY: Monsanto researchers check performance indicators in the fields such as plant height, and pod size and number OBSERVATIONS: 25 locations across the U.S. tested 11,000 lines tested in 45 trials TOTAL ACRE OPPORTUNITY: 155M acres

12 12 BIOTECHNOLOGY Reflecting HIT Status, Roundup RReady2Yield Soybeans Is Targeted for Monsanto s Most Significant Commercial Launch KEY MARKET ACRES U.S. BRAZIL ARGENTINA P R O J E C T Roundup RReady2Yield Soybeans AVAILABLE MARKET 70M 50M 35M PERCENT PENETRATED 0% 0% 0% HIT Project R&D Pipeline Roundup RReady2Yield soybeans 2006 STATUS: On Track Yield data from 45 trials will be shared in January VALUE CONSIDERATIONS: Value is additive, with target of up to 5 bushel-per-acre yield improvement over comparable Roundup Ready soybeans RETAIL VALUE/ACRE: TOTAL ACRE OPPORTUNITY: $10 - $30/acre 155M acres ACRES (IN MILLIONS) CORN TRAITS ROUNDUP RREADY2YIELD: COMMERCIAL MILESTONES STARTING POINT U.S. REGULATORY APPROVAL LAUNCH ACRES OF U.S. TRAITS HISTORICAL COMMERCIALIZED TRAITS ( ) AVERAGE HISTORIC TRAIT LAUNCH: 1.2M ACRES SEASON 1 GLOBAL REGULATORY CLEARANCES SOYBEAN TRAITS COTTON TRAITS Target acreage for Roundup RReady2Yield commercial launch is expected to be a multiple above historical acreages in launch years LAUNCH YEAR PRE-COMMERCIAL USER-RELIABILITY TRIALS COMMERCIAL LAUNCH

13 BIOTECHNOLOGY Tests of Drought-Tolerant Corn Continue to Validate Concept KEY MARKET ACRES U.S. BRAZIL EUROPE P R O J E C T Drought-tolerant AVAILABLE MARKET 80M 30M corn PERCENT PENETRATED 0% 0% 0% 24M HIT Project R&D Pipeline Drought-tolerant corn DROUGHT TOLERANT CORN IN THE FIELD FIELD TRIAL PHOTOS FROM STATUS: On Track Continued expansion of testing in lead genes and events in moisture-stressed and broad acre environments Currently testing hundreds of genes across several generations of drought traits Results will be shared in January VALUE CONSIDERATIONS: Value of trait reflects better yields under moisture-stressed conditions Value will be specific to variable costs of water use by farmers, rather than fixed costs of irrigation LOCATION: Vacaville, California ACTIVITY: Monsanto researcher checks performance indicators in the field such as chlorophyl content, ear size, and plant height OBSERVATIONS: Confirming third year of field trial data in U.S. RETAIL VALUE/ACRE: TOTAL ACRE OPPORTUNITY: $10 - $30/acre 164M acres 13

14 BIOTECHNOLOGY Multi-Generational Drought-Tolerant Corn to Create Value Across Multiple Market Segments KEY MARKET ACRES U.S. BRAZIL EUROPE P R O J E C T Drought-tolerant corn AVAILABLE MARKET 80M 30M 24M PERCENT PENETRATED 0% 0% 0% HIT Project R&D Pipeline Drought-tolerant corn SEGMENTED VALUE OPPORTUNITY ACROSS MARKETS: EUROPE EXAMPLE Drought Monitor D0: Abnormally Dry 2006 STATUS: On Track Continued expansion of testing in lead genes in moisture-stressed and broad acre environments. Currently testing hundreds of genes across several generations of drought traits Results will be shared in January Source: UCL Department of Space and Climate Physics D1: Drought - Moderate D1: Drought - Severe D1: Drought - Extreme D1: Drought - Exceptional VALUE CONSIDERATIONS: Value of trait reflects better yields under moisture-stressed conditions; varies by region (see table at right) Value will be specific to variable costs of water use by farmers, rather than fixed costs of irrigation RETAIL VALUE/ACRE: $10 - $30/acre IRRIGATED DRYLAND STABILITY Irrigated Non-Irrigated Non-Irrigated Value is in replacing irrigation, reducing variable costs of irrigation Value is in improved yields annually, by improving wateruse efficiency Value is in improved yields when moisture is less than optimal TOTAL ACRE OPPORTUNITY: 164M acres 14

15 15 BIOTECHNOLOGY Vistive III Soybeans Have Potential To Leapfrog on Commercial Development Track KEY MARKET ACRES U.S. P R O J E C T Vistive III Soybeans AVAILABLE MARKET PERCENT PENETRATED 12-15M 0% HIT Project R&D Pipeline Vistive III Soybeans VISTIVE III FIELD TRIAL PHOTOS FROM STATUS: On Track Field trial results on oil composition and oil yield will be reviewed in January VALUE CONSIDERATIONS: Approximately 40M acres of U.S. soybean crop is crushed for oil; Vistive III is optimal for nonhydrogenated and hydrogenatedfrying segments Vistive III has potential to be priced at a premium to conventional soybean oil RETAIL VALUE/ACRE: $10 - $30/acre LOCATION: Sperry, Iowa ACTIVITY: 2006 summer agronomic testing OBSERVATIONS: First broad acre field testing in U.S. with lead events TOTAL ACRE OPPORTUNITY: 12M - 15M acres

16 BIOTECHNOLOGY Vistive III Soybeans Meet Multiple Needs in Food Industry P R O J E C T Vistive III Soybeans KEY MARKET ACRES U.S. AVAILABLE MARKET 12-15M PERCENT PENETRATED 0% HIT Project R&D Pipeline 2006 STATUS: VALUE CONSIDERATIONS: Approximately 40M acres of U.S. soybean crop is crushed for oil; Vistive III is optimal for nonhydrogenated and hydrogenatedfrying segments Vistive III has potential to be priced at a premium to conventional soybean oil RETAIL VALUE/ACRE: TOTAL ACRE OPPORTUNITY: Vistive III Soybeans On Track Field trial results on oil composition and oil yield will be reviewed in January $10 - $30/acre 12M 15M acres VISTIVE FAMILY STANDARD SOYBEAN TARGET: VISTIVE III LOW-LIN MID-OLEIC LOW-SAT SOYBEANS IMPROVED SOYBEAN QUALITY FOR LIQUID OILS IMPROVING NUTRITIONAL PROFILE OF SOYBEAN OIL LINOLENIC 18:3 LINOLEIC 18:2 OLEIC 18:1 Major market segments for U.S. soybean oil NON- HYDROGENATED For salad oils, household use Uses 50% of total crushing (~20M acres) HYDROGENATED- FRYING For various frying applications Uses 25% of total crushing (~10M acres) SATS 18:0 / 16:0 HYDROGENATED- BAKING For various baking applications Uses 25% of total crushing (~10M acres) CONSUMER MARKET OIL FOR FRYING AND SPRAYING Crackers Snack chips 16

17 17 BIOTECHNOLOGY Omega-3 Soybeans Have Met Early Development Targets for Both Food Application and Field Performance R&D Pipeline Omega-3 soybeans Omega-3 soybeans KEY MARKET ACRES AVAILABLE MARKET PERCENT PENETRATED OMEGA-3 OIL TASTE RESULTS FROM 2005 U.S. 5M 0% STATUS: On Track Extensive field testing for lead events in U.S. Food formulation results will be shared in January VALUE CONSIDERATIONS: TASTE RATING Omega-3 Soy Oil SDA Oil Fish Oil Value created through a product with similar profile to soybean oil in taste, shelflife and oil stability but with a superior nutritional and taste profile to fish oil RETAIL VALUE/ACRE: TOTAL ACRE OPPORTUNITY: >$30/acre 5M acres Taste Rating 0-15 Scale Score of zero indicates no flavor In taste-testing, Omega-3 oil containing stearidonic acid (SDA) oil compares favorably versus fish oil and commodity soy oil Testing also focused on field performance, demonstrating Omega-3 soybean yield on par with commodity soybeans an important factor to farmers growing specialty crops Salad Dressing with SDA Oil

18 18 BIOTECHNOLOGY Early Field Testing Indicates Nitrogen Utilization Corn Offers Yield Benefits in Both Limited and Normal Nitrogen Conditions Nitrogen utilization corn KEY MARKET ACRES AVAILABLE MARKET PERCENT PENETRATED U.S. 80M 0% BRAZIL 30M 0% EUROPE 24M 0% R&D Pipeline Nitrogen utilization corn NITROGEN CONTROL TESTING STATUS: Value created through improved yield in both limited and normal nitrogen environments RETAIL VALUE/ACRE: TOTAL ACRE OPPORTUNITY: On Track Continued expansion of testing in limited and normal nitrogen environments Results will be shared in January VALUE CONSIDERATIONS: $10 - $30/acre 164M acres LOCATION: Morrisonville, Illinois and Jerseyville, Illinois ACTIVITY: Field control testing to measure nitrogen uptake and to screen genes for nitrogen utilization OBSERVATIONS: Under normal nitrogen, corn has good chlorophyll content, normal ear development and higher yield Limited Nitrogen Normal Nitrogen

19 BIOTECHNOLOGY Nitrogen Utilization Technology Extends Benefits Across Crop Families Nitrogen utilization canola KEY MARKET ACRES U.S. CANADA EUROPE AVAILABLE MARKET 1-2M 12-14M 12-14M PERCENT PENETRATED 0% 0% 0% R&D Pipeline Nitrogen utilization canola 2006 NITROGEN CANOLA CONTROL TESTING STATUS: On Track Continued expansion of testing in limited and normal nitrogen environments Results will be shared in January VALUE CONSIDERATIONS Value created through improved yield in both limited and in normal nitrogen environments YIELD (LBS/ACRE) % 11% 15% 16% 9% NITROGEN UTILIZATION CANOLA OBSERVATIONS: Significant increase in pod development RETAIL VALUE/ACRE: TOTAL ACRE OPPORTUNITY: $10 - $30/acre 25-30M acres NITROGEN APPLIED (LBS/ACRE) Conventional use rate Nitrogen gene Control CANOLA CONTROL OBSERVATIONS: Significantly less pod activity 19

20 BIOTECHNOLOGY Opportunity in Renewable Fuels Is Driving Yield Demand in Agriculture BILLIONS OF GALLONS U.S. & BRAZIL ETHANOL OUTLOOK MILLIONS OF ACRES ETHANOL ASSUMPTION MTBE replacement by 2010 is base case Incremental yield gains through technological innovations allow further substitution U.S. BRAZIL CORN SUGAR CANE BILLIONS OF GALLONS GLOBAL BIODIESEL OUTLOOK MILLIONS OF ACRES BIODIESEL ASSUMPTION In EU, biodiesel to represent 5% of transport fuels with U.S. growing up to 2% BIODIESEL Source: Proexporter Network, Pro Mar And Monsanto Estimates RAPESEED & CANOLA PALM SOYBEAN 20

21 1 Value and acres are for direct feed piece only and do not include value for processing component 21 BIOTECHNOLOGY Mavera TM High-Value Corn with Lysine to Provide Incremental Value to Both Feed and Fuel Markets Renessen s Mavera TM High- Value Corn with Lysine KEY MARKET ACRES U.S. BRAZIL ARGENTINA AVAILABLE MARKET 5M 2M 1M PERCENT PENETRATED 0% 0% 0% R&D Pipeline Mavera High-Value Corn with Lysine 2006 STATUS: On Track Hybrid performance including yield and nutrient composition will be shared in January VALUE CONSIDERATIONS Enhances level of limiting essential amino acids and corn oil content in feed, and lowers cost of animal rations Incremental value extracted through Renessen s Corn Processing Technology RETAIL VALUE/ACRE: <$10/acre 1 HIGH-VALUE CORN WITH LYSINE IN THE FIELD FIELD TRIAL PHOTOS FROM 2006 LOCATION: Monmouth, Illinois ACTIVITY: Renessen researchers check performance indicators such as plant height, chlorophyl and ear fill. They also use advanced crop analytics to help track the oil levels in plants OBSERVATIONS: U.S. received regulatory approval in 2006; Agronomic testing in the field to select best hybrids TOTAL ACRE OPPORTUNITY: <10M acres 1

22 22 RENESSEN OPPORTUNITY Renessen s New System Bolts Onto Conventional Dry Milling Process and Makes More Efficient Use of Corn Seed RENESSEN PROCESS FLOW FOR ALL PRACTICAL PURPOSES, RENESSEN CORN PROCESSING SYSTEM BOLTS ONTO A CONVENTIONAL DRY MILL PROCESS CONVENTIONAL DRY MILL PROCESS NUTRIENT DENSE CORN Elevator Hammer Mill Fermentation Distillation Ethanol STEP 1: START WITH A NUTRITIONALLY DENSE CORN DEVELOPED THROUGH BIOTECH OR A CONVENTIONAL HYBRID STEP 2: RENESSEN FRACTIONATION AND EXTRACTION PROCESS Fractionation 3 HIGHLY FERMENTABLE FRACTION Drying 4 HIGH PROTEIN LOW OIL DDG PROCESS IT THROUGH A NOVEL PROCESS TECHNOLOGY DEVELOPED BY CARGILL AND RENESSEN High oil fraction STEP 3: DELIVER FOUR HIGH-VALUE REVENUE STREAMS 1: HIGH-OIL CORN OR BIODIESEL 2: HIGH-VALUE SWINE AND POULTRY FEED 3: HIGHLY FERMENTABLE STARCH 4: HIGH-PROTEIN, LOW- OIL DDG Oil extraction Corn oil 1 2 HIGH OIL CORN FOR FOOD OR BIODIESEL Nutrient-rich meal HIGH VALUE SWINE AND POULTRY FEED

23 SUMMARY Breeding and Biotech Come Together To Lift The Ceiling on Yield AVERAGE YIELD (BU/AC) AVERAGE YIELD (BU/AC) U.S. CORN YIELD HISTORY AND PROJECTED EVOLUTION (MULTIPLE REGRESSION MODEL ANALYSIS) U.S. SOYBEAN YIELD HISTORY AND PROJECTED EVOLUTION (MULTIPLE REGRESSION MODEL ANALYSIS) MONSANTO S OPPORTUNITY The delta between what is predicted and what is possible is where opportunity lies Molecular breeding boosts the genetic potential of the seed Biotech traits protect that genetic potential for more practical yield Breeding and Biotech come together to change the curve of yield potential PROJECTED YIELDS WITH MOLECULAR AND BIOTECHNOLOGY USDA YIELD TREND LINE 23

24 SUMMARY R&D Focus Aligns With Growth Drivers to Extend Leadership Through MONSANTO S R&D OPPORTUNITY Application of our breeding and biotech capabilities fully supports our six gross profit drivers R&D PHASE: DISCOVERY PHASE I PHASE II PHASE III PHASE IV Germplasm R GENOMICS MARKERS ELITE GERMPLASM IT PLATFORM ANALYTICS COMMERCIAL BIOTECHNOLOGY LAUNCH SEED SOLD TO FARMERS FACTOR U.S. corn International corn Global biotech traits Cotton platform SITUATION ANALYSIS Growing demand pressures feed and fuel supply Better yields needed to improve global competitiveness Opportunity exists to upgrade plant performance with traits Improve global productivity through technology infusion R&D APPLICATION BIOTECH BIOTECH BIOTECH Seminis R&D pipeline Highly fragmented market, ready for new technology Deliver higher value technologies faster BIOTECH