Monsanto : Expanded Set of Innovations Highlight Long-Term Opportunity and Continued Growth Outlook

Highlighting its innovation advantage and growing global business portfolio at its seventh Whistle Stop event for investors, Monsanto Company (NYSE: MON) management today will underscore the company’s unique ability to create value as it increases the productivity of farmers while delivering continued business growth.

“The current environment certainly touches everyone in agriculture, but unlike more commodity-oriented organizations, Monsanto’s ability to continually innovate to deliver new value each year for farmers is a strategic differentiator for our company,” said Hugh Grant, chairman and chief executive officer. “Our focus on innovation creates more opportunities to deliver growth in both the current environment and over the long-term as strong demand-driven fundamentals reinforce agriculture’s multi-year opportunity.”

Updated Growth Outlook

Monsanto remains on track to deliver at the upper end of its original fiscal-year 2014 guidance. The company confirmed 2014 ongoing earnings per share guidance of $5.10 to $5.20, as-reported EPS guidance of $5.12 to $5.22, and free cash of $700 to $800 million. The company expects net cash provided by operating activities to be $2.9 billion to $3.3 billion, and net cash required by investing activities to be approximately $2.2 billion to $2.5 billion for fiscal year 2014. (For a reconciliation of ongoing EPS and free cash flow see note 1).

Drawing on its ability to develop new technology, deliver consistent upgrades and build from a diversified global product portfolio, Monsanto’s management also will highlight its target to at least double full-year ongoing EPS by the end of fiscal year 2019, with projected annual growth over the five-year period beginning with fiscal year 2015.

Expanding Opportunity in Core Business and Transformational New-Platform Potential

The Whistle Stop event will focus on technology deployment and portfolio expansion that translates to multiple layers of growth opportunity both in the company’s core business and through transformational new platforms.

Providing the foundation for the company’s growth targets is the continued opportunity from the core business, highlighted by three key growth platforms featured at the event that the company expects will contribute more than $1 billion each in total incremental gross profit growth over the next five years.

• “The Decade of the Soybean” – With the progression of significant technology upgrades that target more than 100 million acres of global soybean opportunity through Roundup Ready 2 Yield^®, Intacta RR2 PRO^™ and the Roundup Ready^® 2 Xtend Crop System system, the soybean platform embodies the opportunity of Monsanto’s technology innovation.
• Breeding-Backed Global Corn Upgrades – One of the largest continuing opportunities is to deliver new value to growers through the annual upgrade of Monsanto’s global corn portfolio with newer, better-yielding offerings. Monsanto remains on track with this portfolio upgrade opportunity, bolstering its mix of new products that drive a steady uplift in its seed germplasm offerings in every major corn-growing market.
• Global Corn Footprint Expansion and Portfolio Leverage –Monsanto also is well positioned for global growth from a portfolio of premium-performing corn products globally, ranging from contribution from operational efficiency to the opportunity to become a leading player in expanding markets like Eastern Europe while growing its offerings in its foundation markets.

The company’s core business growth is backed by its industry-leading R&D pipeline, where Monsanto’s innovation is unlocking new areas that expand farmers’ tools and create new growth platforms for the business. Among the new platform opportunities featured at the Whistle Stop event:

• Stronger-Than-Projected Adoption on The Climate Corporation Platform: Response to the company’s suite of offerings in its Climate Corporation platform has been stronger than originally projected and better than recent updates, with the company reaching more than 50 million acres with its Climate Basic service. The strong farmer response sets the stage for the confidence in the build out of the platform as The Climate Corporation helps create a new unified approach to helping farmers manage information to improve productivity.
• Ability to Unlock Microbials through Collaboration with Novozymes: The collaborative approach with Monsanto and Novozymes through The BioAg Alliance brings together two leaders to create the industry’s most advanced microbials platform. With the largest discovery and development engine ever built for microbials, combined with a significant current commercial footprint, The BioAg Alliance has the potential to elevate microbials as a new tool for farmers.

Webcast and Materials

Monsanto will provide a webcast of the overview presentations each day, with sessions beginning at 12 p.m. CDT, Aug. 20 and the second-day session at 7:30 a.m. CDT on Aug. 21. Presentation slides and a simultaneous audio webcast may be accessed by visiting the company’s website at www.monsanto.com/investors. Visitors may need to download Windows Media Player^™ prior to listening to the webcast. Following the live broadcast, a replay of the webcast will be available on the Monsanto website for three weeks. Full materials related to the Whistle Stop event are also available on the company’s website at www.monsanto.com/investors.

Monsanto publishes details on upcoming webcasts on this website in both the Presentation and Financial Reports section and the Calendar of Events section. Investors should look to this site as the source of information on future investor conference webcasts. The site includes a calendar of upcoming investor events, details on accessing scheduled webcasts and information from previous investor events.

About Monsanto Company

Monsanto is committed to bringing a broad range of solutions to help nourish our growing world. We produce a variety of seeds ranging from fruits and vegetables to key crops – such as corn, soybeans, and cotton – that help farmers produce abundant and nutritious food. We work to find sustainable agriculture solutions that help farmers conserve natural resources, use data to improve farming practices, use water and other important resources more efficiently, and protect their crops from pests and disease. Through programs and partnerships, we collaborate with farmers, researchers, nonprofit organizations, universities and others to help tackle some of the world’s biggest challenges. To learn more about Monsanto, our commitments and our more than 20,000 dedicated employees, please visit: discover.monsanto.com and monsanto.com. Follow our business on Twitter® at twitter.com/MonsantoCo, on the company blog, Beyond the Rows® at monsantoblog.com or subscribe to our News Release RSS Feed.

Cautionary Statements Regarding Forward-Looking Information:

Certain statements contained in this release 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 and the previously-announced SEC investigation; 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 recent increases in and expected higher levels of indebtedness; 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 periodic report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

Notes to editors: Monsanto and the Vine Design, Roundup Ready 2 Yield, Roundup Ready 2 Xtend, Intacta RR2 PRO, and Beyond the Rows are trademarks of Monsanto Company and its wholly-owned subsidiaries. All other trademarks are the property of their respective owners.

Monsanto Company
Selected Financial Information
(Dollars in millions)
Unaudited

1. Ongoing EPS and Free Cash Flow: The presentations of ongoing EPS and free cash flow are not intended to replace net income (loss) attributable to Monsanto Company, cash flows, financial position or comprehensive income (loss), and they are not measures of financial performance as determined in accordance with generally accepted accounting principles (GAAP) in the United States. The presentation of non-GAAP financial measures is intended to supplement investor’s understanding of our operating performance. Furthermore, these non-GAAP financial measures may not be comparable to similar measures used by other companies. The following tables reconcile ongoing EPS and free cash flow to the respective most directly comparable financial measure calculated in accordance with GAAP.
   
   Reconciliation of EPS to Ongoing EPS: Ongoing EPS is calculated excluding certain after-tax items which Monsanto does not consider part of ongoing operations.

Reconciliation of Free Cash Flow: Free cash flow represents the total of cash flows from operating activities and investing activities, as reflected in the Statements of Consolidated Cash Flows. With respect to the fiscal year 2014 free cash flow guidance, Monsanto does not include any estimates or projections of Net Cash Provided (Required) by Financing Activities because in order to prepare any such estimate or projection, Monsanto would need to rely on market factors and conditions that are outside of its control.