FINANCIAL POSITION

Monsanto

Since 2000 Monsanto is listed on New York Stock Exchange and currently it has 534,598,000 shares. Its market capitalization is $46.3 billion and the ownership consists of institutional and mutual fund owner with a ratio of 85%. For the last 5 years, the Monsantos sales have been growing with an average of 13.4% and the net income with 44.7%. The value of the company it is currently calculated at $42.2 billion with annual revenue of $11.8 billion and profits of $1.6 billion.1 Gross profit relies on selling chemicals (33.4%) and seeds and traits (66.6%). The most popular chemical products include Roundup range, turf and Posilac Monsanto derives most of its revenue from three main sources: sales of branded conventional seed and branded seed with biotechnology traits; royalties and license revenues from licensed biotechnology traits and genetic material; and sales of agricultural chemical products.2 Revenues from all branded seed sales are recognized when the title to the products is transferred. When the right of return exists in Monsantos seed business, sales revenues are reduced at the time of sale to reflect expected returns. In order to estimate the expected returns, management analyzes historical returns, economic trends, market conditions, and changes in customer demand. Revenues for agricultural chemical products are recognized when title to the products is transferred. Monsanto recognizes revenue on products it sells to distributors when, according to the terms of the sales agreements, delivery has occurred, performance is complete, no right of return exists, and pricing is fixed or determinable at the time of sale. There are several additional conditions for recognition of revenue including that the collection of sales proceeds must be reasonably assured based on historical experience and current market conditions and that there must be no further performance obligations under the sale or the royalty or license agreement. Monsanto follows the Revenue Recognition topic of the ASC. The Revenue Recognition topic of the ASC affects Monsantos recognition of license revenues from biotechnology traits sold through third-party seed companies. Trait royalties and license revenues are recorded when earned, usually when the third-party seed companies sell their seeds containing Monsanto traits to growers.

1 2

http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/11092.html http://www.stock-analysis-on.net/NYSE/Company/Monsanto-Co/Analysis/Revenues

To reduce credit exposure in Latin America, Monsanto collects payments on certain customer accounts in grain. Monsanto does not take physical custody of the grain or assume the associated inventory risk and therefore does not record revenue or the related cost of sales for the grain. Such payments in grain are negotiated at or near the time Monsantos products are sold to the customers and are valued at the prevailing grain commodity prices. By entering into forward sales contracts with grain merchants, Monsanto mitigates the commodity price exposure from the time a contract is signed with a customer until the time a grain merchant collects the grain from the customer on Monsantos behalf. The grain merchant converts the grain to cash for Monsanto. These forward sales contracts do not qualify for hedge accounting under the Derivatives and Hedging topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. Monsanto Co., Income Statement, Revenues USD $ in millions 12 months ended Corn seed and traits Soybean seed and traits Cotton seed and traits Vegetable seeds All other crops seeds and traits Seeds and Genomics Agricultural productivity Agricultural Productivity Net sales Source: Monsanto Co. Annual Reports Monsanto Co., Price to Sales (P/S) Aug 31, 2011 535,409, 098 Aug 31, 2010 536,392, 459 Aug 31, 2009 545,055, 022 Aug 31, 2008 547,941, 657 Aug 31, 2007 546,319, 136 Aug 31, 2006 543,300, 591 Aug 31, 2011 4,805 1,542 847 895 493 8,582 3,240 3,240 11,822 Aug 31, 2010 4,260 1,486 611 835 419 7,611 2,872 2,872 10,483 Aug 31, 2009 4,113 1,448 466 808 462 7,297 4,427 4,427 11,724 Aug 31, 2008 3,542 1,174 450 744 459 6,369 4,996 4,996 11,365 Aug 31, 2007 2,807 901 319 612 325 4,964 3,599 3,599 8,563 Aug 31, 2006 1,793 960 376 569 330 4,028 3,316 3,316 7,344

No. shares of common stock outstanding Selected Financial Data (USD $) Net sales (in millions) Sales per share Share price

11,822 22.08 74.39

10,483 19.54 60.25

11,724 21.51 71.27

11,365 20.74 71.95

8,563 15.67 94.28

7,344 13.52 44.17

P/S Ratio, Comparison to Industry Monsanto Co. Industry, Consumer Goods

3.37 1.44

3.08 1.44

3.31 1.36

3.47 1.22

6.02 1.68

3.27

Monsanto Co., Common-Size Consolidated Statement of Financial Position, Assets Aug 31, 2011 12.96 % 1.52% 10.67 % 3.17% 2.25% 13.06 % 0.77% 44.39 % 22.14 % 16.96 % 6.60% 4.40% 2.39% 3.12% 55.61 % 100.0 0% Aug 31, 2010 8.32% 8.91% 4.02% 2.96% 14.84 % 0.45% 39.49 % 23.68 % 17.95 % 7.07% 5.68% 2.87% 3.25% 60.51 % 100.0 0% Aug 31, 2009 10.94 % 8.70% 3.66% 3.70% 16.41 % 0.68% 44.10 % 20.19 % 18.00 % 7.67% 4.16% 3.12% 2.77% 55.90 % 100.0 0% Aug 31, 2008 8.97% 11.49 % 4.12% 1.88% 13.63 % 0.85% 1.35% 42.29 % 18.47 % 17.41 % 8.51% 5.56% 3.54% 1.31% 2.91% 57.71 % 100.0 0% Aug 31, 2007 6.67% 11.55 % 3.13% 3.46% 13.24 % 1.11% 39.16 % 20.46 % 20.22 % 10.90 % 5.62% 0.61% 3.03% 60.84 % 100.0 0% Aug 31, 2006 12.45 % 0.19% 12.41 % 2.93% 3.33% 14.39 % 0.05% 0.82% 46.56 % 20.62 % 12.98 % 10.48 % 5.33% 4.03% 53.44 % 100.0 0%

Cash and cash equivalents Short-term investments Trade receivables, net Miscellaneous receivables Deferred tax assets Inventory, net Assets of discontinued operations Other current assets Current assets Property, plant and equipment, net Goodwill Other intangible assets, net Noncurrent deferred tax assets Long-term receivables, net Noncurrent assets of discontinued operations Other assets Noncurrent assets Total assets

Monsanto Co., Consolidated Statement of

Financial Position, Liabilities and Stockholders' Equity USD $ in millions Aug 31, 2011 Short-term debt, including current portion of long-term debt Accounts payable Income taxes payable Accrued compensation and benefits Accrued marketing programs Deferred revenues Grower production accruals Dividends payable Customer payable Restructuring reserves Liabilities of discontinued operations Miscellaneous short-term accruals Current liabilities Long-term debt, excluding current portion Postretirement liabilities Long-term deferred revenue Noncurrent deferred tax liabilities Long-term portion of environmental and litigation liabilities Noncurrent liabilities of discontinued operations Other liabilities Noncurrent liabilities Total liabilities Common stock, par value $0.01 Treasury stock, at cost Additional contributed capital Retained earnings (deficit) Accumulated other comprehensive loss Reserve for ESOP debt retirement Monsanto Company shareowners equity Noncontrolling interest 678 839 117 427 1,110 373 87 161 94 24 819 4,729 1,543 509 337 152 176 682 3,399 8,128 6 2,613 10,09 6 4,174 -116 -2 11,54 5 171 Aug 31, 2010 241 752 66 179 887 219 97 151 83 197 684 3,556 1,862 920 395 137 188 681 4,183 7,739 6 2,110 9,896 3,178 -897 -4 10,06 9 44 Aug 31, 2009 79 676 79 263 934 219 139 145 307 286 629 3,756 1,724 793 488 153 197 641 3,996 7,752 6 1,577 9,695 2,682 -744 -6 10,05 6 69 Aug 31, 2008 24 1,090 161 441 754 867 172 132 26 772 4,439 1,792 590 566 204 168 52 806 4,178 8,617 6 1,177 9,495 1,138 -78 -10 9,374 Aug 31, 2007 270 649 150 349 517 260 86 96 698 3,075 1,150 542 83 135 495 2,405 5,480 6 -814 9,106 -405 -377 -13 7,503 Aug 31, 2006 28 514 234 295 494 120 26 55 2 511 2,279 1,639 600 155 530 2,924 5,203 6 -623 8,879 1,099 -623 -15 6,525

Total shareowners equity Total liabilities and shareowners equity Source: Monsanto Co., Annual Reports

11,71 6 19,84 4

10,11 3 17,85 2

10,12 5 17,87 7

9,374 17,99 1

7,503 12,98 3

6,525 11,72 8

Figure 1. Monsantos share price evolution over the last 5 years

Monsantos financial data over the last 5 years 5-Year Averages Return on Equity Return on Assets Return on Invested Capital Gross Profit Margin Pre-Tax Profit Margin Post-Tax Profit Margin Net Profit Margin (Total Operations) 17.00% 9.60% 14.60% 57.90% 21.60% 15.20% 15.30%

R&D as a % of Sales SG&A as a % of Sales Debt/Equity Ratio Total Debt/Equity Ratio Monsatos current financial data Sales Profits Assets Employees

10.50% 18.70% 0.17 0.19 $13.504 bil $2.093 bil $20.224 bil 21500

INCOME STATEME NT: 10YEAR SUMMARY DEPRECIATI ON 746.00 Mil 613.00 Mil 602.00 Mil 548.00 Mil 573.00 Mil 527.00 Mil 519.00 Mil 488.00 Mil 452.00 Mil 302.00 Mil TOTAL NET INCOME 2.04 Bil 1.61 Bil 1.09 Bil 2.08 Bil 2.01 Bil 913.00 Mil 671.00 Mil 193.00 Mil 266.00 Mil 0 EP S 3.7 7 2.9 6 1.9 8 3.7 5 3.5 9 1.6 4 1.2 2 0.3 5 0.4 9 0 TAX RATE (%) 30.2 30.2 25.4 27.9 30.7 30.3 32.4 33 31.8 0

DATE 12-Aug 11-Aug 10-Aug 9-Aug 8-Aug 7-Aug 6-Aug 5-Aug 4-Aug 3-Aug

SALES 13.50 Bil 11.82 Bil 10.48 Bil 11.69 Bil 11.37 Bil 8.35 Bil 7.07 Bil 6.28 Bil 5.42 Bil 3.38 Bil

EBIT 2.99 Bil 2.37 Bil 1.49 Bil 2.92 Bil 2.93 Bil 1.33 Bil 1.02 Bil 315.00 Mil 403.00 Mil -21.00 Mil

BALANCE SHEET: 10 YEAR SUMMARY CURRE NT DATE 12-Aug 11-Aug 10-Aug 9-Aug 8-Aug 7-Aug 6-Aug 5-Aug 4-Aug 3-Aug ASSETS 20.22 Bil 19.84 Bil 17.85 Bil 17.83 Bil 17.99 Bil 12.98 Bil 11.73 Bil 10.58 Bil 9.16 Bil 9.54 Bil CURRENT LIABILITI ES 8.39 Bil 8.30 Bil 7.78 Bil 7.79 Bil 8.62 Bil 5.48 Bil 5.20 Bil 4.97 Bil 3.91 Bil 4.38 Bil LONG TERM DEBT 2.04 Bil 1.54 Bil 1.86 Bil 1.72 Bil 1.79 Bil 1.15 Bil 1.64 Bil 1.46 Bil 1.08 Bil 1.26 Bil SHARES OUTSTANDI NG 534.37 Mil 535.30 Mil 540.38 Mil 545.41 Mil 548.59 Mil 545.61 Mil 543.18 Mil 536.38 Mil 528.83 Mil 525.36 Mil