Jim Borel
Agriculture & Nutrition Executive Vice President
Agriculture & Nutrition Mission
To grow aggressively through
innovative products and services
that help the world increase the
quantity,
tit quality,
lit safety
f t andd
sustainability of our food supply
2
Agriculture & Nutrition
Business Overview
2009 Product Sales* of $8
$8.3B
3B
F d IIngredients
Food di 115%
%
Crop Protection
C P t ti
Products 29%
Seed 56%
3 * Segment sales include transfers.
Agriculture & Nutrition
Key Messages
Innovation driven by megatrends
Seed – Stream of innovation increasing and protecting yields globally
Crop Protection – novel pipeline delivering quality, availability, safety and sustainability
Nutrition & Health - new products addressing need for health and wellness
Resourced to grow
Biotechnology and breeding expansion
Right
g Product Right
g Acre capabilities
p and gglobal infrastructure
Pipeline commercializations
Margin expansion
Mix enrichment in Crop Protection and Nutrition & Health
Disciplined productivity in low margin products
Innovating end-to-end capabilities to further distance ourselves from competitors
P d ti productivity
Production d ti it
4
Agriculture & Nutrition
Key Growth Opportunities Sales and Margin Outlook
North America corn seed
North America soybean seed and other crops $13.3-14.6
International seed
Crop protection products pipeline
Food & nutrition products $9 0
$9.0
$8.0 $
$8.3
PTOI Margin Expansion $6.8
Margin target 19-21%
19 21% 19-21%
Gross margin expansion 14% 15% 15%
13%
G&A leverage
Continued Investments:
Selling expense constant % of sales
Increase rate of R&D investment 2007 2008 2009 2010E 2015E
2015 margins 19-21%; sales growth 8-10% CAGR (2010-2015E)
* Segment sales include transfers.
5 * * Excludes significant items. Refer to company website for detailed reconciliations of non-GAAP measures.
Agriculture & Nutrition
2010 Delivered Growth. 2011 Plan for Growth.
Sales Growth 2011 Sales Drivers
Seed Crop Protection Nutrition & Health
NA seedd volume
l & price
i gains
i
$B
10
International seed volume & price gains
9
8
Crop Protection new product gains
7
6
Nutrition & Health specialty volume gains
5
4 Volatility in commodities and visibility to
3 southern hemisphere summer acreage
2 Crop Protection 2010 portfolio change
1
0 Eastern
E t European
E seedd market
k t lag
l
in reaction to global markets
2007 2008 2009 2010E
6
Agriculture & Nutrition
Key Growth Opportunities Sales and Margin Outlook
North America corn seed
North America soybean seed and other crops $13.3-14.6
International seed
Crop protection products pipeline
Food & nutrition products $9 0
$9.0
$8.0 $
$8.3
PTOI Margin Expansion $6.8
Margin target 19-21%
19 21% 19-21%
Gross margin expansion 14% 15% 15%
13%
G&A leverage
Continued Investments:
Selling expense constant % of sales
Increase rate of R&D investment 2007 2008 2009 2010E 2015E
2015 margins 19-21%; sales growth 8-10% CAGR (2010-2015E)
* Segment sales include transfers.
28 * * Excludes significant items. Refer to company website for detailed reconciliations of non-GAAP measures.
Agriculture & Nutrition
Key Growth Opportunities Sales and Margin Outlook
North America corn seed
North America soybean seed and other crops $13.3-14.6
International seed
Crop protection products pipeline
Food & nutrition products $9 0
$9.0
$8.0 $
$8.3
PTOI Margin Expansion $6.8
Margin target 19-21%
19 21% 19-21%
Gross margin expansion 14% 15% 15%
13%
G&A leverage
Continued Investments:
Selling expense constant % of sales
Increase rate of R&D investment 2007 2008 2009 2010E 2015E
2015 margins 19-21%; sales growth 8-10% CAGR (2010-2015E)
* Segment sales include transfers.
28 * * Excludes significant items. Refer to company website for detailed reconciliations of non-GAAP measures.