Monsanto Delivers Third Consecutive Year of Strong Growth on Performance of Global Portfolio; On Tra

Monsanto Delivers Third Consecutive Year of Strong Growth on Performance of Global Portfolio; On Track for Strong Operational Growth from Core Business in FY14

• Signs definitive agreement to acquire The Climate Corporation, accelerating opportunity of Integrated Farming Systems as transformational growth platform and unlocking next incremental yield opportunity for farmers

• Outlines continued strong business growth, with guidance for double-digit gross profit growth, margin expansion and mid-to-high-teens EBITDA growth in FY14

• FY14 earnings per share guidance at $5.00 to $5.20 after $0.14 of acquisition related dilution

ST. LOUIS--(BUSINESS WIRE)-- Monsanto Company (NYS: MON) today announced fiscal year 2013 results near the high end of its guidance range, the third straight year of greater than 20 percent ongoing earnings growth. Executives noted the company is well-positioned for continued growth in fiscal year 2014 with the sustained performance of its core business enabling continued investment in global growth opportunities and the development of transformational new platforms. This includes today's announced agreement to acquire The Climate Corporation that will establish Monsanto as a leader in the area of data science, expanding the near- and long-term growth opportunities of its Integrated Farming Systems platform.

"The strength of our broad global portfolio enabled us to deliver a third consecutive year of strong business results, and by building off our proven strategy we're confident the key elements are in place to carry that momentum through to achieve strong business growth in 2014," said Hugh Grant, chairman and chief executive officer for Monsanto. "The performance of our core business gives us the ability to invest efficiently in breakthrough agricultural innovation that, by making farming more precise, will enable continued improvement in agriculture sustainability in the face of mounting environmental challenges. As the innovation leader, we've staked out the early position to unlock the next wave of on-farm yield opportunity for farmers around the world."

Results of Operations

Monsanto reported net sales of approximately $2.2 billion for the fourth quarter of fiscal year 2013, an increase over the prior year period. Net sales for the full fiscal year were approximately $14.9 billion, a 10 percent increase over fiscal year 2012. Full year net sales results were driven by the strength of the Agricultural Productivity segment and global corn seeds and traits revenue.

Seeds and Genomics segment net sales were approximately $1.2 billion for the quarter. For the fiscal year, net sales for the Seeds and Genomics segment reached $10.3 billion, an approximately six percent increase over the prior year. Agricultural Productivity segment net sales were $1 billion for the quarter. Net sales for the Agricultural Productivity segment for the fiscal year increased to $4.5 billion.

Monsanto reported a net loss of $249 million in the fourth quarter of fiscal year 2013, compared with a reported net loss of $229 million in the same period last year. Net income for fiscal year 2013 was approximately $2.5 billion, an increase over fiscal year 2012 net income of $2.1 billion.

The company's fiscal year 2013 earnings per share (EPS) was $4.56 on an ongoing basis and $4.60 on an as-reported basis. For the fourth quarter, the company reported a loss per share of $0.47 on an ongoing basis and as-reported basis. (For a reconciliation of ongoing EPS, see page 1 and note 1.)

Cash Flow

For fiscal year 2013, net cash provided by operating activities was a source of $2.7 billion, compared with a source of $3.1 billion in fiscal year 2012. Net cash required by investing activities was $777 million in fiscal year 2013, compared with net cash required of $1 billion last year. Net cash required by financing activities was $1.5 billion for fiscal year 2013, compared with net cash required of $1.2 billion in fiscal year 2012. Free cash flow was a source of nearly $2 billion for fiscal year 2013, in line with fiscal year 2012. (For a reconciliation of free cash flow, see note 1.)

In fiscal year 2013, the company used nearly 100 percent of its $2 billion in free cash flow to return cash to shareowners through buybacks and dividends, including the completion of the company's $1 billion share-repurchase authorization and the initiation of buybacks under a new $2 billion, three-year repurchase program announced in June.

Outlook

Monsanto today announced a definitive agreement to acquire The Climate Corporation for a cash purchase price of approximately $930 million. The acquisition combines Monsanto's leading R&D capabilities with The Climate Corporation's leading analytical expertise, accelerating the opportunity of Monsanto's Integrated Farming Systems platform and unlocking the next incremental yield opportunity for farmers. See today's press release and supporting information at www.monsanto.com for more information about the acquisition.

In fiscal year 2014, Monsanto expects continued strong operational growth from its core business, reflected in mid-to-high teens growth in EBITDA and overall margin expansion. Monsanto expects to achieve EPS of $5.00 to $5.20 after approximately $0.14 of dilution related to The Climate Corporation acquisition.

The total company gross profit is expected in the range of $8.4 to $8.7 billion in 2014, representing double-digit year-over-year growth. The biggest driver of the growth is expected to be from the Seeds and Genomics segment in which the company expects to achieve mid-teens gross-profit growth in fiscal year 2014 as it significantly expands gross-profit margins in the segment.

The company projects free cash flow in the range of $600 million to $800 million for fiscal year 2014, after approximately $930 million in cash for The Climate Corporation acquisition. 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 $2.3 billion to $2.5 billion for fiscal year 2014, including capital expenditures and acquisition-related costs. (For a reconciliation of free cash flow, see note 1.)

The Seeds and Genomics segment consists of the company's global seeds and related traits business.

For the fiscal year, Monsanto realized Seeds and Genomics segment sales of $10.3 billion, led by its global corn portfolio that achieved a 13 percent increase over the prior year. Segment sales in the fourth quarter were approximately $1.2 billion.

The company expects continued growth in its Seeds and Genomics segment in fiscal year 2014, reflecting the opportunity in both the core U.S. and accelerating international businesses.

The opportunity begins with the company's global corn business where it is focused on continued unit volume growth and margin expansion from its better year-over-year cost position and germplasm and trait mix upgrades globally, including rapidly expanding emerging markets like Latin America and Eastern Europe.

Complementing the continued global corn opportunity in fiscal year 2014 is the expected strong soybean business growth as a result of the expanded Roundup Ready 2 Yield^® opportunity in the United States and the launch of the Intacta RR2 PRO^™ soybean product in Latin America.