Phosphate

All amounts are in US dollars except as otherwise noted

Nutrien Ltd. (TSX and NYSE: NTR) announced today its fourth quarter 2021 results, with net earnings of $1.2 billion ($2.11 diluted net earnings per share). Fourth-quarter adjusted net earnings 1 were $2.47 per share and adjusted EBITDA 1 was $2.5 billion.

"The advantages of Nutrien's integrated business were demonstrated in 2021 as we delivered record financial results 3 and made significant progress on our long-term strategic targets, including our key sustainability priorities. We utilized the scale and reliability of our world-class supply chain and the strong execution of our teams to ensure customers had the products and services they needed, when they needed them," commented Ken Seitz, Nutrien's Interim President and CEO.

"The outlook for global agriculture and crop input markets is very strong and we are well positioned to deliver significant growth in earnings and free cash flow in 2022. We will continue to advance our strategic priorities and maintain a disciplined approach to deploying capital, using our strong financial position to grow the business and return significant cash to shareholders," added Mr. Seitz.

Highlights:

  • Nutrien generated net earnings of $1.2 billion and record adjusted EBITDA of $2.5 billion in the fourth quarter while generating $3.2 billion of net earnings ($5.52 diluted net earnings per share) and record adjusted EBITDA of $7.1 billion ($6.23 adjusted net earnings per share) for the full year of 2021. Cash flow provided by operating activities in the full year was $3.9 billion.
  • We prioritized the use of cash in 2021 to strengthen and reposition the balance sheet, reducing our long-term debt by $2.1 billion. We deployed $2.1 billion to dividends and share repurchases in 2021 repurchasing 15 million shares during the year under our normal course issuer bid (NCIB). To date, we have repurchased over 22 million shares under our NCIB program. Nutrien's Board of Directors approved an increase in the quarterly dividend to $0.48 per share and approved the purchase of up to 10 percent of Nutrien's outstanding common shares over a one-year period through a NCIB. The NCIB is subject to acceptance by the Toronto Stock Exchange.
  • Nutrien issued full-year 2022 adjusted EBITDA and adjusted net earnings per share guidance 1 of $10.0 to $11.2 billion and $10.20 to $11.80 per share. Adjusted net earnings per share guidance includes our plans to allocate a minimum of $2 billion to share repurchases in 2022 on a balanced cadence throughout the year.
  • Nutrien Ag Solutions ("Retail") delivered record adjusted EBITDA in the fourth quarter and surpassed $1.9 billion for the full year of 2021. We exceeded nearly all of our 2023 strategic targets including a record 10.9 percent Retail adjusted EBITDA margin 2 and increased our proprietary product related gross margin to more than $1 billion in 2021, an increase of 22 percent.
  • The reliability and efficiency of our global supply chain and strategic procurement helped drive our Retail normalized comparable store sales 1 to 7 percent and Retail adjusted EBITDA per US selling location 2 to $1.5 million during 2021. We closed 14 acquisitions during the year and increased our Retail digital platform sales 2 to $2.1 billion.
  • Potash adjusted EBITDA surpassed $1 billion in the fourth quarter and increased 130 percent in the full year of 2021 to $2.7 billion. We achieved record sales volumes of 13.6 million tonnes in 2021 due to our capability to quickly ramp up production from our flexible, low-cost network of six mines. We progressed our Potash Next Generation initiatives and produced 1 million tonnes in 2021 using tele-remote and autonomous mining techniques.
  • Nitrogen adjusted EBITDA was $921 million in the fourth quarter of 2021 and increased 114 percent to $2.3 billion in the full year of 2021. We completed our phase 1 brownfield expansion projects on time and on budget, launched a second phase of projects and progressed decarbonization initiatives.
  • Phosphate adjusted EBITDA was $196 million in the fourth quarter of 2021 and increased 133 percent to $540 million in the full year of 2021.

1 This financial measure including related guidance, if applicable, is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section for further information.

2 This is a supplementary financial measure. See the "Other Financial Measures" section for further information.

3 Net earnings from continuing operations.

Market Outlook

Agriculture and Retail

  • Global inventory for key grains and oilseeds remains historically low due to a combination of weather-related events and strong demand fueled by a greater focus on global food security and recovering feed and bio-energy related markets.
  • Corn and soybean prices in the US and Brazil remain very strong and prospective crop margins are well above the 10-year average. We expect this will incentivize growers to invest in their crops.
  • US growers experienced favorable fall weather conditions that combined with strong crop economics, supported a second consecutive year of strong fall fertilizer application. We expect overall planted area of major crops to be similar to 2021 levels, with corn and soybean acreage in the range of 91 to 93 million and 87 to 89 million, respectively.
  • Growers in Brazil planted an additional 4 million acres of soybeans which was a second consecutive year of record planting. However, yields have been impacted by drought conditions in major growing regions. We expect strong crop economics will support total Brazilian planted acreage and crop input demand in 2022. Australian growers continue to experience favorable weather conditions and harvested record wheat production.
  • Nutrien is well-positioned on fertilizer and crop protection product inventory to begin the North American planting season. Our Retail adjusted EBITDA guidance assumes there was some pull forward of fertilizer sales volumes due to the strong fall season in North America and that Retail fertilizer margins return to historical average levels after increasing in 2021 due to strategic procurement in a rising price environment.

Crop Nutrient Markets

  • Global potash prices increased in response to record global demand of 70 million in 2021 and tightness of supply due to competitor mine flooding, new project delays and uncertainty around sanctions imposed on Belarus by the US and Europe. We believe that many of these supply issues will continue into 2022, including additional restrictions imposed on Belarus potash transported through Lithuania. We estimate 2022 global shipments in a range of 68 to 71 million tonnes.
  • Nutrien expects record potash sales volumes between 13.7 to 14.3 million tonnes in 2022. This forecast assumes sanctions on Belarus have a temporary impact on global supply. If there was a more significant long-term impact on global supply, Nutrien has the capability to further ramp up production by hiring additional employees and incurring some small incremental capital expenditures.
  • Nitrogen prices have been supported by strong demand, soaring energy prices in Europe, and government restrictions and geopolitical risks in key export markets. Global urea prices softened in early 2022 during a seasonally slow period, however, ammonia and nitrates prices continue to strengthen due to supply side constraints. North American natural gas prices increased in early 2022 but we expect Henry Hub prices to average between $3.75 and $4.25 per MMBtu in 2022, well below import pricing levels in Europe and Asia.
  • We expect to increase Nitrogen sales volumes to 10.8 to 11.3 million tonnes in 2022 with the completion of Phase 1 brownfield expansion projects in 2021 and higher anticipated operating rates.
  • Phosphate prices have been supported by the expected reduction in supply from China due to export restrictions and elevated raw material input cost. This is compounded by tight inventories in key import markets such as India.

Financial Outlook and Guidance

Based on market factors detailed above, we are issuing full-year 2022 adjusted EBITDA guidance of $10.0 to $11.2 billion and full-year 2022 adjusted net earnings guidance of $10.20 to $11.80 per share. Adjusted net earnings per share guidance includes our plans to allocate a minimum of $2 billion to share repurchases in 2022 on a balanced cadence throughout the year.

All guidance numbers, including those noted above and related sensitives are outlined in the tales below.

2022 Guidance Ranges 1

Low

High

Adjusted net earnings per share 2

$

10.20

$

11.80

Adjusted EBITDA (billions) 2

$

10.0

$

11.2

Retail Adjusted EBITDA (billions)

$

1.7

$

1.8

Potash Adjusted EBITDA (billions)

$

5.0

$

5.5

Nitrogen Adjusted EBITDA (billions)

$

3.2

$

3.6

Phosphate Adjusted EBITDA (millions)

$

500

$

600

Potash sales tonnes (millions) 3

13.7

14.3

Nitrogen sales tonnes (millions) 3

10.8

11.3

Depreciation and amortization (billions)

$

2.0

$

2.1

Effective tax rate on adjusted earnings

25

%

26

%

Sustaining capital expenditures (billions) 4

$

1.2

$

1.3

Impact to

Adjusted

Adjusted

2022 Annual Assumptions & Sensitivities 1

EBITDA

EPS 5

$1/MMBtu change in NYMEX 6

$

180

$

0.25

$25/tonne change in realized potash selling prices

$

290

$

0.40

$25/tonne change in realized ammonia selling prices

$

50

$

0.07

$25/tonne change in realized urea selling prices

$

80

$

0.11

2022 FX Rate CAD to USD

1.26

2022 NYMEX natural gas ($US/MMBtu)

~$ 4.00

1 See the "Forward-Looking Statements" section.

2 This is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section.

3 Manufactured products only. Nitrogen excludes ESN® products.

4 This is a supplementary financial measure. See the Refer to "Other Financial Measures" section for further information.

5 Assumes 546 million shares outstanding.

6 Nitrogen related impact.

Consolidated Results

Three Months Ended December 31

Twelve Months Ended December 31

(millions of US dollars)

2021

2020

% Change

2021

2020

% Change

Sales

7,267

4,052

79

27,712

20,908

33

Freight, transportation and distribution

198

202

(2)

851

855

Cost of goods sold

3,863

2,685

44

17,452

14,814

18

Gross margin

3,206

1,165

175

9,409

5,239

80

Expenses

1,379

762

81

4,628

4,337

7

Net earnings

1,207

316

282

3,179

459

593

Adjusted EBITDA 1

2,463

768

221

7,126

3,667

94

Diluted net earnings per share

2.11

0.55

284

5.52

0.81

581

Adjusted net earnings per share 1

2.47

0.24

929

6.23

1.80

246

Cash provided by operating activities

3,637

2,778

31

3,886

3,323

17

Free cash flow 1

1,549

196

690

4,300

1,830

135

Free cash flow including changes in non-cash operating working capital 1

3,183

2,370

34

2,639

2,404

10

1 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

Net earnings and adjusted EBITDA increased significantly in the fourth quarter and full year of 2021 compared to the same periods in 2020. This was due to higher net realized selling prices across our nutrient businesses, higher potash sales volumes, strong organic and proprietary product sales growth in Retail. In 2020, we recorded a non-cash impairment of $824 million primarily related to our Phosphate business and a gain of $250 million realized in the fourth quarter of 2020 related to the Misr Fertilizers Production Company S.A.E. ("MOPCO") divestment with no similar transactions in 2021. Cash flow provided by operating activities increased in the fourth quarter and full year of 2021 compared to the same periods in 2020 due primarily to higher net earnings. The COVID-19 pandemic had a limited impact on our results during the fourth quarter and full year of 2021.

Segment Results

Our discussion of segment results set out on the following pages is a comparison of the results for the three and twelve months ended December 31, 2021 to the results for the three and twelve months ended December 31, 2020, unless otherwise noted.

Nutrien Ag Solutions ("Retail")

Three Months Ended December 31

(millions of US dollars, except

Dollars

Gross Margin

Gross Margin (%)

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

Sales

Crop nutrients

2,035

1,108

84

428

236

81

21

21

Crop protection products

1,113

828

34

414

343

21

37

41

Seed

189

152

24

57

58

(2)

30

38

Merchandise

270

240

13

45

41

10

17

17

Nutrien Financial

51

37

38

51

37

38

100

100

Services and other

267

290

(8)

225

207

9

84

71

Nutrien Financial elimination 1

(47)

(37)

27

(47)

(37)

27

100

100

3,878

2,618

48

1,173

885

33

30

34

Cost of goods sold

2,705

1,733

56

Gross margin

1,173

885

33

Expenses 2

911

768

19

Earnings before finance costs and taxes ("EBIT")

262

117

124

Depreciation and amortization

178

180

(1)

EBITDA

440

297

48

Adjustments 3

2

n/m

Adjusted EBITDA

442

297

49

1 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

2 Includes selling expenses of $848 million (2020 – $727 million).

3 See Note 2 to the unaudited condensed consolidated financial statements.

Twelve Months Ended December 31

(millions of US dollars, except

Dollars

Gross Margin

Gross Margin (%)

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

Sales

Crop nutrients

7,290

5,200

40

1,597

1,130

41

22

22

Crop protection products

6,333

5,602

13

1,551

1,303

19

24

23

Seed

2,008

1,790

12

419

363

15

21

20

Merchandise

1,033

943

10

172

157

10

17

17

Nutrien Financial

189

129

47

189

129

47

100

100

Services and other

1,051

1,241

(15)

842

774

9

80

62

Nutrien Financial elimination

(170)

(120)

42

(170)

(120)

42

100

100

17,734

14,785

20

4,600

3,736

23

26

25

Cost of goods sold

13,134

11,049

19

Gross margin

4,600

3,736

23

Expenses 1

3,378

2,974

14

EBIT

1,222

762

60

Depreciation and amortization

706

668

6

EBITDA

1,928

1,430

35

Adjustments 2

11

n/m

Adjusted EBITDA

1,939

1,430

36

1 Includes selling expenses of $3,124 million (2020 – $2,795 million).

2 See Note 2 to the unaudited condensed consolidated financial statements.

  • Adjusted EBITDA increased in the fourth quarter and full year of 2021 due to increased sales and gross margin achieved through market share growth, strong agriculture fundamentals and expansion in South America. Gross margin increases were supported by strategic procurement of crop nutrients and crop protection products in a rising price environment and a 22 percent increase in proprietary product related gross margin. Retail cash operating coverage ratio 1 declined to 58 percent in 2021 due to significantly higher gross margin.
  • Crop nutrients sales increased in the fourth quarter and full year of 2021 due to record sales volumes and higher selling prices. Gross margin per tonne increased by $31 per tonne in 2021 due to strategic purchasing in a rising price environment and higher proprietary product sales.
  • Crop protection products sales increased in the fourth quarter and full year of 2021 due to market share growth, higher prices and increased proprietary product sales across all geographies, especially in Australia where uptake by customers was exceptional. The reliability of our supply chain, growth in proprietary product contribution and strategic procurement supports our ability to deliver on strong grower demand throughout the year.
  • Seed sales increased in the fourth quarter primarily due to significant organic growth achieved in South America and Australia following recent expansion initiatives and acquisitions. Gross margin percentage decreased in the fourth quarter due to the timing and mix of seed sales in the US. Seed sales for the full year of 2021 increased in all key regions where we operate due to higher planted acreage, higher prices and significant organic growth in South America. Gross margin percentage for 2021 increased due to price increases, including from our proprietary product.
  • Merchandise sales increased in the fourth quarter and full year of 2021 primarily driven by strong grower and rancher purchasing in Australia.
  • Nutrien Financial sales increased in the fourth quarter and full year of 2021 due to higher utilization and adoption of our programs. At the end of the fourth quarter of 2021 net receivables in the programs were $2.2 billion, an increase of $0.8 billion compared to the same period in 2020, while credit loss was minimal in 2021 and 2020 due to strong credit evaluation and collection as well as favorable market conditions this past year.
  • Services and other sales decreased in the fourth quarter and full year of 2021 compared to the same periods in 2020 due to the divestiture of an Australian livestock export business in the fourth quarter of 2020, which more than offset increases in other Australian services and higher US custom application sales. Despite the change in revenue mix, gross margin increased and the impact to gross margin percentage was favorable for both the fourth quarter and full year of 2021.

1 This financial measure is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section for further information

Potash

Three Months Ended December 31

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

% Change

Manufactured product

Net sales

North America

497

199

150

1,002

1,041

(4)

494

192

157

Offshore

923

251

268

2,054

1,613

27

450

156

188

1,420

450

216

3,056

2,654

15

465

170

174

Cost of goods sold

305

305

100

116

(14)

Gross margin – total

1,115

145

669

365

54

576

Expenses 1

179

49

265

Depreciation and amortization

38

46

(17)

EBIT

936

96

875

Gross margin excluding depreciation

Depreciation and amortization

117

123

(5)

and amortization – manufactured 3

403

100

302

EBITDA

1,053

219

381

Potash cash cost of product

Adjustments 2

1

(100)

manufactured 3

70

71

(1)

Adjusted EBITDA

1,053

220

379

1 Includes provincial mining taxes of $173 million (2020 – $40 million).

2 See Note 2 to the unaudited condensed consolidated financial statements.

3 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

Twelve Months Ended December 31

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

% Change

Manufactured product

Net sales

North America

1,638

908

80

5,159

4,815

7

317

189

68

Offshore

2,398

1,238

94

8,466

8,009

6

283

155

83

4,036

2,146

88

13,625

12,824

6

296

167

77

Cost of goods sold

1,285

1,183

9

94

92

2

Gross margin – total

2,751

963

186

202

75

169

Expenses 1

512

248

106

Depreciation and amortization

36

35

2

EBIT

2,239

715

213

Gross margin excluding depreciation

Depreciation and amortization

488

452

8

and amortization – manufactured

238

110

116

EBITDA

2,727

1,167

134

Potash cash cost of product

Adjustments 2

9

23

(61)

manufactured

63

59

7

Adjusted EBITDA

2,736

1,190

130

1 Includes provincial mining taxes of $466 million (2020 – $201 million).

2 See Note 2 to the unaudited condensed consolidated financial statements.

  • Adjusted EBITDA increased in the fourth quarter and full year of 2021 due to higher net realized selling prices and record sales volumes attributed to our ability to increase production by nearly 1 million tonnes.
  • Sales volumes were a record for the fourth quarter as we surged production to meet strong global demand and very tight global supply. We achieved this despite weather-related issues that temporarily impacted rail deliveries. North America and Offshore sales volumes in the full year of 2021 were the highest on record underpinned by the reliable supply from our flexible, low-cost network of six mines and integrated transportation and logistics system.
  • Net realized selling price increased in the fourth quarter and full year of 2021 due to strong global demand supported by higher crop prices, impacts to global supply caused by competitor outages and project delays as well as uncertainty regarding future sanctions on Belarus.
  • Cost of goods sold per tonne decreased in the fourth quarter due to lower depreciation and amortization compared to the same period of 2020 that was caused by production mix and timing of maintenance projects. Cost of goods sold per tonne increased for the full year of 2021 primarily due to higher royalties resulting from increased selling prices, a stronger Canadian dollar and cost inflation for energy and other inputs.

Canpotex Sales by Market

(percentage of sales volumes, except as

Three Months Ended December 31

Twelve Months Ended December 31

otherwise noted)

2021

2020

Change

2021

2020

Change

Latin America

37

31

6

38

32

6

Other Asian markets 1

34

24

10

35

25

10

China

12

21

(9)

11

22

(11)

Other markets

11

7

4

10

7

3

India

6

17

(11)

6

14

(8)

100

100

100

100

1 All Asian markets except China and India.

Nitrogen

Three Months Ended December 31

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

% Change

Manufactured product

Net sales

Ammonia

519

157

231

790

730

8

656

216

204

Urea

552

230

140

824

853

(3)

670

270

148

Solutions, nitrates and sulfates

385

168

129

1,221

1,262

(3)

316

133

138

1,456

555

162

2,835

2,845

514

195

164

Cost of goods sold

725

460

58

256

162

58

Gross margin – manufactured

731

95

669

258

33

682

Gross margin – other 1

23

17

35

Depreciation and amortization

52

51

2

Gross margin – total

754

112

573

Gross margin excluding depreciation

Income

(2)

(254)

(99)

and amortization – manufactured 3

310

84

268

EBIT

756

366

107

Ammonia controllable cash cost of

Depreciation and amortization

148

146

1

product manufactured 3

45

40

13

EBITDA

904

512

77

Adjustments 2

17

(246)

n/m

Adjusted EBITDA

921

266

246

1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and comprises net sales of $193 million (2020 – $114 million) less cost of goods sold of $170 million (2020 – $97 million).

2 See Note 2 to unaudited condensed consolidated financial statements.

3 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

Twelve Months Ended December 31

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

% Change

Manufactured product

Net sales

Ammonia

1,393

621

124

2,919

2,778

5

477

224

113

Urea

1,463

933

57

3,059

3,475

(12)

478

268

78

Solutions, nitrates and sulfates

1,128

668

69

4,747

4,713

1

238

142

68

3,984

2,222

79

10,725

10,966

(2)

371

203

83

Cost of goods sold

2,353

1,804

30

219

165

33

Gross margin - manufactured

1,631

418

290

152

38

300

Gross margin – other 1

95

57

67

Depreciation and amortization

52

55

(5)

Gross margin – total

1,726

475

263

Gross margin excluding depreciation

Income

(3)

(225)

(99)

and amortization – manufactured

204

93

120

EBIT

1,729

700

147

Ammonia controllable cash cost of

Depreciation and amortization

557

599

(7)

product manufactured

50

43

16

EBITDA

2,286

1,299

76

Adjustments 2

22

(219)

n/m

Adjusted EBITDA

2,308

1,080

114

1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and comprises net sales of $705 million (2020 – $518 million) less cost of goods sold of $610 million (2020 – $461 million).

2 See Note 2 to unaudited condensed consolidated financial statements.

  • Adjusted EBITDA increased in the fourth quarter and full year of 2021 primarily due to higher net realized selling prices, which more than offset higher natural gas costs.
  • Sales volumes decreased slightly in the fourth quarter and full year of 2021 due to more planned plant turnaround activity, temporary production outages and lower inventory volumes at the beginning of 2021 compared to the same period in 2020. Ammonia operating rates reached 97 percent in the fourth quarter and 90 percent for the full year of 2021.
  • Net realized selling price in the fourth quarter and full year of 2021 was higher due to higher benchmark prices resulting from the strength in global demand and tight global supply caused by production outages and higher energy prices in key nitrogen exporting regions.
  • Cost of goods sold per tonne increased during the fourth quarter and full year of 2021 primarily due to higher natural gas costs.

Natural Gas Prices in Cost of Production

Three Months Ended December 31

Twelve Months Ended December 31

(US dollars per MMBtu, except as otherwise noted)

2021

2020

% Change

2021

2020

% Change

Overall gas cost excluding realized derivative impact

6.43

2.71

137

4.60

2.31

99

Realized derivative impact

(0.03)

0.03

n/m

0.01

0.05

(80)

Overall gas cost

6.40

2.74

134

4.61

2.36

95

Average NYMEX

5.83

2.66

119

3.84

2.08

85

Average AECO

3.93

2.10

87

2.84

1.68

69

  • Natural gas prices in our cost of production increased in the fourth quarter and full year of 2021 as a result of higher North American gas index prices and increased gas costs in Trinidad, where our gas prices are linked to ammonia benchmark prices.

Phosphate

Three Months Ended December 31

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

% Change

Manufactured product

Net sales

Fertilizer

377

180

109

509

466

9

741

387

91

Industrial and feed

155

100

55

202

182

11

766

551

39

532

280

90

711

648

10

749

433

73

Cost of goods sold

374

265

41

526

410

28

Gross margin - manufactured

158

15

953

223

23

870

Gross margin – other 1

5

1

400

Depreciation and amortization

55

60

(9)

Gross margin – total

163

16

919

Gross margin excluding depreciation

Expenses

10

(8)

n/m

and amortization – manufactured 3

278

83

234

EBIT

153

24

538

Depreciation and amortization

39

39

EBITDA

192

63

205

Adjustments 2

4

n/m

Adjusted EBITDA

196

63

211

1 Includes other phosphate and purchased products and comprises net sales of $61 million (2020 – $40 million) less cost of goods sold of $56 million (2020 – $39 million).

2 See Note 2 to the unaudited condensed consolidated financial statements.

3 This is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section.

Twelve Months Ended December 31

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

% Change

Manufactured product

Net sales

Fertilizer

1,108

671

65

1,840

2,048

(10)

602

328

84

Industrial and feed

520

404

29

779

733

6

667

552

21

1,628

1,075

51

2,619

2,781

(6)

622

387

61

Cost of goods sold

1,227

1,044

18

469

376

25

Gross margin – manufactured

401

31

n/m

153

11

n/m

Gross margin – other 1

20

5

300

Depreciation and amortization

58

78

(26)

Gross margin – total

421

36

n/m

Gross margin excluding depreciation

Expenses

36

791

(95)

and amortization – manufactured

211

89

136

EBIT

385

(755)

n/m

Depreciation and amortization

151

218

(31)

EBITDA

536

(537)

n/m

Adjustments 2

4

769

(99)

Adjusted EBITDA

540

232

133

1 Includes other phosphate and purchased products and comprises net sales of $201 million (2020 – $127 million) less cost of goods sold of $181 million (2020 – $122 million).

2 See Note 2 to the unaudited condensed consolidated financial statements.

  • Adjusted EBITDA increased in the fourth quarter and full year of 2021 due to higher net realized selling prices, which more than offset higher raw material costs and lower sales volumes for the full year.
  • Sales volumes increased in the fourth quarter of 2021 due to the timing and sales mix of certain fertilizer products and higher operating rates. Lower inventory levels at the beginning of 2021 and a greater mix of higher P 2 O 5 content sales resulted in slightly lower sales volumes during the full year of 2021. P 2 O 5 production increased in the fourth quarter and full year of 2021 due to improved reliability at our Aurora and White Springs plants.
  • Net realized selling price increased in the fourth quarter and full year of 2021 as a result of robust global phosphate demand, tight inventories and higher global raw material costs. Industrial and feed prices increased to a lesser extent than fertilizer in both comparative periods due to a lag in price realizations relative to spot prices.
  • Cost of goods sold per tonne increased in the fourth quarter and full year of 2021 primarily due to significantly higher raw material input costs which more than offset lower depreciation and amortization. Comparative results for the full year of 2020 were also impacted by a $46 million favorable change in estimate related to an asset retirement obligation recorded in the second quarter of 2020.

Corporate and Others

(millions of US dollars, except as otherwise

Three Months Ended December 31

Twelve Months Ended December 31

noted)

2021

2020

% Change

2021

2020

% Change

Sales 1

12

(100)

82

(100)

Cost of goods sold

11

(100)

74

(100)

Gross margin

1

(100)

8

(100)

Selling expenses

3

(7)

n/m

(21)

(24)

(13)

General and administrative expenses

93

78

19

275

269

2

Share-based compensation expense

73

60

22

198

69

187

Impairment of assets

5

(100)

Other expenses

112

76

47

253

230

10

EBIT

(281)

(206)

36

(705)

(541)

30

Depreciation and amortization

15

11

36

49

52

(6)

EBITDA

(266)

(195)

36

(656)

(489)

34

Adjustments 2

116

111

5

348

203

71

Adjusted EBITDA

(150)

(84)

79

(308)

(286)

8

1 Primarily relates to our non-core Canadian business that was sold in 2020.

2 See Note 2 to the unaudited condensed consolidated financial statements.

  • Share-based compensation expense was higher in the fourth quarter and full year of 2021 compared to the same periods in 2020 due to an increase in our share price resulting in a higher value of share-based awards outstanding.
  • Other expenses were higher in the fourth quarter and full year of 2021 compared to the same periods in 2020 due to higher foreign exchange losses, higher expense related to asset retirement obligations and accrued environment costs for our non-operating sites from changes in our cost and discount rate estimates, and additional cloud computing related expenses recognized in the first half of 2021 due to our change in accounting policy. This was partially offset by lower integration and restructuring related costs.

Eliminations

Eliminations of gross margin between operating segments for the full year of 2021 were $(89) million compared to a $21 million gross margin recovery for the same period in 2020. We had significant eliminations in 2021 due to higher-margin inventories held by our Retail segment as global commodity benchmark prices increased. Eliminations are not part of the Corporate and Others segment.

Finance Costs, Income Tax Expense (Recovery) and Other Comprehensive Income

(millions of US dollars, except as otherwise

Three Months Ended December 31

Twelve Months Ended December 31

noted)

2021

2020

% Change

2021

2020

% Change

Finance costs

246

119

107

613

520

18

Income tax expense (recovery)

374

(32)

n/m

989

(77)

n/m

Other comprehensive income

72

280

(74)

78

194

(60)

  • Finance costs in the fourth quarter and full year of 2021 were higher compared to the same periods in 2020 mainly due to a loss of $142 million on early extinguishment of long-term debt, which primarily represents interest that we would have paid in future years if the long-term debt was not extinguished.
  • Income tax expense in the fourth quarter and full year of 2021 was higher as a result of significantly higher earnings in 2021 compared to the same periods in 2020. In addition, in 2020, discrete tax recoveries of $80 million primarily related to recoveries of prior year taxes due to US legislative changes.
  • Other comprehensive income is primarily driven by changes in the currency translation of our foreign operations and share price movement of our investment in Sinofert Holdings Ltd. In 2020, we had a higher gain on translation of our Retail operations in Australia as the Australian dollar strengthened relative to the US dollar. In 2021, the Australian dollar weakened relative to the US dollar resulting in lower other comprehensive income.

Forward-Looking Statements

Certain statements and other information included in this document, including within the "Financial Outlook and Guidance" section, constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statements are often accompanied by words such as "anticipate", "forecast", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). All statements in this document, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to: Nutrien's business strategies, plans, prospects and opportunities; Nutrien's 2022 full-year guidance, including expectations regarding our adjusted net earnings per share and adjusted EBITDA (consolidated and by segment); expectations regarding our growth and capital allocation intentions and strategies; capital spending expectations for 2022; expectations regarding performance of our operating segments in 2022, including our operating segment market outlooks and market conditions for 2022, and the anticipated supply and demand for our products and services, expected market and industry conditions with respect to crop nutrient application rates, planted acres, grower crop investment, crop mix, prices and the impact of import and export volumes and economic sanctions; Nutrien's ability to develop innovative and sustainable solutions; the negotiation of sales contracts; expected benefits from our brownfield expansion projects; and acquisitions and divestitures. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements.

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. The additional key assumptions that have been made include, among other things, assumptions with respect to our ability to successfully complete, integrate and realize the anticipated benefits of our already completed and future acquisitions and divestitures, and that we will be able to implement our standards, controls, procedures and policies in respect of any acquired businesses and to realize the expected synergies; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability and cost of labor and interest, exchange and effective tax rates; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2022 and in the future; our expectations regarding the impacts, direct and indirect, of the COVID-19 pandemic on our business, customers, business partners, employees, supply chain, other stakeholders and the overall economy; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and divestitures and negotiate acceptable terms; our ability to maintain investment grade ratings and achieve our performance targets; our ability to successfully negotiate sales contracts; and our ability to successfully implement new initiatives and programs.

Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: general global economic, market and business conditions; failure to complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; climate change and weather conditions, including impacts from regional flooding and/or drought conditions; crop planted acreage, yield and prices; the supply and demand and price levels for our products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy (including tariffs, trade restrictions and climate change initiatives), government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; political risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism; the occurrence of a major environmental or safety incident; innovation and cybersecurity risks related to our systems, including our costs of addressing or mitigating such risks; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; risks related to reputational loss; certain complications that may arise in our mining processes; the ability to attract, engage and retain skilled employees and strikes or other forms of work stoppages; the COVID-19 pandemic, including variants of the COVID-19 virus and the efficiency and distribution of vaccines, and its resulting effects on economic conditions, restrictions imposed by public health authorities or governments, including government-imposed vaccine mandates, fiscal and monetary responses by governments and financial institutions and disruptions to global supply chains; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the Securities Exchange Commission in the United States.

The purpose of our adjusted net earnings per share, adjusted EBITDA (consolidated and by segment) and sustaining capital expenditures guidance ranges are to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

The forward-looking statements in this document are made as of the date hereof and Nutrien disclaims any intention or obligation to update or revise any forward-looking statements in this document as a result of new information or future events, except as may be required under applicable Canadian securities legislation or applicable US federal securities laws.

Terms & Definitions

For the definitions of certain financial and non-financial terms used in this document, as well as a list of abbreviated company names and sources, see the "Terms and Definitions" section of our 2020 Annual Report. All references to per share amounts pertain to diluted net earnings (loss) per share, "n/m" indicates information that is not meaningful, and all financial amounts are stated in millions of US dollars, unless otherwise noted.

About Nutrien

Nutrien is the world's largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. We produce and distribute approximately 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.

Selected financial data for download can be found in our data tool at www.nutrien.com/investors/interactive-datatool

Such data is not incorporated by reference herein.

Nutrien will host a Conference Call on Thursday, February 17, 2022 at 10:00 am Eastern Time.

Appendix A - Selected Additional Financial Data

Selected Retail measures

Three Months Ended December 31

Twelve Months Ended December 31

2021

2020

2021

2020

Proprietary products margin as a percentage of product line margin (%)

Crop nutrients

12

14

21

25

Crop protection products

14

11

34

32

Seed

39

37

44

46

All products

11

11

23

23

Crop nutrients sales volumes (tonnes – thousands)

North America

2,119

2,063

9,848

9,746

International

702

622

3,535

2,986

Total

2,821

2,685

13,383

12,732

Crop nutrients selling price per tonne

North America

725

413

556

421

International

708

413

512

367

Total

721

413

545

408

Crop nutrients gross margin per tonne

North America

154

89

133

99

International

144

85

82

55

Total

152

88

119

89

Financial performance measures

2021

2020

Retail adjusted EBITDA margin (%) 1, 2

11

10

Retail adjusted EBITDA per US selling location (thousands of US dollars) 1, 2, 3

1,481

1,075

Retail adjusted average working capital to sales (%) 1, 3

13

15

Retail adjusted average working capital to sales excluding Nutrien Financial (%) 1, 4

5

Nutrien Financial adjusted net interest margin (%) 1, 4

6.6

5.3

Retail cash operating coverage ratio (%) 1, 4

58

62

Retail normalized comparable store sales (%) 4

7

6

1 Rolling four quarters ended December 31, 2021 and 2020.

2 These are supplementary financial measures. See the "Other Financial Measures" section.

3 Excluding acquisitions.

4 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

Nutrien Financial

As at December 31, 2021

(millions of US dollars)

Current

past due

31–90 days
past due

>90 days
past due

Gross
Receivables

Allowance 1

Net
Receivables

North America

1,410

45

12

47

1,514

(26)

1,488

International

537

47

26

54

664

(2)

662

Nutrien Financial receivables

1,947

92

38

101

2,178

(28)

2,150

1 Bad debt expense on the above receivables for the twelve months ended December 31, 2021 was $10 million (2020 – $26 million) in the Retail segment.

2 Gross receivables include $1,792 million (2020 – $1,147 million) very low risk of default and $386 million (2020 – $270 million) of low risk of default.

Selected Nitrogen measures

Three Months Ended December 31

Twelve Months Ended December 31

2021

2020

2021

2020

Sales volumes (tonnes – thousands)

Fertilizer

1,578

1,740

6,028

6,750

Industrial and feed

1,257

1,105

4,697

4,216

Net sales (millions of US dollars)

Fertilizer

861

359

2,364

1,467

Industrial and feed

595

196

1,620

755

Net selling price per tonne

Fertilizer

545

206

392

217

Industrial and feed

473

178

345

179

Production measures

Three Months Ended December 31

Twelve Months Ended December 31

2021

2020

2021

2020

Potash production (Product tonnes – thousands)

3,641

2,784

13,790

12,595

Potash shutdown weeks 1

14

38

Ammonia production – total 2

1,641

1,584

5,996

6,063

Ammonia production – adjusted 2, 3

1,069

1,035

3,932

4,102

Ammonia operating rate (%) 3

97

94

90

93

P 2 O 5 production (P 2 O 5 tonnes – thousands)

409

361

1,518

1,444

P 2 O 5 operating rate (%)

95

84

89

85

1 Represents weeks of full production shutdown, excluding the impact of any periods of reduced operating rates and planned routine annual maintenance shutdowns and announced workforce reductions.

2 All figures are provided on a gross production basis in thousands of product tonnes.

3 Excludes Trinidad and Joffre.

Appendix B - Non-IFRS Financial Measures

We use both International Financial Reporting Standards ("IFRS") and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

The following section outlines our non-IFRS financial measures and non-IFRS ratios, their compositions, and why management uses each measure. It includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-IFRS financial measures and non-IFRS ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations.

Adjusted EBITDA (Consolidated)

Most directly comparable IFRS financial measure: Net earnings (loss).

Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses, gain or loss on disposal of certain businesses and investments, and IFRS adoption transition adjustments. In 2021, we amended our calculation of adjusted EBITDA to adjust for the impact of integration and restructuring related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations and as a component of employee remuneration calculations.

Three Months Ended December 31

Twelve Months Ended December 31

(millions of US dollars)

2021

2020

2021

2020

Net earnings

1,207

316

3,179

459

Finance costs

246

119

613

520

Income tax expense (recovery)

374

(32)

989

(77)

Depreciation and amortization

497

499

1,951

1,989

EBITDA 1

2,324

902

6,732

2,891

Share-based compensation expense

73

60

198

69

Foreign exchange loss, net of related derivatives

38

15

39

19

Integration and restructuring related (recovery) costs

(4)

22

43

60

Impairment of assets

21

1

33

824

COVID-19 related expenses 2

11

18

45

48

Loss on disposal of business

6

Net gain on disposal of investment in MOPCO

(250)

(250)

Cloud computing transition adjustment 3

36

Adjusted EBITDA

2,463

768

7,126

3,667

1 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.

2 COVID-19 related expenses primarily consist of increased cleaning and sanitization costs, the purchase of personal protective equipment, discretionary supplemental employee costs, and costs related to construction delays from access limitations and other government restrictions.

3 Cloud computing transition adjustment relates to cloud computing costs in prior years that no longer qualify for capitalization based on an agenda decision issued by the IFRS Interpretations Committee in April 2021.

Adjusted Net Earnings and Adjusted Net Earnings Per Share

Most directly comparable IFRS financial measure: Net earnings (loss) and net earnings (loss) per share.

Definition: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, IFRS adoption transition adjustments and gain/loss on early extinguishment of debt. We generally apply the annual forecasted effective tax rate to our adjustments during the year and, at year-end, we apply the actual effective tax rate. If the effective tax rate is significantly different from our forecasted effective tax rate due to adjustments or discrete tax impacts, we apply a tax rate that excludes those items. For material adjustments, we apply a tax rate specific to the adjustment. In 2021, we amended our calculation of adjusted net earnings to adjust for the impact of integration and restructuring related costs, cloud computing transition adjustment, and gain/loss on early extinguishment of debt. There were no similar expenses in the comparative period.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is used as a component of employee remuneration calculations.

Three Months Ended
December 31, 2021

Twelve Months Ended
December 31, 2021

Per

Per

(millions of US dollars, except as otherwise

Increases

Diluted

Increases

Diluted

noted)

(Decreases)

Post-Tax

Share

(Decreases)

Post-Tax

Share

Net earnings attributable to equity holders of Nutrien

1,201

2.11

3,153

5.52

Adjustments:

Share-based compensation expense

73

56

0.10

198

151

0.27

Foreign exchange loss, net of related derivatives

38

29

0.05

39

30

0.05

Integration and restructuring related (recovery) costs

(4)

(3)

(0.01)

43

33

0.06

Impairment of assets

21

16

0.03

33

25

0.04

COVID-19 related expenses

11

8

0.01

45

34

0.06

Cloud computing transition adjustment

36

27

0.05

Loss on early extinguishment of debt

142

104

0.18

142

104

0.18

Adjusted net earnings

1,411

2.47

3,557

6.23

Three Months Ended
December 31, 2020

Twelve Months Ended
December 31, 2020

Per

Per

(millions of US dollars, except as otherwise

Increases

Diluted

Increases

Diluted

noted)

(Decreases)

Post-Tax

Share

(Decreases)

Post-Tax

Share

Net earnings attributable to equity holders of Nutrien

316

0.55

459

0.81

Adjustments:

Share-based compensation expense

60

36

0.06

69

50

0.09

Foreign exchange loss, net of related derivatives

15

9

0.02

19

14

0.02

Integration and restructuring related costs

22

13

0.03

60

44

0.08

Impairment of assets

1

1

824

657

1.15

COVID-19 related expenses

22

13

0.02

67

49

0.09

Loss on disposal of business

6

4

Net gain on disposal of investment in MOPCO

(250)

(250)

(0.44)

(250)

(250)

(0.44)

Adjusted net earnings

138

0.24

1,027

1.80

Adjusted EBITDA (Consolidated) and Adjusted Net Earnings Per Share Guidance

Adjusted EBITDA and adjusted net earnings per share guidance are forward-looking non-IFRS financial measures. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with IFRS due to unknown variables and the uncertainty related to future results. These unknown variables may include unpredictable transactions of significant value that may be inherently difficult to determine without unreasonable efforts. Guidance for adjusted EBITDA and adjusted net earnings per share excludes the impacts of share-based compensation, certain foreign exchange gain/loss (net of related derivatives), integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, IFRS adoption transition adjustments, and gain/loss on early extinguishment of debt.

Free Cash Flow and Free Cash Flow Including Changes in Non-Cash Operating Working Capital

Most directly comparable IFRS financial measure: Cash provided by (used in) operating activities.

Definition: Free cash flow is calculated as cash provided by (used in) operating activities less sustaining capital expenditures and before changes in non-cash operating working capital. Free cash flow including non-cash operating working capital is calculated as cash provided by operating activities less sustaining capital expenditures.

Why we use the measure and why it is useful to investors: For evaluation of liquidity and financial strength. These are also useful as indicators of our ability to service debt, meet other payment obligations and make strategic investments. These do not represent residual cash flow available for discretionary expenditures.

Three Months Ended December 31

Twelve Months Ended December 31

(millions of US dollars)

2021

2020

2021

2020

Cash provided by operating activities

3,637

2,778

3,886

3,323

Sustaining capital expenditures

(454)

(408)

(1,247)

(919)

Free cash flow including changes in non-cash operating working capital

3,183

2,370

2,639

2,404

Changes in non-cash operating working capital

1,634

2,174

(1,661)

574

Free cash flow

1,549

196

4,300

1,830

Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured

Most directly comparable IFRS financial measure: Gross margin.

Definition: Gross margin per tonne from manufactured products per tonne less depreciation and amortization per tonne. Reconciliations are provided in the "Segment Results" section.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions.

Potash Cash Cost of Product Manufactured ("COPM") Per Tonne

Most directly comparable IFRS financial measure: Cost of goods sold ("COGS") for the Potash segment.

Definition: Total Potash COGS for the period excluding depreciation and amortization expense and inventory and other adjustments divided by the production tonnes for the period.

Why we use the measure and why it is useful to investors: To assess operational performance. Potash cash COPM excludes the effects of production from other periods and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

Three Months Ended December 31

Twelve Months Ended December 31

(millions of US dollars, except as otherwise noted)

2021

2020

2021

2020

Total COGS – Potash

305

305

1,285

1,183

Change in inventory

64

18

22

(10)

Other adjustments 1

1

(7)

(6)

(12)

COPM

370

316

1,301

1,161

Depreciation and amortization included in COPM

(115)

(119)

(430)

(424)

Cash COPM

255

197

871

737

Production tonnes (tonnes – thousands)

3,641

2,784

13,790

12,595

Potash cash COPM per tonne

70

71

63

59

1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.

Ammonia Controllable Cash COPM Per Tonne

Most directly comparable IFRS financial measure: Total manufactured COGS for the Nitrogen segment.

Definition: The total of COGS for the Nitrogen segment excluding depreciation and amortization expense included in COGS, cash COGS for products other than ammonia, other adjustments, and natural gas and steam costs, divided by net ammonia production tonnes.

Why we use the measure and why it is useful to investors: To assess operational performance. Ammonia controllable cash COPM excludes the effects of production from other periods, the costs of natural gas and steam, and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

Three Months Ended December 31

Twelve Months Ended December 31

(millions of US dollars, except as otherwise noted)

2021

2020

2021

2020

Total Manufactured COGS – Nitrogen

725

460

2,353

1,804

Total Other COGS – Nitrogen

170

97

610

461

Total COGS – Nitrogen

895

557

2,963

2,265

Depreciation and amortization in COGS

(126)

(127)

(473)

(522)

Cash COGS for products other than ammonia

(519)

(325)

(1,740)

(1,342)

Ammonia

Total cash COGS before other adjustments

250

105

750

401

Other adjustments 1

(30)

(6)

(96)

(52)

Total cash COPM

220

99

654

349

Natural gas and steam costs

(186)

(71)

(515)

(235)

Controllable cash COPM

34

28

139

114

Production tonnes (net tonnes 2 – thousands)

758

704

2,769

2,649

Ammonia controllable cash COPM per tonne

45

40

50

43

1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.

2 Ammonia tonnes available for sale, as not upgraded to other Nitrogen products.

Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial

Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the working capital and sales of certain acquisitions (such as Ruralco Holdings Limited) during the first year following the acquisition. We also look at this metric excluding the sales and working capital of Nutrien Financial.

Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio.

Rolling four quarters ended December 31, 2021

(millions of US dollars, except as otherwise noted)

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Average/Total

Current assets

9,160

9,300

8,945

9,924

Current liabilities

(7,530)

(7,952)

(5,062)

(7,828)

Working capital

1,630

1,348

3,883

2,096

Working capital from certain recent acquisitions

Adjusted working capital

1,630

1,348

3,883

2,096

2,239

Nutrien Financial working capital

(1,221)

(3,072)

(2,820)

(2,150)

Adjusted working capital excluding Nutrien Financial

409

(1,724)

1,063

(54)

(77)

Sales

2,972

7,537

3,347

3,878

Sales from certain recent acquisitions

Adjusted sales

2,972

7,537

3,347

3,878

17,734

Nutrien Financial revenue

(25)

(59)

(54)

(51)

Adjusted sales excluding Nutrien Financial

2,947

7,478

3,293

3,827

17,545

Adjusted average working capital to sales (%)

13

Adjusted average working capital to sales excluding Nutrien Financial (%)

Rolling four quarters ended December 31, 2020

(millions of US dollars, except as otherwise noted)

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Average/Total

Current assets

8,423

8,230

7,324

8,013

Current liabilities

(6,135)

(6,200)

(4,108)

(6,856)

Working capital

2,288

2,030

3,216

1,157

Working capital from certain recent acquisitions

(108)

63

Adjusted working capital

2,180

2,093

3,216

1,157

2,162

Nutrien Financial working capital

(795)

(2,108)

(1,711)

(1,392)

Adjusted working capital excluding Nutrien Financial

1,385

(15)

1,505

(235)

660

Sales

2,661

6,764

2,742

2,618

Sales from certain recent acquisitions

(348)

(338)

Adjusted sales

2,313

6,426

2,742

2,618

14,099

Nutrien Financial revenue

(16)

(40)

(36)

(37)

Adjusted sales excluding Nutrien Financial

2,297

6,386

2,706

2,581

13,970

Adjusted average working capital to sales (%)

15

Adjusted average working capital to sales excluding Nutrien Financial (%)

5

Nutrien Financial Adjusted Net Interest Margin

Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial receivables outstanding for the last four rolling quarters.

Why we use the measure and why it is useful to investors: Used by credit rating agencies and other users to evaluate financial performance of Nutrien Financial.

Rolling four quarters ended December 31, 2021

(millions of US dollars, except as otherwise noted)

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Total/Average

Nutrien Financial revenue

25

59

54

51

Deemed interest expense 1

(6)

(8)

(10)

(12)

Net interest

19

51

44

39

153

Average Nutrien Financial receivables

1,221

3,072

2,820

2,150

2,316

Nutrien Financial adjusted net interest margin (%)

6.6

1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.

Rolling four quarters ended December 31, 2020

(millions of US dollars, except as otherwise noted)

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Total/Average

Nutrien Financial revenue

16

40

36

37

Deemed interest expense 1

(5)

(15)

(15)

(14)

Net interest

11

25

21

23

80

Average Nutrien Financial receivables

795

2,108

1,711

1,392

1,502

Nutrien Financial adjusted net interest margin (%)

5.3

1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.

Retail Cash Operating Coverage Ratio

Definition: Retail selling, general and administrative, and other expenses, excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters.

Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow.

Rolling four quarters ended December 31, 2021

(millions of US dollars, except as otherwise noted)

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Total

Selling expenses

667

863

746

848

3,124

General and administrative expenses

39

41

45

43

168

Other expenses

15

34

17

20

86

Operating expenses

721

938

808

911

3,378

Depreciation and amortization in operating expenses

(175)

(166)

(180)

(173)

(694)

Operating expenses excluding depreciation and amortization

546

772

628

738

2,684

Gross margin

652

1,858

917

1,173

4,600

Depreciation and amortization in cost of goods sold

2

3

2

5

12

Gross margin excluding depreciation and amortization

654

1,861

919

1,178

4,612

Cash operating coverage ratio (%)

58

Rolling four quarters ended December 31, 2020

(millions of US dollars, except as otherwise noted)

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Total

Selling expenses

635

764

669

727

2,795

General and administrative expenses

38

30

34

33

135

Other expenses (income)

16

32

(12)

8

44

Operating expenses

689

826

691

768

2,974

Depreciation and amortization in operating expenses

(153)

(161)

(167)

(177)

(658)

Operating expenses excluding depreciation and amortization

536

665

524

591

2,316

Gross margin

541

1,627

683

885

3,736

Depreciation and amortization in cost of goods sold

2

2

3

3

10

Gross margin excluding depreciation and amortization

543

1,629

686

888

3,746

Cash operating coverage ratio (%)

62

Retail Normalized Comparable Store Sales

Most directly comparable IFRS financial measure: Retail sales from comparable base as a component of total Retail sales.

Definition: Prior year comparable store sales adjusted for published potash, nitrogen and phosphate benchmark prices and foreign exchange rates used in the current year. We retain sales of closed locations in the comparable base if the closed location is in close proximity to an existing location, unless we plan to exit the market area or are unable to economically or logistically serve it. We do not adjust for temporary closures, expansions or renovations of stores.

Why we use the measure and why it is useful to investors: To evaluate sales growth by adjusting for fluctuations in commodity prices and foreign exchange rates. Includes locations we have owned for more than 12 months.

Twelve Months Ended December 31

(millions of US dollars, except as otherwise noted)

2021

2020

Sales from comparable base

Prior period

14,785

13,282

Adjustments 1

(476)

Revised prior period

14,309

13,282

Current period

17,511

13,546

Comparable store sales (%)

22

2

Prior period normalized for benchmark prices and foreign exchange rates

16,350

12,784

Normalized comparable store sales (%)

7

6

1 Adjustments relate to prior period sales related to closed locations or businesses that no longer exist in the current period in order to provide a comparable base in our calculation.

Appendix C – Other Financial Measures

Supplementary Financial Measures

Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.

The following section provides an explanation of the composition of those supplementary financial measures if not previously provided.

Retail adjusted EBITDA margin: Retail adjusted EBITDA divided by Retail sales for the last four rolling quarters.

Retail digital platform sales: Grower and employee sales in North America entered directly into the digital platform.

Retail digital platform sales to total sales: Grower and employee sales in North America entered directly into the digital platform as a percentage of total sales in North America.

Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds.

Retail adjusted EBITDA per US selling location: Calculated as total Retail US adjusted EBITDA for the last four rolling quarters, representing the organic EBITDA component, which excludes acquisitions in those quarters, divided by the number of US locations that have generated sales in the last four rolling quarters, adjusted for acquired locations in those quarters.

Condensed Consolidated Financial Statements

Unaudited in millions of US dollars except as otherwise noted

Condensed Consolidated Statements of Earnings

Three Months Ended

Twelve Months Ended

December 31

December 31

Note

2021

2020

2021

2020

SALES

2

7,267

4,052

27,712

20,908

Freight, transportation and distribution

198

202

851

855

Cost of goods sold

3,863

2,685

17,452

14,814

GROSS MARGIN

3,206

1,165

9,409

5,239

Selling expenses

855

732

3,142

2,813

General and administrative expenses

148

117

477

429

Provincial mining taxes

173

41

466

204

Share-based compensation expense

73

60

198

69

Impairment of assets

21

1

33

824

Other expenses (income)

3

109

(189)

312

(2)

EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES

1,827

403

4,781

902

Finance costs

246

119

613

520

EARNINGS BEFORE INCOME TAXES

1,581

284

4,168

382

Income tax expense (recovery)

374

(32)

989

(77)

NET EARNINGS

1,207

316

3,179

459

Attributable to

Equity holders of Nutrien

1,201

316

3,153

459

Non-controlling interest

6

26

NET EARNINGS

1,207

316

3,179

459

NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS")

Basic

2.11

0.55

5.53

0.81

Diluted

2.11

0.55

5.52

0.81

Weighted average shares outstanding for basic EPS

568,027,000

569,180,000

569,664,000

569,657,000

Weighted average shares outstanding for diluted EPS

569,653,000

569,393,000

571,289,000

569,686,000

Condensed Consolidated Statements of Comprehensive Income

Three Months Ended

Twelve Months Ended

December 31

December 31

(Net of related income taxes)

2021

2020

2021

2020

NET EARNINGS

1,207

316

3,179

459

Other comprehensive income

Items that will not be reclassified to net earnings:

Net actuarial gain on defined benefit plans

95

72

95

75

Net fair value (loss) gain on investments

(35)

18

81

(7)

Items that have been or may be subsequently reclassified to net earnings:

Gain (loss) on currency translation of foreign operations

14

194

(115)

142

Other

(2)

(4)

17

(16)

OTHER COMPREHENSIVE INCOME

72

280

78

194

COMPREHENSIVE INCOME

1,279

596

3,257

653

Attributable to

Equity holders of Nutrien

1,273

596

3,232

653

Non-controlling interest

6

25

COMPREHENSIVE INCOME

1,279

596

3,257

653

(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Cash Flows

Three Months Ended

Twelve Months Ended

December 31

December 31

2021

2020

2021

2020

OPERATING ACTIVITIES

Net earnings

1,207

316

3,179

459

Adjustments for:

Depreciation and amortization

497

499

1,951

1,989

Share-based compensation expense

73

60

198

69

Impairment of assets

21

1

33

824

Loss on early extinguishment of debt

142

142

Net gain on disposal of investment in Misr Fertilizers Production Company S.A.E. ("MOPCO")

(250)

(250)

Provision for (recovery of) deferred income tax

66

90

(31)

(9)

Cloud computing transition adjustment

36

Other long-term assets, liabilities and miscellaneous

(3)

(112)

39

(333)

Cash from operations before working capital changes

2,003

604

5,547

2,749

Changes in non-cash operating working capital:

Receivables

1,432

1,600

(1,669)

145

Inventories

(1,652)

(1,068)

(1,459)

85

Prepaid expenses and other current assets

(1,092)

(946)

(227)

(10)

Payables and accrued charges

2,946

2,588

1,694

354

CASH PROVIDED BY OPERATING ACTIVITIES

3,637

2,778

3,886

3,323

INVESTING ACTIVITIES

Capital expenditures 1

(568)

(535)

(1,783)

(1,549)

Business acquisitions, net of cash acquired

(18)

(17)

(88)

(233)

Proceeds from disposal of investment in MOPCO

540

540

Other

121

17

64

38

CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES

(465)

5

(1,807)

(1,204)

FINANCING ACTIVITIES

Transaction costs related to debt

(7)

(15)

Proceeds from (repayment of) short-term debt, net

307

(1,493)

1,344

(892)

Proceeds from long-term debt

(3)

21

86

1,541

Repayment of long-term debt

(2,207)

(2)

(2,212)

(509)

Repayment of principal portion of lease liabilities

(78)

(71)

(320)

(274)

Dividends paid to Nutrien's shareholders

(266)

(259)

(1,045)

(1,030)

Repurchase of common shares

(885)

(1,035)

(160)

Issuance of common shares

12

200

Other

(14)

CASH USED IN FINANCING ACTIVITIES

(3,120)

(1,804)

(3,003)

(1,339)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

4

10

(31)

3

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

56

989

(955)

783

CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD

443

465

1,454

671

CASH AND CASH EQUIVALENTS – END OF PERIOD

499

1,454

499

1,454

Cash and cash equivalents comprised of:

Cash

428

1,375

428

1,375

Short-term investments

71

79

71

79

499

1,454

499

1,454

SUPPLEMENTAL CASH FLOWS INFORMATION

Interest paid

172

164

491

498

Income taxes paid

79

64

435

156

Total cash outflow for leases

94

79

393

345

1 Includes additions to property, plant and equipment and intangible assets for the three months ended December 31, 2021 of $528 and $40 (2020 – $496 and $39), respectively, and for the twelve months ended December 31, 2021 of $1,676 and $107 (2020 – $1,423 and $126), respectively.

(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Changes in Shareholders' Equity

Accumulated Other Comprehensive

(Loss) Income ("AOCI")

Loss on

Equity

Currency

Holders

Non-

Number of

Translation

of

Controlling

Common

Share

Contributed

of Foreign

Total

Retained

Nutrien

Interest

Total

Shares

Capital

Surplus

Operations

Other

AOCI

Earnings

(Note 1)

(Note 1)

Equity

BALANCE – DECEMBER 31, 2019

572,942,809

15,771

248

(204)

(47)

(251)

7,101

22,869

38

22,907

Net earnings

459

459

459

Other comprehensive income

142

52

194

194

194

Shares repurchased

(3,832,580)

(105)

(55)

(160)

(160)

Dividends declared

(1,029)

(1,029)

(1,029)

Effect of share-based compensation including issuance of common shares

150,177

7

12

19

19

Transfer of net loss on cash flow hedges

13

13

13

13

Transfer of net actuarial gain on defined benefit plans

(75)

(75)

75

BALANCE – DECEMBER 31, 2020

569,260,406

15,673

205

(62)

(57)

(119)

6,606

22,365

38

22,403

BALANCE – DECEMBER 31, 2020

569,260,406

15,673

205

(62)

(57)

(119)

6,606

22,365

38

22,403

Net earnings

3,153

3,153

26

3,179

Other comprehensive (loss) income

(114)

193

79

79

(1)

78

Shares repurchased

(15,982,154)

(442)

(47)

(616)

(1,105)

(1,105)

Dividends declared

(1,046)

(1,046)

(1,046)

Non-controlling interest transactions

(16)

(16)

Effect of share-based compensation including issuance of common shares

4,424,437

226

(9)

217

217

Transfer of net gain on cash flow hedges

(11)

(11)

(11)

(11)

Transfer of net actuarial gain on defined benefit plans

(95)

(95)

95

Share cancellation

(210,173)

BALANCE – DECEMBER 31, 2021

557,492,516

15,457

149

(176)

30

(146)

8,192

23,652

47

23,699

(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Balance Sheets

December 31

December 31

As at

2021

2020

Note 1

ASSETS

Current assets

Cash and cash equivalents

499

1,454

Receivables

5,366

3,626

Inventories

6,328

4,930

Prepaid expenses and other current assets

1,653

1,460

13,846

11,470

Non-current assets

Property, plant and equipment

20,016

19,660

Goodwill

12,220

12,198

Other intangible assets

2,340

2,388

Investments

703

562

Other assets

829

914

TOTAL ASSETS

49,954

47,192

LIABILITIES

Current liabilities

Short-term debt

1,560

159

Current portion of long-term debt

545

14

Current portion of lease liabilities

286

249

Payables and accrued charges

10,052

8,058

12,443

8,480

Non-current liabilities

Long-term debt

7,521

10,047

Lease liabilities

934

891

Deferred income tax liabilities

3,165

3,149

Pension and other post-retirement benefit liabilities

419

454

Asset retirement obligations and accrued environmental costs

1,566

1,597

Other non-current liabilities

207

171

TOTAL LIABILITIES

26,255

24,789

SHAREHOLDERS' EQUITY

Share capital

15,457

15,673

Contributed surplus

149

205

Accumulated other comprehensive loss

(146)

(119)

Retained earnings

8,192

6,606

Equity holders of Nutrien

23,652

22,365

Non-controlling interest

47

38

TOTAL SHAREHOLDERS' EQUITY

23,699

22,403

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

49,954

47,192

(See Notes to the Condensed Consolidated Financial Statements)

Notes to the Condensed Consolidated Financial Statements

As at and for the Three and Twelve Months Ended December 31, 2021

NOTE 1 BASIS OF PRESENTATION

Nutrien Ltd. (collectively with its subsidiaries, known as "Nutrien", "we", "us", "our" or "the Company") is the world's largest provider of crop inputs and services. Nutrien plays a critical role in helping growers around the globe increase food production in a sustainable manner.

Our accounting policies are in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. The accounting policies and methods of computation used in preparing these unaudited condensed consolidated financial statements are materially consistent with those used in the preparation of our 2020 annual consolidated financial statements. These unaudited condensed consolidated financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with our 2020 annual consolidated financial statements. Our 2021 annual consolidated financial statements, which are expected to be issued in February 2022, will include additional information under IFRS.

Certain immaterial 2020 figures have been reclassified in the condensed consolidated statements of changes in shareholders' equity and condensed consolidated balance sheets.

In management's opinion, the unaudited condensed consolidated financial statements include all adjustments necessary to fairly present such information in all material respects.

NOTE 2 SEGMENT INFORMATION

The Company has four reportable operating segments: Nutrien Ag Solutions ("Retail"), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and it provides services directly to growers through a network of farm centers in North America, South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each produce.

Three Months Ended December 31, 2021

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

– third party

3,847

1,358

1,476

586

7,267

– intersegment

31

128

292

65

(516)

Sales

– total

3,878

1,486

1,768

651

(516)

7,267

Freight, transportation and distribution

66

119

58

(45)

198

Net sales

3,878

1,420

1,649

593

(471)

7,069

Cost of goods sold

2,705

305

895

430

(472)

3,863

Gross margin

1,173

1,115

754

163

1

3,206

Selling expenses

848

1

2

1

3

855

General and administrative expenses

43

2

7

3

93

148

Provincial mining taxes

173

173

Share-based compensation expense

73

73

Impairment of assets

17

4

21

Other expenses (income)

20

3

(28)

2

112

109

Earnings (loss) before finance costs and income taxes

262

936

756

153

(281)

1

1,827

Depreciation and amortization

178

117

148

39

15

497

EBITDA 1

440

1,053

904

192

(266)

1

2,324

Integration and restructuring related costs

2

(6)

(4)

Share-based compensation expense

73

73

Impairment of assets

17

4

21

COVID-19 related expenses

11

11

Foreign exchange loss, net of related derivatives

38

38

Adjusted EBITDA

442

1,053

921

196

(150)

1

2,463

Assets – at December 31, 2021

22,387

13,148

11,093

1,699

2,266

(639)

49,954

1 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.

Three Months Ended December 31, 2020

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

– third party

2,608

467

647

318

12

4,052

– intersegment

10

57

147

56

(270)

Sales

– total

2,618

524

794

374

12

(270)

4,052

Freight, transportation and distribution

74

125

54

(51)

202

Net sales

2,618

450

669

320

12

(219)

3,850

Cost of goods sold

1,733

305

557

304

11

(225)

2,685

Gross margin

885

145

112

16

1

6

1,165

Selling expenses

727

2

8

2

(7)

732

General and administrative expenses

33

2

1

3

78

117

Provincial mining taxes

40

1

41

Share-based compensation expense

60

60

Impairment of assets

1

1

Other expenses (income)

8

4

(263)

(13)

75

(189)

Earnings (loss) before finance costs and income taxes

117

96

366

24

(206)

6

403

Depreciation and amortization

180

123

146

39

11

499

EBITDA

297

219

512

63

(195)

6

902

Integration and restructuring related costs

4

18

22

Share-based compensation expense

60

60

Impairment of assets

1

1

COVID-19 related expenses

18

18

Foreign exchange loss, net of related derivatives

15

15

Net gain on disposal of investment in MOPCO

(250)

(250)

Adjusted EBITDA

297

220

266

63

(84)

6

768

Assets – at December 31, 2020 ¹

20,526

12,032

10,612

1,462

2,983

(423)

47,192

1 In 2021, we reassessed the appropriate segment wherein certain assets related to transportation, distribution and logistics should be categorized. After our evaluation was complete, we determined the assets should be categorized in the Potash, Nitrogen and Phosphate segments.

Twelve Months Ended December 31, 2021

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

– third party

17,665

4,021

4,216

1,810

27,712

– intersegment

69

386

921

236

(1,612)

Sales

– total

17,734

4,407

5,137

2,046

(1,612)

27,712

Freight, transportation and distribution

371

448

217

(185)

851

Net sales

17,734

4,036

4,689

1,829

(1,427)

26,861

Cost of goods sold

13,134

1,285

2,963

1,408

(1,338)

17,452

Gross margin

4,600

2,751

1,726

421

(89)

9,409

Selling expenses

3,124

9

24

6

(21)

3,142

General and administrative expenses

168

8

15

11

275

477

Provincial mining taxes

466

466

Share-based compensation expense

198

198

Impairment of assets

7

22

4

33

Other expenses (income)

86

22

(64)

15

253

312

Earnings (loss) before finance costs and income taxes

1,222

2,239

1,729

385

(705)

(89)

4,781

Depreciation and amortization

706

488

557

151

49

1,951

EBITDA

1,928

2,727

2,286

536

(656)

(89)

6,732

Integration and restructuring related costs

10

33

43

Share-based compensation expense

198

198

Impairment of assets

7

22

4

33

COVID-19 related expenses

45

45

Foreign exchange loss, net of related derivatives

39

39

Cloud computing transition adjustment

1

2

33

36

Adjusted EBITDA

1,939

2,736

2,308

540

(308)

(89)

7,126

Assets – at December 31, 2021

22,387

13,148

11,093

1,699

2,266

(639)

49,954

Twelve Months Ended December 31, 2020

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

– third party

14,748

2,265

2,572

1,241

82

20,908

– intersegment

37

248

628

202

(1,115)

Sales

– total

14,785

2,513

3,200

1,443

82

(1,115)

20,908

Freight, transportation and distribution

367

460

241

(213)

855

Net sales

14,785

2,146

2,740

1,202

82

(902)

20,053

Cost of goods sold

11,049

1,183

2,265

1,166

74

(923)

14,814

Gross margin

3,736

963

475

36

8

21

5,239

Selling expenses

2,795

9

27

6

(24)

2,813

General and administrative expenses

135

7

8

10

269

429

Provincial mining taxes

201

1

2

204

Share-based compensation expense

69

69

Impairment of assets

23

27

769

5

824

Other expenses (income)

44

8

(288)

6

228

(2)

Earnings (loss) before finance costs and income taxes

762

715

700

(755)

(541)

21

902

Depreciation and amortization

668

452

599

218

52

1,989

EBITDA

1,430

1,167

1,299

(537)

(489)

21

2,891

Integration and restructuring related costs

4

56

60

Share-based compensation expense

69

69

Impairment of assets

23

27

769

5

824

COVID-19 related expenses

48

48

Foreign exchange loss, net of related derivatives

19

19

Loss on disposal of business

6

6

Net gain on disposal of investment in MOPCO

(250)

(250)

Adjusted EBITDA

1,430

1,190

1,080

232

(286)

21

3,667

Assets – at December 31, 2020

20,526

12,032

10,612

1,462

2,983

(423)

47,192

NOTE 3 OTHER EXPENSES (INCOME)

Three Months Ended

Twelve Months Ended

December 31

December 31

2021

2020

2021

2020

Integration and restructuring related (recovery) costs

(4)

22

43

60

Foreign exchange loss, net of related derivatives

38

17

42

18

Earnings of equity-accounted investees

(46)

(27)

(89)

(73)

Bad debt expense (recovery)

4

(3)

26

6

COVID-19 related expenses

11

18

45

48

Loss on disposal of business

6

Net gain on disposal of investment in MOPCO

(250)

(250)

Cloud computing transition adjustment

36

Other expenses

106

34

209

183

109

(189)

312

(2)

In the fourth quarter of 2020, as a result of our strategic decision to dispose of our investment in MOPCO, we received cash consideration of $540 for the disposal of the investment and settlement of legal claims. This resulted in a pre-tax gain of $250 recorded in other (income) expenses.

NOTE 4 SHARE CAPITAL

Share Repurchase Programs

Three Months Ended

Twelve Months Ended

December 31

December 31

2021

2020

2021

2020

Number of common shares repurchased for cancellation

13,522,057

15,982,154

3,832,580

Average price per share (US dollars)

70.64

69.17

41.96

Total cost

955

1,105

160

As of February 15, 2022, an additional 6,204,241 common shares were repurchased for cancellation at a cost of $445 and an average price per share of $71.70.

On February 16, 2022, our Board of Directors approved a share repurchase program of up to a maximum of 10 percent of our outstanding common shares for cancellation. Subject to the acceptance by the Toronto Stock Exchange, the 2022 normal course issuer bid ("NCIB") will commence following the expiration of our current NCIB on February 28, 2022 and will expire after a one-year period.

Dividends Declared

On February 16, 2022, our Board of Directors declared an increase to our quarterly dividend to $0.48 per share payable on April 14, 2022, to shareholders of record on March 31, 2022. The total estimated dividend to be paid is $265.

Investor Relations:
Jeff Holzman
Vice President, Investor Relations
(306) 933-8545
Investors@nutrien.com

Media Relations:
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015

Contact us at: www.nutrien.com

News Provided by Business Wire via QuoteMedia

NTR:CA,NTR

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