Summary

• Nutrien produce and distribute over 25 million tonnes of potash, nitrogen and phosphate products for agricultural, industrial and feed customers world-wide.
• The company's network of over 2,000 retail locations in seven countries provide a wide range of products and services to help growers around the world feed the future.
• The company's Nutrien Ag Solutions and Landmark Retail businesses provide complete agricultural solutions, including nutrients, crop protection products, seed, services and agronomic advice to growers.
• Nutrien is the world’s largest potash producer with over 20 million tonnes of potash capacity at its six lower-cost potash mines in Saskatchewan.

Company Overview

Nutrien (NYSE:NTR, TSX:NTR) produce and distribute over 25 million tonnes of potash, nitrogen and phosphate products for agricultural, industrial and feed customers world-wide. Combined with its leading agriculture retail network that services over 500,000 grower accounts, Nutrien is well positioned to meet the needs of a growing world and create value for its stakeholders.¹

Plants Locations

Canadian Potash Facilities²

• Allan Potash
• Cory Potash
• Lanigan Potash
• Patience Lake Potash
• Rocanville Potash
• Vanscoy Potash

Nitrogen Operations

• Canadian Trinidad Nitrogen
• Carseland Nitrogen
• Fort Saskatchewan Nitrogen
• Granum Nitrogen
• Joffre Nitrogen
• Redwater Nitrogen
• Standard Nitrogen
• Us Nitrogen Facilities
• Augusta Nitrogen
• Borger Nitrogen
• Geismar Nitrogen
• Kennewick Nitrogen
• Lima Nitrogen
• New Madrid Nitrogen

Trinidad Nitrogen Facility

• Trinidad Nitrogen

Phosphate Operations

Us Phosphate Operations

• Aurora Phosphate
• Cincinnati Phosphate
• Joplin Phosphate
• Marseilles Phosphate
• Weeping Water Phosphate
• White Springs Phosphate

Business Segments

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.³

Retail Products and Services

The company's network of over 2,000 retail locations in seven countries provide a wide range of products and services to help growers around the world feed the future. The company provide its customers with complete agriculture solutions including nutrients, crop protection products, seed, service and digital tools.

The company's Nutrien Ag Solutions and Landmark Retail businesses provide complete agricultural solutions, including nutrients, crop protection products, seed, services and agronomic advice to growers.

The company's retail operations serve growers in seven countries across three continents, with a history that goes back almost 50 years. The company's size and scale, combined with its commitment to innovation and technology, allow it to provide growers with the best products, advice and solutions to maximize yields and improve their bottom line.

• US
• CANADA
• ARGENTINA
• AUSTRALIA
• BRAZIL
• CHILE
• URUGUAY

Potash

High-quality, lower-cost potash operations

Nutrien is the world’s largest potash producer with over 20 million tonnes of potash capacity at its six lower-cost potash mines in Saskatchewan. With decades of high-quality reserves and its multi-year expansions complete, Nutrien is well positioned to meet the world’s long-term potash needs.

Potash is the common name given to a group of minerals containing potassium (K) and is essential to all forms of plant and animal life.

Potash is mined from deep underground deposits left by ancient inland seas or extracted from salt water bodies.

Nitrogen

Low-cost and competitively positioned facilities

Nutrien is the third-largest nitrogen producer in the world with over 7 million

tonnes of gross ammonia capacity and the ability to produce more than 11 million tonnes of total nitrogen products in the US, Canada and Trinidad.

Nitrogen (N) is one of the building blocks of life. About 80 percent of the air the company breathe is nitrogen;

plants are able to use it once it is changed to ammonium or nitrate by industrial or natural

processes.

Phosphate

Diverse phosphate product portfolio

Nutrien operates two large integrated phosphate mining and processing facilities and four regional upgrading plants in the US. Nutrien is now self-sufficient in phosphate rock.

Phosphorous (P) is present in every living cell, both plant and animal.

Most of the world's phosphate is mined from underground deposits formed by marine sediment.

Financial Highlights

Nutrien Ltd. third quarter 2021 results, with net earnings of $726 million ($1.25 diluted earnings per share). Third-quarter adjusted net earnings were $1.38 per share and adjusted EBITDA was $1.6 billion.⁴

“Nutrien delivered record earnings in the third quarter driven by the decisive actions the company made across its business units and leveraging its competitive advantages to benefit from strong market fundamentals. The results demonstrate its ability to efficiently and reliably deliver crop inputs and services to its customers amid global supply uncertainties, and the company remain focused on its essential role to support global food security and sustainable food production,” commented Mayo Schmidt, Nutrien’s President and CEO.

“Nutrien is raising full-year 2021 adjusted earnings guidance and expect this positive momentum to continue into 2022. The company expect to generate significant free cash flow and to meaningfully strengthen its balance sheet through debt reduction, providing flexibility to deliver on future growth opportunities and return cash to shareholders,” added Mr. Schmidt.

Highlights

• Nutrien generated record adjusted EBITDA of $4.7 billion and free cash flow1 of $2.8 billion in the first nine months of 2021. The company repurchased 2.4 million shares in the third quarter of 2021 and expect to reduce long-term debt by approximately $2 billion over the next six months.
• Nutrien raised full-year 2021 adjusted EBITDA and adjusted net earnings per share1 guidance to $6.9 to $7.1 billion and $5.85 to $6.10 per share. The company expect strong demand for crop inputs in the fourth quarter and tight global fertilizer supply and demand fundamentals to carry into 2022.
• Nutrien Ag Solutions (“Retail”) delivered record adjusted EBITDA in the third quarter and first nine months of 2021 with 80 percent and 32 percent increases respectively compared to the same periods in 2020. The company's Retail business delivered double digit revenue growth, which combined with the benefits of strategic procurement and proprietary products growth resulted in adjusted EBITDA margins increasing to 11 percent in the first nine months of 2021.
• Retail normalized comparable store sales1 reached 5 percent in the first nine months of 2021 while rolling four quarter adjusted EBITDA per US selling location1 was $1.4 million. Sales through its digitally-enabled retail platform were approximately $1.9 billion in the first nine months of 2021 and Nutrien is beginning to roll out the interface in Australia. The company announced five transactions in Brazil since the start of 2020 and expect to generate over 30 percent of its Retail adjusted EBITDA from regions outside of the US in 2021.
• Potash adjusted EBITDA increased 131 percent in the third quarter of 2021 and increased 74 percent in the first nine months of 2021 compared to the same periods in 2020. The company achieved record sales volumes in the first nine months of 2021 due to its capability to quickly ramp up production from its flexible, low-cost network of six mines and expect to surge production to an annualized run-rate of 17 million tonnes during the fourth quarter.
• Nitrogen adjusted EBITDA was 173 percent higher in the third quarter of 2021 and increased 70 percent in the first nine months of 2021 compared to the same periods in 2020. In the third quarter of 2021, the company completed phase 1 of its nitrogen brownfield expansion projects and anticipate to fully benefit from this expanded capacity in 2022, which is expected to generate attractive returns on investment. The company also started a second phase of brownfield projects that is expected to add approximately 500,000 tonnes of annualized, low-cost and environmentally efficient production capacity over the next few years. The company progressed previously announced decarbonization projects that are expected to reduce CO2 equivalent emissions by approximately one million tonnes by the end of 2023.
• Phosphate adjusted EBITDA increased 193 percent in the third quarter of 2021 and 104 percent in the first nine months of 2021 compared to the same periods in 2020.

Market Outlook

Agriculture and Retail

• Global grain and oilseed inventory is well below historic levels and crop prices and grower margins remain strong, which is supportive of crop input spending in key regions where the company operate.
• The North American harvest progressed ahead of historic levels and grower sentiment is positive, which supported a strong start to the fall application season in most regions. The company expect growers to maximize planted acreage and yields in 2022 as projected US grower corn and soybean margins are approximately 60 percent and 35 percent, respectively, above 10-year average levels.
• Brazilian growers are expected to increase total plantings by 5 to 7 million acres due to record grower profitability and are planting soybeans at an above-average pace due to supportive rainfalls. This is expected to result in higher crop input spending through the growing season.
• Growers in Australia started harvesting winter crops and the company expect them to benefit from the combination of above-average yields and high prices for crops like wheat, barley and canola.
• The availability of crop inputs, including fertilizer and certain herbicides, has been impacted by global production and supplychain issues. Nutrien is strategically positioned to cover fall commitments and expects limited impact to its crop protection product availability in the first half of 2022.

Crop Nutrient Markets

• Global potash prices continue to increase in all key spot markets driven by record global demand and strong grower margins. The company maintain its 2021 global shipment forecast between 69 and 71 million tonnes.
• Global supply of potash is tight caused by competitor mine flooding, new project delays and a limited ability of most producers to meaningfully increase production. US and European sanctions imposed on Belarus are causing additional supply concerns due to potential impacts to vessel chartering and transaction execution in US dollars. Potash inventories remain below historic levels in key markets with China accessing strategic reserves. Nutrien remains committed to providing a reliable supply for its customers through its world-class distribution network, including Canpotex.
• Soaring energy prices in Europe and China triggered nitrogen capacity shutdowns and reduced operating rates, rapidly tightening global nitrogen supply and shifting trade flows. Furthermore, the Chinese government ordered fertilizer producers to halt exports until June 2022, which is expected to significantly reduce Chinese urea and phosphate trade volumes.
• Phosphate prices have been supported by the expected reduction in supply from China due to export restrictions and reduced US supply, compounded by tight inventories as a result of robust demand throughout 2021.

Financial Outlook and Guidance

Based on market factors detailed above, Nutrien is raising full-year 2021 adjusted EBITDA guidance to $6.9 to $7.1 billion from $6.0 to $6.4 billion and full-year 2021 adjusted net earnings guidance to $5.85 to $6.10 per share from $4.60 to $5.10 per share.

Consolidated Results

Net earnings and adjusted EBITDA increased significantly in the third quarter and first nine months of 2021 compared to the same periods in 2020 due to higher net realized selling prices across its nutrient businesses, higher potash sales volumes and earnings growth in Nutrien Ag Solutions (“Retail”), as well as, the non-cash impairment in the third quarter of 2020 that was primarily related to its phosphate business. Cash flow from operating activities decreased in the third quarter and first nine months of 2021 compared to the same periods in 2020 due to higher working capital requirements associated with much higher sales and higher value of fertilizers, while free cash flow increased by over $1 billion in the first nine months of 2021. The COVID-19 pandemic had a limited impact on its results during the third quarter and first nine months of 2021.

References

1. ^ https://www.nutrien.com/what-we-do
2. ^ https://www.nutrien.com/locations/potash-operations
3. ^ https://www.nutrien.com/what-we-do/our-business
4. ^ https://www.nutrien.com/investors/news-releases/2021-nutrien-delivers-record-third-quarter-results-and-raises-full-year