Business Wire | Nov 2, 2020 05:31PM EST

Nutrien Delivers Improved Operating Results as Ag Fundamentals Continue to Strengthen

Nov. 02, 2020

SASKATOON, Saskatchewan--(BUSINESS WIRE)--Nov. 02, 2020--Nutrien Ltd. (TSX and NYSE: NTR) announced today its 2020 third quarter results, with a net loss of $587 million ($1.03 diluted loss per share), which includes a non-cash impairment of $823 million, primarily related to our Phosphate operations. Third-quarter adjusted net earnings were $0.23 per share (adjusted EBITDA was $670 million), excluding the impairment. Adjusted net earnings includes a net tax benefit of $48 million ($0.08 per diluted share) related primarily to recoveries of prior year taxes due to US legislative changes. Adjusted net earnings per share and adjusted EBITDA (consolidated), together with the related guidance and potash cash cost of product manufactured are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section for further information.

"Nutrien delivered another quarter of solid operating results with strong fertilizer sales volumes and exceptional growth of orders through our digital agriculture platform, surpassing $1 billion of sales. Market conditions are improving around the world with higher crop and fertilizer prices, lower expected inventories and strong demand for crop inputs as we finish the year and enter 2021," commented Chuck Magro, Nutrien's President and CEO.

Highlights:

* In the third quarter of 2020, we recognized a non-cash impairment of $823 million associated primarily with our Phosphate assets related to a less favorable long-term outlook for phosphate prices and expected global supply imbalance. * Retail delivered 13 percent higher adjusted EBITDA in the first nine months of 2020, over the same period in 2019 as a result of double-digit growth in sales and gross margin. Adjusted EBITDA in the third quarter of 2020 was 15 percent lower due to elevated applications in the same period last year caused by the timing of the growing season, and was further impacted by lower insecticide and fungicide applications this quarter as a result of lower than expected US acreage and dry conditions. Total sales through our leading digital retail platform exceeded $1.0 billion in the first nine months of 2020, more than double our annual goal of $500 million. Digital sales in the first nine months of 2020 accounted for 43 percent of North American sales of products that were available for purchase online. * Potash sales volumes in the third quarter and first nine months of 2020 were higher compared to the same periods in 2019, and Nutrien is fully committed on offshore potash sales volumes and well subscribed domestically for the remainder of the year. Potash adjusted EBITDA was down 19 percent and 33 percent in the third quarter and first nine months of 2020 respectively, compared to the same periods last year as strong sales volumes and lower cost of goods sold per tonne were more than offset by lower net realized selling prices. Potash cash cost of product manufactured was $53 per tonne in the third quarter, the second lowest on record and $9 per tonne lower than in the third quarter of 2019. * Nitrogen adjusted EBITDA was 21 percent lower in the third quarter and 17 percent lower in the first nine months of 2020 compared to the same periods last year due to lower net realized selling prices and lower industrial sales volumes. We delivered higher sales volumes, lower cost of goods sold and higher ammonia utilization rates (93 percent versus 90 percent) in the first nine months of 2020 compared to the same period last year. In the third quarter, we also made the decision to indefinitely close the smallest of our four ammonia plants in Trinidad. The closure is expected to enhance the competitiveness at that site, and we are now running three plants at normal production levels. * Nutrien's full-year 2020 adjusted net earnings per share and adjusted EBITDA guidance range is narrowed to $1.60 to $1.85 per share and $3.5 billion to $3.7 billion, respectively due to increased visibility in each of our business units to the end of the year.

Management's Discussion and Analysis

The following management's discussion and analysis ("MD&A") is the responsibility of management and is dated as of November 2, 2020. The Board of Directors ("Board") of Nutrien carries out its responsibility for review of this disclosure principally through its audit committee, comprised exclusively of independent directors. The audit committee reviews and, prior to its publication approves this disclosure pursuant to the authority delegated to it by the Board. The term "Nutrien" refers to Nutrien Ltd. and the terms "we", "us", "our", "Nutrien" and "the Company" refer to Nutrien and, as applicable, Nutrien and its direct and indirect subsidiaries on a consolidated basis. Additional information relating to Nutrien (which, except as otherwise noted, is not incorporated by reference herein), including our 2019 Annual Report dated February 19, 2020, which includes our annual audited consolidated financial statements and MD&A and our Annual Information Form, each for the year ended December 31, 2019, can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. No update is provided to the disclosure in our annual MD&A except for material information since the date of our annual MD&A. The Company is a foreign private issuer under the rules and regulations of the US Securities and Exchange Commission ("SEC").

This MD&A is based on the Company's unaudited interim condensed consolidated financial statements as at and for the three and nine months ended September 30, 2020 ("interim financial statements") based on International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") and prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" unless otherwise noted. This MD&A contains certain non-IFRS financial measures and forward-looking statements which are described in the "Non-IFRS Financial Measures" and the "Forward-Looking Statements" sections, respectively.

Market Outlook

Agriculture and Retail

* Key crop prices have increased, driven by significant improvements in supply and demand fundamentals. Higher crop prices have boosted North American grower sentiment. * The North American harvest progressed at a pace well ahead of the past two years when timing was impacted by late maturing crops and weather delays. This is expected to provide a wider window for growers to plan and apply fall fertilizer compared to the past few fall seasons. * Strong Brazilian crop prices and margins provided an incentive to boost summer soybean and Safrinha corn planting. We expect the planted area of these crops to increase by approximately 4 percent and 6 percent respectively. Planting has started slower than normal as a result of dry weather, but we expect a long planting window and high crop prices will motivate farmers to plant.

Crop Nutrient Markets

* Global potash demand has been strong in 2020 and we continue to expect global potash shipments and consumption to increase by approximately 2 million tonnes from 2019 levels. As a result, we maintain our 2020 shipment forecast between 65 and 67 million tonnes. * The prospect of a robust fall application season in North America has supported strong retail-level demand. We expect that potash delivered in North America in the fall of 2020 will largely be applied to ground and that channel inventories will be lower at the end of 2020 compared to recent years. We also expect that strong fall applications in China, driven by historically high crop prices in combination with seasonal increases in compound NPK production, will support strong potash consumption in the remainder of 2020. Meanwhile, demand in India will continue to be supported by the favorable growing conditions and increased minimum support prices for crops. * Global urea prices have been relatively stable as Indian import tenders have pulled significant volumes out of the trade market. The pace of Chinese urea exports has recently increased, along with Indian demand, but remains down around 10 percent in the first nine months of the year. North American urea prices are currently discounted relative to the rest of the world, which is seasonally normal, but offshore imports are down more than 25 percent from July to September and prices need to increase significantly to reach import parity. Global ammonia prices have increased driven by improved industrial demand, higher global gas prices and production curtailments in East Asia and Trinidad. * Global phosphate prices have trended higher due to strong demand in India and Brazil and trade flow changes related to countervailing duty investigations in the US. We continue to believe the phosphate market is fundamentally oversupplied which could limit a long-term price recovery.

Financial Outlook and Guidance

Based on market factors detailed above, we are narrowing our 2020 adjusted net earnings guidance to $1.60 to $1.85 per share (from $1.50 to $1.90 per share previously) and adjusted EBITDA guidance to $3.5 to $3.7 billion (from $3.5 to $3.8 billion previously). In the third quarter of 2020, we revised the measure with which we evaluate our segments from EBITDA to adjusted EBITDA. This has not had an impact on our segment guidance numbers below.

All guidance numbers, including those noted above are outlined in the tables below. Refer to page 46 of Nutrien's 2019 Annual Report for related sensitivities.

2020 Guidance Ranges ^1 Low High

Adjusted net earnings per share ^2 $ 1.60 $ 1.85

Adjusted EBITDA (billions) ^2 $ 3.5 $ 3.7

Adjusted Retail EBITDA (billions) $ 1.37 $ 1.42

Adjusted Potash EBITDA (billions) $ 1.1 $ 1.2

Adjusted Nitrogen EBITDA (billions) $ 1.05 $ 1.10

Adjusted Phosphate EBITDA (millions) $ 200 $ 250

Potash sales tonnes (millions)^ 3 12.2 12.5

Nitrogen sales tonnes (millions) ^3 10.9 11.1

Depreciation and amortization (billions) $ 1.85 $ 1.95

Effective tax rate 11 % 13 %

Sustaining capital expenditures (billions) $ 0.9 $ 1.0

1 See the "Forward-Looking Statements" section.

2 See the "Non-IFRS Financial Measures" section.

3 Manufactured products only. Nitrogen excludes ESN(r) and Rainbow products.

Consolidated Results

Three Months Ended Nine Months Ended September 30 September 30

(millions of US dollars) 2020 2019 % 2020 2019 % Change Change

Sales 4,205 4,169 1 16,807 16,581 1

Freight, transportation and 204 210 (3) 653 596 10distribution

Cost of goods sold 3,004 2,819 7 12,129 11,558 5

Gross margin 997 1,140 (13) 4,025 4,427 (9)

Expenses 1,719 812 112 3,526 2,628 34

Net (loss) earnings (587) 141 n/m 143 1,040 (86)

Adjusted EBITDA ^1 670 787 (15) 2,899 3,361 (14)

Free cash flow ("FCF") ^1 280 329 (15) 1,634 2,019 (19)

FCF including changes innon-cash operating working (888) 333 n/m 34 579 (94)capital ^1

1 See the "Non-IFRS Financial Measures" section.

Our third-quarter and first-nine months net (loss) earnings for 2020 were negatively impacted primarily by a non-cash impairment of assets related primarily to our Phosphate operations. Adjusted EBITDA decreased in the same periods due to significantly lower crop nutrient prices that more than offset strong Retail earnings growth and greater operational efficiencies. The COVID-19 pandemic had limited impact on our business during the periods.

Segment Results

Our discussion of segment results set out on the following pages is a comparison of the results for the three and nine months ended September 30, 2020 to the results for the three and nine months ended September 30, 2019, respectively, unless otherwise noted. In the third quarter of 2020, we revised the measure with which we evaluate our segments from EBITDA to Adjusted EBITDA. Adjusted EBITDA provides a better indication of the segments performance as it excludes the impact of impairments and other costs that are centrally managed by our corporate function. We have presented adjusted EBITDA for the comparative periods.

Retail

Three Months Ended September 30

(millions of US Dollars Gross Margin Grossdollars, except Margin (%)

as otherwise noted) 2020 2019 % 2020 2019 % 2020 2019 Change Change

Sales

Crop nutrients 780 769 1 179 175 2 23 23

Crop protection 1,328 1,318 1 256 303 (16) 19 23products

Seed 103 60 72 27 17 59 26 28

Merchandise 234 135 73 37 22 68 16 16

Services and other 275 217 27 162 138 17 59 64

2,720 2,499 9 661 655 1 24 26

Cost of goods sold 2,059 1,844 12

Gross margin 661 655 1

Expenses ^1 669 617 8

Earnings (loss)before finance (8) 38 n/m costs and taxes("EBIT")

Depreciation and 170 152 12 amortization

EBITDA / Adjusted 162 190 (15) EBITDA

1 Includes selling expenses of $669 million (2019 - $601 million).

Nine Months Ended September 30

(millions of US dollars, except

Dollars

Gross Margin

Gross Margin (%)

as otherwise noted)

2020

2019

% Change

2020

2019

% Change

2020

2019

Sales

Crop nutrients

4,092

4,082

-

894

846

6

22

21

Crop protection products

4,774

4,348

10

960

892

8

20

21

Seed

1,638

1,613

2

305

276

11

19

17

Merchandise

703

387

82

116

65

78

17

17

Services and other

911

620

47

527

425

24

58

69

12,118

11,050

10

2,802

2,504

12

23

23

Cost of goods sold

9,316

8,546

9

Gross margin

2,802

2,504

12

Expenses 1

2,157

1,937

11

EBIT

645

567

14

Depreciation and amortization

488

433

13

EBITDA / Adjusted EBITDA

1,133

1,000

13

1 Includes selling expenses of $2,068 million (2019 - $1,816 million).

* Adjusted EBITDA was lower in the third quarter of 2020 due primarily to the sales mix and use of crop protection products compared to the delayed season last year which pushed sales into the third quarter in North America. US applications this year were also negatively impacted by lower than expected planted acreage and weather-related events. Adjusted EBITDA in the first nine months of 2020 increased significantly from the same period in 2019 due to strong growth in revenue and gross margins across most product lines. The increase was primarily due to organic growth, aided by more normal weather conditions in the US, as well as from the benefit of acquisitions made over the past year. Total selling expenses increased in the periods due primarily to acquisitions, including the acquisition of Ruralco Holdings Limited ("Ruralco"). Selling expenses as a percentage of sales were also impacted by lower crop nutrient and seed prices in 2020, which resulted in lower associated sales. Total US selling expenses, excluding depreciation and amortization, were down this quarter relative to the third quarter of last year. * Crop nutrients sales were higher in the third quarter and the first nine months of 2020, compared to the same periods in 2019 as higher sales volumes more than offset the impact of lower selling prices. Third quarter sales volumes were 10 percent higher than last year, due to strong applications in Australia which offset lower sales volumes in the US. For the first nine months of 2020, total sales volumes were up 12 percent, with increases across all geographies. Gross margin percentage was stable in the third quarter but higher in the nine-month period due to a larger proportion of higher-margin proprietary product sales. * Crop protection products sales in the third quarter and first nine months of 2020 were higher compared to the same periods in 2019, due to acquisitions and continued market share growth. Gross margin percentage decreased in the periods due to the impact of recent acquisitions, including that of Ruralco, which impacted the mix of product sold. There was also a slight reduction in use of higher margin discretionary products such as fungicides and insecticides in the US market due to a combination of weather and market factors. * Seed sales in the third quarter and first nine months of 2020 increased from the same period last year due to strong growth in all key markets, including contributions from the Tec Agro Group acquisition in Brazil and Ruralco in Australia. Gross margin percentage decreased in the third quarter of 2020 primarily due to the Ruralco acquisition, while US seed margins in the third quarter strengthened year over year. Gross margin percentage increased in the first nine months of 2020 due to higher margins achieved on soybean and corn sales and fewer replanting discounts compared to the same periods in 2019. * Merchandise sales increased in third quarter and first nine months of 2020 due to benefits from the acquisition of the Ruralco business in Australia. Gross margin percentage was stable in the periods. * Services and other sales were higher in the third quarter and first nine months of 2020 due to increased contributions from our Australian business. Sales and gross profit in the US declined in the third quarter but margins were slightly stronger. Gross margin percentage decreased in the periods due to product mix changes resulting primarily from the acquisition of Ruralco.

Potash

Nine Months Ended September 30

(millions of US Dollars Gross Margin Grossdollars, except Margin (%)

as otherwise 2020 2019 % 2020 2019 % 2020 2019noted) Change Change

Sales

Crop nutrients 4,092 4,082 - 894 846 6 22 21

Crop protection 4,774 4,348 10 960 892 8 20 21products

Seed 1,638 1,613 2 305 276 11 19 17

Merchandise 703 387 82 116 65 78 17 17

Services and 911 620 47 527 425 24 58 69other

12,118 11,050 10 2,802 2,504 12 23 23

Cost of goods 9,316 8,546 9 sold

Gross margin 2,802 2,504 12

Expenses ^1 2,157 1,937 11

EBIT 645 567 14

Depreciationand 488 433 13 amortization

EBITDA / 1,133 1,000 13 Adjusted EBITDA

1 Includes selling expenses of $2,068 million (2019 - $1,816 million).

* Adjusted EBITDA was lower in the third quarter of 2020 due primarily to the sales mix and use of crop protection products compared to the delayed season last year which pushed sales into the third quarter in North America. US applications this year were also negatively impacted by lower than expected planted acreage and weather-related events. Adjusted EBITDA in the first nine months of 2020 increased significantly from the same period in 2019 due to strong growth in revenue and gross margins across most product lines. The increase was primarily due to organic growth, aided by more normal weather conditions in the US, as well as from the benefit of acquisitions made over the past year. Total selling expenses increased in the periods due primarily to acquisitions, including the acquisition of Ruralco Holdings Limited ("Ruralco"). Selling expenses as a percentage of sales were also impacted by lower crop nutrient and seed prices in 2020, which resulted in lower associated sales. Total US selling expenses, excluding depreciation and amortization, were down this quarter relative to the third quarter of last year. * Crop nutrients sales were higher in the third quarter and the first nine months of 2020, compared to the same periods in 2019 as higher sales volumes more than offset the impact of lower selling prices. Third quarter sales volumes were 10 percent higher than last year, due to strong applications in Australia which offset lower sales volumes in the US. For the first nine months of 2020, total sales volumes were up 12 percent, with increases across all geographies. Gross margin percentage was stable in the third quarter but higher in the nine-month period due to a larger proportion of higher-margin proprietary product sales. * Crop protection products sales in the third quarter and first nine months of 2020 were higher compared to the same periods in 2019, due to acquisitions and continued market share growth. Gross margin percentage decreased in the periods due to the impact of recent acquisitions, including that of Ruralco, which impacted the mix of product sold. There was also a slight reduction in use of higher margin discretionary products such as fungicides and insecticides in the US market due to a combination of weather and market factors. * Seed sales in the third quarter and first nine months of 2020 increased from the same period last year due to strong growth in all key markets, including contributions from the Tec Agro Group acquisition in Brazil and Ruralco in Australia. Gross margin percentage decreased in the third quarter of 2020 primarily due to the Ruralco acquisition, while US seed margins in the third quarter strengthened year over year. Gross margin percentage increased in the first nine months of 2020 due to higher margins achieved on soybean and corn sales and fewer replanting discounts compared to the same periods in 2019. * Merchandise sales increased in third quarter and first nine months of 2020 due to benefits from the acquisition of the Ruralco business in Australia. Gross margin percentage was stable in the periods. * Services and other sales were higher in the third quarter and first nine months of 2020 due to increased contributions from our Australian business. Sales and gross profit in the US declined in the third quarter but margins were slightly stronger. Gross margin percentage decreased in the periods due to product mix changes resulting primarily from the acquisition of Ruralco.

Potash

Three Months Ended September 30

(millions of US Dollars Tonnes (thousands) Average per Tonnedollars, except

as otherwise 2020 2019 % 2020 2019 % 2020 2019 %noted) Change Change Change

Manufactured product

Net sales

North America 252 330 (24) 1,426 1,438 (1) 176 229 (23)

Offshore 339 379 (11) 2,252 1,823 24 151 208 (27)

591 709 (17) 3,678 3,261 13 161 218 (26)

Cost of goods 303 303 - 83 94 (12)sold

Gross margin - 288 406 (29) 78 124 (37)manufactured

Gross margin - - - - Depreciation and 34 34 -other ^1 amortization

Gross margin - 288 406 (29) Gross margin excluding total depreciation

Expenses ^2 84 86 (2) and amortization - 112 158 (29) manufactured ^3

EBIT 204 320 (36) Potash cash cost of product

Depreciation and 124 110 13 manufactured ^3 53 62 (15)amortization

EBITDA 328 430 (24)

Impairment of 22 - n/m assets

Adjusted EBITDA 350 430 (19)

1 Includes other potash and purchased products and is comprised of net sales of$Nil (2019 - $Nil) less cost of goods sold of $Nil (2019 - $Nil).

2 Includes provincial mining and other taxes of $58 million (2019 - $83million).

3 See the "Non-IFRS Financial Measures" section.

Nine Months Ended September 30

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2020

2019

% Change

2020

2019

% Change

2020

2019

% Change

Manufactured product

Net sales

North America

709

832

(15)

3,774

3,389

11

188

245

(23)

Offshore

987

1,421

(31)

6,396

6,247

2

154

228

(32)

1,696

2,253

(25)

10,170

9,636

6

167

234

(29)

Cost of goods sold

878

892

(2)

87

93

(6)

Gross margin - manufactured

818

1,361

(40)

80

141

(43)

Gross margin - other 1

-

1

(100)

Depreciation and amortization

32

34

(6)

Gross margin - total

818

1,362

(40)

Gross margin excluding depreciation

Expenses 2

199

242

(18)

and amortization - manufactured

112

175

(36)

EBIT

619

1,120

(45)

Potash cash cost of product

Depreciation and amortization

329

324

2

manufactured

55

60

(8)

EBITDA

948

1,444

(34)

Impairment of assets

22

-

n/m

Adjusted EBITDA

970

1,444

(33)

1 Includes other potash and purchased products and is comprised of net sales of $Nil million (2019 - $1 million) less cost of goods sold of $Nil (2019 - $Nil).

2 Includes provincial mining and other taxes of $161 million (2019 - $237 million).

* Adjusted EBITDA decreased in the third quarter and first nine months of 2020 due to lower global potash prices. This was partially offset by higher sales volumes and lower cost of goods sold per tonne. * Sales volumes in the third quarter of 2020 were the second highest of any quarter on record while sales volumes in the first nine months of 2020 were the highest on record. Higher sales volumes relative to the same periods last year were supported by strong offshore demand, higher US planted acreage and improved crop fundamentals. * Net realized selling price decreased in the third quarter and first nine months of 2020, due to pressure in global benchmark prices. * Cost of goods sold per tonne decreased in both periods due to production efficiency gains and the deferral of maintenance projects related to COVID-19 precautions. These factors also lowered the potash cash cost of product manufactured in the third quarter and the first nine months of 2020.

Canpotex Sales by Market

Nine Months Ended September 30

(millions ofUS dollars, Dollars Tonnes (thousands) Average per Tonneexcept

as otherwise 2020 2019 % 2020 2019 % 2020 2019 %noted) Change Change Change

Manufactured product

Net sales

North 709 832 (15) 3,774 3,389 11 188 245 (23)America

Offshore 987 1,421 (31) 6,396 6,247 2 154 228 (32)

1,696 2,253 (25) 10,170 9,636 6 167 234 (29)

Cost of 878 892 (2) 87 93 (6)goods sold

Gross margin- 818 1,361 (40) 80 141 (43)manufactured

Gross margin - 1 (100) Depreciation and 32 34 (6)- other ^1 amortization

Gross margin 818 1,362 (40) Gross margin excluding - total depreciation

Expenses ^2 199 242 (18) and amortization - 112 175 (36) manufactured

EBIT 619 1,120 (45) Potash cash cost of product

Depreciationand 329 324 2 manufactured 55 60 (8)amortization

EBITDA 948 1,444 (34)

Impairment 22 - n/m of assets

Adjusted 970 1,444 (33) EBITDA

1 Includes other potash and purchased products and is comprised of net sales of$Nil million (2019 - $1 million) less cost of goods sold of $Nil (2019 - $Nil).

2 Includes provincial mining and other taxes of $161 million (2019 - $237million).

* Adjusted EBITDA decreased in the third quarter and first nine months of 2020 due to lower global potash prices. This was partially offset by higher sales volumes and lower cost of goods sold per tonne. * Sales volumes in the third quarter of 2020 were the second highest of any quarter on record while sales volumes in the first nine months of 2020 were the highest on record. Higher sales volumes relative to the same periods last year were supported by strong offshore demand, higher US planted acreage and improved crop fundamentals. * Net realized selling price decreased in the third quarter and first nine months of 2020, due to pressure in global benchmark prices. * Cost of goods sold per tonne decreased in both periods due to production efficiency gains and the deferral of maintenance projects related to COVID-19 precautions. These factors also lowered the potash cash cost of product manufactured in the third quarter and the first nine months of 2020.

Canpotex Sales by Market

(percentage of sales volumes, Three Months Ended Nine Months Endedexcept as September 30 September 30

otherwise noted) 2020 2019 % Change 2020 2019 % Change

Latin America 36 44 (18) 33 31 6

Other Asian markets ^1 20 21 (5) 25 27 (7)

China 23 16 44 22 23 (4)

India 14 12 17 13 11 18

Other markets 7 7 - 7 8 (13)

100 100 100 100

1 All Asian markets except China and India.

Nitrogen

Three Months Ended September 30

(millions of US Dollars Tonnes (thousands) Average per Tonnedollars, except

as otherwise 2020 2019 % 2020 2019 % 2020 2019 %noted) Change Change Change

Manufactured product

Net sales

Ammonia 105 144 (27) 546 715 (24) 193 203 (5)

Urea 193 221 (13) 766 726 6 251 304 (17)

Solutions,nitrates and 143 168 (15) 1,091 1,081 1 131 155 (15)sulfates

441 533 (17) 2,403 2,522 (5) 184 211 (13)

Cost of goods 392 416 (6) 164 165 (1)sold

Gross margin - 49 117 (58) 20 46 (57)manufactured

Gross margin - 9 16 (44) Depreciation and 55 50 10other ^1 amortization

Gross margin - 58 133 (56) Gross margin excluding total depreciation

Expenses 21 13 62 and amortization - 75 96 (22) manufactured

EBIT 37 120 (69) Ammonia controllable cash cost of

Depreciation and 131 127 3 product manufactured 47 45 4amortization ^2

EBITDA 168 247 (32)

Impairment of 27 - n/m assets

Adjusted EBITDA 195 247 (21)

1 Includes other nitrogen (including ESN(r) and Rainbow) and purchased productsand is comprised of net sales of $99 million (2019 - $69 million) less cost ofgoods sold of $90 million (2019 - $53 million).

2 See the "Non-IFRS Financial Measures" section.

Nine Months Ended September 30

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2020

2019

% Change

2020

2019

% Change

2020

2019

% Change

Manufactured product

Net sales

Ammonia

464

602

(23)

2,048

2,400

(15)

227

251

(10)

Urea

703

739

(5)

2,622

2,342

12

268

315

(15)

Solutions, nitrates and sulfates

500

540

(7)

3,451

3,166

9

145

170

(15)

1,667

1,881

(11)

8,121

7,908

3

205

238

(14)

Cost of goods sold

1,344

1,345

-

165

170

(3)

Gross margin - manufactured

323

536

(40)

40

68

(41)

Gross margin - other 1

40

57

(30)

Depreciation and amortization

56

50

12

Gross margin - total

363

593

(39)

Gross margin excluding depreciation

Expenses

29

7

314

and amortization - manufactured

96

118

(19)

EBIT

334

586

(43)

Ammonia controllable cash cost of

Depreciation and amortization

453

394

15

product manufactured

44

44

-

EBITDA

787

980

(20)

Impairment of assets

27

-

n/m

Adjusted EBITDA

814

980

(17)

1 Includes other nitrogen (including ESN(r) and Rainbow) and purchased products and is comprised of net sales of $404 million (2019 - $364 million) less cost of goods sold of $364 million (2019 - $307 million).

* Adjusted EBITDA decreased in the third quarter and first nine months of 2020 as lower net realized selling prices more than offset the benefit of higher sales volumes into North American agricultural markets and lower cost of goods sold per tonne. * Sales volumes decreased in the third quarter of 2020 compared to the same period in 2019 due to lower industrial nitrogen demand, particularly for ammonia, and associated operational changes in Trinidad. This was partially offset by higher agriculture-related nitrogen sales. Sales volumes in the first nine months of 2020 were higher compared to the same period in 2019 due to recent expansion projects and strong operating rates at our North American facilities. * Net realized selling price of nitrogen was lower in the third quarter and first nine months of 2020 than the same periods last year due to lower global and North American benchmark prices. Third quarter sales commitments in 2020 were weighted towards the beginning of the quarter prior to benchmark price increases. * Cost of goods sold per tonne decreased in the third quarter and first nine months of 2020 compared to the same periods in 2019 due to lower natural gas prices and fixed costs. This more than offset higher depreciation and amortization per tonne related to expansion and turnaround work completed in late 2019. Ammonia controllable cash cost of product manufactured per tonne increased in the third quarter due to lower production associated with curtailments in Trinidad. Ammonia controllable cash costs for the first nine months of 2020 were consistent with the same period last year due to lower fixed costs that offset lower production.

Natural Gas Prices in Cost of Production

Nine Months Ended September 30

(millions ofUS dollars, Dollars Tonnes (thousands) Average per Tonneexcept

as otherwise 2020 2019 % 2020 2019 % 2020 2019 %noted) Change Change Change

Manufactured product

Net sales

Ammonia 464 602 (23) 2,048 2,400 (15) 227 251 (10)

Urea 703 739 (5) 2,622 2,342 12 268 315 (15)

Solutions,nitrates and 500 540 (7) 3,451 3,166 9 145 170 (15)sulfates

1,667 1,881 (11) 8,121 7,908 3 205 238 (14)

Cost of goods 1,344 1,345 - 165 170 (3)sold

Gross margin - 323 536 (40) 40 68 (41)manufactured

Gross margin - 40 57 (30) Depreciation and 56 50 12other ^1 amortization

Gross margin - 363 593 (39) Gross margin excluding total depreciation

Expenses 29 7 314 and amortization - 96 118 (19) manufactured

EBIT 334 586 (43) Ammonia controllable cash cost of

Depreciationand 453 394 15 product manufactured 44 44 -amortization

EBITDA 787 980 (20)

Impairment of 27 - n/m assets

Adjusted 814 980 (17) EBITDA

1 Includes other nitrogen (including ESN(r) and Rainbow) and purchased productsand is comprised of net sales of $404 million (2019 - $364 million) less costof goods sold of $364 million (2019 - $307 million).

* Adjusted EBITDA decreased in the third quarter and first nine months of 2020 as lower net realized selling prices more than offset the benefit of higher sales volumes into North American agricultural markets and lower cost of goods sold per tonne. * Sales volumes decreased in the third quarter of 2020 compared to the same period in 2019 due to lower industrial nitrogen demand, particularly for ammonia, and associated operational changes in Trinidad. This was partially offset by higher agriculture-related nitrogen sales. Sales volumes in the first nine months of 2020 were higher compared to the same period in 2019 due to recent expansion projects and strong operating rates at our North American facilities. * Net realized selling price of nitrogen was lower in the third quarter and first nine months of 2020 than the same periods last year due to lower global and North American benchmark prices. Third quarter sales commitments in 2020 were weighted towards the beginning of the quarter prior to benchmark price increases. * Cost of goods sold per tonne decreased in the third quarter and first nine months of 2020 compared to the same periods in 2019 due to lower natural gas prices and fixed costs. This more than offset higher depreciation and amortization per tonne related to expansion and turnaround work completed in late 2019. Ammonia controllable cash cost of product manufactured per tonne increased in the third quarter due to lower production associated with curtailments in Trinidad. Ammonia controllable cash costs for the first nine months of 2020 were consistent with the same period last year due to lower fixed costs that offset lower production.

Natural Gas Prices in Cost of Production

Three Months Ended Nine Months Ended September 30 September 30

(US dollars per MMBtu, except as 2020 2019 % Change 2020 2019 %otherwise noted) Change

Overall gas cost excluding 2.18 2.06 6 2.17 2.47 (12)realized derivative impact

Realized derivative impact 0.06 0.22 (73) 0.06 0.14 (57)

Overall gas cost 2.24 2.28 (2) 2.23 2.61 (15)



Average NYMEX 1.98 2.23 (11) 1.88 2.67 (30)

Average AECO 1.62 0.78 108 1.54 1.05 47

* Gas prices in our cost of production decreased in the third quarter and first nine months of 2020 as lower US gas prices and a lower realized derivative impact more than offset higher Canadian gas prices compared to the same period last year.

Phosphate

Three Months Ended September 30

(millions of US Dollars Tonnes (thousands) Average per Tonnedollars, except

as otherwise 2020 2019 % 2020 2019 % 2020 2019 %noted) Change Change Change

Manufactured product

Net sales

Fertilizer 172 164 5 542 492 10 317 335 (5)

Industrial and 94 106 (11) 166 192 (14) 563 549 3feed

266 270 (1) 708 684 4 375 396 (5)

Cost of goods 268 284 (6) 379 416 (9)sold

Gross margin - (2) (14) 86 (4) (20) 80manufactured

Gross margin - 1 (1) n/m Depreciation and 85 85 -other ^1 amortization

Gross margin - Gross margintotal (1) (15) 93 excluding depreciation

Expenses 782 9 n/m and amortization - 81 65 25 manufactured

EBIT (783) (24) n/m

Depreciation and 60 58 3 amortization

EBITDA (723) 34 n/m

Impairment of 769 - n/m assets

Adjusted EBITDA 46 34 35

1 Includes other phosphate and purchased products and is comprised of net salesof $26 million (2019 - $44 million) less cost of goods sold of $25 million(2019 - $45 million).

Nine Months Ended September 30

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2020

2019

% Change

2020

2019

% Change

2020

2019

% Change

Manufactured product

Net sales

Fertilizer

491

635

(23)

1,582

1,664

(5)

310

382

(19)

Industrial and feed

304

321

(5)

551

578

(5)

552

555

(1)

795

956

(17)

2,133

2,242

(5)

373

426

(12)

Cost of goods sold

779

963

(19)

366

429

(15)

Gross margin - manufactured

16

(7)

n/m

7

(3)

n/m

Gross margin - other 1

4

(4)

n/m

Depreciation and amortization

84

80

5

Gross margin - total

20

(11)

n/m

Gross margin excluding depreciation

Expenses

799

29

n/m

and amortization - manufactured

91

77

18

EBIT

(779)

(40)

n/m

Depreciation and amortization

179

180

(1)

EBITDA

(600)

140

n/m

Impairment of assets

769

-

n/m

Adjusted EBITDA

169

140

21

1 Includes other phosphate and purchased products and is comprised of net sales of $87 million (2019 - $125 million) less cost of goods sold of $83 million (2019 - $129 million).

* Adjusted EBITDA increased in the third quarter and first nine months of 2020 primarily due to lower cost of goods sold per tonne. As part of our expenses, we recognized a $769 million non-cash impairment of assets which is added back to adjusted EBITDA. This impairment relates to a less favorable long-term outlook of phosphate selling prices and an expected global supply imbalance. * Sales volumes increased in the third quarter of 2020 compared to the third quarter last year due to higher fertilizer sales that more than offset lower industrial and feed sales. Sales volumes in the first nine months of 2020 decreased compared to the same period last year primarily due to the conversion of the Redwater phosphate facility to ammonium sulfate in 2019 and lower phosphoric acid exports in 2020. * Net realized selling price of phosphate fertilizer sales was lower than in the third quarter of last year due to the lag effect in realized prices, which was partially offset by higher industrial and feed prices. Net realized selling prices in the first nine months of 2020 were lower than the same period last year consistent with declines in global benchmark prices. * Cost of goods sold per tonne decreased in the third quarter of 2020 due to lower raw material costs and a favorable non-cash inventory adjustment. Cost of goods sold per tonne decreased significantly in the first nine months of 2020 compared to the same period last year primarily due to both lower raw material costs and a change in estimate related to an asset retirement obligation recorded in the second quarter of 2020.

Corporate and Others

Nine Months Ended September 30

(millions of US Dollars Tonnes (thousands) Average per Tonnedollars, except

as otherwise 2020 2019 % 2020 2019 % 2020 2019 %noted) Change Change Change

Manufactured product

Net sales

Fertilizer 491 635 (23) 1,582 1,664 (5) 310 382 (19)

Industrial and 304 321 (5) 551 578 (5) 552 555 (1)feed

795 956 (17) 2,133 2,242 (5) 373 426 (12)

Cost of goods 779 963 (19) 366 429 (15)sold

Gross margin - 16 (7) n/m 7 (3) n/mmanufactured

Gross margin - 4 (4) n/m Depreciation and 84 80 5other ^1 amortization

Gross margin - 20 (11) n/m Gross margin excluding total depreciation

Expenses 799 29 n/m and amortization - 91 77 18 manufactured

EBIT (779) (40) n/m

Depreciationand 179 180 (1) amortization

EBITDA (600) 140 n/m

Impairment of 769 - n/m assets

Adjusted EBITDA 169 140 21

1 Includes other phosphate and purchased products and is comprised of net salesof $87 million (2019 - $125 million) less cost of goods sold of $83 million(2019 - $129 million).

* Adjusted EBITDA increased in the third quarter and first nine months of 2020 primarily due to lower cost of goods sold per tonne. As part of our expenses, we recognized a $769 million non-cash impairment of assets which is added back to adjusted EBITDA. This impairment relates to a less favorable long-term outlook of phosphate selling prices and an expected global supply imbalance. * Sales volumes increased in the third quarter of 2020 compared to the third quarter last year due to higher fertilizer sales that more than offset lower industrial and feed sales. Sales volumes in the first nine months of 2020 decreased compared to the same period last year primarily due to the conversion of the Redwater phosphate facility to ammonium sulfate in 2019 and lower phosphoric acid exports in 2020. * Net realized selling price of phosphate fertilizer sales was lower than in the third quarter of last year due to the lag effect in realized prices, which was partially offset by higher industrial and feed prices. Net realized selling prices in the first nine months of 2020 were lower than the same period last year consistent with declines in global benchmark prices. * Cost of goods sold per tonne decreased in the third quarter of 2020 due to lower raw material costs and a favorable non-cash inventory adjustment. Cost of goods sold per tonne decreased significantly in the first nine months of 2020 compared to the same period last year primarily due to both lower raw material costs and a change in estimate related to an asset retirement obligation recorded in the second quarter of 2020.

Corporate and Others

(millions of US dollars, except Three Months Ended Nine Months Endedas otherwise September 30 September 30

noted) 2020 2019 % 2020 2019 % Change Change

Sales ^1 23 35 (34) 70 99 (29)

Cost of goods sold 20 35 (43) 63 99 (36)

Gross margin 3 - n/m 7 - n/m

Selling expenses (4) (5) (20) (17) (14) 21

General and administrative 66 65 2 191 191 -expenses

Provincial mining and other - 8 (100) 1 13 (92)taxes

Share-based compensation expense 29 (21) n/m 9 95 (91)(recovery)

Impairment of assets 5 - n/m 5 33 (85)

Other expenses 67 40 68 153 95 61

EBIT (160) (87) 84 (335) (413) (19)

Depreciation and amortization 15 10 50 41 32 28

EBITDA (145) (77) 88 (294) (381) (23)

Merger and related costs - 21 (100) - 57 (100)

Acquisition and integration 10 - n/m 38 - n/mrelated costs

Share-based compensation expense 29 (21) n/m 9 95 (91)(recovery)

Impairment of assets 5 - n/m 5 33 (85)

COVID-19 related expenses 11 - n/m 30 - n/m

Foreign exchange loss, net of 13 2 550 4 14 (71)related derivatives

Loss on disposal of business 6 - n/m 6 - n/m

Adjusted EBITDA (71) (75) (5) (202) (182) 11



Finance costs 129 147 (12) 401 413 (3)

Income tax (recovery) expense (264) 40 n/m (45) 346 n/m

Other comprehensive income 71 (75) n/m (86) (57) 51(loss)

1 Primarily relates to our non-core Canadian business which was sold in thethird quarter of 2020.

* Share-based compensation expense (recovery) - We had an expense for the third quarter of 2020 due to an increase in share price and a recovery for the comparative period in 2019 due to a decrease in share price. We had a lower expense for the first nine months of 2020 as our share price was negatively impacted from market volatility due to the COVID-19 pandemic in the first nine months of 2020. * Impairment of assets was lower for the first nine months of 2020 due to a $33 million impairment of our intangible assets as a result of Fertilizantes Heringer S.A. filing for bankruptcy protection in 2019. * Other expenses in the third quarter and first nine months of 2020 were higher due to project costs related to our Retail enterprise resource planning system as part of our digital transformation and COVID-19 related expenses. COVID-19 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. * Finance costs in the third quarter and first nine months of 2020 were slightly lower than the same periods last year. Lower interest rates more than offset higher finance costs incurred as we managed our immediate liquidity position during the initial months of the COVID-19 pandemic. * Income tax (recovery) expense - Income tax recoveries were recorded for the third quarter and first nine months of 2020 due to an impairment of assets, discrete tax recoveries primarily related to US legislative changes and a change in jurisdictional earnings composition. The discrete tax recoveries were $48 million and $59 million for the third quarter and first nine months of 2020, respectively. * Other comprehensive income (loss) - For the third quarter of 2020, we had higher other comprehensive income from a gain on translation of our Retail operations in Canada and Australia as the Canadian and Australian dollars appreciated relative to the US dollar as global markets rebounded following the COVID-19 pandemic in the early part of 2020. For the first nine months of 2020, we had a higher other comprehensive loss due primarily to a loss on translation of our Retail operations in Brazil as the Brazilian Real declined relative to the US dollar. There were also offsetting impacts from translation of our Canadian and Australian Retail operations.

Financial Condition Review

The following balance sheet categories contained variances that were considered significant:

As at

(millions of US dollars, except as September December $ %otherwise noted) 30, 2020 31, 2019 Change Change

Assets

Cash and cash equivalents 465 671 (206) (31)

Receivables 5,056 3,542 1,514 43

Inventories 3,829 4,975 (1,146) (23)

Prepaid expenses and other current 531 1,477 (946) (64)assets

Property, plant and equipment 19,308 20,335 (1,027) (5)

Liabilities and Equity

Short-term debt 1,644 976 668 68

Current portion of long-term debt - 502 (502) (100)

Payables and accrued charges 5,239 7,437 (2,198) (30)

Long-term debt 10,041 8,553 1,488 17

Retained earnings 6,477 7,101 (624) (9)

* Explanations for changes in Cash and cash equivalents are in the "Sources and Uses of Cash" section. * Receivables increased due to seasonal Retail sales resulting in higher receivables from customers and vendor rebates receivables. * Inventories decreased due to seasonal Retail sales activity. * Prepaid expenses and other current assets decreased due to the drawdown of prepaid inventory where Retail typically prepays for products at year-end and takes possession of inventory throughout the year. * Property, plant and equipment decreased primarily due to a non-cash impairment of our Phosphate production facilities as described in Note 3 to the interim financial statements. * Short-term debt increased from commercial paper issuances as part of our seasonal working capital management. * Payables and accrued charges decreased due to lower customer prepayments as Retail customers took delivery of prepaid products. This was partially offset by an increase related to a shift in timing of vendor payments. * Long-term debt (including current portion) increased due to the addition of $1.5 billion in notes issued in May 2020 exceeding the repayment of $500 million in notes that matured in the first quarter of 2020. * Retained earnings decreased due to dividends declared exceeding net earnings.

Liquidity and Capital Resources

Sources and Uses of Liquidity

We managed our capital in accordance with our capital allocation strategy. We believe that our internally generated cash flow, supplemented by available borrowings under our existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures and other cash requirements for at least the next 12 months. As further developments and impacts of COVID-19 are highly uncertain and cannot be predicted, we continue to monitor our liquidity position. Refer to the "Capital Structure and Management" section for details on our existing long-term debt and credit facilities.

Key uses and sources of cash and cash equivalents in the third quarter and/or nine months ended September 30, 2020 included:

* Investments in capital assets to sustain and grow our safe, reliable and cost-efficient operations. Sustaining capital expenditures were $203 million in the third quarter of 2020 and were $511 million in the first nine months of 2020. Investing capital expenditures were $96 million in the third quarter of 2020 and were $360 million for the first nine months of 2020. * Returns to our shareholders through dividends and share repurchases (See Note 9 to the interim financial statements). Dividends paid were $257 million in the third quarter of 2020 and were $771 million for the first nine months of 2020. Share repurchases were $nil in the third quarter of 2020 and were $160 million in the first nine months of 2020. * Other financing activities including the following: Issued $1.5 billion of notes on May 13, 2020. See Note 8 to the interim financial statements. Drew down $446 million and $801 million from our commercial paper during the three and nine months ended September 30, 2020, respectively. Repaid at maturity $500 million of 4.875 percent notes during the nine months ended September 30, 2020. See Note 8 to the interim financial statements. Established new committed revolving credit facilities totaling approximately $1.5 billion in March and April 2020, in response to the market uncertainty caused by the COVID-19 pandemic. We closed these credit facilities after the issuance of the new notes, as described above. During the first nine months of 2020, we drew down from and later repaid $3.5 billion of our revolving credit facilities to provide additional liquidity in the volatile market caused by the COVID-19 pandemic.

Sources and Uses of Cash

(millions of US dollars, Three Months Ended Nine Months Endedexcept as otherwise September 30 September 30

noted) 2020 2019 % 2020 2019 % Change Change

Cash (used in) provided by (685) 589 n/m 545 1,246 (56)operating activities

Cash used in investing (356) (904) (61) (1,209) (2,133) (43)activities

Cash provided by (used in) 85 272 (69) 465 (837) n/mfinancing activities

Effect of exchange ratechanges on cash and cash 6 (5) n/m (7) (22) (68)equivalents

Decrease in cash and cash (950) (48) n/m (206) (1,746) (88)equivalents

Cash and cash equivalents decreased by $950 million in the third quarter of 2020 compared to a decrease of $48 million in 2019 as a result of lower cash from our operating activities mainly due to lower crop nutrient prices and comparatively strong results in the third quarter of 2019. We also settled more trade payables due to the shift in timing of vendor payments from the second to third quarter of 2020.

As cash from operations decreased, we lowered our spend in investing activities through:

* A $305 million decrease in cash used for acquisitions compared to the same period in 2019. We acquired Ruralco in the third quarter of 2019 with no similar acquisition in the third quarter of 2020. * A $276 million decrease in capital expenditures compared to the same period in 2019 as we deferred or reduced capital projects mainly due to lower crop nutrient prices, as well as COVID-19 precautions.

Cash and cash equivalents decreased by $206 million in the nine months ended September 30, 2020 compared to a decrease of $1.7 billion in the nine months ended September 30, 2019.

Cash from our operating activities decreased as a result of lower crop nutrient prices. Despite this decrease, we had a $933 million decrease in short-term debt net proceeds compared to the same period in 2019, due to improved working capital management.

The decrease in our cash from operating activities was partially offset by:

* An approximately $900 million decrease in cash used for Retail acquisitions and capital expenditures compared to the same period in 2019. * A decrease of $1.8 billion in cash payments to shareholders in the form of share repurchases compared to the same period in 2019. * A $503 million decrease in long-term debt repayments compared to the same period in 2019.

Capital Structure and Management

Principal Debt Instruments

In response to the COVID-19 pandemic, we continue to monitor our liquidity position. We added new credit facilities of $1.5 billion in March and April 2020, which we subsequently closed in May 2020 after the issuance of the new notes described below. We use a combination of cash generated from operations and short-term and long-term debt to finance our operations. We are in compliance with our debt covenants and did not have any changes to our credit ratings in the nine months ended September 30, 2020.

Short-term Debt

As at September 30, 2020

(millions of US Rate of Total Outstanding and Remainingdollars) Interest (%) Facility Committed Available Limit

Credit facilities

Unsecured revolving NIL 4,500 - 4,500term credit facility

Uncommitted revolving NIL 500 - 500demand facility

Other credit facilities 0.8 - 9.5 600 193 407^1

Commercial paper 0.2 - 0.6 1,451

Total 1,644

1 Other credit facilities are unsecured and consist of South Americanfacilities with debt of $143 (December 31, 2019 - $149) and interest ratesranging from 2.0 percent to 9.5 percent, Australian facilities with debt of $24(December 31, 2019 - $157) and an interest rate of 1.3 percent, and otherfacilities with debt of $26 (December 31, 2019 - $20) and interest ratesranging from 0.8 percent to 4.0 percent.

The amount available under the commercial paper program is limited to the availability of backup funds under the $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities.

Long-term Debt

Our long-term debt consists primarily of notes. See the "Capital Structure and Management" section of our 2019 Annual Report for information on balances, rates and maturities for our notes. On May 13, 2020, we issued $1.5 billion in notes. See Note 8 to the interim financial statements. During the first quarter of 2020, we repaid the $500 million 4.875 percent notes that matured March 30, 2020.

Outstanding Share Data

As at October 30, 2020

Common shares 569,145,935

Options to purchase common shares 11,123,020

For more information on our capital structure and management, see Note 26 to our 2019 financial statements.

Quarterly Results

(millions ofUS dollars, Q3except as 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018otherwisenoted)

Sales 4,205 8,416 4,186 3,442 4,169 8,693 3,719 3,762

Net earnings(loss) from (587) 765 (35) (48) 141 858 41 296continuingoperations

Net earningsfrom - - - - - - - 2,906discontinuedoperations

Net earnings (587) 765 (35) (48) 141 858 41 3,202(loss)

Adjusted 670 1,721 508 664 787 1,870 704 924EBITDA

Earnings(loss) pershare ("EPS") fromcontinuingoperations

Basic (1.03) 1.34 (0.06) (0.08) 0.25 1.48 0.07 0.48

Diluted (1.03) 1.34 (0.06) (0.08) 0.24 1.47 0.07 0.48

EPS

Basic (1.03) 1.34 (0.06) (0.08) 0.25 1.48 0.07 5.23

Diluted (1.03) 1.34 (0.06) (0.08) 0.24 1.47 0.07 5.22

Seasonality in our business results from increased demand for products during the planting season. Crop input sales are generally higher in the spring and fall application seasons. Crop nutrient inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are concentrated in December and January and inventory prepayments paid to our vendors are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

Since the fourth quarter of 2019, Potash earnings have been impacted by lower net realized selling prices caused by a temporary slowdown in global demand. In the fourth quarter of 2018, earnings were impacted by $2.9 billion in after-tax gains on the sales of our investments in Sociedad Quimica y Minera de Chile S.A. and Arab Potash Company, which were categorized as discontinued operations. In the third quarter of 2020, earnings were impacted by non-cash impairments of property, plant and equipment primarily in the Phosphate segment as a result of lower forecasted global phosphate prices.

Risk Factors

Coronavirus Disease (COVID-19) Pandemic

Epidemics, pandemics or other such crises or public health concerns in regions of the world where we have operations or source material or sell products could impact or disrupt our business. Specifically, the ongoing COVID-19 outbreak has resulted in travel restrictions and extended shutdowns of certain businesses around the world, as well as a deterioration of general economic conditions. These or any governmental or other regulatory responses or developments or health concerns in countries in which we operate could result in operational restrictions or social and economic instability, or labor shortages. More specifically, there remains uncertainty relating to the potential impact that COVID-19 could ultimately have on our business. It is still possible that COVID-19 could impact our operations, create supply chain disruptions and/or limit our ability to timely sell or distribute our products in the future, which would negatively impact our business, financial condition and operating results. It is also possible that COVID-19 could negatively impact our customers, even though the agriculture sector is classified as an essential service. Any significant long-term downturn in the global economy or agricultural markets could impact the Company's access to capital or credit ratings, or our customers' access to liquidity, which could increase our counterparty credit exposure.

Critical Accounting Estimates

Our critical accounting policies are disclosed in our 2019 Annual Report. We have discussed the development, selection and application of our key accounting policies, and the critical accounting estimates and assumptions they involve, with the audit committee of the Board. Our critical accounting estimates are discussed on page 54 of our 2019 Annual Report. Other than the critical accounting estimates discussed below, there were no significant changes in the first nine months of 2020.

Long-lived Asset Impairment

During the three and nine months ended September 30, 2020, we identified an impairment indicator in our Phosphate cash generating units ("CGUs") due to lower long-term forecasted global phosphate prices and recorded impairments of assets in the statement of (loss) earnings relating to our property plant and equipment at Aurora and White Springs of $545 million and $215 million, respectively. See Note 3 to the interim financial statements.

The recoverable values of Aurora and White Springs are most sensitive to the following key assumptions: our internal sales price forecasts which consider projections from an independent third-party data source, discount rates, long-term growth rates, and expected mine life. We used key assumptions that were based on historical data and estimates of future results from internal sources, external price benchmarks, mineral reserve technical reports, as well as industry and market trends.

The following table highlights sensitivities to the recoverable value which could result in additional impairment losses or reversals of previously recorded losses. The sensitivities have been calculated independently of changes in other key variables.

Aurora

Increase (Decrease)

Key Assumptions Change in Assumption to Recoverable Value ($ millions)

Net selling price ? 10 per tonne ? 150

Discount rate ? 1.0 percentage point ? 120

For our White Springs CGU, there were no reasonably possible changes in the key assumptions that would result in a substantial change in the recoverable value.

At September 30, 2020, we performed impairment testing on the Trinidad CGU, part of our Nitrogen segment, due to the indefinite closure of an ammonia plant in response to market conditions and lower long-term forecasted global ammonia prices. No impairment resulted from comparing the carrying value of the Trinidad CGU to its recoverable value determined on a fair value less costs of disposal ("FVLCD") methodology. FVLCD was based on after-tax discounted cash flows (using a five-year projection and a 2.0% terminal growth rate) discounted at a post-tax rate of 12.6%.

The following table indicates the percentages by which key assumptions would need to change individually for the estimated Trinidad CGU recoverable value to be equal to the carrying value:

Change Required for Carrying

Key Assumptions Value to Equal Recoverable Value

Net selling price (5-year average) 4 percent decrease

Production volumes (5-year average) 5 percent decrease

Discount rate (post-tax) 0.9 percentage point increase

Controls and Procedures

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings. Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

There have been changes to our internal control over financial reporting during the quarter ended June 30, 2020. As part of our digital transformation, we have implemented a new enterprise resource planning system in the Retail segment resulting in a more automated control environment for our Canadian and Loveland Products operations. This change continues to materially affect our internal control over financial reporting.

As a result of the acquisition of Ruralco and the integration of the Australian Retail operations, the internal control over the Australian Retail operations will come into scope of the Company's internal control over financial reporting for the fourth quarter of 2020. The acquisition of Ruralco was previously excluded from management's evaluation of the effectiveness of the Company's internal control over financial reporting as of December 31, 2019 due to the proximity of the acquisition to year-end. The integration of the Australian Retail operations is expected to materially affect our internal control over financial reporting.

COVID-19 has also affected our business. During the quarter, corporate office staff and many site administrative staff have worked from home. This change has required certain processes and controls that were previously done or documented manually to be completed and retained in electronic form. This change has not materially affected our internal control over financial reporting.

Except as discussed herein, there have been no changes during the quarter ended September 30, 2020, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Forward-Looking Statements

Certain statements and other information included and incorporated by reference in this document 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 2020 annual guidance, including expectations regarding our adjusted net earnings per share, adjusted EBITDA (consolidated and by segment); capital spending expectations for 2020; expectations regarding our liquidity; expectations regarding performance of our operating segments in 2020, including the impact of our ammonia plant closure on our Nitrogen segment; our operating segment market outlooks and market conditions for 2020, including the impact of COVID-19 thereon, 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, crop mix, prices and the impact of import and export volumes; and acquisitions and divestitures, and the expected synergies associated with various acquisitions, including timing thereof. 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 an 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 at any acquired businesses 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; the completion of our expansion projects on schedule, as planned and on budget; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2020 and in the future; our expectations regarding the impacts, direct and indirect, of COVID-19 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; and the receipt, on time, of all necessary permits, utilities and project approvals with respect to our expansion projects and that we will have the resources necessary to meet the projects' approach.

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; regional natural gas supply restrictions; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; gas supply interruptions; any significant impairment of the carrying value 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 and its resulting effects on economic conditions, restrictions imposed by public health authorities or governments, 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 SEC in the United States.

The purpose of our expected adjusted net earnings per share and adjusted EBITDA (consolidated and by segment) guidance ranges are to assist readers in understanding our expected 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 and 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 2019 Annual Report dated February 19, 2020. 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 25 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 Tuesday, November 3, 2020 at 10:00 am Eastern Time.

* In order to expedite access to our conference call, each participant will be required to pre-register for the event: Online: http://www.directeventreg.com/registration/event/9668938. Via Phone: 1-888-869-1189 Conference ID 9668938. * Once the registration is complete, a confirmation will be sent providing the dial in number and both the Direct Event Passcode and your unique Registrant ID to join this call. For security reasons, please do not share your information with anyone else. * Live Audio Webcast: Visit http://www.nutrien.com/investors/events/2020-q3-earnings-conference-call

Appendix A - Selected Additional Financial Data

Three Months Nine Months EndedSelected Retail measures Ended September September 30 30

2020 2019 2020 2019

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

Crop nutrients 33 31 27 24

Crop protection products 43 39 40 42

Seed n/m 20 43 44

All products 25 27 27 28

Crop nutrients sales volumes (tonnes - thousands)

North America 1,159 1,202 7,683 7,254

International 741 533 2,364 1,677

Total 1,900 1,735 10,047 8,931

Crop nutrients selling price per tonne

North America 413 467 423 471

International 407 389 356 395

Total 411 443 407 457

Crop nutrients gross margin per tonne

North America 116 114 102 103

International 61 70 47 57

Total 94 101 89 95



Financial performance measures 2020 2020 Target Actuals

Retail Adjusted EBITDA to sales (%) ^1, 2 10 10

Retail adjusted average working capital 21 17to sales (%) ^1, 2

Retail cash operating coverage ratio (%) 61 62^1, 2

Retail Adjusted EBITDA per US selling 1,000 1,031location (thousands of US dollars) ^1, 2

1 Rolling four quarters ended September 30, 2020.

2 See the "Non-IFRS Financial Measures" section.

Nutrien Financial

As at September 30, 2020

(millions of US dollars)

Current

31-90 days past due

>90 days past due

Allowance 2

Total

Nutrien Financial receivables 1

1,661

37

35

(22)

1,711

1 See the "Non-IFRS Financial Measures" section.

2 Allowance for expected credit losses of receivables from customers.

Nutrien Financial As at September 30, 2020

(millions of US dollars) Current 31-90 days past >90 days past Allowance Total due due ^2

Nutrien Financial 1,661 37 35 (22) 1,711receivables ^1

1 See the "Non-IFRS Financial Measures" section.

2 Allowance for expected credit losses of receivables from customers.

Selected Nitrogen measures

Three Months Ended September 30

Nine Months Ended September 30

2020

2019

2020

2019

Sales volumes (tonnes - thousands)

Fertilizer

1,426

1,304

5,010

4,204

Industrial and feed

977

1,218

3,111

3,704

Net sales (millions of US dollars)

Fertilizer

280

316

1,108

1,155

Industrial and feed

161

217

559

726

Net selling price per tonne

Fertilizer

196

243

221

275

Industrial and feed

166

178

180

196

Selected Nitrogen measures Three Months Ended Nine Months Ended September 30 September 30

2020 2019 2020 2019

Sales volumes (tonnes - thousands)

Fertilizer 1,426 1,304 5,010 4,204

Industrial and feed 977 1,218 3,111 3,704

Net sales (millions of US dollars)

Fertilizer 280 316 1,108 1,155

Industrial and feed 161 217 559 726

Net selling price per tonne

Fertilizer 196 243 221 275

Industrial and feed 166 178 180 196

Production measures

Three Months Ended September 30

Nine Months Ended September 30

2020

2019

2020

2019

Potash production (Product tonnes - thousands)

3,430

2,977

9,811

9,761

Potash shutdown weeks 1

4

11

38

27

Nitrogen production (Ammonia tonnes - thousands) 2

1,413

1,529

4,479

4,763

Ammonia operating rate (%) 3

91

85

93

90

Phosphate production (P2O5 tonnes - thousands) 4

354

374

1,083

1,124

Phosphate P2O5 operating rate (%)4

83

87

85

88

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.

3 Excludes Trinidad and Joffre.

4 Excludes Redwater.

Appendix B - Non-IFRS Financial Measures

We use both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are numerical measures of a company's performance, that either exclude or include amounts that are not normally excluded or included in the most directly comparable measures calculated and presented in accordance with IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.

Management believes the non-IFRS financial measures 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 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, their definitions 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 are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As non-recurring, unusual or other non-operational items arise, we generally exclude these items in our calculation.

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, Merger and related costs, certain acquisition and integration related costs, share-based compensation, impairment of assets, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses and loss on disposal of business. In the first and third quarter of 2020, respectively, we have amended our calculation of adjusted EBITDA to adjust for the impact of COVID-19 related expenses and loss on disposal of business. There were no similar expenses in the comparative period. To align with the change in our segment performance measure effective in the third quarter of 2020, we will primarily use Adjusted EBITDA going forward as our consolidated performance measure.

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.

Three Months Nine MonthsProduction measures Ended Ended September 30 September 30

2020 2019 2020 2019

Potash production (Product tonnes - thousands) 3,430 2,977 9,811 9,761

Potash shutdown weeks ^1 4 11 38 27

Nitrogen production (Ammonia tonnes - thousands) 1,413 1,529 4,479 4,763^2

Ammonia operating rate (%) ^3 91 85 93 90

Phosphate production (P[2]O[5 ]tonnes - 354 374 1,083 1,124thousands) ^4

Phosphate P[2]O[5] operating rate (%)[ ]^4 83 87 85 88

1 Represents weeks of full production shutdown, excluding the impact of anyperiods of reduced operating rates and planned routine annual maintenanceshutdowns and announced workforce reductions.

2 All figures are provided on a gross production basis.

3 Excludes Trinidad and Joffre.

4 Excludes Redwater.

Appendix B - Non-IFRS Financial Measures

We use both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are numerical measures of a company's performance, that either exclude or include amounts that are not normally excluded or included in the most directly comparable measures calculated and presented in accordance with IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.

Management believes the non-IFRS financial measures 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 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, their definitions 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 are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As non-recurring, unusual or other non-operational items arise, we generally exclude these items in our calculation.

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, Merger and related costs, certain acquisition and integration related costs, share-based compensation, impairment of assets, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses and loss on disposal of business. In the first and third quarter of 2020, respectively, we have amended our calculation of adjusted EBITDA to adjust for the impact of COVID-19 related expenses and loss on disposal of business. There were no similar expenses in the comparative period. To align with the change in our segment performance measure effective in the third quarter of 2020, we will primarily use Adjusted EBITDA going forward as our consolidated performance measure.

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.

Three Months Nine Months Ended September Ended September 30 30

(millions of US dollars) 2020 2019^ 1 2020 2019^ 1

Net (loss) earnings (587) 141 143 1,040

Finance costs 129 147 401 413

Income tax (recovery) expense (264) 40 (45) 346

Depreciation and amortization 500 457 1,490 1,363

EBITDA (222) 785 1,989 3,162

Merger and related costs - 21 - 57

Acquisition and integration related costs 10 - 38 -

Share-based compensation expense (recovery) 29 (21) 9 95

Impairment of assets 823 - 823 33

COVID-19 related expenses 11 - 30 -

Foreign exchange loss, net of related 13 2 4 14derivatives

Loss on disposal of business 6 - 6 -

Adjusted EBITDA 670 787 2,899 3,361

1 In the fourth quarter of 2019, we amended our calculations of adjustedEBITDA and restated the comparative periods to exclude the impact of foreignexchange gain/loss, net of related derivatives, as foreign exchange changesare not indicative of our operating performance.

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 excludes the impacts of acquisition and integration related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), and COVID-19 related expenses.

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: Net earnings (loss) before certain acquisition and integration related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses (including those recorded under finance costs), loss on disposal of business and impairment of assets, net of tax. In 2020, we have amended our calculation of adjusted net loss to adjust for the impact of COVID-19 related expenses and loss on disposal of business.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations excluding the effects of non-operating items.

Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020

Per Per

(millions ofUS dollars, Increases Diluted Increases Dilutedexcept asotherwise

noted) (Decreases) Post-Tax Share (Decreases) Post-Tax Share

Net (loss) (587) (1.03) 143 0.25earnings

Adjustments:

Acquisitionandintegration 10 8 0.01 38 31 0.06relatedcosts

Share-basedcompensation 29 23 0.04 9 7 0.01expense

Impairment 823 661 1.16 823 661 1.16of assets

COVID-19related 14 11 0.02 45 36 0.06expenses

Foreignexchangeloss, net of 13 10 0.02 4 3 0.01relatedderivatives

Loss ondisposal of 6 5 0.01 6 5 0.01business

Adjusted net 131 0.23 886 1.56earnings

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

Most directly comparable IFRS financial measure: Cash from operations before working capital changes.

Definition: Cash from operations before working capital changes less sustaining capital expenditures. We also calculate a similar measure which includes changes in non-cash operating working capital.

Why we use the measure and why it is useful to investors: For evaluation of liquidity and financial strength, and as a component of employee remuneration calculations. 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 Nine Months Ended September 30 September 30

(millions of US dollars) 2020 2019 2020 2019

Cash from operations before working 483 585 2,145 2,686capital changes

Sustaining capital expenditures (203) (256) (511) (667)

Free cash flow 280 329 1,634 2,019

Changes in non-cash operating working (1,168) 4 (1,600) (1,440)capital

Free cash flow including changes in (888) 333 34 579non-cash operating working capital

Potash Cash Cost of Product Manufactured ("COPM")

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

Definition: 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 Nine Months Ended September 30 September 30

(millions of US dollars, except as 2020 2019 2020 2019otherwise noted)

Total COGS - Potash 303 303 878 892

Change in inventory 4 (26) (28) (1)

Other adjustments - (4) (5) (16)

COPM 307 273 845 875

Depreciation and amortization (124) (87) (305) (292)included in COPM

Cash COPM 183 186 540 583

Production tonnes (tonnes - 3,430 2,977 9,811 9,761thousands)

Potash cash COPM per tonne 53 62 55 60

Ammonia Controllable Cash COPM

Most directly comparable IFRS financial measure: 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 Nine Months Ended September 30 September 30

(millions of US dollars, except as 2020 2019 2020 2019otherwise noted)

Total COGS - Nitrogen 482 469 1,708 1,652

Depreciation and amortization in (113) (109) (395) (340)COGS

Cash COGS for products other than (287) (262) (1,017) (952)ammonia

Ammonia

Total cash COGS before other 82 98 296 360adjustments

Other adjustments ^1 (11) (2) (46) (35)

Total cash COPM 71 96 250 325

Natural gas and steam costs (45) (62) (164) (221)

Controllable cash COPM 26 34 86 104

Production tonnes (net tonnes ^2 - 557 755 1,945 2,343thousands)

Ammonia controllable cash COPM per 47 45 44 44tonne

1 Includes changes in inventory balances and other adjustments.

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

Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured

Most directly comparable IFRS financial measure: Gross margin.

Definition: Gross margin 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.

Retail Adjusted EBITDA to Sales

Most directly comparable IFRS financial measure: Retail adjusted EBITDA divided by Retail sales.

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

Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A higher or lower percentage represents increased or decreased efficiency, respectively. In the third quarter of 2020, we revised this measure from EBITDA to Adjusted EBITDA to align with how we evaluate Retail results. There were no changes to this measure as a result of the change.

Rolling four quarters ended September 30, 2020

(millions of US dollars, except as Q4 Q1 Q2 Q3 Totalotherwise noted) 2019 2020 2020 2020

Adjusted EBITDA 231 7 964 162 1,364

Sales 2,171 2,649 6,749 2,720 14,289

Adjusted EBITDA to sales (%) 10

Nutrien Financial Receivables

Most directly comparable IFRS financial measure: Receivables.

Definition: Nutrien Financial receivables are a subcategory of US Retail receivables managed in the Nutrien Financial portfolio, segregated predominately according to credit quality. We manage our credit portfolio based on a combination of customer credit metrics, experience with the customer and by managing exposure to any single customer.

Why we use the measure and why it is useful to investors: Used by credit rating agencies and other users to evaluate overall credit risk.

(millions of US dollars) As at September 30, 2020

Nutrien Financial receivables 1,711

Non-Nutrien Financial receivables 3,345

Receivables 5,056

Retail Adjusted Average Working Capital to Sales

Most directly comparable IFRS financial measure: (Current assets minus current liabilities for Retail) divided by Retail sales.

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) during the first year following the acquisition. We have amended our calculation to adjust for the sales of certain recently acquired businesses.

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.

Rolling four quarters ended September 30, 2020

(millions of US dollars, except as Q4 Q1 Q2 Q3 Average/otherwise noted) 2019 2020 2020 2020 Total

Working capital 1,759 2,288 2,030 3,216

Working capital from certain recent (138) (108) 63 - acquisitions

Adjusted working capital 1,621 2,180 2,093 3,216 2,278



Sales 2,171 2,649 6,749 2,720

Sales from certain recent (249) (348) (338) - acquisitions

Adjusted sales 1,922 2,301 6,411 2,720 13,354

Adjusted average working capital to 17sales (%)

Retail Cash Operating Coverage Ratio

Most directly comparable IFRS financial measure: Retail operating expenses as a percentage of Retail gross margin.

Definition: Retail operating 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 September 30, 2020

(millions of US dollars, except as Q4 Q1 Q2 Q3 Totalotherwise noted) 2019 2020 2020 2020

Operating expenses ^1 667 677 811 669 2,824

Depreciation and amortization in (160) (153) (161) (167) (641)operating expenses

Operating expenses excluding depreciation 507 524 650 502 2,183and amortization



Gross margin 736 529 1,612 661 3,538

Depreciation and amortization in cost of 2 2 2 3 9goods sold

Gross margin excluding depreciation and 738 531 1,614 664 3,547amortization

Cash operating coverage ratio (%) 62

1 Includes Retail expenses below gross margin including selling expenses,general and administrative expenses and other (income) expenses.

Retail Adjusted EBITDA per US Selling Location

Most directly comparable IFRS financial measure: Retail US adjusted EBITDA.

Definition: Total Retail US adjusted EBITDA for the last four rolling quarters, adjusted for 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.

Why we use the measure and why it is useful to investors: To assess our US Retail operating performance. This measure includes locations we have owned for more than 12 months. In the third quarter of 2020, we revised this measure from US EBITDA to US adjusted EBITDA to align with how we evaluate Retail results. There were no changes to this measure as a result of the change.

Rolling four quarters ended September 30, 2020

(millions of US dollars, except as Q4 Q1 Q2 Q3 Totalotherwise noted) 2019 2020 2020 2020

Adjusted US EBITDA 143 (44) 766 86 951

Adjustments for acquisitions (11)

Adjusted US EBITDA adjusted for 940acquisitions

Number of US selling locations adjusted 912for acquisitions

Adjusted EBITDA per US selling location 1,031(thousands of US dollars)

Condensed Consolidated Financial Statements

Unaudited in millions of US dollars except as otherwise noted

Condensed Consolidated Statements of (Loss) Earnings

Three Months Ended Nine Months Ended

September 30 September 30

Note 2020 2019 2020 2019

Note 1 Note 1

SALES 2 4,205 4,169 16,807 16,581

Freight,transportation and 204 210 653 596distribution

Cost of goods sold 3,004 2,819 12,129 11,558

GROSS MARGIN 997 1,140 4,025 4,427

Selling expenses 676 607 2,081 1,835

General andadministrative 107 97 312 287expenses

Provincial mining 58 92 163 253and other taxes

Share-basedcompensation expense 29 (21) 9 95(recovery)

Impairment of assets 3 823 - 823 33

Other expenses 4 26 37 138 125

(LOSS) EARNINGSBEFORE FINANCE COSTS (722) 328 499 1,799AND INCOME TAXES

Finance costs 129 147 401 413

(LOSS) EARNINGS (851) 181 98 1,386BEFORE INCOME TAXES

Income tax 5 (264) 40 (45) 346(recovery) expense

NET (LOSS) EARNINGS (587) 141 143 1,040

NET (LOSS) EARNINGS PER SHARE ("EPS")

Basic (1.03) 0.25 0.25 1.78

Diluted (1.03) 0.24 0.25 1.77

Weighted averageshares outstanding 569,146,000 572,887,000 569,818,000 585,421,000for basic EPS

Weighted averageshares outstanding 569,146,000 573,702,000 569,818,000 586,335,000for diluted EPS



Condensed Consolidated Statements of Comprehensive (Loss) Income

Three Months Nine Months Ended Ended

September 30 September 30

(Net of related income taxes) 2020 2019 2020 2019

NET (LOSS) EARNINGS (587) 141 143 1,040

Other comprehensive income (loss)

Items that will not be reclassified to net (loss) earnings:

Net actuarial gain on defined benefit plans - - 3 -

Net fair value loss on investments (4) (11) (25) (26)

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

Gain (loss) on currency translation of foreign 69 (71) (52) (36)operations

Other 6 7 (12) 5

OTHER COMPREHENSIVE INCOME (LOSS) 71 (75) (86) (57)

COMPREHENSIVE (LOSS) INCOME (516) 66 57 983



(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Cash Flows

Three Months Nine Months Ended Ended

September 30 September 30

Note 2020 2019 2020 2019

Note 1 Note 1

OPERATING ACTIVITIES

Net (loss) earnings (587) 141 143 1,040

Adjustments for:

Depreciation and amortization 500 457 1,490 1,363

Share-based compensation expense 29 (21) 9 95(recovery)

Impairment of assets 3 823 - 823 33

(Recovery of) provision for deferred (161) 31 (99) 178income tax

Other long-term liabilities and (121) (23) (221) (23)miscellaneous

Cash from operations before working 483 585 2,145 2,686capital changes

Changes in non-cash operating working capital:

Receivables 692 624 (1,455) (1,427)

Inventories 407 541 1,153 1,239

Prepaid expenses and other current (77) (23) 936 801assets

Payables and accrued charges (2,190) (1,138) (2,234) (2,053)

CASH (USED IN) PROVIDED BY OPERATING (685) 589 545 1,246ACTIVITIES

INVESTING ACTIVITIES

Additions to property, plant and (266) (518) (927) (1,177)equipment

Additions to intangible assets (19) (43) (87) (118)

Business acquisitions, net of cash 10 (43) (348) (216) (837)acquired

Proceeds from disposal of - - - 55discontinued operations, net of tax

Purchase of investments (13) (42) (79) (164)

Other (15) 47 100 108

CASH USED IN INVESTING ACTIVITIES (356) (904) (1,209) (2,133)

FINANCING ACTIVITIES

Transaction costs on long-term debt - - (15) (29)

Proceeds from short-term debt, net 397 575 601 1,534

Proceeds from long-term debt 8 14 - 1,520 1,510

Repayment of long-term debt 8 - (11) (507) (1,010)

Repayment of principal portion of (69) (49) (203) (166)lease liabilities

Dividends paid 9 (257) (244) (771) (764)

Repurchase of common shares 9 - - (160) (1,930)

Issuance of common shares - 1 - 18

CASH PROVIDED BY (USED IN) FINANCING 85 272 465 (837)ACTIVITIES

EFFECT OF EXCHANGE RATE CHANGES ON 6 (5) (7) (22)CASH AND CASH EQUIVALENTS

DECREASE IN CASH AND CASH (950) (48) (206) (1,746)EQUIVALENTS

CASH AND CASH EQUIVALENTS - 1,415 616 671 2,314BEGINNING OF PERIOD

CASH AND CASH EQUIVALENTS - END OF 465 568 465 568PERIOD

Cash and cash equivalents comprised of:

Cash 328 326 328 326

Short-term investments 137 242 137 242

465 568 465 568

SUPPLEMENTAL CASH FLOWS INFORMATION

Interest paid 85 111 334 353

Income taxes paid 27 46 92 1

Total cash outflow for leases 78 89 266 253



(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Changes in Shareholders' Equity

Accumulated Other Comprehensive (Loss) Income ("AOCI")

Net

Actuarial Loss on

Net Fair Gain on Currency

Number of Value Defined Translation

Common Share Contributed Loss on Benefit of Foreign Total Retained Total

Shares Capital Surplus Investments Plans ^1 Operations Other AOCI Earnings Equity ^2

BALANCE -DECEMBER 31, 608,535,477 16,740 231 (7) - (251) (33) (291) 7,745 24,4252018

Net earnings - - - - - - - - 1,040 1,040

Othercomprehensive - - - (26) - (36) 5 (57) - (57)(loss) income

Sharesrepurchased (36,066,766) (992) - - - - - - (886) (1,878)(Note 9)

Dividends - - - - - - - - (496) (496)declared

Effect ofshare-basedcompensation 431,485 21 13 - - - - - - 34includingissuance ofcommon shares

Transfer ofnet loss on - - - 4 - - - 4 (4) -sale ofinvestment

Transfer ofnet loss on - - - - - - 8 8 - 8cash flowhedges

BALANCE -SEPTEMBER 30, 572,900,196 15,769 244 (29) - (287) (20) (336) 7,399 23,0762019

BALANCE -DECEMBER 31, 572,942,809 15,771 248 (29) - (204) (18) (251) 7,101 22,8692019

Net earnings - - - - - - - - 143 143

Othercomprehensive - - - (25) 3 (52) (12) (86) - (86)(loss) income

Sharesrepurchased (3,832,580) (105) (55) - - - - - - (160)(Note 9)

Dividends - - - - - - - - (770) (770)declared

Effect ofshare-basedcompensation 35,706 1 10 - - - - - - 11includingissuance ofcommon shares

Transfer ofnet loss on - - - - - - 13 13 - 13cash flowhedges

Transfer ofnet actuarialgain on - - - - (3) - - (3) 3 -definedbenefit plans

BALANCE -SEPTEMBER 30, 569,145,935 15,667 203 (54) - (256) (17) (327) 6,477 22,0202020

1 Any amounts incurred during a period were transferred to retained earnings ateach period-end. Therefore, no balance exists at the beginning or end ofperiod.

2 All equity transactions were attributable to common shareholders.



(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Balance Sheets

September 30 December 31

As at Note 2020 2019 2019

ASSETS

Current assets

Cash and cash equivalents 465 568 671

Receivables 5,056 4,843 3,542

Inventories 3,829 3,873 4,975

Prepaid expenses and other current assets 531 440 1,477

9,881 9,724 10,665

Non-current assets

Property, plant and equipment 3 19,308 20,045 20,335

Goodwill 10 12,179 11,983 11,986

Other intangible assets 2,352 2,330 2,428

Investments 809 809 821

Other assets 742 538 564

TOTAL ASSETS 45,271 45,429 46,799

LIABILITIES

Current liabilities

Short-term debt 7 1,644 2,287 976

Current portion of long-term debt 8 - 501 502

Current portion of lease liabilities 230 219 214

Payables and accrued charges 5,239 4,615 7,437

7,113 7,622 9,129

Non-current liabilities

Long-term debt 8 10,041 8,555 8,553

Lease liabilities 847 793 859

Deferred income tax liabilities 5 3,053 3,137 3,145

Pension and other post-retirement benefit 446 425 433liabilities

Asset retirement obligations and accrued 1,575 1,662 1,650environmental costs

Other non-current liabilities 176 159 161

TOTAL LIABILITIES 23,251 22,353 23,930

SHAREHOLDERS' EQUITY

Share capital 9 15,667 15,769 15,771

Contributed surplus 203 244 248

Accumulated other comprehensive loss (327) (336) (251)

Retained earnings 6,477 7,399 7,101

TOTAL SHAREHOLDERS' EQUITY 22,020 23,076 22,869

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 45,271 45,429 46,799



(See Notes to the Condensed Consolidated Financial Statements)

Notes to the Condensed Consolidated Financial StatementsAs at and for the Three and Nine Months Ended September 30, 2020

NOTE 1BASIS 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.

These unaudited interim condensed consolidated financial statements ("interim financial statements") are based on International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") and have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting". The accounting policies and methods of computation used in preparing these interim financial statements are consistent with those used in the preparation of our 2019 annual consolidated financial statements. These interim 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 2019 annual consolidated financial statements.

Certain immaterial 2019 figures have been reclassified in the condensed consolidated statements of (loss) earnings, condensed consolidated statements of cash flows and segment information.

In management's opinion, the interim financial statements include all adjustments necessary to fairly present such information in all material respects. Interim results are not necessarily indicative of the results expected for any other interim period or the fiscal year. On March 11, 2020, the World Health Organization declared the novel strain of coronavirus ("COVID-19") a global pandemic. We have assessed our accounting estimates and other matters that require the use of forecasted financial information for the impact of the COVID-19 pandemic. The assessment included estimates of the unknown future impacts of the pandemic using information that is reasonably available at this time. Accounting estimates and other matters assessed include the allowance for expected credit losses of receivables from customers, inventory valuation, goodwill and other long-lived assets, financial assets, tax assets, pension obligation and assets, and revenue recognition. Based on our current assessment, there was not a material impact to these interim financial statements. As additional information becomes available, the future assessment of these estimates, including expectations about the severity, duration and scope of the pandemic, could differ materially in future reporting periods.

These interim financial statements were authorized by the audit committee of the Board of Directors for issue on November 2, 2020.

NOTE 2 SEGMENT INFORMATION

The Company has four reportable operating segments: Retail, Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and 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 produces. Sales reported under our Corporate and Others segment primarily relates to our non-core Canadian business which was sold in the third quarter of 2020.

In the third quarter of 2020, our Chief Operating Decision Maker changed the measure used to evaluate the performance of our operating segments from net earnings (loss) before finance costs, income taxes, and depreciation and amortization ("EBITDA") to adjusted EBITDA. Adjusted EBITDA provides a better indication of the segments performance as it excludes the impact of impairments and other costs that are centrally managed by our corporate function. Due to the change in the measurement of the segments, we have presented adjusted EBITDA for the comparative periods.

Three Months Ended September 30, 2020

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third 2,712 634 524 312 23 - 4,205 party

- 8 63 103 40 - (214) - intersegment

Sales - total 2,720 697 627 352 23 (214) 4,205

Freight,transportation and - 106 87 60 - (49) 204distribution

Net sales 2,720 591 540 292 23 (165) 4,001

Cost of goods sold 2,059 303 482 293 20 (153) 3,004

Gross margin 661 288 58 (1) 3 (12) 997

Selling expenses 669 3 7 1 (4) - 676

General andadministrative 34 2 3 2 66 - 107expenses

Provincial mining - 58 - - - - 58and other taxes

Share-basedcompensation - - - - 29 - 29expense

Impairment of - 22 27 769 5 - 823assets

Other (income) (34) (1) (16) 10 67 - 26expenses

(Loss) earningsbefore finance (8) 204 37 (783) (160) (12) (722)costs and incometaxes

Depreciation and 170 124 131 60 15 - 500amortization

EBITDA 162 328 168 (723) (145) (12) (222)

Acquisition andintegration - - - - 10 - 10related costs

Share-basedcompensation - - - - 29 - 29expense

Impairment of - 22 27 769 5 - 823assets

COVID-19 related - - - - 11 - 11expenses

Foreign exchangeloss, net of - - - - 13 - 13relatedderivatives

Loss on disposal - - - - 6 - 6of business

Adjusted EBITDA 162 350 195 46 (71) (12) 670

Assets - at 19,722 12,005 10,805 1,362 1,760 (383) 45,271September 30, 2020

Three Months Ended September 30, 2019

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

- third party

2,489

748

564

333

35

-

4,169

- intersegment

10

68

115

43

-

(236)

-

Sales

- total

2,499

816

679

376

35

(236)

4,169

Freight, transportation and distribution

-

107

77

62

-

(36)

210

Net sales

2,499

709

602

314

35

(200)

3,959

Cost of goods sold

1,844

303

469

329

35

(161)

2,819

Gross margin

655

406

133

(15)

-

(39)

1,140

Selling expenses

601

2

7

2

(5)

-

607

General and administrative expenses

28

-

4

-

65

-

97

Provincial mining and other taxes

-

83

1

-

8

-

92

Share-based compensation recovery

-

-

-

-

(21)

-

(21)

Other (income) expenses

(12)

1

1

7

40

-

37

Earnings (loss) before finance costs and income taxes

38

320

120

(24)

(87)

(39)

328

Depreciation and amortization

152

110

127

58

10

-

457

EBITDA

190

430

247

34

(77)

(39)

785

Merger and related costs

-

-

-

-

21

-

21

Share-based compensation recovery

-

-

-

-

(21)

-

(21)

Foreign exchange loss, net of

related derivatives

-

-

-

-

2

-

2

Adjusted EBITDA

190

430

247

34

(75)

(39)

787

Assets - at December 31, 2019

19,990

11,696

10,991

2,198

2,129

(205)

46,799

Three Months Ended September 30, 2019

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third 2,489 748 564 333 35 - 4,169 party

- 10 68 115 43 - (236) - intersegment

Sales - total 2,499 816 679 376 35 (236) 4,169

Freight,transportation and - 107 77 62 - (36) 210distribution

Net sales 2,499 709 602 314 35 (200) 3,959

Cost of goods sold 1,844 303 469 329 35 (161) 2,819

Gross margin 655 406 133 (15) - (39) 1,140

Selling expenses 601 2 7 2 (5) - 607

General andadministrative 28 - 4 - 65 - 97expenses

Provincial mining - 83 1 - 8 - 92and other taxes

Share-basedcompensation - - - - (21) - (21)recovery

Other (income) (12) 1 1 7 40 - 37expenses

Earnings (loss)before finance 38 320 120 (24) (87) (39) 328costs and incometaxes

Depreciation and 152 110 127 58 10 - 457amortization

EBITDA 190 430 247 34 (77) (39) 785

Merger and related - - - - 21 - 21costs

Share-basedcompensation - - - - (21) - (21)recovery

Foreign exchangeloss, net of - - - - 2 - 2relatedderivatives

Adjusted EBITDA 190 430 247 34 (75) (39) 787

Assets - at 19,990 11,696 10,991 2,198 2,129 (205) 46,799December 31, 2019

Nine Months Ended September 30, 2020

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

- third party

12,091

1,798

1,925

923

70

-

16,807

- intersegment

27

191

481

146

-

(845)

-

Sales

- total

12,118

1,989

2,406

1,069

70

(845)

16,807

Freight, transportation and distribution

-

293

335

187

-

(162)

653

Net sales

12,118

1,696

2,071

882

70

(683)

16,154

Cost of goods sold

9,316

878

1,708

862

63

(698)

12,129

Gross margin

2,802

818

363

20

7

15

4,025

Selling expenses

2,068

7

19

4

(17)

-

2,081

General and administrative expenses

102

5

7

7

191

-

312

Provincial mining and other taxes

-

161

1

-

1

-

163

Share-based compensation expense

-

-

-

-

9

-

9

Impairment of assets

-

22

27

769

5

-

823

Other (income) expenses

(13)

4

(25)

19

153

-

138

Earnings (loss) before finance costs and income taxes

645

619

334

(779)

(335)

15

499

Depreciation and amortization

488

329

453

179

41

-

1,490

EBITDA

1,133

948

787

(600)

(294)

15

1,989

Acquisition and integration related costs

-

-

-

-

38

-

38

Share-based compensation expense

-

-

-

-

9

-

9

Impairment of assets

-

22

27

769

5

-

823

COVID-19 related expenses

-

-

-

-

30

-

30

Foreign exchange loss, net of related derivatives

-

-

-

-

4

-

4

Loss on disposal of business

-

-

-

-

6

-

6

Adjusted EBITDA

1,133

970

814

169

(202)

15

2,899

Assets - at September 30, 2020

19,722

12,005

10,805

1,362

1,760

(383)

45,271

Nine Months Ended September 30, 2020

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third 12,091 1,798 1,925 923 70 - 16,807 party

- 27 191 481 146 - (845) - intersegment

Sales - total 12,118 1,989 2,406 1,069 70 (845) 16,807

Freight,transportation and - 293 335 187 - (162) 653distribution

Net sales 12,118 1,696 2,071 882 70 (683) 16,154

Cost of goods sold 9,316 878 1,708 862 63 (698) 12,129

Gross margin 2,802 818 363 20 7 15 4,025

Selling expenses 2,068 7 19 4 (17) - 2,081

General andadministrative 102 5 7 7 191 - 312expenses

Provincial mining - 161 1 - 1 - 163and other taxes

Share-basedcompensation - - - - 9 - 9expense

Impairment of - 22 27 769 5 - 823assets

Other (income) (13) 4 (25) 19 153 - 138expenses

Earnings (loss)before finance 645 619 334 (779) (335) 15 499costs and incometaxes

Depreciation and 488 329 453 179 41 - 1,490amortization

EBITDA 1,133 948 787 (600) (294) 15 1,989

Acquisition andintegration - - - - 38 - 38related costs

Share-basedcompensation - - - - 9 - 9expense

Impairment of - 22 27 769 5 - 823assets

COVID-19 related - - - - 30 - 30expenses

Foreign exchangeloss, net of - - - - 4 - 4relatedderivatives

Loss on disposal - - - - 6 - 6of business

Adjusted EBITDA 1,133 970 814 169 (202) 15 2,899

Assets - at 19,722 12,005 10,805 1,362 1,760 (383) 45,271September 30, 2020

Nine Months Ended September 30, 2019

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

- third party

11,022

2,328

2,033

1,099

99

-

16,581

- intersegment

28

178

487

160

-

(853)

-

Sales

- total

11,050

2,506

2,520

1,259

99

(853)

16,581

Freight, transportation and distribution

-

252

275

178

-

(109)

596

Net sales

11,050

2,254

2,245

1,081

99

(744)

15,985

Cost of goods sold

8,546

892

1,652

1,092

99

(723)

11,558

Gross margin

2,504

1,362

593

(11)

-

(21)

4,427

Selling expenses

1,816

7

21

5

(14)

-

1,835

General and administrative expenses

82

-

11

3

191

-

287

Provincial mining and other taxes

-

237

2

1

13

-

253

Share-based compensation expense

-

-

-

-

95

-

95

Impairment of assets

-

-

-

-

33

-

33

Other expenses (income)

39

(2)

(27)

20

95

-

125

Earnings (loss) before finance costs and income taxes

567

1,120

586

(40)

(413)

(21)

1,799

Depreciation and amortization

433

324

394

180

32

-

1,363

EBITDA

1,000

1,444

980

140

(381)

(21)

3,162

Merger and related costs

-

-

-

-

57

-

57

Share-based compensation expense

-

-

-

-

95

-

95

Impairment of assets

-

-

-

-

33

-

33

Foreign exchange loss, net of related derivatives

-

-

-

-

14

-

14

Adjusted EBITDA

1,000

1,444

980

140

(182)

(21)

3,361

Assets - at December 31, 2019

19,990

11,696

10,991

2,198

2,129

(205)

46,799

Presented below is revenue from contracts with customers disaggregated by product line or geographic location for each reportable segment to show how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Nine Months Ended September 30, 2019

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third 11,022 2,328 2,033 1,099 99 - 16,581 party

- 28 178 487 160 - (853) - intersegment

Sales - total 11,050 2,506 2,520 1,259 99 (853) 16,581

Freight,transportation and - 252 275 178 - (109) 596distribution

Net sales 11,050 2,254 2,245 1,081 99 (744) 15,985

Cost of goods sold 8,546 892 1,652 1,092 99 (723) 11,558

Gross margin 2,504 1,362 593 (11) - (21) 4,427

Selling expenses 1,816 7 21 5 (14) - 1,835

General andadministrative 82 - 11 3 191 - 287expenses

Provincial mining - 237 2 1 13 - 253and other taxes

Share-basedcompensation - - - - 95 - 95expense

Impairment of - - - - 33 - 33assets

Other expenses 39 (2) (27) 20 95 - 125(income)

Earnings (loss)before finance 567 1,120 586 (40) (413) (21) 1,799costs and incometaxes

Depreciation and 433 324 394 180 32 - 1,363amortization

EBITDA 1,000 1,444 980 140 (381) (21) 3,162

Merger and related - - - - 57 - 57costs

Share-basedcompensation - - - - 95 - 95expense

Impairment of - - - - 33 - 33assets

Foreign exchangeloss, net of - - - - 14 - 14relatedderivatives

Adjusted EBITDA 1,000 1,444 980 140 (182) (21) 3,361

Assets - at 19,990 11,696 10,991 2,198 2,129 (205) 46,799December 31, 2019

Presented below is revenue from contracts with customers disaggregated by product line or geographic location for each reportable segment to show how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

Three Months Ended Nine Months Ended

September 30 September 30

2020 2019 2020 2019

Retail sales by product line

Crop nutrients 780 769 4,092 4,082

Crop protection products 1,328 1,318 4,774 4,348

Seed 103 60 1,638 1,613

Merchandise 234 135 703 387

Services and other 275 217 911 620

2,720 2,499 12,118 11,050

Potash sales by geography

Manufactured product

North America 358 437 1,002 1,084

Offshore ^1 339 379 987 1,421

Other potash and purchased products - - - 1

697 816 1,989 2,506

Nitrogen sales by product line

Manufactured product

Ammonia 129 172 576 713

Urea 214 239 780 801

Solutions, nitrates and sulfates 177 193 606 613

Other nitrogen and purchased products 107 75 444 393

627 679 2,406 2,520

Phosphate sales by product line

Manufactured product

Fertilizer 216 205 622 752

Industrial and feed 105 119 342 359

Other phosphate and purchased products 31 52 105 148

352 376 1,069 1,259

1 Relates to Canpotex Limited ("Canpotex") (Note 12).

NOTE 3 IMPAIRMENT OF ASSETS

During the three and nine months ended September 30, 2020, we recorded the following impairments of assets in the statement of (loss) earnings relating to our property plant and equipment:

Cash-generating units ("CGUs") Aurora White Springs

Segment Phosphate

Impairment indicator Lower long-term forecasted global phosphate prices

Pre-tax impairment loss ($) 545 215

Recoverable value ($) 995 (post-tax) 160 (pre-tax)

Fair value lessValuation technique costs of disposal Value in use ("FVLCD") a Level 3 measurement

Key assumptions

End of mine life (proven and 2050 2029probable reserves) (year)

Long-term growth rate (%) 2.0 n/a

Post-tax discount rate (%) 10.5 12.0 (pre-tax - 16.0)

For our Aurora CGU, the recoverable value was based on after-tax discounted cash flows (using a five-year projection and a terminal year thereafter to the expected mine life), which incorporated assumptions an independent market participant would apply. For our White Springs CGU, the recoverable value was based on pre-tax discounted cash flows until the end of the mine life.

The recoverable value is most sensitive to the following key assumptions: our internal sales price forecasts which consider projections from an independent third-party data source, discount rates, long-term growth rates, and expected mine life. We used key assumptions that were based on historical data and estimates of future results from internal sources, external price benchmarks, mineral reserve technical reports, as well as industry and market trends.

The following table highlights sensitivities to the recoverable value which could result in additional impairment losses or reversals of previously recorded losses. The sensitivities have been calculated independently of changes in other key variables.

Aurora

Increase (Decrease)

Key Assumptions Change in Assumption to Recoverable Value ($)

Net selling price ? 10 per tonne ? 150

Discount rate ? 1.0 percentage point ? 120

For our White Springs CGU, there were no reasonably possible changes in the key assumptions that would result in a substantial change in the recoverable value.

At September 30, 2020, we performed impairment testing on the Trinidad CGU, part of our Nitrogen segment, due to the indefinite closure of an ammonia plant in response to market conditions and lower long-term forecasted global ammonia prices. No impairment resulted from comparing the carrying value of the Trinidad CGU to its recoverable value determined on a FVLCD methodology. FVLCD was based on after-tax discounted cash flows (using a five-year projection and a 2.0% terminal growth rate) discounted at a post-tax rate of 12.6%.

The following table indicates the percentages by which key assumptions would need to change individually for the estimated Trinidad CGU recoverable value to be equal to the carrying value:

Change Required for Carrying

Key Assumptions Value to Equal Recoverable Value

Net selling price (5-year average) 4 percent decrease

Production volumes (5-year average) 5 percent decrease

Discount rate (post-tax) 0.9 percentage point increase

During the nine months ended September 30, 2020, we also recorded $63 of impairment losses relating to other non-current assets.

NOTE 4OTHER EXPENSES (INCOME)

Three Months Nine Months Ended Ended

September 30 September 30

2020 2019 2020 2019

Merger and related costs - 21 - 57

Acquisition and integration related costs 10 - 38 -

Foreign exchange loss, net of related 14 2 1 14derivatives

Earnings of equity-accounted investees (23) (6) (46) (53)

Bad debt (recovery) expense (18) 3 9 38

COVID-19 related expenses 11 - 30 -

Loss on disposal of business 6 - 6 -

Other expenses 26 17 100 69

26 37 138 125

NOTE 5INCOME TAXES

A separate estimated average annual effective income tax rate was determined for each taxing jurisdiction and applied individually to the interim period pre-tax earnings for each jurisdiction.

Three Months Nine Months Ended Ended

September 30 September 30

2020 2019 2020 2019

Income tax (recovery) expense (264) 40 (45) 346

Actual effective tax rate on loss/earnings 26 22 14 25(%)

Actual effective tax rate including discrete 31 22 (47) 25items (%)

Discrete tax adjustments that impacted the (48) 1 (59) 5tax rate

Income tax balances within the condensed consolidated balance sheets were comprised of the following:

Income Tax Assets and Balance Sheet As at September As at DecemberLiabilities Location 30, 2020 31, 2019

Income tax assets

Current Receivables 50 104

Non-current Other assets 213 36

Deferred income tax Other assets 258 249assets

Total income tax 521 389assets

Income tax liabilities

Current Payables and accrued 105 43 charges

Non-current Other non-current 40 44 liabilities

Deferred income tax Deferred income tax 3,053 3,145liabilities liabilities

Total income tax 3,198 3,232liabilities

NOTE 6FINANCIAL INSTRUMENTS

Fair Value

Estimated fair values for financial instruments are designed to approximate amounts for which the instruments could be exchanged in a current arm's-length transaction between knowledgeable, willing parties. The valuation policies and procedures for financial reporting purposes are determined by our finance department. There have been no changes to our valuation methods presented in Note 12 of the 2019 annual consolidated financial statements and those valuation methods have been applied in these interim financial statements.

The following table presents our fair value hierarchy for financial instruments carried at fair value on a recurring basis or measured at amortized cost:

September 30, 2020 December 31, 2019

Carrying Carrying

Financial assets Level 1 Level 2 Level 1 Level 2(liabilities) Amount ^1 ^1 Amount ^1 ^1measured at

Fair value on a recurring basis

Cash and cash 465 - 465 671 - 671equivalents

Derivative 31 - 31 5 - 5instrument assets

Other currentfinancial assets - 155 23 132 193 27 166marketablesecurities ^2

Investments at 135 135 - 161 161 -FVTOCI ^3

Derivativeinstrument (35) - (35) (33) - (33)liabilities

Amortized cost

Current portion of long-term debt

Notes and - - - (494) - (503)debentures

Fixed and floating - - - (8) - (8)rate debt

Long-term debt

Notes and (10,003) (7,911) (3,494) (8,528) (1,726) (7,440)debentures

Fixed and floating (38) - (38) (25) - (25)rate debt

1 During the period ended September 30, 2020, there were no transfers betweenLevel 1 and Level 2 for financial instruments measured at fair value on arecurring basis.

2 Marketable securities consist of equity and fixed income securities. Wedetermine the fair value of equity securities based on the bid price ofidentical instruments in active markets. We value fixed income securities usingquoted prices of instruments with similar terms and credit risk.

3 Investments at fair value through other comprehensive income ("FVTOCI") arecomprised of shares in Sinofert Holdings Ltd.

NOTE 7SHORT-TERM DEBT

Short-term debt was comprised of:

Total Facility As at As at Rate of Limit as September December Interest (%) at September 30, 2020 31, 2019 30, 2020

Credit facilities

Unsecured revolving NIL 4,500 - -term credit facility

Uncommitted revolving NIL 500 - -demand facility

Other credit 0.8 - 9.5 600 193 326facilities ^1

Commercial paper 0.2 - 0.6 1,451 650

1,644 976

1 Other credit facilities are unsecured and consist of South Americanfacilities with debt of $143 (December 31, 2019 - $149) and interest ratesranging from 2.0 percent to 9.5 percent, Australian facilities with debt of $24(December 31, 2019 - $157) and an interest rate of 1.3 percent, and otherfacilities with debt of $26 (December 31, 2019 - $20) and interest ratesranging from 0.8 percent to 4.0 percent.

The amount available under the commercial paper program is limited to the availability of backup funds under the $4,500 unsecured revolving term credit facility and excess cash invested in highly liquid securities.

During the nine months ended September 30, 2020, we entered into new committed revolving credit facilities totaling approximately $1,500, all with the same principal covenants and events of default as our existing credit facilities. We closed these credit facilities after the issuance of the new notes as described in Note 8.

NOTE 8LONG-TERM DEBT

The following tables summarize our long-term debt issuances and repayment activities during the nine months ended September 30, 2020:

Rate of interest (%) Maturity Amount

Notes issued 2020 1.900 May 13, 2023 500

Notes issued 2020 2.950 May 13, 2030 500

Notes issued 2020 3.950 May 13, 2050 500

1,500

The notes issued in 2020 are unsecured, rank equally with our existing unsecured notes, and have no sinking fund requirements prior to maturity. Each series is redeemable and provides for redemption prior to maturity, at our option, at specified prices.

Rate of interest (%) Maturity Amount

Notes repaid 2020 4.875 March 30, 2020 500

In March 2020, we filed a base shelf prospectus in Canada and the US qualifying the issuance of up to $5,000 of common shares, debt and other securities during a period of 25 months from March 16, 2020. Issuance of securities requires us to file a prospectus supplement and is subject to availability of funding in capital markets. During the nine months ended September 30, 2020, we filed a prospectus supplement to issue $1,500 of notes, as described above.

NOTE 9SHARE CAPITAL

Share repurchase programs

Board of Directors Expiry Maximum Shares for Approval Repurchase

2019 Normal Course February 20, 2019 February 42,164,420Issuer Bid ^1 26, 2020

2020 Normal Course February 18, 2020 February 28,572,458Issuer Bid ^2 26, 2021

1 The 2019 normal course issuer bid permitted the repurchase of up to 7 percentof our outstanding common shares for cancellation. As of the expiry date, wehad repurchased 33,256,668 of the maximum shares for repurchase.

2 The 2020 normal course issuer bid permits the repurchase of up to 5 percentof our outstanding common shares for cancellation and can expire earlier thanthe date above if we acquire the maximum number of common shares allowable orotherwise decide not to make any further repurchases.

Purchases under the normal course issuer bids were, or may be, made through open market purchases at market prices as well as by other means permitted by applicable securities regulatory authorities, including private agreements.

The following table summarizes our share repurchase activities during the period:

Three Months Nine Months Ended Ended

September 30 September 30

2020 2019 2020 2019

Number of common shares repurchased for - - 3,832,580 36,066,766cancellation

Average price per share (US dollars) - - 41.96 52.07

Total cost - - 160 1,878

Dividends declared

We declared dividends per share of $0.45 (2019 - $0.45) during the three months ended September 30, 2020, payable on October 16, 2020 to shareholders of record on September 30, 2020 and $1.35 (2019 - $0.88) during the nine months ended September 30, 2020.

NOTE 10BUSINESS ACQUISITIONS

Ruralco

On September 30, 2019, we acquired Ruralco Holdings Limited ("Ruralco") for a purchase price, net of cash and cash equivalents acquired, of $330. We have completed our assessment of identifying and measuring all the assets acquired and liabilities assumed. This assessment included a thorough review of all internal and external sources of information available on circumstances that existed at the acquisition date. We engaged independent valuation experts to assist in determining the fair value of certain assets acquired and liabilities assumed. The significant fair value considerations used in determining the allocation of purchase price are consistent with those disclosed in Note 4 of the 2019 annual consolidated financial statements.

Other Acquisitions

During the nine months ended September 30, 2020, we acquired several businesses, the largest of which was Tec Agro Group, a leading agriculture retailer in Brazil. The acquired businesses include 37 Retail locations in North and South America and Australia. Expected benefits of the acquisitions include expansion of geographical coverage for the sale of crop input products and services, an increased customer base and workforce, and synergies between Nutrien and the acquired businesses.

The fair values allocated to the acquired assets and assumed liabilities were as follows:

September 30, 2020

Ruralco Other Acquisitions

Preliminary Final ^1 Adjustments Fair Preliminary Value

Receivables 318 (2) 316 ^ 69 2

Inventories 115 (3) 112 63

Prepaid expenses and 8 (1) 7 4other current assets

Property, plant and 136 4 140 53equipment

Goodwill 207 29 236 184

Other intangible assets 210 (2) 208 -

Investments 15 - 15 -

Other assets 16 (14) 2 -

Total assets 1,025 11 1,036 373

Short-term debt 167 - 167 36

Payables and accrued 363 (39) 324 111charges

Lease liabilities, 110 - 110 -including current portion

Deferred income tax 42 (11) 31 1liabilities

Other non-current 13 61 74 9liabilities

Total liabilities 695 11 706 157

Total consideration 330 - 330 216

1 As previously reported in our second quarter financial statements. Werecorded additional adjustments to the preliminary fair value primarily relatedto changes in the preliminary valuation assumptions, including refinement ofour liabilities. All measurement period adjustments were offset againstgoodwill.

2 Includes receivables from customers with gross contractual amounts of $260,of which $7 are considered to be uncollectible.

Financial information related to business acquisitions is as follows:

Pro Forma ^1 Other Acquisitions

Sales 320

EBIT 24

1 Estimated annual sales and earnings before finance costs and income taxes("EBIT") if acquisitions occurred at January 1, 2020.

Three Months Ended

Nine Months Ended

September 30, 2020

September 30, 2020

From date of acquisition

Other Acquisitions

Other Acquisitions

Sales

60

100

EBIT

6

6

NOTE 11SEASONALITY

Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application season. The results of this seasonality have a corresponding effect on receivables from customers and rebates receivables, inventories, prepaid expenses and other current assets and trade payables. Our short-term debt also fluctuates during the year to meet working capital needs. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are typically concentrated in December and January and inventory prepayments paid to our vendors are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

NOTE 12RELATED PARTY TRANSACTIONS

We sell potash from our Canadian mines for use outside Canada and the United States exclusively to Canpotex. Canpotex sells potash to buyers in export markets pursuant to term and spot contracts at agreed upon prices. Our revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. Sales to Canpotex are shown in Note 2.

Three Months Ended Nine Months Ended

September 30, 2020 September 30, 2020

From date of acquisition Other Acquisitions Other Acquisitions

Sales 60 100

EBIT 6 6

NOTE 11SEASONALITY

Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application season. The results of this seasonality have a corresponding effect on receivables from customers and rebates receivables, inventories, prepaid expenses and other current assets and trade payables. Our short-term debt also fluctuates during the year to meet working capital needs. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are typically concentrated in December and January and inventory prepayments paid to our vendors are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

NOTE 12RELATED PARTY TRANSACTIONS

We sell potash from our Canadian mines for use outside Canada and the United States exclusively to Canpotex. Canpotex sells potash to buyers in export markets pursuant to term and spot contracts at agreed upon prices. Our revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. Sales to Canpotex are shown in Note 2.

As at September 30, 2020 December 31 ,2019

Receivables from Canpotex 201 194

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CONTACT: Investor Relations: Richard Downey Vice President, Investor Relations (403) 225-7357 Investors@nutrien.com

CONTACT: Tim Mizuno Director, Investor Relations (306) 933-8548

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CONTACT: Contact us at: www.nutrien.com