Business Wire | May 3, 2021 05:36PM EDT

Nutrien Delivers Excellent First Quarter Results; Expects Strong Spring Season & Raises Annual Guidance

May 03, 2021

SASKATOON, Saskatchewan--(BUSINESS WIRE)--May 03, 2021--Nutrien Ltd. (TSX and NYSE: NTR) announced today its first-quarter 2021 results, with net earnings of $133 million($0.22 diluted earnings per share). First-quarter adjusted net earnings1 were $0.29 per share and adjusted EBITDA1 was $806 million.

"Our earnings and free cash flow1 results highlight the strength of our integrated business model, execution of strategic initiatives and the recovery in global agricultural markets. Nutrien delivered a record first quarter for Retail and strong fertilizer volumes and margins," commented Mayo Schmidt, Nutrien's President and CEO.

"Crop prices and cash margins are at multi-year highs and growers are responding accordingly with increased seeded acreage and a focus on maximizing yields and our team at Nutrien is supporting them at every level. We are delivering the end-to-end services and products they need including our full suite of crop inputs, digital tools and innovative and sustainable solutions that help achieve higher yields. This is a very exciting time for Nutrien, and the team is focused on executing Nutrien's strategy and achieving operational excellence across our business," added Mr. Schmidt.

Highlights:

* Nutrien generated $476 million in free cash flow in the first quarter of 2021, more than double that of the first quarter in 2020, while adjusted EBITDA increased by nearly 60 percent compared to the first quarter of 2020. * Nutrien Ag Solutions ("Retail") delivered a record $109 million in adjusted EBITDA in the first quarter of 2021, reflecting strong business performance and supportive market conditions across virtually all product categories and key regions where we operate. Retail sales increased 12 percent and gross margin percentage was 22 percent in the first quarter of 2021 compared to 20 percent in the first quarter of 2020 due to strong sales performance, higher gross margin on proprietary products and the benefits of supply chain improvements and strategic procurement. Rolling four quarter Retail adjusted EBITDA to sales exceeded 10 percent and was more than 11 percent in the US. Retail also improved its cash operating coverage ratio1 and lowered its adjusted average working capital1 by nearly $800 million compared to the first quarter of 2020. Retail adjusted EBITDA per US selling location1 surpassed $1.1 million and digital platform sales doubled compared to the first quarter of 2020, and accounted for nearly 20 percent of North American sales. * Potash adjusted EBITDA increased 33 percent in the first quarter of 2021 compared to the same period in 2020, due to higher net realized selling prices and sales volumes. Our Potash sales volumes were near record levels for a first quarter due to continued strong demand in North American and offshore markets. Potash cash cost of product manufactured1 was $57 per tonne in the first quarter of 2021, down $3 per tonne from the same period in 2020, despite headwinds from a stronger Canadian dollar. * Nitrogen adjusted EBITDA increased 27 percent in the first quarter of 2021 compared to the same quarter in 2020 primarily due to higher net realized selling prices. Sales volumes decreased due to lower opening inventories this year after a strong fall application season and reduced production in Trinidad. * In April 2021, Nutrien released its "Feeding the Future Plan" and Environmental, Social and Governance ("ESG") Report which includes aggressive long-term targets and commitments including an at least 30 percent2 reduction in greenhouse gas emissions (scope 1 and 2) intensity by 2030 and scaling our end-to-end and on-farm Carbon Program. Uptake of our Carbon Program pilot exceeded expectations and we will provide an update on the program and our broader ESG strategy and targets in June 2021. * Nutrien raised full-year 2021 adjusted net earnings per share1 and adjusted EBITDA1 guidance to $2.55 to $3.25 per share and $4.4 billion to $4.9 billion, respectively. First-half 2021 guidance is provided at $2.00 to $2.20 adjusted net earnings per share.

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1 This financial measure including related guidance, if applicable, is anon-IFRS financial measure. See the "Non-IFRS Financial Measures" section forfurther information.

2 From 2018 levels.

Management's Discussion and Analysis

The following management's discussion and analysis ("MD&A") is the responsibility of management and is dated as of May 3, 2021. 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 2020 Annual Report dated February 18, 2021, which includes our annual audited consolidated financial statements and MD&A and our Annual Information Form, each for the year ended December 31, 2020, 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 months ended March 31, 2021 ("interim financial statements") based on International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board 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

* Crop prices are at multi-year highs supported by strong global demand and less than expected supply from major production regions. The rally in crop prices highlights the tightness in global supply and demand balances and the sensitivity to any potential supply risk in 2021. Planting is in full swing across much of North America and we expect US corn and soybean acreage combined could be approximately four million acres above the United States Department of Agriculture's Prospective Plantings report. * We anticipate crop input expenditures will increase more than three percent in key markets where we operate, supported by higher planted acreage and crop prices, as well as, higher crop protection and crop nutrient prices. * We expect record Brazilian crop margins will drive further increases in acreage in the second half of 2021. Safrinha corn planting is complete, but yield potential may be constrained by planting delays and weather which could further tighten the supply and demand balance for corn. * Soil moisture is favorable for Australian winter crop planting and production and growers are expected to increase their spend on all crop inputs due to increased income realized in 2020 and a strong outlook for 2021 crop prices.

Crop Nutrient Markets

* Robust agricultural fundamentals and favorable potash affordability continue to support potash use and prices, particularly for granular product. Given strong demand, we continue to expect record global potash shipments in 2021 of 68 to 70 million tonnes. Strong global demand led to recent potash contracts in India settling at $280 per tonne, which is $33 per tonne higher than the previous contract settled at the end of January. * Global nitrogen prices were supported by strong agriculture fundamentals and a resurgence of industrial demand. Tampa ammonia contract prices have more than doubled since December 2020, as an already tight market was squeezed further by global production outages. US urea and UAN prices have also increased driven by the strong demand for the spring application season, coupled with production outages and slower than normal imports in the first half of the fertilizer year. * We project Chinese urea exports in 2021 will be between 4.0 and 5.5 million tonnes, higher than previously anticipated but lower compared to 5.5 million tonnes in 2020. This is a result of higher expected operating rates, as increased urea prices more than offset elevated feedstock costs. * High crop prices, tight availability and the final rulings on US countervailing duties supported phosphate prices but we anticipate some pressure on historically high production margins going forward due to the significant increase in raw material costs.

Financial Outlook and Guidance

Based on market factors detailed above, we are raising full-year 2021 adjusted net earnings guidance to $2.55 to $3.25 per share from $2.05 to $2.75 per share and full-year 2021 adjusted EBITDA guidance to $4.4 to $4.9 billion from $4.0 to $4.5 billion. First-half 2021 guidance is provided at $2.00 to $2.20 adjusted net earnings per share.

All guidance numbers, including those noted above are outlined in the tables below. Refer to page 57 of Nutrien's 2020 Annual Report for related assumptions and sensitivities.

2021 Guidance Ranges ^1 Low High

Adjusted net earnings per share ^2 $ 2.55 $ 3.25

Adjusted EBITDA (billions) ^2 $ 4.4 $ 4.9

Retail Adjusted EBITDA (billions) $ 1.55 $ 1.65

Potash Adjusted EBITDA (billions) $ 1.5 $ 1.7

Nitrogen Adjusted EBITDA (billions) $ 1.3 $ 1.5

Phosphate Adjusted EBITDA (millions) $ 275 $ 375

Potash sales tonnes (millions)^ 3 12.5 13.0

Nitrogen sales tonnes (millions) ^3 10.9 11.4

Depreciation and amortization (billions) $ 1.9 $ 2.0

Effective tax rate on adjusted earnings 23 % 25 %

Sustaining capital expenditures (billions) ^2 $ 1.1 $ 1.2

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

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 March 31

(millions of US dollars) 2021 2020 % Change

Sales ^1 4,658 4,198 11

Freight, transportation and distribution 211 212 -

Cost of goods sold 3,291 3,101 6

Gross margin ^1 1,156 885 31

Expenses ^1 878 803 9

Net earnings (loss) 133 (35) n/m

Adjusted EBITDA ^2 806 508 59

Cash used in operating activities (152) (526) 71

Free cash flow ("FCF") ^2 476 181 163

FCF including changes in non-cash operating working (316) (689) 54capital ^2

1 Certain immaterial figures have been reclassified for the three months endedMarch 31, 2020.

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

Net earnings and adjusted EBITDA increased significantly in the first quarter of 2021 compared to the same period in 2020 due to strong Nutrien Ag Solutions ("Retail") earnings growth, higher crop nutrient net realized selling prices and higher North American potash sales. Cash flow from operating activities increased in the first quarter of 2021 compared to the first quarter of 2020 helping to generate $476 million in free cash flow, more than double compared to the amount generated in the first quarter of 2020. The COVID-19 pandemic had limited impact on our results 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 months ended March 31, 2021 to the results for the three months ended March 31, 2020, unless otherwise noted.

Nutrien Ag Solutions ("Retail")

Three Months Ended March 31

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

as otherwise noted) 2021 2020 % 2021 2020 % 2021 2020 Change Change

Sales

Crop nutrients 1,016 785 29 220 156 41 22 20

Crop protection 1,085 1,010 7 176 157 12 16 16products

Seed 463 394 18 69 59 17 15 15

Merchandise 230 216 6 38 34 12 17 16

Nutrien Financial 25 16 56 25 16 56 100 100

Services and other 173 255 (32) 144 134 7 83 53^1

Nutrien Financial (20) (15) 33 (20) (15) 33 100 100elimination ^2

2,972 2,661 12 652 541 21 22 20

Cost of goods sold 2,320 2,120 9

Gross margin 652 541 21

Expenses ^1,3 721 689 5

Earnings (loss)before finance

costs and taxes (69) (148) (53) ("EBIT")

Depreciation and 177 155 14 amortization

EBITDA 108 7 n/m

Integration andrestructuring

related costs 1 - n/m

Adjusted EBITDA 109 7 n/m

1 Certain immaterial figures have been reclassified for the three months endedMarch 31, 2020.

2 Represents elimination for the interest and service fees charged by NutrienFinancial to Retail branches.

3 Includes selling expenses of $667 million (2020 - $635 million).

* Adjusted EBITDA increased in the first quarter of 2021 due to higher sales and margins across virtually all product categories and all key regions where we operate. This was supported by strong agricultural market fundamentals, expanded acreage expectations, as well as, supply chain improvements and strategic procurement. Gross margin increased due to strong sales and ongoing efficiency initiatives which also lowered our Retail cash operating coverage ratio1 to 60 percent from 62 percent. * Crop nutrients sales increased significantly in the first quarter of 2021 as sales volumes and gross margin per tonne both increased 19 percent. North American sales volumes were up 12 percent, supported by strong spring applications ahead of planting. Gross margin percentage increased in the first quarter of 2021 due to strategic procurement in a rising price environment. * Crop protection products sales increased in the first quarter of 2021 due to our market growth and favorable application conditions. Gross margin percentage increased by 0.6 percent supported by strong proprietary product results, higher prices, supply chain improvements and the benefit of recent accretive acquisitions in Brazil. * Seed sales in the first quarter of 2021 increased due to higher grower planting intentions in key regions where we operate, resulting from strong global crop prices and agriculture fundamentals. Gross margin percentage was stable with improved proprietary results offsetting an elevated competitive environment in the US. * Merchandise sales and gross margin percentage increased in the first quarter of 2021 primarily driven by growth in the US market and strong results in Australia. * Nutrien Financial sales increased due to higher utilization and adoption of our programs. * Services and other sales decreased as the divestiture of an Australian livestock export business more than offset much higher North American custom application sales. Despite the change in revenue mix, gross margin increased in Australia and other key markets resulting in a much higher gross margin percentage in the first quarter of 2021.

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1 This financial measure including related guidance, if applicable, is anon-IFRS financial measure. See the "Non-IFRS Financial Measures" section forfurther information.

Potash

Three Months Ended March 31

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

as otherwise 2021 2020 % 2021 2020 % 2021 2020 %noted) Change Change Change

Manufactured product

Net sales

North America 332 225 48 1,470 1,147 28 226 196 15

Offshore 279 292 (4) 1,687 1,730 (2) 166 169 (2)

611 517 18 3,157 2,877 10 194 180 8

Cost of goods 291 265 10 92 92 -sold

Gross margin - 320 252 27 102 88 16total

Expenses ^1 64 63 2 Depreciation and 39 33 18 amortization

EBIT 256 189 35 Gross margin excluding depreciation

Depreciation and 124 96 29 and amortization - 141 121 17amortization manufactured ^2

Potash cash cost of product

EBITDA / 380 285 33 manufactured ^2 57 60 (5)Adjusted EBITDA

1 Includes provincial mining taxes of $58 million (2020 - $57 million).

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

* Adjusted EBITDA increased in the first quarter of 2021 due to the combination of stronger demand and higher net realized selling prices, particularly in the North American market, as momentum from the fourth quarter of 2020 carried into the first quarter of 2021. Demand from most offshore spot markets was also very strong and net realized selling prices reflected a significant strengthening in prices from the fourth quarter of 2020. Cost of goods sold per tonne, excluding the impact of depreciation and amortization decreased by $6 per tonne. * Sales volumes in the first quarter of 2021 increased due to a continuation of exceptionally strong demand in North America and offshore spot markets. The expectation of higher planted acreage in the US, strong crop prices and compelling potash affordability have all supported sales volumes. Offshore sales volumes were slightly lower due to logistics challenges associated with shipping out of the West Coast of Canada due to extremely cold weather in February, which delayed shipment of approximately 300,000 tonnes of committed sales into the rest of 2021. * Net realized selling price increased as strong demand led to higher prices in North America. Offshore net realized selling prices increased $10 per tonne from the fourth quarter of 2020 but were slightly lower than the first quarter of 2020. * Cost of goods sold per tonne in the first quarter of 2021 was similar to the same quarter last year primarily due to lower cash production costs offsetting higher depreciation and amortization per tonne associated with production mix. Potash cash cost of product manufactured was $57 per tonne, down from $60 per tonne in the same quarter in 2020, despite the stronger Canadian dollar.

Canpotex Sales by Market

Three Months Ended March 31

(percentage of sales volumes, except as otherwise 2021 2020 Changenoted)

Other Asian markets ^1 37 29 8

Latin America 30 25 5

China 15 27 (12)

Other markets 12 7 5

India 6 12 (6)

100 100

1 All Asian markets except China and India.

Nitrogen

Three Months Ended March 31

(millions of US Dollars Tonnes (thousands) Average per Tonne^dollars, except

as otherwise 2021 2020 % 2021 2020 % 2021 2020 %noted) Change Change Change

Manufactured product

Net sales

Ammonia 160 130 23 572 567 1 278 229 21

Urea 249 237 5 757 856 (12) 329 277 19

Solutions,nitrates and 164 163 1 1,074 1,105 (3) 153 148 3

sulfates

573 530 8 2,403 2,528 (5) 238 210 13

Cost of goods 440 444 (1) 183 176 4sold

Gross margin - 133 86 55 55 34 62manufactured

Gross margin - 17 11 55 Depreciation and 54 59 (8)other ^1 amortization

Gross margin - 150 97 55 Gross margin excluding total depreciation

(Income) (17) 11 n/m and amortization - 109 93 17expenses manufactured

EBIT 167 86 94 Ammonia controllable cash cost of

Depreciation and 129 150 (14) product manufactured 52 47 11amortization ^2

EBITDA 296 236 25

Impairment of 4 - n/m assets

Adjusted EBITDA 300 236 27

1 Includes other nitrogen (including ESN(r) and Rainbow) and purchased productsand is comprised of net sales of $187 million (2020 - $148 million) less costof goods sold of $170 million (2020 - $137 million).

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

* Adjusted EBITDA increased in the first quarter of 2021 due to higher net realized selling prices and a $30 million benefit in income related to natural gas price arbitrage during the cold weather events in February. * Sales volumes were slightly lower in the first quarter of 2021 due to reduced production in Trinidad and lower starting inventories in 2021, resulting from the robust fall application season in 2020 compared to 2019. Our ammonia operating rate reached 97 percent in the first quarter of 2021, matching our highest level on record. * Net realized selling price of nitrogen was higher due to higher benchmark prices resulting from the strength in global agriculture markets and a recovery in industrial nitrogen demand. * Cost of goods sold per tonne increased as a result of higher natural gas prices, plant outages and a stronger Canadian dollar which more than offset lower depreciation and amortization. These factors also led to a higher ammonia controllable cash cost of product manufactured per tonne in the first quarter of 2021.

Natural Gas Prices in Cost of Production

Three Months Ended March 31

(US dollars per MMBtu, except as otherwise noted) 2021 2020 % Change

Overall gas cost excluding realized derivative 3.17 2.24 42impact

Realized derivative impact 0.02 0.05 (60)

Overall gas cost 3.19 2.29 39



Average NYMEX 2.69 1.95 38

Average AECO 2.30 1.62 42

* Natural gas prices in our cost of production increased in the first quarter of 2021 as a result of higher North American gas index prices and increased gas costs in Trinidad, which are linked to ammonia benchmark prices.

Phosphate

Three Months Ended March 31

(millions of US Dollars Tonnes (thousands) Average per Tonne^dollars, except

as otherwise 2021 2020 % 2021 2020 % 2021 2020 %noted) Change Change Change

Manufactured product

Net sales

Fertilizer 230 173 33 509 568 (10) 453 305 49

Industrial and 114 106 8 193 191 1 589 556 6feed

344 279 23 702 759 (8) 490 368 33

Cost of goods sold 282 287 (2) 401 379 6

Gross margin - 62 (8) n/m 89 (11) n/mmanufactured

Gross margin - 4 1 300 Depreciation and 54 83 (35)other ^1 amortization

Gross margin - Gross margintotal 66 (7) n/m excluding depreciation

Expenses 7 10 (30) and amortization - 143 72 99 manufactured

EBIT 59 (17) n/m

Depreciation and 38 63 (40) amortization

EBITDA / Adjusted 97 46 111 EBITDA

1 Includes other phosphate and purchased products and is comprised of net salesof $41 million (2020 - $34 million) less cost of goods sold of $37 million(2020 - $33 million).

* Adjusted EBITDA increased in the first quarter of 2021 due to higher net realized selling prices compared to the first quarter of 2020. * Sales volumes were slightly lower in the first quarter of 2021 due to the timing of fertilizer shipments. * Net realized selling price of phosphate fertilizer increased in the first quarter of 2021 in connection with the increase in global benchmark prices. Industrial and feed prices also increased, some of which were based on contract prices that result in a lag in price realization relative to spot prices. * Cost of goods sold per tonne increased due to significantly higher raw material input costs. This was partially offset by lower depreciation and amortization following the non-cash impairment of assets in the third quarter of 2020.

Corporate and Others

Three Months Ended March 31

(millions of US dollars, except as otherwise noted) 2021 2020 % Change

Sales ^1 - 27 (100)

Cost of goods sold - 25 (100)

Gross margin - 2 (100)

Selling expenses (6) (5) 20

General and administrative expenses 58 60 (3)

Share-based compensation expense (recovery) 23 (32) n/m

Other expenses 28 7 300

EBIT (103) (28) 268

Depreciation and amortization 12 9 33

EBITDA (91) (19) 379

Adjustments ^2 43 (47) n/m

Adjusted EBITDA (48) (66) (27)

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

2 See Note 2 to the interim financial statements.

* Share-based compensation expense (recovery) - We had an expense in the first quarter of 2021 due to an increase in our share price, while there was a recovery in the first quarter of 2020 as our share price decreased from market volatility caused by the COVID-19 pandemic. * Other expenses were higher in the first quarter of 2021 due to a foreign exchange loss related to our Canadian asset retirement obligations compared to a gain in the first quarter of 2020 when the Canadian dollar weakened significantly.

Finance Costs, Income Tax Expense (Recovery) and

Other Comprehensive Income (Loss)

Three Months Ended March 31

(millions of US dollars, except as otherwise noted) 2021 2020 % Change

Finance costs 120 133 (10)

Income tax expense (recovery) 25 (16) n/m

Other comprehensive income (loss) 24 (358) n/m

* Finance costs in the first quarter of 2021 were lower due to lower interest rates and a lower short-term debt balance, more than offsetting a higher long-term debt balance resulting from the $1.5 billion in notes issued in the second quarter of 2020. * Income tax expense(recovery) - In the first quarter of 2021, there was an income tax expense resulting from earnings, compared to an income tax recovery in the first quarter of 2020 resulting from a loss. The change in the effective tax rate on earnings for the first quarter of 2021 was a result of a change in proportionate earnings (loss) between jurisdictions. * Other comprehensive income (loss) - For the first quarter of 2021, we had a lower loss on translation of our Retail operations in Australia and Canada as those currencies slightly appreciated relative to the US dollar, compared to large decreases in those currencies relative to the US dollar in the first quarter of 2020 from increased market volatility as a result of the COVID-19 pandemic. In addition, we had a fair value gain from an increase in the share price of our investment in Sinofert Holdings Ltd. in the first quarter of 2021 compared to a fair value loss from a decrease in share price in the first quarter of 2020.

Financial Condition Review

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

As at

(millions of US dollars, except as March 31, December 31, $ %otherwise noted) 2021 2020 Change Change

Assets

Cash and cash equivalents 712 1,454 (742) (51)

Receivables 4,230 3,581 649 18

Inventories 6,714 4,930 1,784 36

Prepaid expenses and other current 819 1,505 (686) (46)assets

Property, plant and equipment 19,451 19,660 (209) (1)

Other assets 678 914 (236) (26)

Liabilities and Equity

Payables and accrued charges 8,742 8,058 684 8

Retained earnings 6,471 6,606 (135) (2)

* Explanations for changes in Cash and cash equivalents are in the "Sources and Uses of Cash" section. * Receivables increased due to higher sales across all of our segments as a result of higher crop nutrient net realized selling prices and demand for crop inputs. Certain income tax receivables previously classified as non-current are now realizable within one year. * Inventories increased due to seasonal Retail inventory build-up for the spring planting and application seasons. * Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventory (primarily seed and crop protection) in preparation for the spring planting and application seasons. * Property, plant and equipment decreased primarily due to depreciation more than offsetting additions. * Other assets decreased due to a reclassification of certain income tax receivables as current receivables, which will be realized within one year. * Payables and accrued charges increased due to higher customer prepayments in North America driven by strong crop demand and prices. * Retained earnings decreased due to dividends declared exceeding net earnings.

Liquidity and Capital Resources

Sources and Uses of Liquidity

We continued to manage 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 the foreseeable future. As further developments and impacts of the COVID-19 pandemic continue to be 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 first quarter of 2021 included:

* Investments in capital assets to sustain and grow our safe, reliable and cost-efficient operations. Cash additions to property, plant and equipment and intangible assets were $325 million and $33 million, respectively. * Returns to our shareholders through dividends and share repurchases (See Note 7 to the interim financial statements). Dividends paid were $255 million and share repurchases were $1 million.

Sources and Uses of Cash

Three Months Ended March 31

(millions of US dollars, except as otherwise noted) 2021 2020 % Change

Cash used in operating activities (152) (526) (71)

Cash used in investing activities (388) (445) (13)

Cash (used in) provided by financing activities (191) 3,519 n/m

Effect of exchange rate changes on cash and cash (11) (37) (70)equivalents

(Decrease) increase in cash and cash equivalents (742) 2,511 n/m

Cash and cash equivalents decreased by $742 million in the first quarter of 2021 compared to an increase of $2,511 million in the first quarter of 2020 due to:

* A decrease of $4.4 billion in short-term net debt borrowings as we managed liquidity needs in the first quarter of 2020 as a result of market volatility during the initial period of the COVID-19 pandemic.

The above factor was partially offset by:

* Lower cash used in our operating activities due to the recovery in global agriculture markets, which resulted in higher crop nutrient and net realized selling prices and strong sales volumes, * The receipt of a significant amount of customer prepayments in the first quarter of 2021 and improvements to our working capital management, and * A decrease of $501 million in long-term debt repayments.

Capital Structure and Management

Principal Debt Instruments

We continue to closely monitor our liquidity position. We use a combination of cash generated from operations and short-term and long-term debt to finance our operations. We were in compliance with our debt covenants and did not have any changes to our credit ratings in the three months ended March 31, 2021.

As at March 31, 2021

Outstanding and Committed

(millions of US dollars) Rate of Total Facility Short-term Long-term Interest (%) Limit debt debt

Credit facilities

Unsecured revolving term n/a 4,500 - -credit facility

Uncommitted revolving n/a 500 - -demand facility

Other credit facilities ^1 0.8 - 8.3 810 252 63

Commercial paper n/a - -

Total 252 63

1 Other credit facilities are unsecured and consist of South Americanfacilities with debt of $135 million and interest rates ranging from 1.4percent to 8.3 percent, Australian facilities with debt of $131 million and aninterest rate of 0.8 percent, and other facilities with debt of $49 million andinterest rates ranging from 1.8 percent to 4.1 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.

Our long-term debt consists primarily of notes. See the "Capital Structure and Management" section of our 2020 Annual Report for information on balances, rates and maturities for our notes.

Outstanding Share Data

As at April 30, 2021

Common shares 570,208,107

Options to purchase common shares 11,156,972

For more information on our capital structure and management, see Note 24 to our 2020 financial statements.

Quarterly Results

(millions ofUS dollars, Q1except as 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019otherwisenoted)

Sales ^1 4,658 4,052 4,227 8,431 4,198 3,462 4,185 8,704

Net earnings(loss)attributableto equity 127 316 (587) 765 (35) (48) 141 858holders

of Nutrien

Adjusted 806 768 670 1,721 508 664 787 1,870EBITDA

Net earnings(loss) pershareattributable to

equity holdersof Nutrien

Basic 0.22 0.55 (1.03) 1.34 (0.06) (0.08) 0.25 1.48

Diluted 0.22 0.55 (1.03) 1.34 (0.06) (0.08) 0.24 1.47

1 Certain immaterial figures have been reclassified in the first three quartersof 2020.

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, and up to the fourth quarter of 2020, Potash earnings were impacted by lower net realized selling prices caused by a temporary slowdown in global demand. 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. In the fourth quarter of 2020, earnings were impacted by a net gain on disposal of our investment in Misr Fertilizers Production Company S.A.E. ("MOPCO").

Critical Accounting Estimates

Our critical accounting policies are disclosed in our 2020 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 53 of our 2020 Annual Report. There were no significant changes in the first three months of 2021.

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 has been no change in our internal control over financial reporting during the three months ended March 31, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Forward-Looking Statements

Certain statements and other information included in this document, including within the "Financial Outlook and Guidance" section, constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statements are often accompanied by words such as "anticipate", "forecast", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). All statements in this document, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to: Nutrien's business strategies, plans, prospects and opportunities; Nutrien's full-year and first-half 2021 guidance, including expectations regarding our adjusted net earnings per share and adjusted EBITDA (consolidated and by segment); expectations regarding our growth and capital allocation intentions and strategies; capital spending expectations for 2021; expectations regarding performance of our operating segments in 2021, including our operating segment market outlooks and market conditions for 2021, 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; expectations regarding Nutrien's Feeding the Future Plan and 2021 ESG Report including its 2030 commitments and ESG performance targets; Nutrien's ability to develop innovative and sustainable solutions; the negotiation of sales contracts; Nutrien's ability to launch and scale its Carbon Program and the benefits to Nutrien and growers therefrom; and acquisitions and divestitures. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements.

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place 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 in respect of any acquired businesses and to realize the expected synergies; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability and cost of labor and interest, exchange and effective tax rates; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2021 and in the future; our expectations regarding the impacts, direct and indirect, of the COVID-19 pandemic on our business, customers, business partners, employees, supply chain, other stakeholders and the overall economy; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and divestitures and negotiate acceptable terms; our ability to maintain investment grade ratings and achieve our performance targets; our ability to successfully negotiate sales contracts; and our ability to successfully implement new initiatives and programs.

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

The purpose of our expected adjusted net earnings per share (full year and first-half 2021), adjusted EBITDA (consolidated and by segment) and sustaining capital expenditures guidance ranges, are to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

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

Terms 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 2020 Annual Report. All references to per share amounts pertain to diluted net earnings (loss) per share, "n/m" indicates information that is not meaningful and all financial amounts are stated in millions of US dollars, unless otherwise noted.

About Nutrien

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

Contact us at: www.nutrien.com

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, May 4, 2021 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/1167143. Via Phone: 1-888-869-1189 Conference ID 1167143. * 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/2021-q1-earnings-conference-call

Appendix A - Selected Additional Financial Data

Selected Retail measures Three Months Ended March 31

2021 2020

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

Crop nutrients 21 31

Crop protection products 43 40

Seed 40 36

All products 23 25

Crop nutrients sales volumes (tonnes - thousands)

North America 1,597 1,426

International 803 599

Total 2,400 2,025

Crop nutrients selling price per tonne

North America 458 416

International 355 318

Total 423 387

Crop nutrients gross margin per tonne

North America 113 93

International 49 38

Total 92 77



Financial performance measures 2021

Retail adjusted EBITDA to sales (%) ^1 10

Retail adjusted average working capital to sales (%) ^1, 2 14

Retail adjusted average working capital to sales excluding 3Nutrien Financial (%) ^1, 2

Retail cash operating coverage ratio (%) ^1, 2 60

Retail adjusted EBITDA per US selling location (thousands 1,159of US dollars) ^1, 2

Nutrien Financial net interest margin (%) ^1, 2 5.5

1 Rolling four quarters ended March 31, 2021.

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

Nutrien Financial

As at March 31, 2021

(millions of US dollars)

Current

<31 days

past due

31-90 days

past due

>90 days

past due

Gross Receivables

Allowance 1

Total

North America

860

54

62

52

1,028

(25)

1,003

International

163

3

12

42

220

(2)

218

Nutrien Financial receivables

1,023

57

74

94

1,248

(27)

1,221

1 Bad debt expense on the above receivables for the three months ended March 31, 2021 was $5 million (2020 - $3 million) in the Retail segment.

Nutrien Financial As at March 31, 2021

<31 31-90 >90(millions of US days days days Gross Allowancedollars) Current Receivables ^1 Total past past past due due due

North America 860 54 62 52 1,028 (25) 1,003

International 163 3 12 42 220 (2) 218

Nutrien Financial 1,023 57 74 94 1,248 (27) 1,221receivables

1 Bad debt expense on the above receivables for the three months ended March31, 2021 was $5 million (2020 - $3 million) in the Retail segment.

Selected Nitrogen measures

Three Months Ended March 31

2021

2020

Sales volumes (tonnes - thousands)

Fertilizer

1,305

1,411

Industrial and feed

1,098

1,117

Net sales (millions of US dollars)

Fertilizer

332

318

Industrial and feed

241

212

Net selling price per tonne

Fertilizer

254

226

Industrial and feed

220

190

Selected Nitrogen measures Three Months Ended March 31

2021 2020

Sales volumes (tonnes - thousands)

Fertilizer 1,305 1,411

Industrial and feed 1,098 1,117

Net sales (millions of US dollars)

Fertilizer 332 318

Industrial and feed 241 212

Net selling price per tonne

Fertilizer 254 226

Industrial and feed 220 190

Production measures

Three Months Ended March 31

2021

2020

Potash production (Product tonnes - thousands)

3,536

3,035

Potash shutdown weeks 1

-

12

Ammonia production - total 2

1,449

1,447

Ammonia production - adjusted 2, 3

1,053

991

Ammonia operating rate (%) 3

97

91

P2O5 production (P2O5 tonnes - thousands)

378

372

P2O5 operating rate (%)

90

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 in thousands of product tonnes.

3 Excludes Trinidad and Joffre.

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 historical or future financial performance, financial position or cash flow that are not specified, defined or determined under IFRS, and are not presented in our interim financial statements. Non-IFRS measures either exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure specified, defined or determined under 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 or unusual items arise, we generally exclude these items in our calculation of the applicable non-IFRS financial measure.

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, certain integration and restructuring related costs, share-based compensation, impairment of assets, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses, loss on disposal of business and net gain on disposal of investment in MOPCO. COVID-19 related expenses primarily consist of increased cleaning and sanitization costs, the purchase of personal protective equipment, discretionary supplemental employee costs and costs related to construction delays from access limitations and other government restrictions. In 2021, we amended our calculation of adjusted EBITDA to adjust for the impact of restructuring and related costs. There were no similar expenses in the comparative period.

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

Production measures Three Months Ended March 31

2021 2020

Potash production (Product tonnes - thousands) 3,536 3,035

Potash shutdown weeks ^1 - 12

Ammonia production - total ^2 1,449 1,447

Ammonia production - adjusted ^2, 3 1,053 991

Ammonia operating rate (%) ^3 97 91

P[2]O[5 ]production (P[2]O[5] tonnes - thousands) 378 372

P[2]O[5] operating rate (%) 90 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 in thousands of producttonnes.

3 Excludes Trinidad and Joffre.

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 historical or future financial performance, financial position or cash flow that are not specified, defined or determined under IFRS, and are not presented in our interim financial statements. Non-IFRS measures either exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure specified, defined or determined under 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 or unusual items arise, we generally exclude these items in our calculation of the applicable non-IFRS financial measure.

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, certain integration and restructuring related costs, share-based compensation, impairment of assets, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses, loss on disposal of business and net gain on disposal of investment in MOPCO. COVID-19 related expenses primarily consist of increased cleaning and sanitization costs, the purchase of personal protective equipment, discretionary supplemental employee costs and costs related to construction delays from access limitations and other government restrictions. In 2021, we amended our calculation of adjusted EBITDA to adjust for the impact of restructuring and related costs. There were no similar expenses in the comparative period.

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

Three Months Ended March 31

(millions of US dollars) 2021 2020

Net earnings (loss) 133 (35)

Finance costs 120 133

Income tax expense (recovery) 25 (16)

Depreciation and amortization 480 473

EBITDA 758 555

Integration and restructuring related costs 10 10

Share-based compensation expense (recovery) 23 (32)

Impairment of assets 4 -

COVID-19 related expenses 9 2

Foreign exchange loss (gain), net of related 2 (27)derivatives

Adjusted EBITDA 806 508

Adjusted EBITDA (Consolidated), Adjusted Net Earnings Per Share and Sustaining Capital Expenditures Guidance

Adjusted EBITDA, adjusted net earnings per share and sustaining capital expenditures guidance are forward-looking non-IFRS financial measures. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with IFRS due to unknown variables and the uncertainty related to future results. These unknown variables may include unpredictable transactions of significant value that may be inherently difficult to determine, without unreasonable efforts. Guidance for adjusted EBITDA and adjusted net earnings per share excludes the impacts of integration and restructuring related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), and COVID-19 related expenses. Guidance for sustaining capital expenditures includes expected expenditures required to sustain operations at existing levels and includes major repairs and maintenance and plant turnarounds.

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 integration and restructuring related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses (including those recorded under finance costs for managing our liquidity position in response to the COVID-19 pandemic in 2020), loss on disposal of business, net gain on disposal of investment in MOPCO and impairment of assets, net of tax. We generally apply the annual forecasted effective tax rate to our adjustments during the year and, at year-end, we apply the actual effective tax rate. If the effective tax rate is significantly different from our forecasted effective tax rate due to adjustments or discrete tax impacts, we apply a tax rate that excludes those items. For material adjustments, we apply a tax rate specific to the adjustment. In 2021, we amended our calculation of adjusted net earnings to adjust for the impact of restructuring and related costs. There were no similar expenses in the comparative period.

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

Three Months Ended March 31, 2021

Per

Increases Diluted

(millions of US dollars, except as otherwise (Decreases) Post-Tax Sharenoted)

Net earnings attributable to equity holders of 127 0.22Nutrien

Adjustments:

Integration and restructuring related costs 10 8 0.01

Share-based compensation expense 23 18 0.04

Impairment of assets 4 3 0.01

COVID-19 related expenses 9 7 0.01

Foreign exchange loss, net of related 2 2 -derivatives

Adjusted net earnings 165 0.29

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 that 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. 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 March 31

(millions of US dollars) 2021 2020

Cash from operations before working capital changes 640 344

Sustaining capital expenditures (164) (163)

Free cash flow 476 181

Changes in non-cash operating working capital (792) (870)

Free cash flow including changes in non-cash (316) (689)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 March 31

(millions of US dollars, except as otherwise noted) 2021 2020

Total COGS - Potash 291 265

Change in inventory 27 8

Other adjustments (4) (2)

COPM 314 271

Depreciation and amortization included in COPM (111) (89)

Cash COPM 203 182

Production tonnes (tonnes - thousands) 3,536 3,035

Potash cash COPM per tonne 57 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 March 31

(millions of US dollars, except as otherwise noted) 2021 2020

Total COGS - Nitrogen 610 581

Depreciation and amortization in COGS (108) (130)

Cash COGS for products other than ammonia (393) (361)

Ammonia

Total cash COGS before other adjustments 109 90

Other adjustments ^1 (3) 11

Total cash COPM 106 101

Natural gas and steam costs (74) (66)

Controllable cash COPM 32 35

Production tonnes (net tonnes ^2 - thousands) 602 744

Ammonia controllable cash COPM per tonne 52 47

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

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 amended our calculation to adjust for the sales of certain recently acquired businesses. We also look at this metric excluding the sales and working capital of Nutrien Financial.

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

Rolling four quarters ended March 31, 2021

(millions of US dollars, Q2 2020 Q3 2020 Q4 2020 Q1 2021 Average/except as otherwise noted) Total

Working capital 2,030 3,216 1,157 1,630

Working capital from certain 63 - - - recent acquisitions

Adjusted working capital 2,093 3,216 1,157 1,630 2,024

Nutrien Financial working (2,108) (1,711) (1,392) (1,221) capital

Adjusted working capital (15) 1,505 (235) 409 416excluding Nutrien Financial



Sales ^1 6,764 2,742 2,618 2,972

Sales from certain recent (338) - - - acquisitions

Adjusted sales 6,426 2,742 2,618 2,972 14,758

Nutrien Financial revenue ^1 (40) (36) (37) (25)

Adjusted sales excluding 6,386 2,706 2,581 2,947 14,620Nutrien Financial

1 Certain immaterial figures have been reclassified for the second and thirdquarters of 2020.



Adjusted average working 14capital to sales (%)

Adjusted average working capital to sales excluding 3Nutrien Financial (%)

Nutrien Financial Net Interest Margin

Most directly comparable IFRS financial measure: Nutrien Financial gross margin divided by average Nutrien Financial receivables.

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

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

Rolling four quarters ended March 31, 2021

(millions of US dollars, except as Q2 Q3 Q4 Q1 Total/otherwise noted) 2020 2020 2020 2021 Average

Nutrien Financial revenue 40 36 37 25

Deemed interest expense ^1 (15) (15) (14) (6)

Net interest 25 21 23 19 88



Average Nutrien Financial receivables 2,108 1,711 1,392 1,221 1,608

Nutrien Financial net interest margin 5.5(%)

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

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 March 31, 2021

(millions of US dollars, except as Q2 Q3 Q4 Q1 Totalotherwise noted) 2020 2020 2020 2021

Operating expenses ^1, 2 826 691 768 721 3,006

Depreciation and amortization in (161) (167) (177) (175) (680)operating expenses

Operating expenses excluding depreciation 665 524 591 546 2,326and amortization



Gross margin ^2 1,627 683 885 652 3,847

Depreciation and amortization in cost of 2 3 3 2 10goods sold

Gross margin excluding depreciation and 1,629 686 888 654 3,857amortization

Cash operating coverage ratio (%) 60

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

2 Certain immaterial figures have been reclassified for the second and thirdquarters of 2020.

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.

Rolling four quarters ended March 31, 2021

(millions of US dollars, except as Q2 Q3 Q4 Q1 Totalotherwise noted) 2020 2020 2020 2021

Adjusted US EBITDA 766 86 177 29 1,058

Adjustments for acquisitions (6)

Adjusted US EBITDA adjusted for 1,052acquisitions

Number of US selling locations adjusted 908for acquisitions

Adjusted EBITDA per US selling location 1,159(thousands of US dollars)

Condensed Consolidated Financial Statements

Unaudited - in millions of US dollars except as otherwise noted

Condensed Consolidated Statements of Earnings (Loss)

Three Months Ended

March 31

Note 2021 2020

Note 1

SALES 2 4,658 4,198

Freight, transportation and distribution 211 212

Cost of goods sold 3,291 3,101

GROSS MARGIN 1,156 885

Selling expenses 673 642

General and administrative expenses 103 104

Provincial mining taxes 58 57

Share-based compensation expense (recovery) 3 23 (32)

Other expenses 4 21 32

EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES 278 82

Finance costs 120 133

EARNINGS (LOSS) BEFORE INCOME TAXES 158 (51)

Income tax expense (recovery) 5 25 (16)

NET EARNINGS (LOSS) 133 (35)

Attributable to

Equity holders of Nutrien 127 (35)

Non-controlling interest 6 -

NET EARNINGS (LOSS) 133 (35)



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

Basic 0.22 (0.06)

Diluted 0.22 (0.06)

Weighted average shares outstanding for basic EPS 569,658,000 571,168,000

Weighted average shares outstanding for diluted 570,901,000 571,168,000EPS

Condensed Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended

March 31

(Net of related income taxes) 2021 2020

NET EARNINGS (LOSS) 133 (35)

Other comprehensive income (loss)

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

Net actuarial gain on defined benefit plans - 3

Net fair value gain (loss) on investments 48 (19)

Items that have been or may be subsequently reclassified to

net earnings (loss):

Loss on currency translation of foreign operations (30) (315)

Other 6 (27)

OTHER COMPREHENSIVE INCOME (LOSS) 24 (358)

COMPREHENSIVE INCOME (LOSS) 157 (393)

Attributable to

Equity holders of Nutrien 151 (393)

Non-controlling interest 6 -

COMPREHENSIVE INCOME (LOSS) 157 (393)



(See Notes to the Condensed Consolidated Financial Statements)



Condensed Consolidated Statements of Cash Flows

Three Months Ended

March 31

Note 2021 2020



OPERATING ACTIVITIES

Net earnings (loss) 133 (35)

Adjustments for:

Depreciation and amortization 480 473

Share-based compensation expense (recovery) 23 (32)

Impairment of assets 4 -

Provision for (recovery of) deferred income tax 10 (22)

Other long-term assets, liabilities and miscellaneous (10) (40)

Cash from operations before working capital changes 640 344

Changes in non-cash operating working capital:

Receivables (392) (323)

Inventories (1,785) (1,428)

Prepaid expenses and other current assets 688 766

Payables and accrued charges 697 115

CASH USED IN OPERATING ACTIVITIES (152) (526)

INVESTING ACTIVITIES

Additions to property, plant and equipment (325) (363)

Additions to intangible assets (33) (32)

Business acquisitions, net of cash acquired (21) (57)

Other (9) 7

CASH USED IN INVESTING ACTIVITIES (388) (445)

FINANCING ACTIVITIES

Proceeds from short-term debt, net 101 4,494

Proceeds from long-term debt - 6

Repayment of long-term debt - (501)

Repayment of principal portion of lease liabilities (78) (64)

Dividends paid to Nutrien's shareholders 7 (255) (256)

Repurchase of common shares 7 (1) (160)

Issuance of common shares 42 -

CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (191) 3,519

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND (11) (37)CASH EQUIVALENTS

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (742) 2,511

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 1,454 671

CASH AND CASH EQUIVALENTS - END OF PERIOD 712 3,182

Cash and cash equivalents comprised of:

Cash 601 389

Short-term investments 111 2,793

712 3,182

SUPPLEMENTAL CASH FLOWS INFORMATION

Interest paid 76 96

Income taxes paid 39 35

Total cash outflow for leases 97 92



(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 Equity

Net Fair Gain on Currency Holders Non- Value

Number of (Loss) Gain Defined Translation of Controlling

Common Share Contributed on Benefit of Foreign Total Retained Nutrien Interest Total

Shares Capital Surplus Investments Plans ^1 Operations Other AOCI Earnings (Note (Note 1) Equity 1)

BALANCE -DECEMBER 31, 572,942,809 15,771 248 (29) - (204) (18) (251) 7,101 22,869 38 22,9072019

Net loss - - - - - - - - (35) (35) - (35)

Othercomprehensive - - - (19) 3 (315) (27) (358) - (358) - (358)(loss) income

Sharesrepurchased (3,832,580) (105) (55) - - - - - - (160) - (160)(Note 7)

Dividends - - - - - - - - (254) (254) - (254)declared

Effect ofshare-based

compensationincluding

issuance of 35,706 1 4 - - - - - - 5 - 5common shares

Transfer of netloss on

cash flow - - - - - - 5 5 - 5 - 5hedges

Transfer of netactuarial gain

on defined - - - - (3) - - (3) 3 - - -benefit plans

BALANCE - MARCH 569,145,935 15,667 197 (48) - (519) (40) (607) 6,815 22,072 38 22,11031, 2020

BALANCE -DECEMBER 31, 569,260,406 15,673 205 (36) - (62) (21) (119) 6,606 22,365 38 22,4032020

Net earnings - - - - - - - - 127 127 6 133

Othercomprehensive - - - 48 - (30) 6 24 - 24 - 24income (loss)

Sharesrepurchased (14,978) (1) - - - - - - - (1) - (1)(Note 7)

Dividends - - - - - - - - (262) (262) - (262)declared

Dividends ofnon-controlling - - - - - - - - - - (1) (1)interest

Non-controllinginterest - - - - - - - - - - (1) (1)transactions

Effect ofshare-based

compensationincluding

issuance of 965,744 50 (3) - - - - - - 47 - 47common shares

Transfer of net gain on

cash flow - - - - - - (3) (3) - (3) - (3)hedges

BALANCE - MARCH 570,211,172 15,722 202 12 - (92) (18) (98) 6,471 22,297 42 22,33931, 2021

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.



(See Notes to the Condensed Consolidated Financial Statements)



Condensed Consolidated Balance Sheets

March 31 December 31

As at Note 2021 2020 2020

Note 1 Note 1

ASSETS

Current assets

Cash and cash equivalents 712 3,182 1,454

Receivables 4,230 3,837 3,581

Inventories 6,714 6,290 4,930

Prepaid expenses and other current assets 819 716 1,505

12,475 14,025 11,470

Non-current assets

Property, plant and equipment 19,451 20,209 19,660

Goodwill 12,199 11,893 12,198

Other intangible assets 2,460 2,379 2,388

Investments 630 810 562

Other assets 678 552 914

TOTAL ASSETS 47,893 49,868 47,192

LIABILITIES

Current liabilities

Short-term debt 252 5,498 159

Current portion of long-term debt 14 - 14

Current portion of lease liabilities 260 221 249

Payables and accrued charges 8,742 7,362 8,058

9,268 13,081 8,480

Non-current liabilities

Long-term debt 10,040 8,544 10,047

Lease liabilities 876 848 891

Deferred income tax liabilities 5 3,168 3,130 3,149

Pension and other post-retirement benefit 456 426 454liabilities

Asset retirement obligations and accrued 1,610 1,620 1,597environmental costs

Other non-current liabilities 136 109 171

TOTAL LIABILITIES 25,554 27,758 24,789

SHAREHOLDERS' EQUITY

Share capital 7 15,722 15,667 15,673

Contributed surplus 202 197 205

Accumulated other comprehensive loss (98) (607) (119)

Retained earnings 6,471 6,815 6,606

Equity holders of Nutrien 22,297 22,072 22,365

Non-controlling interest 42 38 38

TOTAL SHAREHOLDERS' EQUITY 22,339 22,110 22,403

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 47,893 49,868 47,192



(See Notes to the Condensed Consolidated Financial Statements)



Notes to the Condensed Consolidated Financial Statements

As at and for the Three Months Ended March 31, 2021

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 ("IFRS") as issued by the International Accounting Standards Board 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 2020 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 2020 annual consolidated financial statements. In April 2021, the IFRS Interpretations Committee published a final agenda decision clarifying how to recognize certain configuration and customization expenditures related to cloud computing. We are currently evaluating the impact of this agenda decision; however, we do not anticipate it will have a material impact on our financial statements. We expect to implement the change in 2021.

Certain immaterial 2020 figures have been reclassified in the condensed consolidated statements of earnings (loss), condensed consolidated statements of changes in shareholders' equity, condensed consolidated balance sheets 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.

We prepare our interim financial statements in accordance with IFRS, which requires us to make judgments, assumptions and estimates in applying accounting policies. We have assessed our accounting estimates and other matters that require the use of forecasted financial information for the impacts arising from the novel coronavirus ("COVID-19") pandemic. The future assessment of these estimates, including expectations about the severity, duration and scope of the pandemic, could differ materially in future reporting periods. As a result of the COVID-19 pandemic, we incurred directly attributable and incremental COVID-19 related expenses in other expenses (Note 4).

These interim financial statements were authorized by the audit committee of the Board of Directors for issue on May 3, 2021.

NOTE 2 SEGMENT INFORMATION

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

Three Months Ended March 31, 2021

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third 2,960 631 695 372 - - 4,658 party

- 12 90 160 72 - (334) - intersegment

Sales - total 2,972 721 855 444 - (334) 4,658

Freight,transportation and - 110 95 59 - (53) 211distribution

Net sales 2,972 611 760 385 - (281) 4,447

Cost of goods sold 2,320 291 610 319 - (249) 3,291

Gross margin 652 320 150 66 - (32) 1,156

Selling expenses 667 3 7 2 (6) - 673

General andadministrative 39 2 2 2 58 - 103expenses

Provincial mining - 58 - - - - 58taxes

Share-basedcompensation - - - - 23 - 23expense

Other expenses 15 1 (26) 3 28 - 21(income)

(Loss) earningsbefore finance (69) 256 167 59 (103) (32) 278costs and incometaxes

Depreciation and 177 124 129 38 12 - 480amortization

EBITDA 108 380 296 97 (91) (32) 758

Integration andrestructuring 1 - - - 9 - 10related costs

Share-basedcompensation - - - - 23 - 23expense

Impairment of - - 4 - - - 4assets

COVID-19 related - - - - 9 - 9expenses

Foreign exchangeloss, net of

related - - - - 2 - 2derivatives

Adjusted EBITDA 109 380 300 97 (48) (32) 806

Assets - at March 21,624 11,817 10,240 1,391 3,257 (436) 47,89331, 2021

Three Months Ended March 31, 2020

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

- third party

2,652

547

646

326

27

-

4,198

- intersegment

9

64

132

57

-

(262)

-

Sales

- total

2,661

611

778

383

27

(262)

4,198

Freight, transportation and distribution

-

94

100

70

-

(52)

212

Net sales

2,661

517

678

313

27

(210)

3,986

Cost of goods sold

2,120

265

581

320

25

(210)

3,101

Gross margin

541

252

97

(7)

2

-

885

Selling expenses

635

3

7

2

(5)

-

642

General and administrative expenses

38

2

2

2

60

-

104

Provincial mining taxes

-

57

-

-

-

-

57

Share-based compensation recovery

-

-

-

-

(32)

-

(32)

Other expenses

16

1

2

6

7

-

32

(Loss) earnings before finance costs and income taxes

(148)

189

86

(17)

(28)

-

82

Depreciation and amortization

155

96

150

63

9

-

473

EBITDA

7

285

236

46

(19)

-

555

Integration and restructuring related costs

-

-

-

-

10

-

10

Share-based compensation recovery

-

-

-

-

(32)

-

(32)

COVID-19 related expenses

-

-

-

-

2

-

2

Foreign exchange gain, net of

related derivatives

-

-

-

-

(27)

-

(27)

Adjusted EBITDA

7

285

236

46

(66)

-

508

Assets - at December 31, 2020 ^1

20,526

11,707

10,077

1,388

3,917

(423)

47,192

1 In 2021, certain assets related to transportation, distribution and logistics were reclassified under Corporate and Others as these are centrally managed. Depreciation expense related to these assets remains allocated to the rest of the segments based on usage.

Presented below is revenue from contracts with customers disaggregated by product line or geographic location for each reportable segment.

Three Months Ended March 31, 2020

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third party 2,652 547 646 326 27 - 4,198

- 9 64 132 57 - (262) - intersegment

Sales - total 2,661 611 778 383 27 (262) 4,198

Freight,transportation and - 94 100 70 - (52) 212distribution

Net sales 2,661 517 678 313 27 (210) 3,986

Cost of goods sold 2,120 265 581 320 25 (210) 3,101

Gross margin 541 252 97 (7) 2 - 885

Selling expenses 635 3 7 2 (5) - 642

General andadministrative 38 2 2 2 60 - 104expenses

Provincial mining - 57 - - - - 57taxes

Share-basedcompensation - - - - (32) - (32)recovery

Other expenses 16 1 2 6 7 - 32

(Loss) earningsbefore finance (148) 189 86 (17) (28) - 82costs and incometaxes

Depreciation and 155 96 150 63 9 - 473amortization

EBITDA 7 285 236 46 (19) - 555

Integration andrestructuring - - - - 10 - 10related costs

Share-basedcompensation - - - - (32) - (32)recovery

COVID-19 related - - - - 2 - 2expenses

Foreign exchangegain, net of

related derivatives - - - - (27) - (27)

Adjusted EBITDA 7 285 236 46 (66) - 508

Assets - atDecember 31, 2020 ^ 20,526 11,707 10,077 1,388 3,917 (423) 47,1921

1 In 2021, certain assets related to transportation, distribution and logisticswere reclassified under Corporate and Others as these are centrally managed.Depreciation expense related to these assets remains allocated to the rest ofthe segments based on usage.

Presented below is revenue from contracts with customers disaggregated by product line or geographic location for each reportable segment.

Three Months Ended

March 31

2021 2020

Retail sales by product line

Crop nutrients 1,016 785

Crop protection products 1,085 1,010

Seed 463 394

Merchandise 230 216

Nutrien Financial 25 16

Services and other 173 255

Nutrien Financial elimination ^1 (20) (15)

2,972 2,661

Potash sales by geography

Manufactured product

North America 442 319

Offshore ^2 279 292

721 611

Nitrogen sales by product line

Manufactured product

Ammonia 188 156

Urea 274 262

Solutions, nitrates and sulfates 197 196

Other nitrogen and purchased products 196 164

855 778

Phosphate sales by product line

Manufactured product

Fertilizer 272 221

Industrial and feed 126 120

Other phosphate and purchased products 46 42

444 383

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

2 Relates to Canpotex Limited ("Canpotex") (Note 9).

NOTE 3SHARE-BASED COMPENSATION

The following table summarizes the awards granted under our existing share-based compensation plans described in Note 5 of our 2020 annual consolidated financial statements:

Three Months Ended

March 31

2021 2020

Stock options:

Granted (number of units) 1,518,490 2,293,802

Weighted average grant date fair value (US dollars) 11.77 7.18

Cash-settled share-based awards granted (number of units) 1,198,148 1,278,324

NOTE 4OTHER (INCOME) EXPENSES

Three Months Ended

March 31

2021 2020

Integration and restructuring related costs 10 10

Foreign exchange loss (gain), net of related derivatives 2 (31)

Earnings of equity-accounted investees (20) (10)

Bad debt expense 2 6

COVID-19 related expenses 9 2

Impairment of assets 4 -

Other expenses 14 55

21 32

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 Ended

March 31

2021 2020

Income tax expense (recovery) 25 (16)

Actual effective tax rate on earnings/loss (%) 16 37

Actual effective tax rate including discrete items (%) 16 32

Discrete tax adjustments that impacted the tax rate - 2

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

Income Tax Assets and Balance Sheet As at March As at DecemberLiabilities Location 31, 2021 31, 2020

Income tax assets

Current Receivables 373 83

Non-current Other assets 89 305

Deferred income tax Other assets 249 242assets

Total income tax assets 711 630

Income tax liabilities

Current Payables and accrued 79 48 charges

Non-current Other non-current 42 40 liabilities

Deferred income tax Deferred income tax 3,168 3,149liabilities liabilities

Total income tax 3,237liabilities 3,289

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 10 of the 2020 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:

March 31, 2021 December 31, 2020

Carrying Carrying

Financialassets Amount Level 1 Level 2 Level Amount Level 1 Level 2(liabilities) ^1 ^1 3 ^1 ^1measured at

Fair value ona recurring basis

Cash and cash 712 - 712 - 1,454 - 1,454equivalents

Derivativeinstrument 41 - 41 - 45 - 45assets

Other currentfinancialassets 166 24 142 - 161 24 137

- marketablesecurities ^2

Investments 211 201 - 10 153 153 -at FVTOCI ^3

Derivativeinstrument (43) - (43) - (48) - (48)liabilities

Amortized cost

Currentportion of long-termdebt

Fixed andfloating rate (14) - (14) - (14) - (14)debt

Long-term debt

Notes and (9,991) (7,994) (3,177) - (9,994) (3,801) (7,955)debentures

Fixed andfloating rate (49) - (49) - (53) - (53)debt

1 During the periods ended March 31, 2021 and December 31, 2020, there were notransfers between Level 1 and Level 2 for financial instruments measured atfair value on a recurring 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") isprimarily comprised of shares in Sinofert Holdings Ltd.



NOTE 7SHARE CAPITAL

Share repurchase programs

Maximum Maximum Number of

Commencement Shares for Shares for Shares

Date Expiry Repurchase Repurchase Repurchased (%)

2019 Normal February 27, FebruaryCourse Issuer 2019 26, 2020 42,164,420 7 33,256,668Bid

2020 Normal February 27, FebruaryCourse Issuer 2020 26, 2021 28,572,458 5 710,100Bid

2021 Normal March 1, FebruaryCourse Issuer 2021 28, 2022 28,468,448 5 14,978Bid ^1

1 The 2021 normal course issuer will expire earlier than the date above if weacquire the maximum number of common shares allowable or otherwise decide notto 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 Ended

March 31

2021 2020

Number of common shares repurchased for cancellation 14,978 3,832,580

Average price per share (US dollars) 52.93 41.96

Total cost 1 160

Dividends declared

We declared a dividend per share of $0.46 (2020 - $0.45) during the three months ended March 31, 2021, payable on April 15, 2021 to shareholders of record on March 31, 2021.

Anti-dilutive shares

As we recorded a net loss for the three months ended March 31, 2020, all stock options had an anti-dilutive effect. If we had net earnings, the diluted weighted average shares calculation would have included 66,806 stock options for the three months ended March 31, 2020.

NOTE 8SEASONALITY

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 9RELATED PARTY TRANSACTIONS

We sell potash outside Canada and the United States exclusively through 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 March 31, 2021 December 31, 2020

Receivables from Canpotex 161 122

View source version on businesswire.com: https://www.businesswire.com/news/home/20210503005773/en/

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

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

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