Business Wire | Aug 9, 2021 05:30PM EDT

Nutrien Reports Record Earnings and an Excellent Outlook

Aug. 09, 2021

SASKATOON, Saskatchewan--(BUSINESS WIRE)--Aug. 09, 2021--Nutrien Ltd. (TSX and NYSE: NTR) announced today its second quarter 2021 results, with net earnings of $1.1 billion($1.94 diluted earnings per share). Second-quarter adjusted net earnings1 were $2.08 per share and adjusted EBITDA1 was $2.2 billion.

"We delivered record earnings across our global business for the second quarter and first half of 2021 and expect the remainder of the year to contribute to a full year record. We showcased Nutrien's unique competitive advantages, strong operating performance and the significant leverage to higher fertilizer prices as we focus on our purpose to help growers meet the ever-growing demand for increased food production in a sustainable manner," commented Mayo Schmidt, Nutrien's President and CEO.

"The outlook for global crop and fertilizer markets continues to be very strong and we are positioned to benefit from our structural advantages and as a global leader in agriculture. We increased our full year 2021 adjusted EBITDA guidance1 by over $1.5 billion, supported in part by our quick actions to produce an additional one million tonnes of potash, illustrating the power of the Potash team's unparalleled flexible, reliable, and low-cost six-mine network," added Mr. Schmidt.

Highlights:

* Nutrien generated record adjusted EBITDA of $3.0 billion and free cash flow1 of $1.9 billion in the first half of 2021. This represents an increase of 36 percent and 40 percent, respectively, compared to the first half of 2020 and 17 percent and 12 percent, respectively higher than the previous record for the company in the first half of 2019. * Nutrien raised full-year 2021 adjusted EBITDA and adjusted net earnings per share1 guidance to $6.0 to $6.4 billion and $4.60 to $5.10 per share, respectively. This reflects higher expected results across our business, as well as, the benefits of increasing our 2021 potash sales guidance by one million tonnes to address global demand in support of our grower customers around the world. By the fourth quarter of 2021, we expect to surge potash production to an annualized run-rate of approximately 17 million tonnes, due to our flexible mine network and the responsiveness of our dedicated employees. * Nutrien Ag Solutions ("Retail") delivered record adjusted EBITDA in the second quarter and first half of 2021. First-half adjusted EBITDA increased 24 percent compared to the same period in 2020 as a result of double-digit growth in revenue and gross margin, higher gross margin percentage and adjusted EBITDA margins surpassing 11 percent. The increase was primarily due to organic growth supported by strong demand for grains and oilseeds, continued growth in our proprietary product sales, optimization and efficiency initiatives, as well as, the ongoing commitment of our approximately 3,600 crop advisors to serve our grower customers. * Sales through our digitally-enabled retail platform were approximately $1.6 billion in the first half of 2021, nearly double the sales compared to the same period in 2020 and exceeding the full year 2020 results of $1.2 billion in just six months. In the first half of 2021, we processed nearly half-a-million individual grower payments through the digital platform. * Potash adjusted EBITDA was 48 percent higher in the second quarter and 41 percent higher in the first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices and sales volumes. We achieved record production and sales volumes of nearly 7 million tonnes in the first six months of 2021. * Nitrogen adjusted EBITDA was 45 percent higher in the second quarter and 38 percent higher in the first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices. Phosphate adjusted EBITDA increased 45 percent in the second quarter and 70 percent in the first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices. * Subsequent to the second quarter of 2021, Nutrien announced an agreement to purchase Terra Nova, a retail businesses in Brazil with EBITDA margins and acquisition multiples in line with similar transaction metrics for ag retail businesses acquired by Nutrien in the US. We also entered a collaboration agreement with EXMAR NV to jointly develop and build a low-carbon, ammonia-fueled vessel to further reduce maritime transportation emissions.

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

Management's Discussion and Analysis

The following management's discussion and analysis ("MD&A") is the responsibility of management and is dated as of August 9, 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 and six months ended June 30, 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 continue to be supported by strong global demand and less than expected supply, resulting in historically low global inventory and strong grower margins. We expect these market fundamentals to continue beyond this season and be supportive of crop prices and grower margins into 2022. * Growing conditions across North America vary with favorable crop conditions in the US South and East regions, and drought conditions in the Western US, US Northern Plains and Canadian Prairies. We expect this variability could impact regional crop protection and plant health product demand in the second half of 2021 as growers experiencing favorable conditions look to boost and protect yields, particularly given additional pest pressure in parts of the US this summer, while growers impacted by drought may reduce some applications. However, with the strong outlook for crop prices and assuming a normal window for fall application, we expect US fertilizer demand and post-harvest crop protection applications to be strong. * Brazil's safrinha corn crop production estimates are significantly below initial market expectations due to both drought and frost. However, Brazilian crop prices remain at near-record highs and growers are expected to increase soybean and safrinha corn area when the next growing seasons begin. In Australia, precipitation has supported favorable soil moisture levels, leading to the largest seeded area for winter crops in the country's history.

Crop Nutrient Markets

* Global potash shipments are projected to reach a record 69 to 71 million tonnes in 2021 while inventory in key regions are expected to be historically low going into 2022. This is supported by strong potash consumption backed by favorable agricultural fundamentals, with further upside limited by global supply issues and most producers operating at peak rates. * We believe Latin America could reach new records for both potash consumption and imports in 2021, as applications for the last crop were strong and growers are proactively securing volumes for the upcoming season. In North America, increased crop area and normal application rates have supported historically high demand which we expect will continue in the fall. * Global nitrogen demand growth is expected to be approximately 3 percent in 2021 driven by strong agricultural fundamentals and a rebound in industrial demand. In addition, global supply is tight because of production outages and project delays, which together with higher global energy costs, have supported nitrogen prices. * Strong global urea prices and robust global import demand led Chinese urea exports to increase by over 40 percent during the first half of 2021 compared to depressed 2020 levels. However, as a result of high Chinese domestic prices and very strong demand, the Chinese government urged producers to prioritize the domestic market, which may limit China's exports through the second half of 2021. Meanwhile, strong Indian urea demand, lower domestic production and tight inventories have resulted in regular tenders. * Global phosphate demand remains robust in most key markets, which in combination with higher raw material costs and limited growth in export supply has continued to support phosphate prices. While inventories in India are tight, poor import economics create uncertainty for import demand in the second half of 2021.

Financial Outlook and Guidance

Based on market factors detailed above, we are raising full-year 2021 adjusted EBITDA guidance to $6.0 to $6.4 billion from $4.4 to $4.9 billion and full-year 2021 adjusted net earnings guidance to $4.60 to $5.10 per share from $2.55 to $3.25 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 $ 4.60 $ 5.10

Adjusted EBITDA (billions) ^2 $ 6.0 $ 6.4

Retail Adjusted EBITDA (billions) $ 1.6 $ 1.7

Potash Adjusted EBITDA (billions) $ 2.4 $ 2.6

Nitrogen Adjusted EBITDA (billions) $ 1.85 $ 2.05

Phosphate Adjusted EBITDA (millions) $ 400 $ 500

Potash sales tonnes (millions)^ 3 13.5 13.9

Nitrogen sales tonnes (millions) ^3 10.8 11.2

Depreciation and amortization (billions) $ 1.9 $ 2.0

Effective tax rate on adjusted earnings 24 % 26 %

Sustaining capital expenditures (billions) ^2 $ 1.15 $ 1.25

1 See the "Forward-Looking Statements" section.

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

3 Manufactured products only. Nitrogen excludes ESN(r) andRainbow products.

Consolidated Results

Three Months Ended Six Months Ended June 30 June 30

(millions of US dollars) 2021 2020 % 2021 2020 % Change Change

Sales ^1 9,763 8,431 16 14,421 12,629 14

Freight, transportation and 222 237 (6) 433 449 (4)distribution

Cost of goods sold 6,659 6,024 11 9,950 9,125 9

Gross margin ^1 2,882 2,170 33 4,038 3,055 32

Expenses ^1 1,263 1,031 23 2,141 1,834 17

Net earnings 1,113 765 45 1,246 730 71

Adjusted EBITDA ^2 2,215 1,721 29 3,021 2,229 36

Cash provided by operating 1,966 1,756 12 1,814 1,230 47activities

Free cash flow ("FCF") ^2 1,413 1,173 20 1,889 1,354 40

FCF including changes innon-cash operating working 1,662 1,611 3 1,346 922 46capital ^2

1 Certain immaterial figures have been reclassified for the three and sixmonths ended June 30, 2020.

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

Net earnings and adjusted EBITDA increased significantly in the second quarter and first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices, higher potash sales volumes and earnings growth in Nutrien Ag Solutions ("Retail"). Cash flow from operating activities increased in the second quarter and first half of 2021 compared to the same periods last year, which helped generate $1.9 billion in free cash flow in the first half of 2021, an increase of more than $0.5 billion compared to the amount generated in the same period in 2020. The COVID-19 pandemic had a limited impact on our results during the second quarter and first half of 2021.

Segment Results

Our discussion of segment results set out on the following pages is a comparison of the results for the three and six months ended June 30, 2021 to the results for the three and six months ended June 30, 2020, unless otherwise noted.

Nutrien Ag Solutions ("Retail")

Three Months Ended June 30

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

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

Sales

Crop nutrients 3,045 2,527 20 703 559 26 23 22

Crop protection 2,666 2,436 9 587 547 7 22 22products

Seed 1,216 1,141 7 237 219 8 19 19

Merchandise 268 253 6 45 45 - 17 18

Nutrien Financial 59 40 48 59 40 48 100 100^1

Services and 335 400 (16) 279 250 12 83 63other ^1

Nutrien Financial (52) (33) 58 (52) (33) 58 100 100elimination ^2

7,537 6,764 11 1,858 1,627 14 25 24

Cost of goods 5,679 5,137 11 sold

Gross margin 1,858 1,627 14

Expenses ^1,3 938 826 14

Earnings beforefinance costs and 920 801 15 taxes ("EBIT")

Depreciation and 169 163 4 amortization

EBITDA 1,089 964 13

Adjustments ^4 8 - n/m

Adjusted EBITDA 1,097 964 14

1 Certain immaterial figures have been reclassified for the three months endedJune 30, 2020.

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

3 Includes selling expenses of $863 million (2020 - $764 million).

4 See Note 2 to the interim financial statements.

Six Months Ended June 30

(millions of US dollars, except

Dollars

Gross Margin

Gross Margin (%)

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

Sales

Crop nutrients

4,061

3,312

23

923

715

29

23

22

Crop protection products

3,751

3,446

9

763

704

8

20

20

Seed

1,679

1,535

9

306

278

10

18

18

Merchandise

498

469

6

83

79

5

17

17

Nutrien Financial 1

84

56

50

84

56

50

100

100

Services and other 1

508

655

(22)

423

384

10

83

59

Nutrien Financial elimination

(72)

(48)

50

(72)

(48)

50

100

100

10,509

9,425

12

2,510

2,168

16

24

23

Cost of goods sold

7,999

7,257

10

Gross margin

2,510

2,168

16

Expenses 1,2

1,659

1,515

10

EBIT

851

653

30

Depreciation and amortization

346

318

9

EBITDA

1,197

971

23

Adjustments 3

9

-

n/m

Adjusted EBITDA

1,206

971

24

1 Certain immaterial figures have been reclassified for the six months ended June 30, 2020.

2 Includes selling expenses of $1,530 million (2020 - $1,399 million).

3 See Note 2 to the interim financial statements.

* Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher sales, gross margin and gross margin percentages. This was supported by expanded planted acreage and strong agricultural market fundamentals in all regions in which we operate, as well as, supply chain improvements and strategic procurement. Our Retail cash operating coverage ratio1 for the first half of 2021 declined to 60 percent. * Crop nutrients sales increased significantly in the second quarter and first half of 2021 supported by higher prices and record North American and International first half sales volumes. Gross margin benefited from stronger margin per tonne due in part to strategic procurement in a rising price environment. * Crop protection products sales increased in the second quarter and first half of 2021 due to market growth and favorable application conditions throughout most of the US. Gross margin percentages were stable as strategic procurement and strong proprietary product results more than offset higher costs for certain products caused by global supply chain issues. * Seed sales increased in the second quarter and first half of 2021, supported by higher seeded acreage in key regions where we operate and strong agriculture fundamentals. Gross margin percentage was stable in the second quarter and first half of 2021. * Merchandise sales increased in the second quarter and first half of 2021 primarily driven by growth in the Australian market due to higher animal health and management sales related to strong livestock prices. Gross margin was similar in both periods despite the shift in product mix. * Nutrien Financial sales increased in the second quarter and first half of 2021 due to higher utilization and adoption of our programs. * Services and other sales decreased due to the divestiture of an Australian livestock export business in the fourth quarter of 2020, which more than offset higher US custom application sales. Despite the change in revenue mix, the impact to gross margin percentage was favorable for both the second quarter and first half of 2021.

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

Potash

Six Months Ended June 30

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

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

Sales

Crop nutrients 4,061 3,312 23 923 715 29 23 22

Crop protection 3,751 3,446 9 763 704 8 20 20products

Seed 1,679 1,535 9 306 278 10 18 18

Merchandise 498 469 6 83 79 5 17 17

Nutrien 84 56 50 84 56 50 100 100Financial ^1

Services and 508 655 (22) 423 384 10 83 59other ^1

NutrienFinancial (72) (48) 50 (72) (48) 50 100 100elimination

10,509 9,425 12 2,510 2,168 16 24 23

Cost of goods 7,999 7,257 10 sold

Gross margin 2,510 2,168 16

Expenses ^1,2 1,659 1,515 10

EBIT 851 653 30

Depreciation and 346 318 9 amortization

EBITDA 1,197 971 23

Adjustments ^3 9 - n/m

Adjusted EBITDA 1,206 971 24

1 Certain immaterial figures have been reclassified for the six months endedJune 30, 2020.

2 Includes selling expenses of $1,530 million (2020 - $1,399 million).

3 See Note 2 to the interim financial statements.

* Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher sales, gross margin and gross margin percentages. This was supported by expanded planted acreage and strong agricultural market fundamentals in all regions in which we operate, as well as, supply chain improvements and strategic procurement. Our Retail cash operating coverage ratio1 for the first half of 2021 declined to 60 percent. * Crop nutrients sales increased significantly in the second quarter and first half of 2021 supported by higher prices and record North American and International first half sales volumes. Gross margin benefited from stronger margin per tonne due in part to strategic procurement in a rising price environment. * Crop protection products sales increased in the second quarter and first half of 2021 due to market growth and favorable application conditions throughout most of the US. Gross margin percentages were stable as strategic procurement and strong proprietary product results more than offset higher costs for certain products caused by global supply chain issues. * Seed sales increased in the second quarter and first half of 2021, supported by higher seeded acreage in key regions where we operate and strong agriculture fundamentals. Gross margin percentage was stable in the second quarter and first half of 2021. * Merchandise sales increased in the second quarter and first half of 2021 primarily driven by growth in the Australian market due to higher animal health and management sales related to strong livestock prices. Gross margin was similar in both periods despite the shift in product mix. * Nutrien Financial sales increased in the second quarter and first half of 2021 due to higher utilization and adoption of our programs. * Services and other sales decreased due to the divestiture of an Australian livestock export business in the fourth quarter of 2020, which more than offset higher US custom application sales. Despite the change in revenue mix, the impact to gross margin percentage was favorable for both the second quarter and first half of 2021.

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

Potash

Three Months Ended June 30

(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 326 232 41 1,172 1,201 (2) 278 194 43

Offshore 491 356 38 2,449 2,414 1 200 147 36

817 588 39 3,621 3,615 - 226 163 39

Cost of goods 317 310 2 88 86 2sold

Gross margin - 500 278 80 138 77 79total

Expenses ^1 123 52 137 Depreciation and 32 30 7 amortization

EBIT 377 226 67 Gross margin excluding depreciation

Depreciation and 116 109 6 and amortization - 170 107 59amortization manufactured ^2

EBITDA 493 335 47 Potash cash cost of product

Adjustments ^3 2 - n/m manufactured ^2 59 52 13

Adjusted EBITDA 495 335 48

1 Includes provincial mining taxes of $107 million (2020 - $46 million).

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

3 See Note 2 to the interim financial statements.

Six Months Ended June 30

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

% Change

Manufactured product

Net sales

North America

658

457

44

2,642

2,348

13

249

195

28

Offshore

770

648

19

4,136

4,144

-

186

156

19

1,428

1,105

29

6,778

6,492

4

211

170

24

Cost of goods sold

608

575

6

90

88

2

Gross margin - total

820

530

55

121

82

48

Expenses 1

187

115

63

Depreciation and amortization

35

32

9

EBIT

633

415

53

Gross margin excluding depreciation

Depreciation and amortization

240

205

17

and amortization - manufactured

156

114

37

EBITDA

873

620

41

Potash cash cost of product

Adjustments 2

2

-

n/m

manufactured

58

56

4

Adjusted EBITDA

875

620

41

1 Includes provincial mining taxes of $165 million (2020 - $103 million).

2 See Note 2 to the interim financial statements.

* Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices and record sales volumes. * Sales volumes were the highest of any second quarter or first half on record. Demand was strong in both North America and Offshore markets, supported by high crop prices and good affordability, allowing us to leverage our structurally advantaged, flexible, low-cost network of six mines and integrated transportation and logistics system. * Net realized selling price increased in the second quarter and first half of 2021 due to strong global demand and very tight supply. * Cost of goods sold per tonne in the second quarter and first half of 2021 was slightly higher compared to the same periods in 2020, primarily due to the stronger Canadian dollar and mine production mix. These factors also led to a higher potash cash cost of product manufactured per tonne in the second quarter and first half of 2021.

Canpotex Sales by Market

Six Months Ended June 30

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

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

Manufactured product

Net sales

North America 658 457 44 2,642 2,348 13 249 195 28

Offshore 770 648 19 4,136 4,144 - 186 156 19

1,428 1,105 29 6,778 6,492 4 211 170 24

Cost of goods 608 575 6 90 88 2sold

Gross margin - 820 530 55 121 82 48total

Expenses ^1 187 115 63 Depreciation and 35 32 9 amortization

EBIT 633 415 53 Gross margin excluding depreciation

Depreciation and amortization -and 240 205 17 manufactured 156 114 37amortization

EBITDA 873 620 41 Potash cash cost of product

Adjustments ^2 2 - n/m manufactured 58 56 4

Adjusted 875 620 41 EBITDA

1 Includes provincial mining taxes of $165 million (2020 - $103 million).

2 See Note 2 to the interim financial statements.

* Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices and record sales volumes. * Sales volumes were the highest of any second quarter or first half on record. Demand was strong in both North America and Offshore markets, supported by high crop prices and good affordability, allowing us to leverage our structurally advantaged, flexible, low-cost network of six mines and integrated transportation and logistics system. * Net realized selling price increased in the second quarter and first half of 2021 due to strong global demand and very tight supply. * Cost of goods sold per tonne in the second quarter and first half of 2021 was slightly higher compared to the same periods in 2020, primarily due to the stronger Canadian dollar and mine production mix. These factors also led to a higher potash cash cost of product manufactured per tonne in the second quarter and first half of 2021.

Canpotex Sales by Market

(percentage of sales volumes, Three Months Ended Six Months Endedexcept as June 30 June 30

otherwise noted) 2021 2020 Change 2021 2020 Change

Other Asian markets ^1 41 26 15 39 28 11

Latin America 35 36 (1) 33 31 2

China 11 19 (8) 12 22 (10)

Other markets 10 7 3 11 7 4

India 3 12 (9) 5 12 (7)

100 100 100 100

1 All Asian markets except China and India.

Nitrogen

Three Months Ended June 30

(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 346 229 51 836 935 (11) 416 244 70

Urea 346 273 27 819 1,000 (18) 421 273 54

Solutions,nitrates and 290 194 49 1,311 1,255 4 221 154 44sulfates

982 696 41 2,966 3,190 (7) 331 218 52

Cost of goods 597 508 18 201 159 26sold

Gross margin - 385 188 105 130 59 120manufactured

Gross margin - 31 20 55 Depreciation and 52 54 (4)other ^1 amortization

Gross margin - 416 208 100 Gross margin excluding total depreciation

Expenses 17 (3) n/m and amortization - 182 113 61(income) manufactured

EBIT 399 211 89 Ammonia controllable cash cost of

Depreciation and 155 172 (10) product manufactured 51 40 28amortization ^2

EBITDA 554 383 45

Adjustments ^3 1 - n/m

Adjusted EBITDA 555 383 45

1 Includes other nitrogen (including ESN(r) and Rainbow) and purchased productsand is comprised of net sales of $197 million (2020 - $157 million) less costof goods sold of $166 million (2020 - $137 million).

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

3 See Note 2 to the interim financial statements.

Six Months Ended June 30

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

% Change

Manufactured product

Net sales

Ammonia

506

359

41

1,408

1,502

(6)

360

239

51

Urea

595

510

17

1,576

1,856

(15)

377

275

37

Solutions, nitrates and sulfates

454

357

27

2,385

2,360

1

190

151

26

1,555

1,226

27

5,369

5,718

(6)

290

214

36

Cost of goods sold

1,037

952

9

194

166

17

Gross margin - manufactured

518

274

89

96

48

100

Gross margin - other 1

48

31

55

Depreciation and amortization

53

56

(5)

Gross margin - total

566

305

86

Gross margin excluding depreciation

Expenses

-

8

(100)

and amortization - manufactured

149

104

43

EBIT

566

297

91

Ammonia controllable cash cost of

Depreciation and amortization

284

322

(12)

product manufactured

51

43

19

EBITDA

850

619

37

Adjustments 2

5

-

n/m

Adjusted EBITDA

855

619

38

1 Includes other nitrogen (including ESN(r) and Rainbow) and purchased products and is comprised of net sales of $384 million (2020 - $305 million) less cost of goods sold of $336 million (2020 - $274 million).

2 See Note 2 to the interim financial statements.

* Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices which more than offset higher natural gas costs, lower equity earnings and lower sales volumes. * Sales volumes were lower in the second quarter and first half of 2021 due to higher turnaround activities, temporary production outages and lower inventories at the beginning of 2021. Our ammonia operating rate was 87 percent and 92 percent respectively in the second quarter and first half of 2021. * Net realized selling price of nitrogen in the second quarter and first half of 2021 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 during the second quarter and first half of 2021 due to higher natural gas costs, a stronger Canadian dollar and lower nitrogen production. The stronger Canadian dollar combined with lower production volumes led to a higher ammonia controllable cash cost of product manufactured per tonne in the second quarter and first half of 2021.

Natural Gas Prices in Cost of Production

Six Months Ended June 30

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

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

Manufactured product

Net sales

Ammonia 506 359 41 1,408 1,502 (6) 360 239 51

Urea 595 510 17 1,576 1,856 (15) 377 275 37

Solutions,nitrates and 454 357 27 2,385 2,360 1 190 151 26sulfates

1,555 1,226 27 5,369 5,718 (6) 290 214 36

Cost of goods 1,037 952 9 194 166 17sold

Gross margin- 518 274 89 96 48 100manufactured

Gross margin 48 31 55 Depreciation and 53 56 (5)- other ^1 amortization

Gross margin 566 305 86 Gross margin excluding - total depreciation

Expenses - 8 (100) and amortization - 149 104 43 manufactured

EBIT 566 297 91 Ammonia controllable cash cost of

Depreciationand 284 322 (12) product manufactured 51 43 19amortization

EBITDA 850 619 37

Adjustments ^ 5 - n/m 2

Adjusted 855 619 38 EBITDA

1 Includes other nitrogen (including ESN(r) and Rainbow) and purchased productsand is comprised of net sales of $384 million (2020 - $305 million) less costof goods sold of $336 million (2020 - $274 million).

2 See Note 2 to the interim financial statements.

* Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices which more than offset higher natural gas costs, lower equity earnings and lower sales volumes. * Sales volumes were lower in the second quarter and first half of 2021 due to higher turnaround activities, temporary production outages and lower inventories at the beginning of 2021. Our ammonia operating rate was 87 percent and 92 percent respectively in the second quarter and first half of 2021. * Net realized selling price of nitrogen in the second quarter and first half of 2021 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 during the second quarter and first half of 2021 due to higher natural gas costs, a stronger Canadian dollar and lower nitrogen production. The stronger Canadian dollar combined with lower production volumes led to a higher ammonia controllable cash cost of product manufactured per tonne in the second quarter and first half of 2021.

Natural Gas Prices in Cost of Production

Three Months Ended Six Months Ended June 30 June 30

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

Overall gas cost excluding realized 3.86 2.09 85 3.51 2.16 63derivative impact

Realized derivative impact 0.03 0.06 (50) 0.03 0.06 (50)

Overall gas cost 3.89 2.15 81 3.54 2.22 59



Average NYMEX 2.83 1.72 65 2.76 1.83 51

Average AECO 2.32 1.37 69 2.31 1.50 54

* Natural gas prices in our cost of production increased in the second quarter and first half 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 June 30

(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 232 146 59 394 472 (17) 588 309 90

Industrial and 119 104 14 192 194 (1) 621 538 15feed

351 250 40 586 666 (12) 598 375 59

Cost of goods sold 271 224 21 463 335 38

Gross margin - 80 26 208 135 40 238manufactured

Gross margin - 4 2 100 Depreciation and 60 84 (29)other ^1 amortization

Gross margin - Gross margintotal 84 28 200 excluding depreciation

Expenses 7 7 - and amortization - 195 124 57 manufactured

EBIT 77 21 267

Depreciation and 35 56 (38) amortization

EBITDA / Adjusted 112 77 45 EBITDA

1 Includes other phosphate and purchased products and is comprised of net salesof $52 million (2020 - $27 million) less cost of goods sold of $48 million(2020 - $25 million).

Six Months Ended June 30

(millions of US dollars, except

Dollars

Tonnes (thousands)

Average per Tonne

as otherwise noted)

2021

2020

% Change

2021

2020

% Change

2021

2020

% Change

Manufactured product

Net sales

Fertilizer

462

319

45

903

1,040

(13)

511

307

66

Industrial and feed

233

210

11

385

385

-

605

546

11

695

529

31

1,288

1,425

(10)

539

372

45

Cost of goods sold

553

511

8

429

359

19

Gross margin - manufactured

142

18

689

110

13

746

Gross margin - other 1

8

3

167

Depreciation and amortization

57

84

(32)

Gross margin - total

150

21

614

Gross margin excluding depreciation

Expenses

14

17

(18)

and amortization - manufactured

167

97

72

EBIT

136

4

n/m

Depreciation and amortization

73

119

(39)

EBITDA / Adjusted EBITDA

209

123

70

1 Includes other phosphate and purchased products and is comprised of net sales of $93 million (2020 - $61 million) less cost of goods sold of $85 million (2020 - $58 million).

* Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices which more than offset higher raw material costs and lower sales volumes. * Sales volumes were lower in the second quarter and first half of 2021 due to the timing of turnaround activity this year and higher inventory tonnes in 2020 which supported higher sales in the second quarter and first half of 2020. * Net realized selling price of phosphate fertilizer increased in the second quarter and first half of 2021 as a result of the increase in benchmark fertilizer prices resulting from the strength in global agriculture markets and higher global raw material costs. Industrial and feed prices also increased, but to a lesser extent than fertilizer, due to a lag in price realizations relative to spot prices. * Cost of goods sold per tonne increased due to significantly higher raw material input costs and a $46 million favorable change in estimate related to an asset retirement obligation recorded in the second quarter of 2020. 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

Six Months Ended June 30

(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 462 319 45 903 1,040 (13) 511 307 66

Industrial and 233 210 11 385 385 - 605 546 11feed

695 529 31 1,288 1,425 (10) 539 372 45

Cost of goods 553 511 8 429 359 19sold

Gross margin - 142 18 689 110 13 746manufactured

Gross margin - 8 3 167 Depreciation and 57 84 (32)other ^1 amortization

Gross margin - 150 21 614 Gross margin excluding total depreciation

Expenses 14 17 (18) and amortization - 167 97 72 manufactured

EBIT 136 4 n/m

Depreciation and 73 119 (39) amortization

EBITDA / 209 123 70 Adjusted EBITDA

1 Includes other phosphate and purchased products and is comprised of net salesof $93 million (2020 - $61 million) less cost of goods sold of $85 million(2020 - $58 million).

* Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices which more than offset higher raw material costs and lower sales volumes. * Sales volumes were lower in the second quarter and first half of 2021 due to the timing of turnaround activity this year and higher inventory tonnes in 2020 which supported higher sales in the second quarter and first half of 2020. * Net realized selling price of phosphate fertilizer increased in the second quarter and first half of 2021 as a result of the increase in benchmark fertilizer prices resulting from the strength in global agriculture markets and higher global raw material costs. Industrial and feed prices also increased, but to a lesser extent than fertilizer, due to a lag in price realizations relative to spot prices. * Cost of goods sold per tonne increased due to significantly higher raw material input costs and a $46 million favorable change in estimate related to an asset retirement obligation recorded in the second quarter of 2020. 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

(millions of US dollars, except Three Months Ended Six Months Ended Juneas otherwise June 30 30

noted) 2021 2020 % 2021 2020 % Change Change

Sales ^1 - 20 (100) - 47 (100)

Cost of goods sold - 18 (100) - 43 (100)

Gross margin - 2 (100) - 4 (100)

Selling expenses (9) (8) 13 (15) (13) 15

General and administrative 66 65 2 124 125 (1)expenses

Share-based compensation expense 38 12 217 61 (20) n/m(recovery)

Other expenses 83 80 4 111 87 28

EBIT (178) (147) 21 (281) (175) 61

Depreciation and amortization 10 17 (41) 22 26 (15)

EBITDA (168) (130) 29 (259) (149) 74

Adjustments ^2 100 65 54 143 18 694

Adjusted EBITDA (68) (65) 5 (116) (131) (11)

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) - In the second quarter of 2021, the expense was higher as a result of the increase in our share price. We also had a higher number of share-based awards that vested in 2021. We had an expense in the first half of 2021 due to an increase in our share price, while a recovery was recorded in the first half of 2020 as our share price decreased as a result of market volatility caused by the COVID-19 pandemic.

* Other expenses were higher in the second quarter and first half of 2021 compared to the same periods in 2020 as we recognized additional cloud computing related expenses from our change in accounting policy (refer to Note 3). This was partially offset by lower foreign exchange losses as Canadian and Australian dollars improved relative to the US dollar in the second quarter of 2021.

Finance Costs, Income Tax Expense andOther Comprehensive Income (Loss)

(millions of US dollars, except as Three Months Ended Six Months Ended Juneotherwise June 30 30

noted) 2021 2020 % 2021 2020 % Change Change

Finance costs 125 139 (10) 245 272 (10)

Income tax expense 381 235 62 406 219 85

Other comprehensive income (loss) 61 201 (70) 85 (157) n/m

* Finance costs in the second quarter and first half 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 in the second quarter and first half of 2021 was higher as a result of higher earnings before income taxes compared to the same periods in 2020. * Other comprehensive income (loss) is primarily driven by changes in the currency translation of our foreign operations and our investment in Sinofert Holdings Ltd. ("Sinofert"). In 2020, the COVID-19 pandemic resulted in increased market volatility that affected share prices and foreign exchange rates. This resulted in fair value losses on our investment in Sinofert as well as a significant translation gain in the second quarter of 2020 and a significant translation loss in the first quarter of 2020. In the first half of 2021, Sinofert share price increased while the Canadian and Australian dollars relative to the US dollar were less volatile.

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. Refer to the "Capital Structure and Management" section for details on our existing long-term debt and credit facilities.

Sources and Uses of Cash

(millions of US dollars, Three Months Ended June Six Months Ended Juneexcept as otherwise 30 30

noted) 2021 2020 % 2021 2020 % Change Change

Cash provided by operating 1,966 1,756 12 1,814 1,230 47activities

Cash used in investing (431) (408) 6 (819) (853) (4)activities

Cash (used in) provided by (449) (3,139) (86) (640) 380 n/mfinancing activities

Effect of exchange ratechanges on cash and cash (4) 24 n/m (15) (13) 15equivalents

Increase (decrease) in cash 1,082 (1,767) n/m 340 744 (54)and cash equivalents

Cash provided by operating activities

* Higher cash provided by operating activities in the second quarter and first half of 2021 compared to the same periods in 2020 was primarily due to strong global crop and fertilizer markets, which resulted in higher earnings, combined with improvements to working capital management, the most significant of which was an increase in payables and accrued charges related to a shift in timing of supplier payments.

Cash used in investing activities

* Higher cash used in investing activities in the second quarter was primarily due to higher additions to our property, plant and equipment from higher turnaround activities compared to the same period in 2020. * Lower cash used in investing activities for the first half of 2021 was primarily due to lower acquisitions compared to the same period in 2020.

Cash (used in) provided by financing activities

* Lower cash used in financing activities for the second quarter of 2021 compared to the second quarter of 2020 was due to minimal debt repayments in 2021. In 2020, as we managed our liquidity needs during the initial period of the COVID-19 pandemic, we repaid $4.3 billion of short-term debt and issued $1.5 billion of notes. * Cash used in financing activities for the first half of 2021 compared to cash provided by financing activities in the first half of 2020 was primarily due to the issuance of $1.5 billion of notes and a note repayment of $500 million in the first half of 2020. We did not issue or repay notes in the first half of 2021.

Financial Condition Review

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

* Higher cash provided by operating activities in the secondCash quarter and first half of 2021 compared to the same periods inprovided 2020 was primarily due to strong global crop and fertilizerby markets, which resulted in higher earnings, combined withoperating improvements to working capital management, the most significantactivities of which was an increase in payables and accrued charges related to a shift in timing of supplier payments.

* Higher cash used in investing activities in the second quarterCash used was primarily due to higher additions to our property, plant andin equipment from higher turnaround activities compared to the sameinvesting period in 2020.activities * Lower cash used in investing activities for the first half of 2021 was primarily due to lower acquisitions compared to the same period in 2020.

* Lower cash used in financing activities for the second quarter of 2021 compared to the second quarter of 2020 was due to minimal debt repayments in 2021. In 2020, as we managed ourCash (used liquidity needs during the initial period of the COVID-19in) pandemic, we repaid $4.3 billion of short-term debt and issuedprovided $1.5 billion of notes.by * Cash used in financing activities for the first half of 2021financing compared to cash provided by financing activities in the firstactivities half of 2020 was primarily due to the issuance of $1.5 billion of notes and a note repayment of $500 million in the first half of 2020. We did not issue or repay notes in the first half of 2021.

Financial Condition Review

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

As at

(millions of US dollars, except as June 30, December 31, $ %otherwise noted) 2021 2020 Change Change

Assets

Cash and cash equivalents 1,794 1,454 340 23

Receivables 6,683 3,626 3,057 84

Prepaid expenses and other current 524 1,460 (936) (64)assets

Other assets 664 914 (250) (27)

Liabilities and Equity

Payables and accrued charges 9,367 8,058 1,309 16

Retained earnings 7,315 6,606 709 11

* 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. This was a result of increased crop nutrient net realized selling prices and demand for crop inputs, as well as higher Retail vendor rebates receivables. Certain income tax receivables previously classified as non-current are currently realizable within one year. * Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventory (primarily seed and crop protection) during the spring planting and application seasons. * 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 a shift in timing of supplier payments and higher inventory purchases to meet strong seasonal demand, which were partially offset by lower customer prepayments in North America as Retail customers took delivery of prepaid sales. * Retained earnings increased as net earnings in the first half of 2021 exceeded dividends declared.

Capital Structure and Management

Principal Debt Instruments

As part of the normal course of business, we 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 six months ended June 30, 2021.

As at June 30, 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 0.9 - 7.5 630 115 73

Other n/a 95 -

Total 210 73

1 Other credit facilities are unsecured and consist of South Americanfacilities with debt of $167 million and interest rates ranging from 1.5percent to 7.5 percent and other facilities with debt of $21 million andinterest rates ranging from 0.9 percent to 4.1 percent.

We also have a commercial paper program, which 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. There is no outstanding balance as of June 30, 2021.

We extended the maturity date of the unsecured revolving term credit facility from 2023 to 2026 in the three months ended June 30, 2021. There was no change to the total facility limit or the significant agreement terms from those we disclosed in our 2020 Annual Report.

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 August 6, 2021

Common shares 570,688,867

Options to purchase common shares 9,877,776

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

Quarterly Results

(millions ofUS dollars, Q2except as 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019otherwisenoted)

Sales ^1 9,763 4,658 4,052 4,227 8,431 4,198 3,462 4,185

Net earnings(loss)attributable 1,108 127 316 (587) 765 (35) (48) 141to equityholders ofNutrien

Adjusted 2,215 806 768 670 1,721 508 664 787EBITDA

Net earnings(loss) pershareattributable to equityholders ofNutrien

Basic 1.94 0.22 0.55 (1.03) 1.34 (0.06) (0.08) 0.25

Diluted 1.94 0.22 0.55 (1.03) 1.34 (0.06) (0.08) 0.24

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 suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

In the third quarter of 2020, earnings were impacted by an $824 million non-cash impairment of assets 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 $250 million net gain on disposal of our investment in Misr Fertilizers Production Company S.A.E. ("MOPCO").

Critical Accounting Estimates

Our significant 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 six months ended June 30, 2021 to our critical accounting estimates.

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 June 30, 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 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; Nutrien's ability to develop innovative and sustainable solutions; the negotiation of sales contracts; 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, including variants of the COVID-19 virus and the efficiency and distribution of vaccines, and its resulting effects on economic conditions, restrictions imposed by public health authorities or governments, 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, 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 approximately 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.

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

Such data is not incorporated by reference herein.

Nutrien will host a Conference Call on Tuesday, August 10, 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/3792844. Via Phone: 1-888-869-1189 Conference ID 3792844. * 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-q2-earnings-conference-call

Appendix A - Selected Additional Financial Data

Selected Retail measures Three Months Six Months Ended June 30 Ended June 30

2021 2020 2021 2020

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

Crop nutrients 24 24 23 26

Crop protection products 43 42 42 42

Seed 46 47 43 44

All products 29 29 27 28

Crop nutrients sales volumes (tonnes - thousands)

North America 5,020 5,098 6,617 6,524

International 1,132 1,024 1,935 1,623

Total 6,152 6,122 8,552 8,147

Crop nutrients selling price per tonne

North America 506 427 494 425

International 445 340 408 332

Total 495 413 475 406

Crop nutrients gross margin per tonne

North America 127 101 123 100

International 57 42 54 40

Total 114 91 108 88



Financial performance measures 2021

Retail adjusted EBITDA to sales ("Retail adjusted EBITDA 10margin") (%) ^1

Retail adjusted average working capital to sales (%) ^1, 2 12

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

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

Retail normalized comparable store sales (%) ^2 1

Retail adjusted EBITDA per US selling location (thousands of 1,267US dollars) ^1, 2

Nutrien Financial net interest margin (%) ^1, 2 6.2

1 Rolling four quarters ended June 30, 2021.

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

Nutrien Financial

As at June 30, 2021

(millions of US dollars)

Current

<31 dayspast due

31-90 dayspast due

>90 dayspast due

Gross Receivables

Allowance 1

Total

North America

2,530

152

56

48

2,786

(31)

2,755

International

230

12

14

63

319

(2)

317

Nutrien Financial receivables

2,760

164

70

111

3,105

(33)

3,072

1 Bad debt expense on the above receivables for the three months ended June 30, 2021 was $11 million (2020 - $12 million) in the Retail segment.

Nutrien Financial As at June 30, 2021

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

North America 2,530 152 56 48 2,786 (31) 2,755

International 230 12 14 63 319 (2) 317

Nutrien Financial 2,760 164 70 111 3,105 (33) 3,072receivables

1 Bad debt expense on the above receivables for the three months ended June 30,2021 was $11 million (2020 - $12 million) in the Retail segment.

Selected Nitrogen measures

Three Months Ended June 30

Six Months Ended June 30

2021

2020

2021

2020

Sales volumes (tonnes - thousands)

Fertilizer

1,825

2,173

3,130

3,584

Industrial and feed

1,141

1,017

2,239

2,134

Net sales (millions of US dollars)

Fertilizer

638

510

970

828

Industrial and feed

344

186

585

398

Net selling price per tonne

Fertilizer

350

235

310

231

Industrial and feed

302

182

261

186

Selected Nitrogen measures Three Months Ended June Six Months Ended 30 June 30

2021 2020 2021 2020

Sales volumes (tonnes - thousands)

Fertilizer 1,825 2,173 3,130 3,584

Industrial and feed 1,141 1,017 2,239 2,134

Net sales (millions of US dollars)

Fertilizer 638 510 970 828

Industrial and feed 344 186 585 398

Net selling price per tonne

Fertilizer 350 235 310 231

Industrial and feed 302 182 261 186

Production measures

Three Months Ended June 30

Six Months Ended June 30

2021

2020

2021

2020

Potash production (Product tonnes - thousands)

3,414

3,346

6,950

6,381

Potash shutdown weeks 1

4

22

4

34

Ammonia production - total 2

1,492

1,619

2,941

3,066

Ammonia production - adjusted 2, 3

954

1,067

2,007

2,058

Ammonia operating rate (%) 3

87

97

92

94

P2O5 production (P2O5 tonnes - thousands)

347

357

725

729

P2O5 operating rate (%)

82

84

86

86

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, cloud computing transition adjustment, 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. Cloud computing transition adjustment relates to cloud computing costs in prior years that no longer qualify for capitalization based on an agenda decision issued by the IFRS Interpretations Committee in April 2021. In 2021, we amended our calculation of adjusted EBITDA to adjust for the impact of restructuring and related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

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

Production measures Three Months Six Months Ended June 30 Ended June 30

2021 2020 2021 2020

Potash production (Product tonnes - thousands) 3,414 3,346 6,950 6,381

Potash shutdown weeks ^1 4 22 4 34

Ammonia production - total ^2 1,492 1,619 2,941 3,066

Ammonia production - adjusted ^2, 3 954 1,067 2,007 2,058

Ammonia operating rate (%) ^3 87 97 92 94

P[2]O[5 ]production (P[2]O[5] tonnes - 347 357 725 729thousands)

P[2]O[5] operating rate (%) 82 84 86 86

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, cloud computing transition adjustment, 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. Cloud computing transition adjustment relates to cloud computing costs in prior years that no longer qualify for capitalization based on an agenda decision issued by the IFRS Interpretations Committee in April 2021. In 2021, we amended our calculation of adjusted EBITDA to adjust for the impact of restructuring and related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

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

Three Months Ended Six Months Ended June 30 June 30

(millions of US dollars) 2021 2020 2021 2020

Net earnings 1,113 765 1,246 730

Finance costs 125 139 245 272

Income tax expense 381 235 406 219

Depreciation and amortization 485 517 965 990

EBITDA 2,104 1,656 2,862 2,211

Integration and restructuring related 29 18 39 28costs

Share-based compensation expense 38 12 61 (20)(recovery)

Impairment of assets 1 - 5 -

COVID-19 related expenses 9 17 18 19

Foreign exchange (gain) loss, net of (2) 18 - (9)related derivatives

Cloud computing transition adjustment 36 - 36 -

Adjusted EBITDA 2,215 1,721 3,021 2,229

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), COVID-19 related expenses, and cloud computing transition adjustment. 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), cloud computing transition adjustment, 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 and cloud computing transition adjustment. There were no similar expenses in the comparative period.

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

Three Months Ended Six Months Ended June 30, 2021 June 30, 2021

Per Per

(millions ofUS dollars, Increases Diluted Increases Dilutedexcept asotherwise

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

Net earningsattributableto equity 1,108 1.94 1,235 2.16holders ofNutrien

Adjustments:

Integrationand 29 22 0.03 39 30 0.05restructuringrelated costs

Share-basedcompensation 38 29 0.05 61 46 0.08expense

Impairment of 1 1 - 5 4 0.01assets

COVID-19related 9 7 0.01 18 14 0.02expenses

Foreignexchangegain, net of (2) (2) - - - -relatedderivatives

Cloudcomputing 36 27 0.05 36 27 0.05transitionadjustment

Adjusted net 1,192 2.08 1,356 2.37earnings

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 Six Months Ended June 30 Ended June 30

(millions of US dollars) 2021 2020 2021 2020

Cash from operations before working capital 1,717 1,318 2,357 1,662changes

Sustaining capital expenditures (304) (145) (468) (308)

Free cash flow 1,413 1,173 1,889 1,354

Changes in non-cash operating working 249 438 (543) (432)capital

Free cash flow including changes in 1,662 1,611 1,346 922non-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 Six Months Ended June 30 June 30

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

Total COGS - Potash 317 310 608 575

Change in inventory (11) (40) 16 (32)

Other adjustments (2) (3) (6) (5)

COPM 304 267 618 538

Depreciation and amortization (103) (92) (214) (181)included in COPM

Cash COPM 201 175 404 357

Production tonnes (tonnes - 3,414 3,346 6,950 6,381thousands)

Potash cash COPM per tonne 59 52 58 56

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 Six Months Ended June 30 June 30

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

Total COGS - Nitrogen 763 645 1,373 1,226

Depreciation and amortization in COGS (134) (152) (242) (282)

Cash COGS for products other than (448) (369) (841) (730)ammonia

Ammonia

Total cash COGS before other 181 124 290 214adjustments

Other adjustments ^1 (27) (46) (30) (35)

Total cash COPM 154 78 260 179

Natural gas and steam costs (118) (53) (192) (119)

Controllable cash COPM 36 25 68 60

Production tonnes (net tonnes ^2 - 703 644 1,305 1,388thousands)

Ammonia controllable cash COPM per 51 40 51 43tonne

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 June 30, 2021

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

Working capital 3,216 1,157 1,630 1,348

Working capital from certain - - - - recent acquisitions

Adjusted working capital 3,216 1,157 1,630 1,348 1,838

Nutrien Financial working (1,711) (1,392) (1,221) (3,072) capital

Adjusted working capital 1,505 (235) 409 (1,724) (11)excluding Nutrien Financial



Sales ^1 2,742 2,618 2,972 7,537

Sales from certain recent - - - - acquisitions

Adjusted sales 2,742 2,618 2,972 7,537 15,869

Nutrien Financial revenue ^1 (36) (37) (25) (59)

Adjusted sales excluding 2,706 2,581 2,947 7,478 15,712Nutrien Financial

1 Certain immaterial figures have been reclassified for the third quarter of2020.



Adjusted average working 12capital to sales (%)

Adjusted average working capital to sales excluding -Nutrien 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 June 30, 2021

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

Nutrien Financial revenue 36 37 25 59

Deemed interest expense ^1 (15) (14) (6) (8)

Net interest 21 23 19 51 114



Average Nutrien Financial receivables 1,711 1,392 1,221 3,072 1,849

Nutrien Financial net interest margin 6.2(%)

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 June 30, 2021

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

Operating expenses ^1, 2 691 768 721 938 3,118

Depreciation and amortization in (167) (177) (175) (166) (685)operating expenses

Operating expenses excluding depreciation 524 591 546 772 2,433and amortization



Gross margin ^2 683 885 652 1,858 4,078

Depreciation and amortization in cost of 3 3 2 3 11goods sold

Gross margin excluding depreciation and 686 888 654 1,861 4,089amortization

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 third quarter of2020.

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 June 30, 2021

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

Adjusted US EBITDA 86 177 29 847 1,139

Adjustments for acquisitions (5)

Adjusted US EBITDA adjusted for 1,134acquisitions

Number of US selling locations adjusted 895for acquisitions

Adjusted EBITDA per US selling location 1,267(thousands of US dollars)

Retail Normalized Comparable Store Sales

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

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

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

Six Months Ended June 30

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

Sales from comparable base

Current period 10,405 8,602

Prior period ^1 9,425 8,551

Comparable store sales (%) 10 1

Prior period normalized for benchmark prices and foreign 10,351 8,104exchange rates ^1

Normalized comparable store sales (%) 1 6

1 Certain immaterial figures have been reclassified in 2020.

Condensed Consolidated Financial Statements

Unaudited in millions of US dollars except as otherwise noted

Condensed Consolidated Statements of Earnings

Three Months Ended Six Months Ended

June 30 June 30

Note 2021 2020 2021 2020

Note 1 Note 1

SALES 2 9,763 8,431 14,421 12,629

Freight,transportation and 222 237 433 449distribution

Cost of goods sold 6,659 6,024 9,950 9,125

GROSS MARGIN 2,882 2,170 4,038 3,055

Selling expenses 865 763 1,538 1,405

General andadministrative 116 101 219 205expenses

Provincial mining 107 48 165 105taxes

Share-basedcompensation expense 38 12 61 (20)(recovery)

Other expenses 3 137 107 158 139

EARNINGS BEFORE FINANCE 1,619 1,139 1,897 1,221COSTS AND INCOME TAXES

Finance costs 125 139 245 272

EARNINGS BEFORE 1,494 1,000 1,652 949INCOME TAXES

Income tax expense 4 381 235 406 219

NET EARNINGS 1,113 765 1,246 730

Attributable to

Equity holders of 1,108 765 1,235 730Nutrien

Non-controlling 5 - 11 -interest

NET EARNINGS 1,113 765 1,246 730



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

Basic 1.94 1.34 2.17 1.28

Diluted 1.94 1.34 2.16 1.28

Weighted averageshares outstanding 570,352,000 569,146,000 570,007,000 570,157,000for basic EPS

Weighted averageshares outstanding 571,972,000 569,146,000 571,453,000 570,157,000for diluted EPS



Condensed Consolidated Statements of Comprehensive Income

Three Months Six Months Ended Ended

June 30 June 30

(Net of related income taxes) 2021 2020 2021 2020

NET EARNINGS 1,113 765 1,246 730

Other comprehensive income (loss)

Items that will not be reclassified to net earnings:

Net actuarial gain on defined benefit plans - - - 3

Net fair value gain (loss) on investments 22 (2) 70 (21)

Items that have been or may be subsequently reclassified to

net earnings:

Gain (loss) on currency translation of foreign 25 194 (5) (121)operations

Other 14 9 20 (18)

OTHER COMPREHENSIVE INCOME (LOSS) 61 201 85 (157)

COMPREHENSIVE INCOME 1,174 966 1,331 573

Attributable to

Equity holders of Nutrien 1,170 966 1,321 573

Non-controlling interest 4 - 10 -

COMPREHENSIVE INCOME 1,174 966 1,331 573



(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Cash Flows

Three Months Six Months Ended Ended

June 30 June 30

Note 2021 2020 2021 2020



OPERATING ACTIVITIES

Net earnings 1,113 765 1,246 730

Adjustments for:

Depreciation and amortization 485 517 965 990

Share-based compensation expense 38 12 61 (20)(recovery)

Impairment of assets 1 - 5 -

(Recovery of) provision for deferred (20) 84 (10) 62income tax

Cloud computing transition 3 36 - 36 -adjustment

Other long-term assets, liabilities 64 (60) 54 (100)and miscellaneous

Cash from operations before working 1,717 1,318 2,357 1,662capital changes

Changes in non-cash operating working capital:

Receivables (2,443) (1,824) (2,835) (2,147)

Inventories 1,848 2,174 63 746

Prepaid expenses and other current 310 247 998 1,013assets

Payables and accrued charges 534 (159) 1,231 (44)

CASH PROVIDED BY OPERATING 1,966 1,756 1,814 1,230ACTIVITIES

INVESTING ACTIVITIES

Additions to property, plant and (378) (298) (703) (661)equipment

Additions to intangible assets (5) (36) (38) (68)

Business acquisitions, net of cash (19) (116) (40) (173)acquired

Other (29) 42 (38) 49

CASH USED IN INVESTING ACTIVITIES (431) (408) (819) (853)

FINANCING ACTIVITIES

Transaction costs related to debt (7) (15) (7) (15)

(Repayment of) proceeds from (104) (4,290) (3) 204short-term debt, net

Proceeds from long-term debt 8 1,500 8 1,506

Repayment of long-term debt (5) (6) (5) (507)

Repayment of principal portion of (86) (70) (164) (134)lease liabilities

Dividends paid to Nutrien's 6 (263) (258) (518) (514)shareholders

Repurchase of common shares 6 (1) - (2) (160)

Issuance of common shares 21 - 63 -

Other (12) - (12) -

CASH (USED IN) PROVIDED BY FINANCING (449) (3,139) (640) 380ACTIVITIES

EFFECT OF EXCHANGE RATE CHANGES ON (4) 24 (15) (13)CASH AND CASH EQUIVALENTS

INCREASE (DECREASE) IN CASH AND CASH 1,082 (1,767) 340 744EQUIVALENTS

CASH AND CASH EQUIVALENTS - 712 3,182 1,454 671BEGINNING OF PERIOD

CASH AND CASH EQUIVALENTS - END OF 1,794 1,415 1,794 1,415PERIOD

Cash and cash equivalents comprised of:

Cash 1,580 1,106 1,580 1,106

Short-term investments 214 309 214 309

1,794 1,415 1,794 1,415

SUPPLEMENTAL CASH FLOWS INFORMATION

Interest paid 86 153 162 249

Income taxes paid 105 30 144 65

Total cash outflow for leases 111 96 208 188



(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 earnings - - - - - - - - 730 730 - 730

Othercomprehensive - - - (21) 3 (121) (18) (157) - (157) - (157)(loss) income

Sharesrepurchased (3,832,580) (105) (55) - - - - - - (160) - (160)(Note 6)

Dividends - - - - - - - - (514) (514) - (514)declared

Effect of share-based

compensationincluding

issuance of 35,706 1 7 - - - - - - 8 - 8common shares

Transfer of net loss on

cash flow - - - - - - 11 11 - 11 - 11hedges

Transfer of net actuarial gain

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

BALANCE - JUNE 569,145,935 15,667 200 (50) - (325) (25) (400) 7,320 22,787 38 22,82530, 2020

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

Net earnings - - - - - - - - 1,235 1,235 11 1,246

Othercomprehensive - - - 70 - (4) 20 86 - 86 (1) 85income (loss)

Sharesrepurchased (32,728) (1) (1) - - - - - - (2) - (2)(Note 6)

Dividends - - - - - - - - (526) (526) - (526)declared

Non-controllinginterest - - - - - - - - - - (12) (12)transactions

Effect of share-based

compensationincluding

issuance of - 74 (3) - - - - - - 71 - 71common shares

Transfer of netgain on cash - - - - - - (11) (11) - (11) - (11)flow hedges

BALANCE - JUNE 569,227,678 15,746 201 34 - (66) (12) (44) 7,315 23,218 36 23,25430, 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

June 30 December 31

As at Note 2021 2020 2020

Note 1 Note 1

ASSETS

Current assets

Cash and cash equivalents 1,794 1,415 1,454

Receivables 6,683 5,736 3,626

Inventories 4,876 4,199 4,930

Prepaid expenses and other current assets 524 420 1,460

13,877 11,770 11,470

Non-current assets

Property, plant and equipment 19,592 20,178 19,660

Goodwill 12,211 12,096 12,198

Other intangible assets 2,393 2,376 2,388

Investments 619 803 562

Other assets 664 578 914

TOTAL ASSETS 49,356 47,801 47,192

LIABILITIES

Current liabilities

Short-term debt 210 1,247 159

Current portion of long-term debt 32 - 14

Current portion of lease liabilities 276 228 249

Payables and accrued charges 9,367 7,306 8,058

9,885 8,781 8,480

Non-current liabilities

Long-term debt 10,029 10,032 10,047

Lease liabilities 900 841 891

Deferred income tax liabilities 4 3,118 3,212 3,149

Pension and other post-retirement benefit 458 435 454liabilities

Asset retirement obligations and accrued 1,559 1,575 1,597environmental costs

Other non-current liabilities 153 100 171

TOTAL LIABILITIES 26,102 24,976 24,789

SHAREHOLDERS' EQUITY

Share capital 6 15,746 15,667 15,673

Contributed surplus 201 200 205

Accumulated other comprehensive loss (44) (400) (119)

Retained earnings 7,315 7,320 6,606

Equity holders of Nutrien 23,218 22,787 22,365

Non-controlling interest 36 38 38

TOTAL SHAREHOLDERS' EQUITY 23,254 22,825 22,403

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 49,356 47,801 47,192



(See Notes to the Condensed Consolidated Financial Statements)

Notes to the Condensed Consolidated Financial Statements

As at and for the Three and Six Months Ended June 30, 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 except as disclosed in Note 3. 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.

Certain immaterial 2020 figures have been reclassified in the condensed consolidated statements of earnings, 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 3).

These interim financial statements were authorized by the audit committee of the Board of Directors for issue on August 9, 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 June 30, 2021

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third 7,522 844 1,008 389 - - 9,763 party

- 15 61 307 60 - (443) - intersegment

Sales - total 7,537 905 1,315 449 - (443) 9,763

Freight,transportation and - 88 136 46 - (48) 222distribution

Net sales 7,537 817 1,179 403 - (395) 9,541

Cost of goods sold 5,679 317 763 319 - (419) 6,659

Gross margin 1,858 500 416 84 - 24 2,882

Selling expenses 863 2 8 1 (9) - 865

General andadministrative 41 3 3 3 66 - 116expenses

Provincial mining - 107 - - - - 107taxes

Share-basedcompensation - - - - 38 - 38expense

Other expenses 34 11 6 3 83 - 137

Earnings (loss)before finance costs and

income taxes 920 377 399 77 (178) 24 1,619

Depreciation and 169 116 155 35 10 - 485amortization

EBITDA 1,089 493 554 112 (168) 24 2,104

Integration andrestructuring 7 - - - 22 - 29related costs

Share-basedcompensation - - - - 38 - 38expense

Impairment of - - 1 - - - 1assets

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

Foreign exchange gain, net of

related - - - - (2) - (2)derivatives

Cloud computingtransition 1 2 - - 33 - 36adjustment

Adjusted EBITDA 1,097 495 555 112 (68) 24 2,215

Assets - at June 21,784 12,107 10,266 1,454 4,414 (669) 49,35630, 2021

Three Months Ended June 30, 2020

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

- third party

6,754

617

755

285

20

-

8,431

- intersegment

10

64

246

49

-

(369)

-

Sales

- total

6,764

681

1,001

334

20

(369)

8,431

Freight, transportation and distribution

-

93

148

57

-

(61)

237

Net sales

6,764

588

853

277

20

(308)

8,194

Cost of goods sold

5,137

310

645

249

18

(335)

6,024

Gross margin

1,627

278

208

28

2

27

2,170

Selling expenses

764

1

5

1

(8)

-

763

General and administrative expenses

30

1

2

3

65

-

101

Provincial mining taxes

-

46

1

-

1

-

48

Share-based compensation expense

-

-

-

-

12

-

12

Other expenses (income)

32

4

(11)

3

79

-

107

Earnings (loss) before finance costs and

income taxes

801

226

211

21

(147)

27

1,139

Depreciation and amortization

163

109

172

56

17

-

517

EBITDA

964

335

383

77

(130)

27

1,656

Integration and restructuring related costs

-

-

-

-

18

-

18

Share-based compensation expense

-

-

-

-

12

-

12

COVID-19 related expenses

-

-

-

-

17

-

17

Foreign exchange loss, net of

related derivatives

-

-

-

-

18

-

18

Adjusted EBITDA

964

335

383

77

(65)

27

1,721

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. Comparative figures have been restated to reflect this change. Depreciation expense related to these assets are allocated to the rest of the segments based on usage.

Three Months Ended June 30, 2020

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third party 6,754 617 755 285 20 - 8,431

- 10 64 246 49 - (369) - intersegment

Sales - total 6,764 681 1,001 334 20 (369) 8,431

Freight,transportation and - 93 148 57 - (61) 237distribution

Net sales 6,764 588 853 277 20 (308) 8,194

Cost of goods sold 5,137 310 645 249 18 (335) 6,024

Gross margin 1,627 278 208 28 2 27 2,170

Selling expenses 764 1 5 1 (8) - 763

General andadministrative 30 1 2 3 65 - 101expenses

Provincial mining - 46 1 - 1 - 48taxes

Share-basedcompensation - - - - 12 - 12expense

Other expenses 32 4 (11) 3 79 - 107(income)

Earnings (loss)before finance costs and

income taxes 801 226 211 21 (147) 27 1,139

Depreciation and 163 109 172 56 17 - 517amortization

EBITDA 964 335 383 77 (130) 27 1,656

Integration andrestructuring - - - - 18 - 18related costs

Share-basedcompensation - - - - 12 - 12expense

COVID-19 related - - - - 17 - 17expenses

Foreign exchange loss, net of

related derivatives - - - - 18 - 18

Adjusted EBITDA 964 335 383 77 (65) 27 1,721

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.Comparative figures have been restated to reflect this change. Depreciationexpense related to these assets are allocated to the rest of the segments basedon usage.

Six Months Ended June 30, 2021

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

- third party

10,482

1,475

1,703

761

-

-

14,421

- intersegment

27

151

467

132

-

(777)

-

Sales

- total

10,509

1,626

2,170

893

-

(777)

14,421

Freight, transportation and distribution

-

198

231

105

-

(101)

433

Net sales

10,509

1,428

1,939

788

-

(676)

13,988

Cost of goods sold

7,999

608

1,373

638

-

(668)

9,950

Gross margin

2,510

820

566

150

-

(8)

4,038

Selling expenses

1,530

5

15

3

(15)

-

1,538

General and administrative expenses

80

5

5

5

124

-

219

Provincial mining taxes

-

165

-

-

-

-

165

Share-based compensation expense

-

-

-

-

61

-

61

Other expenses (income)

49

12

(20)

6

111

-

158

Earnings (loss) before finance costs and

income taxes

851

633

566

136

(281)

(8)

1,897

Depreciation and amortization

346

240

284

73

22

-

965

EBITDA

1,197

873

850

209

(259)

(8)

2,862

Integration and restructuring related costs

8

-

-

-

31

-

39

Share-based compensation expense

-

-

-

-

61

-

61

Impairment of assets

-

-

5

-

-

-

5

COVID-19 related expenses

-

-

-

-

18

-

18

Cloud computing transition adjustment

1

2

-

-

33

-

36

Adjusted EBITDA

1,206

875

855

209

(116)

(8)

3,021

Assets - at June 30, 2021

21,784

12,107

10,266

1,454

4,414

(669)

49,356

Six Months Ended June 30, 2021

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third 10,482 1,475 1,703 761 - - 14,421 party

- 27 151 467 132 - (777) - intersegment

Sales - total 10,509 1,626 2,170 893 - (777) 14,421

Freight,transportation and - 198 231 105 - (101) 433distribution

Net sales 10,509 1,428 1,939 788 - (676) 13,988

Cost of goods sold 7,999 608 1,373 638 - (668) 9,950

Gross margin 2,510 820 566 150 - (8) 4,038

Selling expenses 1,530 5 15 3 (15) - 1,538

General andadministrative 80 5 5 5 124 - 219expenses

Provincial mining - 165 - - - - 165taxes

Share-basedcompensation - - - - 61 - 61expense

Other expenses 49 12 (20) 6 111 - 158(income)

Earnings (loss)before finance costs and

income taxes 851 633 566 136 (281) (8) 1,897

Depreciation and 346 240 284 73 22 - 965amortization

EBITDA 1,197 873 850 209 (259) (8) 2,862

Integration andrestructuring 8 - - - 31 - 39related costs

Share-basedcompensation - - - - 61 - 61expense

Impairment of - - 5 - - - 5assets

COVID-19 related - - - - 18 - 18expenses

Cloud computingtransition 1 2 - - 33 - 36adjustment

Adjusted EBITDA 1,206 875 855 209 (116) (8) 3,021

Assets - at June 21,784 12,107 10,266 1,454 4,414 (669) 49,35630, 2021

Six Months Ended June 30, 2020

Corporate

Retail

Potash

Nitrogen

Phosphate

and Others

Eliminations

Consolidated

Sales

- third party

9,406

1,164

1,401

611

47

-

12,629

- intersegment

19

128

378

106

-

(631)

-

Sales

- total

9,425

1,292

1,779

717

47

(631)

12,629

Freight, transportation and distribution

-

187

248

127

-

(113)

449

Net sales

9,425

1,105

1,531

590

47

(518)

12,180

Cost of goods sold

7,257

575

1,226

569

43

(545)

9,125

Gross margin

2,168

530

305

21

4

27

3,055

Selling expenses

1,399

4

12

3

(13)

-

1,405

General and administrative expenses

68

3

4

5

125

-

205

Provincial mining taxes

-

103

1

-

1

-

105

Share-based compensation recovery

-

-

-

-

(20)

-

(20)

Other expenses (income)

48

5

(9)

9

86

-

139

Earnings (loss) before finance costs and

income taxes

653

415

297

4

(175)

27

1,221

Depreciation and amortization

318

205

322

119

26

-

990

EBITDA

971

620

619

123

(149)

27

2,211

Integration and restructuring related costs

-

-

-

-

28

-

28

Share-based compensation recovery

-

-

-

-

(20)

-

(20)

COVID-19 related expenses

-

-

-

-

19

-

19

Foreign exchange gain, net of

related derivatives

-

-

-

-

(9)

-

(9)

Adjusted EBITDA

971

620

619

123

(131)

27

2,229

Assets - at December 31, 2020

20,526

11,707

10,077

1,388

3,917

(423)

47,192

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

Six Months Ended June 30, 2020

Corporate

Retail Potash Nitrogen Phosphate and Eliminations Consolidated Others

Sales - third 9,406 1,164 1,401 611 47 - 12,629 party

- 19 128 378 106 - (631) - intersegment

Sales - total 9,425 1,292 1,779 717 47 (631) 12,629

Freight,transportation and - 187 248 127 - (113) 449distribution

Net sales 9,425 1,105 1,531 590 47 (518) 12,180

Cost of goods sold 7,257 575 1,226 569 43 (545) 9,125

Gross margin 2,168 530 305 21 4 27 3,055

Selling expenses 1,399 4 12 3 (13) - 1,405

General andadministrative 68 3 4 5 125 - 205expenses

Provincial mining - 103 1 - 1 - 105taxes

Share-basedcompensation - - - - (20) - (20)recovery

Other expenses 48 5 (9) 9 86 - 139(income)

Earnings (loss)before finance costs and

income taxes 653 415 297 4 (175) 27 1,221

Depreciation and 318 205 322 119 26 - 990amortization

EBITDA 971 620 619 123 (149) 27 2,211

Integration andrestructuring - - - - 28 - 28related costs

Share-basedcompensation - - - - (20) - (20)recovery

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

Foreign exchange gain, net of

related - - - - (9) - (9)derivatives

Adjusted EBITDA 971 620 619 123 (131) 27 2,229

Assets - at 20,526 11,707 10,077 1,388 3,917 (423) 47,192December 31, 2020

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

Three Months Ended Six Months Ended

June 30 June 30

2021 2020 2021 2020

Retail sales by product line

Crop nutrients 3,045 2,527 4,061 3,312

Crop protection products 2,666 2,436 3,751 3,446

Seed 1,216 1,141 1,679 1,535

Merchandise 268 253 498 469

Nutrien Financial 59 40 84 56

Services and other 335 400 508 655

Nutrien Financial elimination ^1 (52) (33) (72) (48)

7,537 6,764 10,509 9,425

Potash sales by geography

Manufactured product

North America 414 325 856 644

Offshore ^2 491 356 770 648

905 681 1,626 1,292

Nitrogen sales by product line

Manufactured product

Ammonia 405 291 593 447

Urea 372 304 646 566

Solutions, nitrates and sulfates 329 233 526 429

Other nitrogen and purchased products 209 173 405 337

1,315 1,001 2,170 1,779

Phosphate sales by product line

Manufactured product

Fertilizer 258 185 530 406

Industrial and feed 133 117 259 237

Other phosphate and purchased products 58 32 104 74

449 334 893 717

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

2 Relates to Canpotex Limited ("Canpotex") (Note 8).

NOTE 3OTHER (INCOME) EXPENSES

Three Months Six Months Ended Ended

June 30 June 30

2021 2020 2021 2020

Integration and restructuring related costs 29 18 39 28

Foreign exchange loss (gain), net of related 1 18 3 (13)derivatives

Earnings of equity-accounted investees (2) (13) (22) (23)

Bad debt expense 13 21 15 27

COVID-19 related expenses 9 17 18 19

Impairment of assets 1 - 5 -

Cloud computing transition adjustment 36 - 36 -

Other expenses 50 46 64 101

137 107 158 139

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 with retrospective application. Costs that do not meet the capitalization criteria should be expensed as incurred. We changed our accounting policy to align with the interpretation and previously capitalized costs that no longer qualify for capitalization were expensed in the current period since they were not material.

NOTE 4INCOME 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 Six Months Ended Ended

June 30 June 30

2021 2020 2021 2020

Income tax expense 381 235 406 219

Actual effective tax rate on earnings (%) 26 25 25 24

Actual effective tax rate including discrete 26 24 25 23items (%)

Discrete tax adjustments that impacted the tax (3) (13) (3) (11)rate

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

Income Tax Assets and Balance Sheet Location As at June As at DecemberLiabilities 30, 2021 31, 2020

Income tax assets

Current Receivables 346 83

Non-current Other assets 89 305

Deferred income tax Other assets 221 242assets

Total income tax assets 656 630

Income tax liabilities

Current Payables and accrued 335 48 charges

Non-current Other non-current 49 40 liabilities

Deferred income tax Deferred income tax 3,118 3,149liabilities liabilities

Total income tax 3,502 3,237liabilities

NOTE 5FINANCIAL 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:

June 30, 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 1,794 - 1,794 - 1,454 - 1,454equivalents

Derivativeinstrument 27 - 27 - 45 - 45assets

Other currentfinancial assets

- marketable 224 31 193 - 161 24 137securities ^2

Investments 233 223 - 10 153 153 -at FVTOCI ^3

Derivativeinstrument (20) - (20) - (48) - (48)liabilities

Amortized cost

Currentportion of long-termdebt

Fixed andfloating rate (32) - (32) - (14) - (14)debt

Long-term debt

Notes and (9,988) (7,763) (3,721) - (9,994) (3,801) (7,955)debentures

Fixed andfloating rate (41) - (41) - (53) - (53)debt

1 During the periods ended June 30, 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 6SHARE 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 32,728Bid ^1

1 The 2021 normal course issuer bid will expire earlier than the date above ifwe acquire the maximum number of common shares allowable or otherwise decidenot 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 Six Months Ended Ended

June 30 June 30

2021 2020 2021 2020

Number of common shares repurchased for 17,750 - 32,728 3,832,580cancellation

Average price per share (US dollars) 52.88 - 52.90 41.96

Total cost 1 - 2 160

Dividends declared

We declared a dividend per share of $0.46 (2020 - $0.45) during the three months ended June 30, 2021, payable on July 16, 2021 to shareholders of record on June 30, 2021 and total dividends of $0.92 (2020 - $0.90) during the six months ended June 30, 2021.

NOTE 7SEASONALITY

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 suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

NOTE 8RELATED 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 June 30, 2021 December 31, 2020

Receivables from Canpotex 356 122

View source version on businesswire.com: https://www.businesswire.com/news/home/20210809005791/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

CONTACT: Contact us at: www.nutrien.com