Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Nutrien Reports First Quarter 2024 Results By: Nutrien Ltd. via Business Wire May 08, 2024 at 17:49 PM EDT First quarter results supported by strong grower demand for crop inputs, increased potash shipments to key global markets, higher fertilizer operating rates and lower costs. Maintaining full-year 2024 Retail adjusted EBITDA and fertilizer sales volume guidance ranges. All amounts are in US dollars except as otherwise noted Nutrien Ltd. (TSX and NYSE: NTR) announced today its first quarter 2024 results, with net earnings of $165 million ($0.32 diluted net earnings per share). First quarter 2024 adjusted EBITDA1 was $1.1 billion and adjusted net earnings per share1 was $0.46. “We continued to see strong crop input demand, a normalization of product margins for our North American Retail business and increased global potash shipments in the first quarter. Our results highlighted the capabilities of our flexible, low-cost production assets and downstream distribution network to efficiently supply our customers’ needs,” commented Ken Seitz, Nutrien’s President and CEO. “We expect growth in Retail earnings and fertilizer sales volumes compared to the prior year and have maintained our 2024 guidance ranges. Our focus remains on strengthening our capability to serve growers and enhancing our core businesses to improve the quality of our earnings and free cash flow,” added Mr. Seitz. Highlights2: Generated net earnings of $165 million and adjusted EBITDA of $1.1 billion in the first quarter of 2024, down from the same period in 2023 primarily due to lower net fertilizer selling prices. This was partially offset by increased Retail earnings, higher fertilizer sales volumes and lower natural gas costs. Nutrien Ag Solutions (“Retail”) adjusted EBITDA increased to $77 million in the first quarter of 2024 primarily due to higher gross margin for crop nutrients and crop protection products supported by strong grower demand and a normalization of product margins in North America. Potash adjusted EBITDA declined to $530 million in the first quarter of 2024 due to lower net selling prices, which more than offset higher sales volumes. We increased potash production, supported by continued advancement of mine automation initiatives, and reduced our controllable cash cost of product manufactured per tonne. Nitrogen adjusted EBITDA declined to $464 million in the first quarter of 2024 due to lower net selling prices for all major nitrogen products, which more than offset higher sales volumes and lower natural gas costs. Ammonia production increased in the first quarter, driven by higher utilization rates in Trinidad. Initiated a process to divest our Retail assets in Argentina, Chile, and Uruguay to provide greater focus on our core Retail businesses and enhance the quality of earnings and free cash flow. This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Our discussion of highlights set out on this page is a comparison of the results for the three months ended March 31, 2024 to the results for the three months ended March 31, 2023, unless otherwise noted. Management’s Discussion and Analysis The following management’s discussion and analysis (“MD&A”) is the responsibility of management and is dated as of May 8, 2024. The Board of Directors (“Board”) of Nutrien carries out its responsibility for review of this disclosure principally through its Audit Committee, composed entirely 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 annual report dated February 22, 2024 (“2023 Annual Report”), which includes our annual audited consolidated financial statements and MD&A, and our annual information form dated February 22, 2024, each for the year ended December 31, 2023, can be found on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. No update is provided to the disclosure in our 2023 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 (the “SEC”). This MD&A is based on and should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements as at and for the three months ended March 31, 2024 (“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 (“IAS”) 34 “Interim Financial Reporting”, unless otherwise noted. This MD&A contains certain non-GAAP financial measures and ratios and forward-looking statements, which are described in the “Non-GAAP Financial Measures” and the “Forward-Looking Statements” sections, respectively. Market Outlook and Guidance Agriculture and Retail Markets We expect US corn plantings of approximately 90 million acres in 2024 and soybean plantings of approximately 87 million acres. US planting progress is in line with historical average levels and fertilizer application rates have been strong. Wet weather has recently delayed planting progress and fertilizer application in the Corn Belt. Brazilian growers are finalizing their soybean harvest, and favorable weather conditions resulted in safrinha corn planted area exceeding initial expectations. Soybean margins are expected to improve from the compressed levels in 2023 and support growth in planted acreage and crop input demand in the second half of 2024. Australian soil moisture conditions vary regionally but remain supportive for this upcoming growing season and the Indian monsoon is projected to produce average to above-average precipitation, supporting yield potential and grower demand for crop inputs. Crop Nutrient Markets Global potash supply and demand has been relatively balanced as increased shipments have been required to meet historically strong demand in the first quarter. We have maintained our 2024 full-year potash shipment forecast of 68 to 71 million tonnes. We are seeing strong potash demand in North America for the spring application season as channel inventories were tight to start 2024. Potash demand in Southeast Asia has been supported by lower inventory levels compared to the prior year and favorable economics for key crops such as oil palm and rice. China’s potash imports remained strong in the first quarter of 2024 supported by a step-change in domestic consumption but are expected to decline on a full-year basis compared to the record levels in 2023. Global nitrogen markets have fluctuated in 2024 driven by seasonal buying patterns, production outages and uncertainty over Chinese urea export restrictions and India’s urea import requirements. The US nitrogen supply and demand balance remains relatively tight, in particular for ammonia and UAN, with net nitrogen imports down 21 percent on a fertilizer year basis compared to the historical average. Phosphate fertilizer prices remained firm through the first quarter of 2024 due to strong demand in the Northern Hemisphere, supportive Indian DAP purchases, Chinese export restrictions and production outages. Prices have softened in the second quarter driven primarily by lower seasonal demand. Financial and Operational Guidance We are maintaining our Retail adjusted EBITDA and fertilizer sales volume guidance ranges as market fundamentals and operational performance have been in line with our previous expectations. Retail adjusted EBITDA guidance of $1.65 to $1.85 billion reflects expectations for increased crop nutrient sales volumes and margins for our North American business in the first half of 2024 and improved crop input margins in Brazil during the second half of the year. Guidance assumes a full year of earnings from our Retail assets in Argentina, Chile and Uruguay. Potash sales volumes guidance of 13.0 to 13.8 million tonnes assumes a more even split between first and second half volumes compared to the prior year. Nitrogen sales volumes guidance of 10.6 to 11.2 million tonnes assumes higher operating rates at our North American and Trinidad plants and growth in sales of upgraded products such as urea and nitrogen solutions. Effective tax rate on adjusted earnings guidance was lowered primarily due to a change to our expected geographic mix of earnings. All guidance numbers, including those noted above are outlined in the table below. Refer to page 65 of Nutrien’s 2023 Annual Report for related assumptions and sensitivities. 2024 Guidance Ranges 1 as of May 8, 2024 February 21, 2024 (billions of US dollars, except as otherwise noted) Low High Low High Retail adjusted EBITDA 1.65 1.85 1.65 1.85 Potash sales volumes (million tonnes) 2 13.0 13.8 13.0 13.8 Nitrogen sales volumes (million tonnes) 2 10.6 11.2 10.6 11.2 Phosphate sales volumes (million tonnes) 2 2.6 2.8 2.6 2.8 Depreciation and amortization 2.2 2.3 2.2 2.3 Finance costs 0.75 0.85 0.75 0.85 Effective tax rate on adjusted earnings (%) 23.0 25.0 24.0 26.0 Capital expenditures 3 2.2 2.3 2.2 2.3 1 See the “Forward-Looking Statements” section. 2 Manufactured product only. 3 Comprised of sustaining capital expenditures, investing capital expenditures and mine development and pre-stripping capital expenditures which are supplementary financial measures. See the “Other Financial Measures” section. Consolidated Results Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Sales 5,389 6,107 (12) Gross margin 1,537 1,913 (20) Expenses 1,118 974 15 Net earnings 165 576 (71) Adjusted EBITDA 1 1,055 1,421 (26) Diluted net earnings per share 0.32 1.14 (72) Adjusted net earnings per share 1 0.46 1.11 (59) 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Net earnings and adjusted EBITDA decreased in the first quarter of 2024 compared to the same period in 2023, primarily due to lower net fertilizer selling prices. This was partially offset by increased Retail earnings, higher fertilizer sales volumes and lower natural gas costs. Expenses increased mainly due to higher foreign exchange losses primarily from our Retail – South America region in the first quarter of 2024 and an $80 million gain recognized in the first quarter of 2023 due to post-retirement benefit plan amendments. Segment Results Our discussion of segment results set out on the following pages is a comparison of the results for the three months ended March 31, 2024 to the results for the three months ended March 31, 2023, unless otherwise noted. Nutrien Ag Solutions (“Retail”) Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Sales 3,308 3,422 (3) Cost of goods sold 2,561 2,807 (9) Gross margin 747 615 21 Adjusted EBITDA 1 77 (34) n/m 1 See Note 2 to the interim financial statements. Retail adjusted EBITDA increased in the first quarter of 2024 primarily due to higher gross margin for crop nutrients and crop protection products supported by strong grower demand and a normalization of product margins in North America. Gross margin of our proprietary products increased in the first quarter driven primarily by our crop nutritional and biostimulant product lines, as we continued to expand our differentiated product offering and manufacturing capacity. Three Months Ended March 31 Sales Gross Margin (millions of US dollars) 2024 2023 2024 2023 Crop nutrients 1,309 1,335 254 141 Crop protection products 1,114 1,154 234 208 Seed 485 507 59 72 Services and other 156 148 125 118 Merchandise 200 246 31 44 Nutrien Financial 66 57 66 57 Nutrien Financial elimination (22) (25) (22) (25) Total 3,308 3,422 747 615 Crop nutrients sales decreased in the first quarter of 2024 due to lower selling prices, partially offset by higher sales volumes across all regions. Gross margin increased in the first quarter due to higher per-tonne margins and higher sales volumes resulting from a more typical start to spring applications in the US compared to 2023. Crop protection products sales were lower in the first quarter of 2024 primarily due to lower selling prices. Gross margin increased compared to the first quarter of 2023, which was impacted by the sell through of higher cost inventory. Seed sales and gross margin decreased in the first quarter of 2024 primarily due to lower sales volumes and competitive market prices in the US, as growers delayed crop selection decisions in some regions. Nutrien Financial sales and gross margin increased in the first quarter of 2024 due to higher financing offering rates and expanded program participation from growers in the US and Australia. Supplemental Data Three Months Ended March 31 Gross Margin % of Product Line 1 (millions of US dollars, except as otherwise noted) 2024 2023 2024 2023 Proprietary products Crop nutrients 70 54 28 38 Crop protection products 83 74 36 36 Seed 17 30 29 42 Merchandise 3 3 9 6 Total 173 161 23 26 1 Represents percentage of proprietary product margins over total product line gross margin. Sales Volumes (tonnes - thousands) Gross Margin / Tonne (US dollars) 2024 2023 2024 2023 Crop nutrients North America 1,464 1,195 139 94 International 918 845 55 35 Total 2,382 2,040 106 69 (percentages) March 31, 2024 December 31, 2023 Financial performance measures 1, 2 Cash operating coverage ratio 66 68 Adjusted average working capital to sales 19 19 Adjusted average working capital to sales excluding Nutrien Financial nil 1 Nutrien Financial adjusted net interest margin 5.2 5.2 1 Rolling four quarters. 2 These are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section. Potash Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Net sales 813 1,002 (19) Cost of goods sold 358 305 17 Gross margin 455 697 (35) Adjusted EBITDA 1 530 676 (22) 1 See Note 2 to the interim financial statements. Potash adjusted EBITDA declined in the first quarter of 2024 due to lower net selling prices, which more than offset higher sales volumes. We increased potash production in the first quarter, supported by continued advancement of mine automation initiatives, which helped to meet customer demand and reduced our controllable cash cost of product manufactured1 to $56 per tonne. Manufactured product Three Months Ended March 31 ($ / tonne, except as otherwise noted) 2024 2023 Sales volumes (tonnes - thousands) North America 1,307 854 Offshore 2,106 1,782 Total sales volumes 3,413 2,636 Net selling price North America 310 401 Offshore 193 370 Average selling price 238 380 Cost of goods sold 105 115 Gross margin 133 265 Depreciation and amortization 43 37 Gross margin excluding depreciation and amortization 1 176 302 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Sales volumes increased in North America in the first quarter of 2024 due to low channel inventory and more normal buying behaviors compared to the same period in 2023. Offshore sales volumes were higher compared to the same period in the prior year driven by increased demand in major offshore markets. Net selling price per tonne decreased in the first quarter of 2024 due to a decline in benchmark prices compared to the strong prices in the first quarter of 2023. Cost of goods sold per tonne decreased in the first quarter of 2024 mainly due to higher production volumes and lower royalties. Supplemental Data Three Months Ended March 31 2024 2023 Production volumes (tonnes – thousands) 3,565 3,088 Potash controllable cash cost of product manufactured per tonne 1 56 62 Canpotex sales by market (percentage of sales volumes) Latin America 32 35 Other Asian markets 2 33 38 China 20 12 India 3 2 Other markets 12 13 Total 100 100 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. 2 All Asian markets except China and India. Nitrogen Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Net sales 911 1,312 (31) Cost of goods sold 604 771 (22) Gross margin 307 541 (43) Adjusted EBITDA 1 464 676 (31) 1 See Note 2 to the interim financial statements. Nitrogen adjusted EBITDA declined in the first quarter of 2024 due to lower net selling prices for all major nitrogen products, which more than offset higher sales volumes and lower natural gas costs. Ammonia production increased in the first quarter supporting product mix optimization and increased downstream urea and UAN production. Manufactured product Three Months Ended March 31 ($ / tonne, except as otherwise noted) 2024 2023 Sales volumes (tonnes - thousands) Ammonia 517 534 Urea and ESN® 775 747 Solutions, nitrates and sulfates 1,215 1,076 Total sales volumes 2,507 2,357 Net selling price Ammonia 403 721 Urea and ESN® 432 617 Solutions, nitrates and sulfates 226 310 Average net selling price 326 500 Cost of goods sold 207 275 Gross margin 119 225 Depreciation and amortization 54 57 Gross margin excluding depreciation and amortization 1 173 282 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Sales volumes were higher in the first quarter of 2024 primarily due to higher urea and UAN production and strong fertilizer demand, partially offset by lower ammonia sales due to product mix optimization. Net selling price per tonne was lower in the first quarter of 2024 for all major nitrogen products primarily due to weaker benchmark prices resulting from lower energy prices in key nitrogen producing regions. Cost of goods sold per tonne decreased in the first quarter of 2024 mainly due to lower natural gas costs. Supplemental Data Three Months Ended March 31 2024 2023 Sales volumes (tonnes – thousands) Fertilizer 1,423 1,248 Industrial and feed 1,084 1,109 Production volumes (tonnes – thousands) Ammonia production – total 1 1,452 1,431 Ammonia production – adjusted 1, 2 1,018 1,037 Ammonia operating rate (%) 2 92 95 Natural gas costs (US dollars per MMBtu) Overall natural gas cost excluding realized derivative impact 3.16 4.85 Realized derivative impact 3 0.04 ‐ Overall natural gas cost 3.20 4.85 1 All figures are provided on a gross production basis in thousands of product tonnes. 2 Excludes Trinidad and Joffre. 3 Includes realized derivative impacts recorded as part of cost of goods sold or other income and expenses. Refer to Note 3 to the interim financial statements. Phosphate Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Net sales 437 514 (15) Cost of goods sold 372 427 (13) Gross margin 65 87 (25) Adjusted EBITDA 1 121 137 (12) 1 See Note 2 to the interim financial statements. Phosphate adjusted EBITDA decreased in the first quarter of 2024 primarily due to lower net selling prices, partially offset by higher sales volumes and lower ammonia and sulfur input costs. Production increased in the first quarter due to improved reliability at our Aurora plant. Manufactured product Three Months Ended March 31 ($ / tonne, except as otherwise noted) 2024 2023 Sales volumes (tonnes - thousands) Fertilizer 447 388 Industrial and feed 173 160 Total sales volumes 620 548 Net selling price Fertilizer 627 682 Industrial and feed 848 1,136 Average net selling price 689 814 Cost of goods sold 580 651 Gross margin 109 163 Depreciation and amortization 113 122 Gross margin excluding depreciation and amortization 1 222 285 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Sales volumes increased in the first quarter of 2024 due to higher production and strong demand across fertilizer, industrial and feed products. Net selling price per tonne decreased in the first quarter of 2024 due to lower fertilizer benchmark prices and lower industrial and feed net selling prices which reflect the typical lag in price realizations relative to benchmark prices. Cost of goods sold per tonne decreased in the first quarter of 2024 mainly due to lower ammonia and sulfur input costs. Supplemental Data Three Months Ended March 31 2024 2023 Production volumes (P2O5 tonnes – thousands) 352 341 P2O5 operating rate (%) 83 81 Corporate and Others and Eliminations Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Corporate and Others Selling expenses (recovery) (2) (2) ‐ General and administrative expenses 89 84 6 Share-based compensation expense 6 15 (60) Other expenses (income) 97 (81) n/m Adjusted EBITDA 1 (101) (13) 677 Eliminations Gross margin (37) (27) 37 Adjusted EBITDA 1 (36) (21) 71 1 See Note 2 to the interim financial statements. Other expenses (income) was an expense in the first quarter of 2024 compared to income in the same period in 2023 due to higher foreign exchange losses primarily from our Retail – South America region in the first quarter of 2024 and an $80 million gain recognized in the first quarter of 2023 due to post-retirement benefit plan amendments. Finance Costs, Income Taxes and Other Comprehensive (Loss) Income Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Finance costs 179 170 5 Income tax expense 75 193 (61) Actual effective tax rate including discrete items (%) 31 25 24 Other comprehensive (loss) income (102) 2 n/m Income tax expense was lower in the first quarter of 2024 primarily as a result of lower earnings compared to the same period in 2023. We did not record the tax benefit on South America losses in the first quarter of 2024 as the recognition criteria to record deferred tax assets was not met. This resulted in a higher effective tax rate for the first quarter of 2024. Other comprehensive (loss) income was a loss in the first quarter of 2024 primarily driven by changes in the currency translation of our Retail foreign operations primarily due to depreciation of Australian and Canadian currencies relative to the US dollar. 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 new or existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures, planned growth and development activities, 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 Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Cash used in operating activities (487) (858) (43) Cash used in investing activities (494) (694) (29) Cash provided by financing activities 548 2,129 (74) Cash used for dividends and share repurchases 1 (261) (1,143) (77) 1 This is a supplementary financial measure. See the “Other Financial Measures” section. Cash used in operating activities Reduced cash outflow in the first quarter of 2024 compared to the same period in 2023 due to a decrease in income taxes paid and other working capital movements. Typically, in the first quarter of the year, we have lower cash payments to our suppliers and have lower cash receipts from our grower customers as our receivables build during the planting and application season. In the first quarter of 2023, we experienced global supply chain challenges and higher benchmark prices compared to the first quarter of 2024, resulting in higher than usual payments to our suppliers offsetting the higher receivables we collected from our customers. Cash used in investing activities Lower in the first quarter of 2024 compared to the same period in 2023 due to lower capital expenditures and fewer business acquisitions. Cash provided by financing activities Lower in the first quarter of 2024 compared to the same period in 2023 due to the issuance of $1,500 million of senior notes in the first quarter of 2023. The proceeds from our short-term debt decreased by $947 million compared to the first quarter of 2023; however, we also did not repurchase any shares in the first quarter of 2024. Cash used for dividends and share repurchases Lower in the first quarter of 2024 compared to the same period in 2023 as we did not repurchase any shares in the first quarter of 2024, compared to $897 million of share repurchases in the first quarter of 2023. Financial Condition Review The following is a comparison of balance sheet categories that are considered material: As at (millions of US dollars, except as otherwise noted) March 31, 2024 December 31, 2023 $ Change % Change Assets Cash and cash equivalents 496 941 (445) (47) Receivables 5,561 5,398 163 3 Inventories 8,188 6,336 1,852 29 Prepaid expenses and other current assets 905 1,495 (590) (39) Property, plant and equipment 22,410 22,461 (51) ‐ Liabilities and Equity Short-term debt 2,835 1,815 1,020 56 Payables and accrued charges 9,431 9,467 (36) ‐ Retained earnings 11,423 11,531 (108) (1) Explanations for changes in Cash and cash equivalents are in the “Sources and Uses of Cash” section. Receivables remained consistent as the increase in receivables due to the seasonality of our Retail sales was offset by faster collection of our Potash receivables. Inventories increased due to the seasonality of our Retail segment and the larger portion of its operations in North America. Our inventory levels build up in the last quarter of the year and peaks in the first quarter of the year, while we draw inventories in the succeeding quarters. Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventories in preparation for the spring planting and application seasons in North America. Property, plant and equipment decreased due to depreciation more than offsetting capital expenditures in the first quarter of 2024. Short-term debt increased due to higher drawdowns on our credit facilities based on our working capital requirements driven by the seasonality of our business. Payables and accrued charges remained consistent, as we have higher customer prepayment balances which were partially offset by lower costs to purchase and produce our inventories and lower capital expenditures accruals. Retained earnings decreased as dividends declared exceeded net earnings. 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 continually evaluate various financing arrangements and may seek to engage in transactions from time to time when market and other conditions are favorable. We were in compliance with our debt covenants and did not have any changes to our credit ratings for the three months ended March 31, 2024. Capital Structure (Debt and Equity) (millions of US dollars) March 31, 2024 December 31, 2023 Short-term debt 2,835 1,815 Current portion of long-term debt 513 512 Current portion of lease liabilities 346 327 Long-term debt 8,910 8,913 Lease liabilities 1,034 999 Shareholders' equity 24,996 25,201 Commercial Paper, Credit Facilities and Other Debt We have several credit facilities available in the jurisdictions where we operate. We also have a commercial paper program, which is limited to the undrawn amount under our $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities. As at March 31, 2024, we had $1,963 million of commercial paper outstanding. As at March 31, 2024, $240 million in letters of credit were outstanding and committed, with $118 million of remaining credit available under our dedicated letter of credit facilities. On March 7, 2024, we entered into an uncommitted $500 million accounts receivable repurchase facility, under which we drew borrowings of $100 million as at March 31, 2024. See Note 6 to the interim financial statements for a further description of this facility. In March 2024, we filed a base shelf prospectus in Canada and the US qualifying the issuance, subject to approval of the Board of Directors, of common shares, debt securities and other securities during a period of 25 months from March 22, 2024. Outstanding Share Data As at May 7, 2024 Common shares 494,628,434 Options to purchase common shares 3,752,004 For more information on our capital structure and management, see Note 24 to the consolidated financial statements in our 2023 Annual Report. Quarterly Results (millions of US dollars, except as otherwise noted) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Sales 5,389 5,664 5,631 11,654 6,107 7,533 8,188 14,506 Net earnings 165 176 82 448 576 1,118 1,583 3,601 Net earnings attributable to equity holders of Nutrien 158 172 75 440 571 1,112 1,577 3,593 Net earnings per share attributable to equity holders of Nutrien Basic 0.32 0.35 0.15 0.89 1.14 2.15 2.95 6.53 Diluted 0.32 0.35 0.15 0.89 1.14 2.15 2.94 6.51 Our quarterly earnings are significantly affected by the seasonality of our business, fertilizer benchmark prices, which have been volatile over the last two years and are affected by demand-supply conditions, grower affordability and weather. See Note 8 to the interim financial statements. The following table describes certain items that impacted our quarterly earnings: Quarter Transaction or Event Q2 2023 $698 million non-cash impairment of assets comprised of a $233 million non-cash impairment of our Phosphate White Springs property, plant and equipment due to a decrease in our forecasted phosphate margins and a $465 million non-cash impairment of our Retail – South America assets primarily related to goodwill mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates which lowered our forecasted earnings. Q3 2022 $330 million reversal of non-cash impairment of our Phosphate White Springs property, plant and equipment related to higher forecasted global prices and a more favorable outlook for phosphate margins. Q2 2022 $450 million reversal of non-cash impairment of our Phosphate Aurora property, plant and equipment related to higher forecasted global prices and a more favorable outlook for phosphate margins. Critical Accounting Estimates Our significant accounting policies are disclosed in our 2023 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 pages 72 to 74 of our 2023 Annual Report. There were no material changes to our critical accounting estimates for the three months ended March 31, 2024. Controls and Procedures Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings. Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. There has been no change in our internal control over financial reporting during the three months ended March 31, 2024 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 “Market 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”, “project”, “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 2024 full-year guidance, including expectations regarding Retail adjusted EBITDA, Potash sales volumes, Nitrogen sales volumes, Phosphate sales volumes, depreciation and amortization, finance costs, effective tax rate and capital expenditures; our projections to generate strong cash from operations; expectations regarding our capital allocation intentions and strategies; our ability to advance strategic initiatives and high value growth investments, including expectations regarding our ability to serve growers, maintain a low-cost position of fertilizer production assets and increase free cash flow; capital spending expectations for 2024 and beyond; expectations regarding our ability to generate and enhance free cash flow; expectations regarding performance of our operating segments in 2024, including increased fertilizer sales volumes and growth in Retail earnings; our operating segment market outlooks and our expectations for market conditions and fundamentals in 2024 and beyond, and the anticipated supply and demand for our products and services, expected market, industry and growing conditions with respect to crop nutrient application rates, planted acres, grower crop investment, crop mix, including the need to replenish soil nutrient levels, production volumes and expenses, shipments, natural gas costs and availability, consumption, prices, operating rates and the impact of seasonality, import and export volumes, economic sanctions and restrictions, operating rates, inventories, crop development and natural gas curtailments; the negotiation of sales contracts; acquisitions and divestitures and the anticipated benefits thereof; and expectations in connection with our ability to deliver long-term returns to shareholders. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements. All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. The additional key assumptions that have been made in relation to the operation of our business as currently planned and our ability to achieve our business objectives include, among other things, assumptions with respect to: our ability to successfully implement our business strategies, growth and capital allocation investments and initiatives that we will conduct our operations and achieve results of operations as anticipated; 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 on the anticipated timeline or at all; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, expenses, margins, demand, supply, product availability, shipments, consumption, weather conditions, including the current El Niño weather pattern, supplier agreements, product distribution agreements, inventory levels, exports, crop development and cost of labor and interest, exchange and effective tax rates; potash demand growth in offshore markets and normalization of Canpotex port operations; global economic conditions and the accuracy of our market outlook expectations for 2024 and in the future; assumptions related to our assessment of recoverable amount estimates of our assets, including in relation to our Retail - South America group of CGUs goodwill and intangible asset impairments; assumptions related to the calculation of recoverable amount of our Aurora and White Springs CGUs, including internal sales and input price forecasts, discount rate, long-term growth rate and end of expected mine life; our intention to complete share repurchases under our normal course issuer bid programs, including Toronto Stock Exchange approval, the funding of such share repurchases, existing and future market conditions, including with respect to the price of our common shares, and compliance with respect to applicable limitations under securities laws and regulations and stock exchange policies and assumptions related to our ability to fund our dividends at the current level; our expectations regarding the impacts, direct and indirect, of certain geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East on, among other things, global supply and demand, including for crop nutrients, energy and commodity prices, global interest rates, supply chains and the global macroeconomic environment, including inflation; assumptions regarding future markets for clean ammonia; 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 and other 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 achieve expected results of our business strategy, capital allocation initiatives or results of operations; failure to complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; seasonality; climate change and weather conditions, including the current El Niño weather pattern (and transition to El Niña weather pattern), 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, antitrust and other laws or regulations and the interpretation thereof; political or military risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism and industrial espionage; our ability to access sufficient, cost-effective and timely transportation, distribution and storage of products (including potential rail transportation and port disruptions due to labor strikes and/or work stoppages or other similar actions); the occurrence of a major environmental or safety incident or becoming subject to legal or regulatory proceedings; 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 or challenges related to our major facilities that are out of our control; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; the risk that rising interest rates and/or deteriorated business operating results may result in the further impairment of assets or goodwill attributed to certain of our cash generating units; 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; geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East, and their potential impact on, among other things, global market conditions and supply and demand, including for crop nutrients, energy and commodity prices, interest rates, supply chains and the global economy generally; our ability to execute on our strategies related to environmental, social and governance matters, and achieve related expectations, targets and commitments; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. The purpose of our Retail adjusted EBITDA, depreciation and amortization, finance costs, effective tax rate and 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 & Definitions” section of our 2023 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 a leading provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our integrated business and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals. More information about Nutrien can be found at www.nutrien.com. Selected financial data for download can be found in our data tool at www.nutrien.com/investors/interactive-datatool Such data is not incorporated by reference herein. Nutrien will host a Conference Call on Thursday, May 9, 2024 at 10:00 a.m. Eastern Time. Telephone conference dial-in numbers: From Canada and the US 1-800-717-1738 International 1-646-307-1865 No access code required. Please dial in 15 minutes prior to ensure you are placed on the call in a timely manner. Live Audio Webcast: Visit https://www.nutrien.com/investors/events/2024-q1-earnings-conference-call Non-GAAP Financial Measures We use both International Financial Reporting Standards (“IFRS”) measures and certain non-GAAP financial measures to assess performance. Non-GAAP financial measures are financial measures disclosed by the Company that (a) depict historical or expected future financial performance, financial position or cash flow of the Company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the Company, (c) are not disclosed in the financial statements of the Company and (d) are not a ratio, fraction, percentage or similar representation. Non-GAAP ratios are financial measures disclosed by the Company that are in the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its components, and that are not disclosed in the financial statements of the Company. These non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-GAAP financial measures and non-GAAP ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-GAAP financial measures and non-GAAP ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. The following section outlines our non-GAAP financial measures and non-GAAP ratios, their compositions, and why management uses each measure. It also includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-GAAP financial measures and non-GAAP ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations. Adjusted EBITDA (Consolidated) Most directly comparable IFRS financial measure: Net earnings (loss). Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, asset retirement obligations (“ARO”) and accrued environmental costs (“ERL”) related to our non-operating sites, and loss on remitting cash from certain foreign jurisdictions (e.g., Blue Chip Swaps). Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations and as a component of employee remuneration calculations. Three Months Ended March 31 (millions of US dollars) 2024 2023 Net earnings 165 576 Finance costs 179 170 Income tax expense 75 193 Depreciation and amortization 565 496 EBITDA 1 984 1,435 Adjustments: Share-based compensation expense 6 15 Foreign exchange loss (gain), net of related derivatives 43 (34) ARO/ERL expense for non-operating sites 3 ‐ Loss on Blue Chip Swaps 19 ‐ Integration and restructuring related costs ‐ 5 Adjusted EBITDA 1,055 1,421 1 EBITDA is calculated as net earnings before finance costs, income taxes, and depreciation and amortization. Adjusted Net Earnings and Adjusted Net Earnings Per Share Most directly comparable IFRS financial measure: Net earnings (loss) and diluted net earnings (loss) per share. Definition: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, gain or loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting, asset retirement obligations and accrued environmental costs related to our non-operating sites, loss on remitting cash from certain foreign jurisdictions (e.g., Blue Chip Swaps), change in recognition of tax losses and deductible temporary differences related to impairments and certain changes to tax declarations (e.g., “Swiss Tax Reform adjustment”). We generally apply the annual forecasted effective tax rate to specific adjustments during the year, and at year-end, we apply the actual effective tax rate. Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is used as a component of employee remuneration calculations. Three Months Ended March 31, 2024 Per Increases Diluted (millions of US dollars, except as otherwise noted) (Decreases) Post-Tax Share Net earnings attributable to equity holders of Nutrien 158 0.32 Adjustments: Share-based compensation expense 6 5 0.01 Foreign exchange loss, net of related derivatives 43 46 0.09 ARO/ERL expense for non-operating sites 3 2 ‐ Loss on Blue Chip Swaps 19 19 0.04 Adjusted net earnings 230 0.46 Three Months Ended March 31, 2023 Per Increases Diluted (millions of US dollars, except as otherwise noted) (Decreases) Post-Tax Share Net earnings attributable to equity holders of Nutrien 571 1.14 Adjustments: Share-based compensation expense 15 11 0.01 Foreign exchange gain, net of related derivatives (34) (25) (0.05) Integration and restructuring related costs 5 4 0.01 Adjusted net earnings 561 1.11 Gross Margin Excluding Depreciation and Amortization Per Tonne – Manufactured Product Most directly comparable IFRS financial measure: Gross margin. Definition: Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations are provided in the “Segment Results” section. Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions. Potash Controllable Cash Cost of Product Manufactured (“COPM”) Per Tonne Most directly comparable IFRS financial measure: Cost of goods sold (“COGS”) for the Potash segment. Definition: Total Potash COGS excluding depreciation and amortization expense included in COPM, royalties, natural gas costs and carbon taxes, change in inventory, and other adjustments, divided by potash production tonnes. Why we use the measure and why it is useful to investors: To assess operational performance. Potash controllable cash COPM excludes the effects of production from other periods and the impacts of our long-term investment decisions, supporting a focus on the performance of our day-to-day operations. Potash controllable cash COPM also excludes royalties and natural gas costs and carbon taxes, which management does not consider controllable, as they are primarily driven by regulatory and market conditions. Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 Total COGS – Potash 358 305 Change in inventory 28 40 Other adjustments 1 (3) (8) COPM 383 337 Depreciation and amortization in COPM (153) (100) Royalties in COPM (19) (31) Natural gas costs and carbon taxes in COPM (12) (16) Controllable cash COPM 199 190 Production tonnes (tonnes – thousands) 3,565 3,088 Potash controllable cash COPM per tonne 56 62 1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances. Nutrien Financial Adjusted Net Interest Margin Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial net 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 others to evaluate the financial performance of Nutrien Financial. Rolling four quarters ended March 31, 2024 (millions of US dollars, except as otherwise noted) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total/Average Nutrien Financial revenue 122 73 70 66 Deemed interest expense 1 (39) (41) (36) (27) Net interest 83 32 34 39 188 Average Nutrien Financial net receivables 4,716 4,353 2,893 2,489 3,613 Nutrien Financial adjusted net interest margin (%) 5.2 Rolling four quarters ended December 31, 2023 (millions of US dollars, except as otherwise noted) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total/Average Nutrien Financial revenue 57 122 73 70 Deemed interest expense 1 (20) (39) (41) (36) Net interest 37 83 32 34 186 Average Nutrien Financial net receivables 2,283 4,716 4,353 2,893 3,561 Nutrien Financial adjusted net interest margin (%) 5.2 1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial. Retail Cash Operating Coverage Ratio Definition: Retail selling, general and administrative, and other expenses (income), excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters. Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow. Rolling four quarters ended March 31, 2024 (millions of US dollars, except as otherwise noted) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total Selling expenses 971 798 841 790 3,400 General and administrative expenses 55 57 55 52 219 Other expenses 29 37 77 22 165 Operating expenses 1,055 892 973 864 3,784 Depreciation and amortization in operating expenses (185) (186) (199) (190) (760) Operating expenses excluding depreciation and amortization 870 706 774 674 3,024 Gross margin 1,931 895 989 747 4,562 Depreciation and amortization in cost of goods sold 3 3 2 4 12 Gross margin excluding depreciation and amortization 1,934 898 991 751 4,574 Cash operating coverage ratio (%) 66 Rolling four quarters ended December 31, 2023 (millions of US dollars, except as otherwise noted) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total Selling expenses 765 971 798 841 3,375 General and administrative expenses 50 55 57 55 217 Other expenses 15 29 37 77 158 Operating expenses 830 1,055 892 973 3,750 Depreciation and amortization in operating expenses (179) (185) (186) (199) (749) Operating expenses excluding depreciation and amortization 651 870 706 774 3,001 Gross margin 615 1,931 895 989 4,430 Depreciation and amortization in cost of goods sold 2 3 3 2 10 Gross margin excluding depreciation and amortization 617 1,934 898 991 4,440 Cash operating coverage ratio (%) 68 Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the sales and working capital of certain acquisitions during the first year following the acquisition. We also look at this metric excluding Nutrien Financial revenue and working capital. Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio. Rolling four quarters ended March 31, 2024 (millions of US dollars, except as otherwise noted) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Average/Total Current assets 11,983 10,398 10,498 11,821 Current liabilities (8,246) (5,228) (8,210) (8,401) Working capital 3,737 5,170 2,288 3,420 3,654 Working capital from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted working capital 3,737 5,170 2,288 3,420 3,654 Nutrien Financial working capital (4,716) (4,353) (2,893) (2,489) Adjusted working capital excluding Nutrien Financial (979) 817 (605) 931 41 Sales 9,128 3,490 3,502 3,308 Sales from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted sales 9,128 3,490 3,502 3,308 19,428 Nutrien Financial revenue (122) (73) (70) (66) Adjusted sales excluding Nutrien Financial 9,006 3,417 3,432 3,242 19,097 Adjusted average working capital to sales (%) 19 Adjusted average working capital to sales excluding Nutrien Financial (%) nil Rolling four quarters ended December 31, 2023 (millions of US dollars, except as otherwise noted) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Average/Total Current assets 13,000 11,983 10,398 10,498 Current liabilities (8,980) (8,246) (5,228) (8,210) Working capital 4,020 3,737 5,170 2,288 3,804 Working capital from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted working capital 4,020 3,737 5,170 2,288 3,804 Nutrien Financial working capital (2,283) (4,716) (4,353) (2,893) Adjusted working capital excluding Nutrien Financial 1,737 (979) 817 (605) 243 Sales 3,422 9,128 3,490 3,502 Sales from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted sales 3,422 9,128 3,490 3,502 19,542 Nutrien Financial revenue (57) (122) (73) (70) Adjusted sales excluding Nutrien Financial 3,365 9,006 3,417 3,432 19,220 Adjusted average working capital to sales (%) 19 Adjusted average working capital to sales excluding Nutrien Financial (%) 1 Other Financial Measures Selected Additional Financial Data Nutrien Financial As at March 31, 2024 As at December 31, 2023 (millions of US dollars) Current <31 Days Past Due 31–90 Days Past Due >90 Days Past Due Gross Receivables Allowance 1 Net Receivables Net Receivables North America 1,275 91 254 146 1,766 (48) 1,718 2,206 International 598 47 78 58 781 (10) 771 687 Nutrien Financial receivables 1,873 138 332 204 2,547 (58) 2,489 2,893 1 Bad debt expense on the above receivables for the three months ended March 31, 2024 and 2023 were $9 million and $1 million, respectively, in the Retail segment. Supplementary Financial Measures Supplementary financial measures are financial measures disclosed by the Company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company, (b) are not disclosed in the financial statements of the Company, (c) are not non-GAAP financial measures, and (d) are not non-GAAP ratios. The following section provides an explanation of the composition of those supplementary financial measures if not previously provided. Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds. Investing capital expenditures: Represents capital expenditures related to significant expansions of current operations or to create cost savings (synergies). Investing capital expenditures excludes capital outlays for business acquisitions and equity-accounted investees. Mine development and pre-stripping capital expenditures: Represents capital expenditures that are required for activities to open new areas underground and/or develop a mine or ore body to allow for future production mining and activities required to prepare and/or access the ore, i.e., removal of an overburden that allows access to the ore. Cash used for dividends and share repurchases (shareholder returns): Calculated as dividends paid to Nutrien’s shareholders plus repurchase of common shares as reflected in the unaudited condensed consolidated statements of cash flows. This measure is useful as it represents return of capital to shareholders. Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Statements of Earnings Three Months Ended March 31 (millions of US dollars, except as otherwise noted) Note 2024 2023 SALES 2, 9 5,389 6,107 Freight, transportation and distribution 238 199 Cost of goods sold 3,614 3,995 GROSS MARGIN 1,537 1,913 Selling expenses 794 770 General and administrative expenses 154 145 Provincial mining taxes 68 119 Share-based compensation expense 6 15 Other expenses (income) 3 96 (75) EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES 419 939 Finance costs 179 170 EARNINGS BEFORE INCOME TAXES 240 769 Income tax expense 4 75 193 NET EARNINGS 165 576 Attributable to Equity holders of Nutrien 158 571 Non-controlling interest 7 5 NET EARNINGS 165 576 NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS") Basic 0.32 1.14 Diluted 0.32 1.14 Weighted average shares outstanding for basic EPS 494,570,000 501,175,000 Weighted average shares outstanding for diluted EPS 494,792,000 502,220,000 Condensed Consolidated Statements of Comprehensive Income Three Months Ended March 31 (millions of US dollars) 2024 2023 NET EARNINGS 165 576 Other comprehensive (loss) income Items that will not be reclassified to net earnings: Net actuarial loss on defined benefit plans ‐ (3) Net fair value (loss) gain on investments (18) 5 Items that have been or may be subsequently reclassified to net earnings: (Loss) gain on currency translation of foreign operations (66) 1 Other (18) (1) OTHER COMPREHENSIVE (LOSS) INCOME (102) 2 COMPREHENSIVE INCOME 63 578 Attributable to Equity holders of Nutrien 57 573 Non-controlling interest 6 5 COMPREHENSIVE INCOME 63 578 (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Statements of Cash Flows Three Months Ended March 31 (millions of US dollars) Note 2024 2023 Note 1 OPERATING ACTIVITIES Net earnings 165 576 Adjustments for: Depreciation and amortization 565 496 Share-based compensation expense 6 15 Provision for deferred income tax 28 21 Net (undistributed) distributed earnings of equity-accounted investees (50) 163 Gain on amendments to other post-retirement pension plans 3 ‐ (80) Loss on Blue Chip Swaps 3 19 ‐ Long-term income tax receivables and payables 43 (72) Other long-term assets, liabilities and miscellaneous 64 7 Cash from operations before working capital changes 840 1,126 Changes in non-cash operating working capital: Receivables (257) 535 Inventories and prepaid expenses and other current assets (1,330) (1,493) Payables and accrued charges 260 (1,026) CASH USED IN OPERATING ACTIVITIES (487) (858) INVESTING ACTIVITIES Capital expenditures 1 (373) (465) Business acquisitions, net of cash acquired ‐ (111) Proceeds from sales of Blue Chip Swaps, net of purchases 3 (19) ‐ Net changes in non-cash working capital (90) (100) Other (12) (18) CASH USED IN INVESTING ACTIVITIES (494) (694) FINANCING ACTIVITIES Proceeds from debt with maturity periods within three months, net 926 1,873 Proceeds from debt ‐ 1,500 Repayment of debt (14) (17) Repayment of principal portion of lease liabilities (96) (87) Dividends paid to Nutrien's shareholders (261) (246) Repurchase of common shares ‐ (897) Issuance of common shares 1 28 Other (8) (25) CASH PROVIDED BY FINANCING ACTIVITIES 548 2,129 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (12) (5) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (445) 572 CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD 941 901 CASH AND CASH EQUIVALENTS – END OF PERIOD 496 1,473 Cash and cash equivalents is composed of: Cash 422 361 Short-term investments 74 1,112 496 1,473 SUPPLEMENTAL CASH FLOWS INFORMATION Interest paid 132 98 Income taxes paid 50 1,319 Total cash outflow for leases 131 119 1 Includes additions to property, plant and equipment, and intangible assets for the three months ended March 31, 2024 of $338 million and $35 million (2023 – $422 million and $43 million). (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Statements of Changes in Shareholders’ Equity Accumulated Other Comprehensive (Loss) Income ("AOCI") (Loss) Gain on Currency Equity Number of Translation Holders Non- Common Share Contributed of Foreign Total Retained of Controlling Total (millions of US dollars, except as otherwise noted) Shares Capital Surplus Operations Other AOCI Earnings Nutrien Interest Equity BALANCE – DECEMBER 31, 2022 507,246,105 14,172 109 (374) (17) (391) 11,928 25,818 45 25,863 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 571 571 5 576 Other comprehensive income ‐ ‐ ‐ 1 1 2 ‐ 2 ‐ 2 Shares repurchased (11,751,290) (328) ‐ ‐ ‐ ‐ (571) (899) ‐ (899) Dividends declared - $0.53/share ‐ ‐ ‐ ‐ ‐ ‐ (265) (265) ‐ (265) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (6) (6) Effect of share-based compensation including issuance of common shares 579,208 34 (3) ‐ ‐ ‐ ‐ 31 ‐ 31 Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 5 5 ‐ 5 ‐ 5 Transfer of net actuarial loss on defined benefit plans ‐ ‐ ‐ ‐ 3 3 (3) ‐ ‐ ‐ Other ‐ ‐ ‐ (2) ‐ (2) ‐ (2) ‐ (2) BALANCE – MARCH 31, 2023 496,074,023 13,878 106 (375) (8) (383) 11,660 25,261 44 25,305 BALANCE – DECEMBER 31, 2023 494,551,730 13,838 83 (286) (10) (296) 11,531 25,156 45 25,201 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 158 158 7 165 Other comprehensive loss ‐ ‐ ‐ (65) (36) (101) ‐ (101) (1) (102) Dividends declared - $0.54/share ‐ ‐ ‐ ‐ ‐ ‐ (266) (266) ‐ (266) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (8) (8) Effect of share-based compensation including issuance of common shares 37,199 2 2 ‐ ‐ ‐ ‐ 4 ‐ 4 Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 2 2 ‐ 2 ‐ 2 BALANCE – MARCH 31, 2024 494,588,929 13,840 85 (351) (44) (395) 11,423 24,953 43 24,996 (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Balance Sheets March 31 December 31 As at (millions of US dollars) Note 2024 2023 2023 ASSETS Current assets Cash and cash equivalents 496 1,473 941 Receivables 6, 9 5,561 6,009 5,398 Inventories 8,188 9,852 6,336 Prepaid expenses and other current assets 905 937 1,495 15,150 18,271 14,170 Non-current assets Property, plant and equipment 22,410 21,832 22,461 Goodwill 12,083 12,433 12,114 Intangible assets 2,165 2,292 2,217 Investments 768 686 736 Other assets 999 1,078 1,051 TOTAL ASSETS 53,575 56,592 52,749 LIABILITIES Current liabilities Short-term debt 6 2,835 4,013 1,815 Current portion of long-term debt 513 545 512 Current portion of lease liabilities 346 306 327 Payables and accrued charges 9,431 10,611 9,467 13,125 15,475 12,121 Non-current liabilities Long-term debt 8,910 9,510 8,913 Lease liabilities 1,034 880 999 Deferred income tax liabilities 3,601 3,603 3,574 Pension and other post-retirement benefit liabilities 246 242 252 Asset retirement obligations and accrued environmental costs 1,485 1,389 1,489 Other non-current liabilities 178 188 200 TOTAL LIABILITIES 28,579 31,287 27,548 SHAREHOLDERS’ EQUITY Share capital 13,840 13,878 13,838 Contributed surplus 85 106 83 Accumulated other comprehensive loss (395) (383) (296) Retained earnings 11,423 11,660 11,531 Equity holders of Nutrien 24,953 25,261 25,156 Non-controlling interest 43 44 45 TOTAL SHAREHOLDERS’ EQUITY 24,996 25,305 25,201 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 53,575 56,592 52,749 (See Notes to the Condensed Consolidated Financial Statements) Notes to the Condensed Consolidated Financial Statements As at and for the Three Months Ended March 31, 2024 Note 1 Basis of presentation Nutrien Ltd. (collectively with its subsidiaries, “Nutrien”, “we”, “us”, “our” or “the Company”) is a leading 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 IAS 34, “Interim Financial Reporting”. The accounting policies and methods of computation used in preparing these interim financial statements are materially consistent with those used in the preparation of our 2023 annual audited consolidated financial statements, as well as any amended standards adopted in 2024 that we previously disclosed. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with our 2023 annual audited consolidated financial statements. Certain immaterial 2023 figures have been reclassified in the condensed consolidated statements of cash flows. 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. These interim financial statements were authorized by the Audit Committee of the Board of Directors for issue on May 8, 2024. Note 2 Segment information We have four reportable operating segments: Nutrien Ag Solutions (“Retail”), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise. Retail provides services directly to growers through a network of farm centers in North America, South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each produces. Three Months Ended March 31, 2024 Corporate (millions of US dollars) Retail Potash Nitrogen Phosphate and Others Eliminations Consolidated Sales – third party 3,308 821 846 414 ‐ ‐ 5,389 – intersegment ‐ 106 182 85 ‐ (373) ‐ Sales – total 3,308 927 1,028 499 ‐ (373) 5,389 Freight, transportation and distribution 1 ‐ 114 117 62 ‐ (55) 238 Net sales 3,308 813 911 437 ‐ (318) 5,151 Cost of goods sold 2,561 358 604 372 ‐ (281) 3,614 Gross margin 747 455 307 65 ‐ (37) 1,537 Selling expenses 790 3 7 2 (2) (6) 794 General and administrative expenses 52 4 5 4 89 ‐ 154 Provincial mining taxes ‐ 68 ‐ ‐ ‐ ‐ 68 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 Other expenses (income) 22 (3) (33) 8 97 5 96 (Loss) earnings before finance costs and income taxes (117) 383 328 51 (190) (36) 419 Depreciation and amortization 194 147 136 70 18 ‐ 565 EBITDA 2 77 530 464 121 (172) (36) 984 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 ARO/ERL expense for non-operating sites 3 ‐ ‐ ‐ ‐ 3 ‐ 3 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 43 ‐ 43 Loss on Blue Chip Swaps ‐ ‐ ‐ ‐ 19 ‐ 19 Adjusted EBITDA 77 530 464 121 (101) (36) 1,055 Assets – as at March 31, 2024 24,273 13,562 11,606 2,420 2,326 (612) 53,575 1 Potash freight, transportation and distribution only applies to our North American potash sales volumes. 2 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization. 3 ARO/ERL refers to asset retirement obligations and accrued environmental costs. Three Months Ended March 31, 2023 Corporate (millions of US dollars) Retail Potash Nitrogen Phosphate and Others Eliminations Consolidated Sales – third party 3,422 1,023 1,154 508 ‐ ‐ 6,107 – intersegment ‐ 54 264 64 ‐ (382) ‐ Sales – total 3,422 1,077 1,418 572 ‐ (382) 6,107 Freight, transportation and distribution ‐ 75 106 58 ‐ (40) 199 Net sales 3,422 1,002 1,312 514 ‐ (342) 5,908 Cost of goods sold 2,807 305 771 427 ‐ (315) 3,995 Gross margin 615 697 541 87 ‐ (27) 1,913 Selling expenses 765 3 8 2 (2) (6) 770 General and administrative expenses 50 3 5 3 84 ‐ 145 Provincial mining taxes ‐ 119 ‐ ‐ ‐ ‐ 119 Share-based compensation expense ‐ ‐ ‐ ‐ 15 ‐ 15 Other expenses (income) 15 (7) (14) 12 (81) ‐ (75) (Loss) earnings before finance costs and income taxes (215) 579 542 70 (16) (21) 939 Depreciation and amortization 181 97 134 67 17 ‐ 496 EBITDA (34) 676 676 137 1 (21) 1,435 Integration and restructuring related costs ‐ ‐ ‐ ‐ 5 ‐ 5 Share-based compensation expense ‐ ‐ ‐ ‐ 15 ‐ 15 Foreign exchange gain, net of related derivatives ‐ ‐ ‐ ‐ (34) ‐ (34) Adjusted EBITDA (34) 676 676 137 (13) (21) 1,421 Assets – as at December 31, 2023 23,056 13,571 11,466 2,438 2,818 (600) 52,749 Three Months Ended March 31 (millions of US dollars) 2024 2023 Retail sales by product line Crop nutrients 1,309 1,335 Crop protection products 1,114 1,154 Seed 485 507 Services and other 156 148 Merchandise 200 246 Nutrien Financial 66 57 Nutrien Financial elimination 1 (22) (25) 3,308 3,422 Potash sales by geography Manufactured product North America 520 417 Offshore 2 407 660 927 1,077 Nitrogen sales by product line Manufactured product Ammonia 244 416 Urea and ESN® 366 491 Solutions, nitrates and sulfates 319 371 Other nitrogen and purchased products 99 140 1,028 1,418 Phosphate sales by product line Manufactured product Fertilizer 321 302 Industrial and feed 167 195 Other phosphate and purchased products 11 75 499 572 1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches. 2 Relates to Canpotex Limited (“Canpotex”) (see Note 9) and includes provisional pricing adjustments for the three months ended March 31, 2024 of $12 million (2023 – $(147) million). Note 3 Other expenses (income) Three Months Ended March 31 (millions of US dollars) 2024 2023 Integration and restructuring related costs ‐ 5 Foreign exchange loss (gain), net of related derivatives 43 (34) Earnings of equity-accounted investees (51) (37) Bad debt expense 13 9 Project feasibility costs 15 13 Customer prepayment costs 16 14 Loss on natural gas derivatives not designated as hedge ¹ 3 ‐ Loss on Blue Chip Swaps 19 ‐ ARO/ERL expense for non-operating sites 3 ‐ Gain on amendments to other post-retirement pension plans ‐ (80) Other expenses 35 35 96 (75) 1 Relates to unrealized loss for the three months ended March 31, 2024 (2023 – $nil). Argentina has certain currency controls in place that limit our ability to settle our foreign currency-denominated obligations or remit cash out of Argentina. A Blue Chip Swap is a financial mechanism in Argentina that effectively allows companies to transact in US dollars. In the first quarter of 2024, we incurred a loss on these transactions due to the significant divergence between the Blue Chip Swap market exchange rate and the official Argentinian Central Bank rate. Note 4 Income taxes A separate estimated average annual effective income tax rate was determined and applied individually to the interim period pre-tax earnings for each taxing jurisdiction. Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 Actual effective tax rate on earnings (%) 30 23 Actual effective tax rate including discrete items (%) 31 25 Discrete tax adjustments that impacted the tax rate 3 18 Note 5 Financial instruments Natural Gas Derivatives In 2024, we increased our use of natural gas derivatives to lock-in commodity prices. Our risk management strategies and accounting policies for derivatives that are designated and qualify as cash flow hedges are consistent with those disclosed in Note 10 and Note 30 of our annual consolidated financial statements, respectively. For derivatives that do not quality as cash flow hedges, any gains or losses are recorded in net earnings in the current period. We assess whether our derivative hedging transactions are expected to be or were highly effective, both at the hedge’s inception and on an ongoing basis, in offsetting changes in fair values of hedged items. Hedging Transaction Measurement of Ineffectiveness Potential Sources of Ineffectiveness New York Mercantile Exchange (“NYMEX”) natural gas hedges Assessed on a prospective and retrospective basis using regression analyses Changes in: • timing of forecast transactions • volume delivered • our credit risk or the credit risk of a counterparty As at March 31, 2024 Maturities Average Fair Value of (millions of US dollars, except as otherwise noted) Notional 1 (year) Contract Price 2 Assets (Liabilities) Derivatives not designated as hedges NYMEX call options 43 2024 2.77 7 Derivatives designated as hedges NYMEX swaps 36 2024 2.64 (9) 1 In millions of Metric Million British Thermal Units (“MMBtu”). 2 US dollars per MMBtu. Note 6 Short-term debt On March 7, 2024, we entered into an uncommitted $500 million accounts receivable repurchase facility (the “repurchase facility”), where we may sell certain receivables from customers to a financial institution and agree to repurchase those receivables at a future date. When we draw under this repurchase facility, the receivables from customers remain on our condensed consolidated balance sheet as we control and retain substantially all of the risks and rewards associated with the receivables. As at March 31, 2024, $111 million in receivables from customers were pledged to the repurchase facility and $100 million of borrowings were included in short-term debt with variable interest accruing based on a margin and the Secured Overnight Financing Rate. Note 7 Capital management In March 2024, we filed a base shelf prospectus in Canada and the US qualifying the issuance, subject to the approval of the Board of Directors, of common shares, debt securities and other securities during a period of 25 months from March 22, 2024. Note 8 Seasonality Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in the 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 requirements. 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 9 Related party transactions We sell potash outside Canada and the US exclusively through Canpotex. Canpotex sells potash to buyers, including Nutrien, in export markets pursuant to term and spot contracts at agreed upon prices. Our total revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. As at (millions of US dollars) March 31, 2024 December 31, 2023 Receivables from Canpotex 148 162 Note 10 Accounting policies, estimates and judgments IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”), which was issued on April 9, 2024, would supersede IAS 1, “Presentation of Financial Statements” and increase the comparability of financial statements by enhancing principles on aggregation and disaggregation. IFRS 18 will be effective January 1, 2027, and will also apply to comparative information. We are reviewing the standard to determine the potential impact. View source version on businesswire.com: https://www.businesswire.com/news/home/20240503690845/en/Contacts Investor Relations: Jeff Holzman Vice President, Investor Relations (306) 933-8545 Investors@nutrien.com Media Relations: Megan Fielding Vice President, Brand & Culture Communications (403) 797-3015 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Nutrien Reports First Quarter 2024 Results By: Nutrien Ltd. via Business Wire May 08, 2024 at 17:49 PM EDT First quarter results supported by strong grower demand for crop inputs, increased potash shipments to key global markets, higher fertilizer operating rates and lower costs. Maintaining full-year 2024 Retail adjusted EBITDA and fertilizer sales volume guidance ranges. All amounts are in US dollars except as otherwise noted Nutrien Ltd. (TSX and NYSE: NTR) announced today its first quarter 2024 results, with net earnings of $165 million ($0.32 diluted net earnings per share). First quarter 2024 adjusted EBITDA1 was $1.1 billion and adjusted net earnings per share1 was $0.46. “We continued to see strong crop input demand, a normalization of product margins for our North American Retail business and increased global potash shipments in the first quarter. Our results highlighted the capabilities of our flexible, low-cost production assets and downstream distribution network to efficiently supply our customers’ needs,” commented Ken Seitz, Nutrien’s President and CEO. “We expect growth in Retail earnings and fertilizer sales volumes compared to the prior year and have maintained our 2024 guidance ranges. Our focus remains on strengthening our capability to serve growers and enhancing our core businesses to improve the quality of our earnings and free cash flow,” added Mr. Seitz. Highlights2: Generated net earnings of $165 million and adjusted EBITDA of $1.1 billion in the first quarter of 2024, down from the same period in 2023 primarily due to lower net fertilizer selling prices. This was partially offset by increased Retail earnings, higher fertilizer sales volumes and lower natural gas costs. Nutrien Ag Solutions (“Retail”) adjusted EBITDA increased to $77 million in the first quarter of 2024 primarily due to higher gross margin for crop nutrients and crop protection products supported by strong grower demand and a normalization of product margins in North America. Potash adjusted EBITDA declined to $530 million in the first quarter of 2024 due to lower net selling prices, which more than offset higher sales volumes. We increased potash production, supported by continued advancement of mine automation initiatives, and reduced our controllable cash cost of product manufactured per tonne. Nitrogen adjusted EBITDA declined to $464 million in the first quarter of 2024 due to lower net selling prices for all major nitrogen products, which more than offset higher sales volumes and lower natural gas costs. Ammonia production increased in the first quarter, driven by higher utilization rates in Trinidad. Initiated a process to divest our Retail assets in Argentina, Chile, and Uruguay to provide greater focus on our core Retail businesses and enhance the quality of earnings and free cash flow. This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Our discussion of highlights set out on this page is a comparison of the results for the three months ended March 31, 2024 to the results for the three months ended March 31, 2023, unless otherwise noted. Management’s Discussion and Analysis The following management’s discussion and analysis (“MD&A”) is the responsibility of management and is dated as of May 8, 2024. The Board of Directors (“Board”) of Nutrien carries out its responsibility for review of this disclosure principally through its Audit Committee, composed entirely 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 annual report dated February 22, 2024 (“2023 Annual Report”), which includes our annual audited consolidated financial statements and MD&A, and our annual information form dated February 22, 2024, each for the year ended December 31, 2023, can be found on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. No update is provided to the disclosure in our 2023 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 (the “SEC”). This MD&A is based on and should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements as at and for the three months ended March 31, 2024 (“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 (“IAS”) 34 “Interim Financial Reporting”, unless otherwise noted. This MD&A contains certain non-GAAP financial measures and ratios and forward-looking statements, which are described in the “Non-GAAP Financial Measures” and the “Forward-Looking Statements” sections, respectively. Market Outlook and Guidance Agriculture and Retail Markets We expect US corn plantings of approximately 90 million acres in 2024 and soybean plantings of approximately 87 million acres. US planting progress is in line with historical average levels and fertilizer application rates have been strong. Wet weather has recently delayed planting progress and fertilizer application in the Corn Belt. Brazilian growers are finalizing their soybean harvest, and favorable weather conditions resulted in safrinha corn planted area exceeding initial expectations. Soybean margins are expected to improve from the compressed levels in 2023 and support growth in planted acreage and crop input demand in the second half of 2024. Australian soil moisture conditions vary regionally but remain supportive for this upcoming growing season and the Indian monsoon is projected to produce average to above-average precipitation, supporting yield potential and grower demand for crop inputs. Crop Nutrient Markets Global potash supply and demand has been relatively balanced as increased shipments have been required to meet historically strong demand in the first quarter. We have maintained our 2024 full-year potash shipment forecast of 68 to 71 million tonnes. We are seeing strong potash demand in North America for the spring application season as channel inventories were tight to start 2024. Potash demand in Southeast Asia has been supported by lower inventory levels compared to the prior year and favorable economics for key crops such as oil palm and rice. China’s potash imports remained strong in the first quarter of 2024 supported by a step-change in domestic consumption but are expected to decline on a full-year basis compared to the record levels in 2023. Global nitrogen markets have fluctuated in 2024 driven by seasonal buying patterns, production outages and uncertainty over Chinese urea export restrictions and India’s urea import requirements. The US nitrogen supply and demand balance remains relatively tight, in particular for ammonia and UAN, with net nitrogen imports down 21 percent on a fertilizer year basis compared to the historical average. Phosphate fertilizer prices remained firm through the first quarter of 2024 due to strong demand in the Northern Hemisphere, supportive Indian DAP purchases, Chinese export restrictions and production outages. Prices have softened in the second quarter driven primarily by lower seasonal demand. Financial and Operational Guidance We are maintaining our Retail adjusted EBITDA and fertilizer sales volume guidance ranges as market fundamentals and operational performance have been in line with our previous expectations. Retail adjusted EBITDA guidance of $1.65 to $1.85 billion reflects expectations for increased crop nutrient sales volumes and margins for our North American business in the first half of 2024 and improved crop input margins in Brazil during the second half of the year. Guidance assumes a full year of earnings from our Retail assets in Argentina, Chile and Uruguay. Potash sales volumes guidance of 13.0 to 13.8 million tonnes assumes a more even split between first and second half volumes compared to the prior year. Nitrogen sales volumes guidance of 10.6 to 11.2 million tonnes assumes higher operating rates at our North American and Trinidad plants and growth in sales of upgraded products such as urea and nitrogen solutions. Effective tax rate on adjusted earnings guidance was lowered primarily due to a change to our expected geographic mix of earnings. All guidance numbers, including those noted above are outlined in the table below. Refer to page 65 of Nutrien’s 2023 Annual Report for related assumptions and sensitivities. 2024 Guidance Ranges 1 as of May 8, 2024 February 21, 2024 (billions of US dollars, except as otherwise noted) Low High Low High Retail adjusted EBITDA 1.65 1.85 1.65 1.85 Potash sales volumes (million tonnes) 2 13.0 13.8 13.0 13.8 Nitrogen sales volumes (million tonnes) 2 10.6 11.2 10.6 11.2 Phosphate sales volumes (million tonnes) 2 2.6 2.8 2.6 2.8 Depreciation and amortization 2.2 2.3 2.2 2.3 Finance costs 0.75 0.85 0.75 0.85 Effective tax rate on adjusted earnings (%) 23.0 25.0 24.0 26.0 Capital expenditures 3 2.2 2.3 2.2 2.3 1 See the “Forward-Looking Statements” section. 2 Manufactured product only. 3 Comprised of sustaining capital expenditures, investing capital expenditures and mine development and pre-stripping capital expenditures which are supplementary financial measures. See the “Other Financial Measures” section. Consolidated Results Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Sales 5,389 6,107 (12) Gross margin 1,537 1,913 (20) Expenses 1,118 974 15 Net earnings 165 576 (71) Adjusted EBITDA 1 1,055 1,421 (26) Diluted net earnings per share 0.32 1.14 (72) Adjusted net earnings per share 1 0.46 1.11 (59) 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Net earnings and adjusted EBITDA decreased in the first quarter of 2024 compared to the same period in 2023, primarily due to lower net fertilizer selling prices. This was partially offset by increased Retail earnings, higher fertilizer sales volumes and lower natural gas costs. Expenses increased mainly due to higher foreign exchange losses primarily from our Retail – South America region in the first quarter of 2024 and an $80 million gain recognized in the first quarter of 2023 due to post-retirement benefit plan amendments. Segment Results Our discussion of segment results set out on the following pages is a comparison of the results for the three months ended March 31, 2024 to the results for the three months ended March 31, 2023, unless otherwise noted. Nutrien Ag Solutions (“Retail”) Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Sales 3,308 3,422 (3) Cost of goods sold 2,561 2,807 (9) Gross margin 747 615 21 Adjusted EBITDA 1 77 (34) n/m 1 See Note 2 to the interim financial statements. Retail adjusted EBITDA increased in the first quarter of 2024 primarily due to higher gross margin for crop nutrients and crop protection products supported by strong grower demand and a normalization of product margins in North America. Gross margin of our proprietary products increased in the first quarter driven primarily by our crop nutritional and biostimulant product lines, as we continued to expand our differentiated product offering and manufacturing capacity. Three Months Ended March 31 Sales Gross Margin (millions of US dollars) 2024 2023 2024 2023 Crop nutrients 1,309 1,335 254 141 Crop protection products 1,114 1,154 234 208 Seed 485 507 59 72 Services and other 156 148 125 118 Merchandise 200 246 31 44 Nutrien Financial 66 57 66 57 Nutrien Financial elimination (22) (25) (22) (25) Total 3,308 3,422 747 615 Crop nutrients sales decreased in the first quarter of 2024 due to lower selling prices, partially offset by higher sales volumes across all regions. Gross margin increased in the first quarter due to higher per-tonne margins and higher sales volumes resulting from a more typical start to spring applications in the US compared to 2023. Crop protection products sales were lower in the first quarter of 2024 primarily due to lower selling prices. Gross margin increased compared to the first quarter of 2023, which was impacted by the sell through of higher cost inventory. Seed sales and gross margin decreased in the first quarter of 2024 primarily due to lower sales volumes and competitive market prices in the US, as growers delayed crop selection decisions in some regions. Nutrien Financial sales and gross margin increased in the first quarter of 2024 due to higher financing offering rates and expanded program participation from growers in the US and Australia. Supplemental Data Three Months Ended March 31 Gross Margin % of Product Line 1 (millions of US dollars, except as otherwise noted) 2024 2023 2024 2023 Proprietary products Crop nutrients 70 54 28 38 Crop protection products 83 74 36 36 Seed 17 30 29 42 Merchandise 3 3 9 6 Total 173 161 23 26 1 Represents percentage of proprietary product margins over total product line gross margin. Sales Volumes (tonnes - thousands) Gross Margin / Tonne (US dollars) 2024 2023 2024 2023 Crop nutrients North America 1,464 1,195 139 94 International 918 845 55 35 Total 2,382 2,040 106 69 (percentages) March 31, 2024 December 31, 2023 Financial performance measures 1, 2 Cash operating coverage ratio 66 68 Adjusted average working capital to sales 19 19 Adjusted average working capital to sales excluding Nutrien Financial nil 1 Nutrien Financial adjusted net interest margin 5.2 5.2 1 Rolling four quarters. 2 These are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section. Potash Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Net sales 813 1,002 (19) Cost of goods sold 358 305 17 Gross margin 455 697 (35) Adjusted EBITDA 1 530 676 (22) 1 See Note 2 to the interim financial statements. Potash adjusted EBITDA declined in the first quarter of 2024 due to lower net selling prices, which more than offset higher sales volumes. We increased potash production in the first quarter, supported by continued advancement of mine automation initiatives, which helped to meet customer demand and reduced our controllable cash cost of product manufactured1 to $56 per tonne. Manufactured product Three Months Ended March 31 ($ / tonne, except as otherwise noted) 2024 2023 Sales volumes (tonnes - thousands) North America 1,307 854 Offshore 2,106 1,782 Total sales volumes 3,413 2,636 Net selling price North America 310 401 Offshore 193 370 Average selling price 238 380 Cost of goods sold 105 115 Gross margin 133 265 Depreciation and amortization 43 37 Gross margin excluding depreciation and amortization 1 176 302 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Sales volumes increased in North America in the first quarter of 2024 due to low channel inventory and more normal buying behaviors compared to the same period in 2023. Offshore sales volumes were higher compared to the same period in the prior year driven by increased demand in major offshore markets. Net selling price per tonne decreased in the first quarter of 2024 due to a decline in benchmark prices compared to the strong prices in the first quarter of 2023. Cost of goods sold per tonne decreased in the first quarter of 2024 mainly due to higher production volumes and lower royalties. Supplemental Data Three Months Ended March 31 2024 2023 Production volumes (tonnes – thousands) 3,565 3,088 Potash controllable cash cost of product manufactured per tonne 1 56 62 Canpotex sales by market (percentage of sales volumes) Latin America 32 35 Other Asian markets 2 33 38 China 20 12 India 3 2 Other markets 12 13 Total 100 100 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. 2 All Asian markets except China and India. Nitrogen Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Net sales 911 1,312 (31) Cost of goods sold 604 771 (22) Gross margin 307 541 (43) Adjusted EBITDA 1 464 676 (31) 1 See Note 2 to the interim financial statements. Nitrogen adjusted EBITDA declined in the first quarter of 2024 due to lower net selling prices for all major nitrogen products, which more than offset higher sales volumes and lower natural gas costs. Ammonia production increased in the first quarter supporting product mix optimization and increased downstream urea and UAN production. Manufactured product Three Months Ended March 31 ($ / tonne, except as otherwise noted) 2024 2023 Sales volumes (tonnes - thousands) Ammonia 517 534 Urea and ESN® 775 747 Solutions, nitrates and sulfates 1,215 1,076 Total sales volumes 2,507 2,357 Net selling price Ammonia 403 721 Urea and ESN® 432 617 Solutions, nitrates and sulfates 226 310 Average net selling price 326 500 Cost of goods sold 207 275 Gross margin 119 225 Depreciation and amortization 54 57 Gross margin excluding depreciation and amortization 1 173 282 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Sales volumes were higher in the first quarter of 2024 primarily due to higher urea and UAN production and strong fertilizer demand, partially offset by lower ammonia sales due to product mix optimization. Net selling price per tonne was lower in the first quarter of 2024 for all major nitrogen products primarily due to weaker benchmark prices resulting from lower energy prices in key nitrogen producing regions. Cost of goods sold per tonne decreased in the first quarter of 2024 mainly due to lower natural gas costs. Supplemental Data Three Months Ended March 31 2024 2023 Sales volumes (tonnes – thousands) Fertilizer 1,423 1,248 Industrial and feed 1,084 1,109 Production volumes (tonnes – thousands) Ammonia production – total 1 1,452 1,431 Ammonia production – adjusted 1, 2 1,018 1,037 Ammonia operating rate (%) 2 92 95 Natural gas costs (US dollars per MMBtu) Overall natural gas cost excluding realized derivative impact 3.16 4.85 Realized derivative impact 3 0.04 ‐ Overall natural gas cost 3.20 4.85 1 All figures are provided on a gross production basis in thousands of product tonnes. 2 Excludes Trinidad and Joffre. 3 Includes realized derivative impacts recorded as part of cost of goods sold or other income and expenses. Refer to Note 3 to the interim financial statements. Phosphate Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Net sales 437 514 (15) Cost of goods sold 372 427 (13) Gross margin 65 87 (25) Adjusted EBITDA 1 121 137 (12) 1 See Note 2 to the interim financial statements. Phosphate adjusted EBITDA decreased in the first quarter of 2024 primarily due to lower net selling prices, partially offset by higher sales volumes and lower ammonia and sulfur input costs. Production increased in the first quarter due to improved reliability at our Aurora plant. Manufactured product Three Months Ended March 31 ($ / tonne, except as otherwise noted) 2024 2023 Sales volumes (tonnes - thousands) Fertilizer 447 388 Industrial and feed 173 160 Total sales volumes 620 548 Net selling price Fertilizer 627 682 Industrial and feed 848 1,136 Average net selling price 689 814 Cost of goods sold 580 651 Gross margin 109 163 Depreciation and amortization 113 122 Gross margin excluding depreciation and amortization 1 222 285 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Sales volumes increased in the first quarter of 2024 due to higher production and strong demand across fertilizer, industrial and feed products. Net selling price per tonne decreased in the first quarter of 2024 due to lower fertilizer benchmark prices and lower industrial and feed net selling prices which reflect the typical lag in price realizations relative to benchmark prices. Cost of goods sold per tonne decreased in the first quarter of 2024 mainly due to lower ammonia and sulfur input costs. Supplemental Data Three Months Ended March 31 2024 2023 Production volumes (P2O5 tonnes – thousands) 352 341 P2O5 operating rate (%) 83 81 Corporate and Others and Eliminations Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Corporate and Others Selling expenses (recovery) (2) (2) ‐ General and administrative expenses 89 84 6 Share-based compensation expense 6 15 (60) Other expenses (income) 97 (81) n/m Adjusted EBITDA 1 (101) (13) 677 Eliminations Gross margin (37) (27) 37 Adjusted EBITDA 1 (36) (21) 71 1 See Note 2 to the interim financial statements. Other expenses (income) was an expense in the first quarter of 2024 compared to income in the same period in 2023 due to higher foreign exchange losses primarily from our Retail – South America region in the first quarter of 2024 and an $80 million gain recognized in the first quarter of 2023 due to post-retirement benefit plan amendments. Finance Costs, Income Taxes and Other Comprehensive (Loss) Income Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Finance costs 179 170 5 Income tax expense 75 193 (61) Actual effective tax rate including discrete items (%) 31 25 24 Other comprehensive (loss) income (102) 2 n/m Income tax expense was lower in the first quarter of 2024 primarily as a result of lower earnings compared to the same period in 2023. We did not record the tax benefit on South America losses in the first quarter of 2024 as the recognition criteria to record deferred tax assets was not met. This resulted in a higher effective tax rate for the first quarter of 2024. Other comprehensive (loss) income was a loss in the first quarter of 2024 primarily driven by changes in the currency translation of our Retail foreign operations primarily due to depreciation of Australian and Canadian currencies relative to the US dollar. 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 new or existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures, planned growth and development activities, 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 Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Cash used in operating activities (487) (858) (43) Cash used in investing activities (494) (694) (29) Cash provided by financing activities 548 2,129 (74) Cash used for dividends and share repurchases 1 (261) (1,143) (77) 1 This is a supplementary financial measure. See the “Other Financial Measures” section. Cash used in operating activities Reduced cash outflow in the first quarter of 2024 compared to the same period in 2023 due to a decrease in income taxes paid and other working capital movements. Typically, in the first quarter of the year, we have lower cash payments to our suppliers and have lower cash receipts from our grower customers as our receivables build during the planting and application season. In the first quarter of 2023, we experienced global supply chain challenges and higher benchmark prices compared to the first quarter of 2024, resulting in higher than usual payments to our suppliers offsetting the higher receivables we collected from our customers. Cash used in investing activities Lower in the first quarter of 2024 compared to the same period in 2023 due to lower capital expenditures and fewer business acquisitions. Cash provided by financing activities Lower in the first quarter of 2024 compared to the same period in 2023 due to the issuance of $1,500 million of senior notes in the first quarter of 2023. The proceeds from our short-term debt decreased by $947 million compared to the first quarter of 2023; however, we also did not repurchase any shares in the first quarter of 2024. Cash used for dividends and share repurchases Lower in the first quarter of 2024 compared to the same period in 2023 as we did not repurchase any shares in the first quarter of 2024, compared to $897 million of share repurchases in the first quarter of 2023. Financial Condition Review The following is a comparison of balance sheet categories that are considered material: As at (millions of US dollars, except as otherwise noted) March 31, 2024 December 31, 2023 $ Change % Change Assets Cash and cash equivalents 496 941 (445) (47) Receivables 5,561 5,398 163 3 Inventories 8,188 6,336 1,852 29 Prepaid expenses and other current assets 905 1,495 (590) (39) Property, plant and equipment 22,410 22,461 (51) ‐ Liabilities and Equity Short-term debt 2,835 1,815 1,020 56 Payables and accrued charges 9,431 9,467 (36) ‐ Retained earnings 11,423 11,531 (108) (1) Explanations for changes in Cash and cash equivalents are in the “Sources and Uses of Cash” section. Receivables remained consistent as the increase in receivables due to the seasonality of our Retail sales was offset by faster collection of our Potash receivables. Inventories increased due to the seasonality of our Retail segment and the larger portion of its operations in North America. Our inventory levels build up in the last quarter of the year and peaks in the first quarter of the year, while we draw inventories in the succeeding quarters. Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventories in preparation for the spring planting and application seasons in North America. Property, plant and equipment decreased due to depreciation more than offsetting capital expenditures in the first quarter of 2024. Short-term debt increased due to higher drawdowns on our credit facilities based on our working capital requirements driven by the seasonality of our business. Payables and accrued charges remained consistent, as we have higher customer prepayment balances which were partially offset by lower costs to purchase and produce our inventories and lower capital expenditures accruals. Retained earnings decreased as dividends declared exceeded net earnings. 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 continually evaluate various financing arrangements and may seek to engage in transactions from time to time when market and other conditions are favorable. We were in compliance with our debt covenants and did not have any changes to our credit ratings for the three months ended March 31, 2024. Capital Structure (Debt and Equity) (millions of US dollars) March 31, 2024 December 31, 2023 Short-term debt 2,835 1,815 Current portion of long-term debt 513 512 Current portion of lease liabilities 346 327 Long-term debt 8,910 8,913 Lease liabilities 1,034 999 Shareholders' equity 24,996 25,201 Commercial Paper, Credit Facilities and Other Debt We have several credit facilities available in the jurisdictions where we operate. We also have a commercial paper program, which is limited to the undrawn amount under our $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities. As at March 31, 2024, we had $1,963 million of commercial paper outstanding. As at March 31, 2024, $240 million in letters of credit were outstanding and committed, with $118 million of remaining credit available under our dedicated letter of credit facilities. On March 7, 2024, we entered into an uncommitted $500 million accounts receivable repurchase facility, under which we drew borrowings of $100 million as at March 31, 2024. See Note 6 to the interim financial statements for a further description of this facility. In March 2024, we filed a base shelf prospectus in Canada and the US qualifying the issuance, subject to approval of the Board of Directors, of common shares, debt securities and other securities during a period of 25 months from March 22, 2024. Outstanding Share Data As at May 7, 2024 Common shares 494,628,434 Options to purchase common shares 3,752,004 For more information on our capital structure and management, see Note 24 to the consolidated financial statements in our 2023 Annual Report. Quarterly Results (millions of US dollars, except as otherwise noted) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Sales 5,389 5,664 5,631 11,654 6,107 7,533 8,188 14,506 Net earnings 165 176 82 448 576 1,118 1,583 3,601 Net earnings attributable to equity holders of Nutrien 158 172 75 440 571 1,112 1,577 3,593 Net earnings per share attributable to equity holders of Nutrien Basic 0.32 0.35 0.15 0.89 1.14 2.15 2.95 6.53 Diluted 0.32 0.35 0.15 0.89 1.14 2.15 2.94 6.51 Our quarterly earnings are significantly affected by the seasonality of our business, fertilizer benchmark prices, which have been volatile over the last two years and are affected by demand-supply conditions, grower affordability and weather. See Note 8 to the interim financial statements. The following table describes certain items that impacted our quarterly earnings: Quarter Transaction or Event Q2 2023 $698 million non-cash impairment of assets comprised of a $233 million non-cash impairment of our Phosphate White Springs property, plant and equipment due to a decrease in our forecasted phosphate margins and a $465 million non-cash impairment of our Retail – South America assets primarily related to goodwill mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates which lowered our forecasted earnings. Q3 2022 $330 million reversal of non-cash impairment of our Phosphate White Springs property, plant and equipment related to higher forecasted global prices and a more favorable outlook for phosphate margins. Q2 2022 $450 million reversal of non-cash impairment of our Phosphate Aurora property, plant and equipment related to higher forecasted global prices and a more favorable outlook for phosphate margins. Critical Accounting Estimates Our significant accounting policies are disclosed in our 2023 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 pages 72 to 74 of our 2023 Annual Report. There were no material changes to our critical accounting estimates for the three months ended March 31, 2024. Controls and Procedures Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings. Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. There has been no change in our internal control over financial reporting during the three months ended March 31, 2024 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 “Market 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”, “project”, “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 2024 full-year guidance, including expectations regarding Retail adjusted EBITDA, Potash sales volumes, Nitrogen sales volumes, Phosphate sales volumes, depreciation and amortization, finance costs, effective tax rate and capital expenditures; our projections to generate strong cash from operations; expectations regarding our capital allocation intentions and strategies; our ability to advance strategic initiatives and high value growth investments, including expectations regarding our ability to serve growers, maintain a low-cost position of fertilizer production assets and increase free cash flow; capital spending expectations for 2024 and beyond; expectations regarding our ability to generate and enhance free cash flow; expectations regarding performance of our operating segments in 2024, including increased fertilizer sales volumes and growth in Retail earnings; our operating segment market outlooks and our expectations for market conditions and fundamentals in 2024 and beyond, and the anticipated supply and demand for our products and services, expected market, industry and growing conditions with respect to crop nutrient application rates, planted acres, grower crop investment, crop mix, including the need to replenish soil nutrient levels, production volumes and expenses, shipments, natural gas costs and availability, consumption, prices, operating rates and the impact of seasonality, import and export volumes, economic sanctions and restrictions, operating rates, inventories, crop development and natural gas curtailments; the negotiation of sales contracts; acquisitions and divestitures and the anticipated benefits thereof; and expectations in connection with our ability to deliver long-term returns to shareholders. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements. All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. The additional key assumptions that have been made in relation to the operation of our business as currently planned and our ability to achieve our business objectives include, among other things, assumptions with respect to: our ability to successfully implement our business strategies, growth and capital allocation investments and initiatives that we will conduct our operations and achieve results of operations as anticipated; 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 on the anticipated timeline or at all; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, expenses, margins, demand, supply, product availability, shipments, consumption, weather conditions, including the current El Niño weather pattern, supplier agreements, product distribution agreements, inventory levels, exports, crop development and cost of labor and interest, exchange and effective tax rates; potash demand growth in offshore markets and normalization of Canpotex port operations; global economic conditions and the accuracy of our market outlook expectations for 2024 and in the future; assumptions related to our assessment of recoverable amount estimates of our assets, including in relation to our Retail - South America group of CGUs goodwill and intangible asset impairments; assumptions related to the calculation of recoverable amount of our Aurora and White Springs CGUs, including internal sales and input price forecasts, discount rate, long-term growth rate and end of expected mine life; our intention to complete share repurchases under our normal course issuer bid programs, including Toronto Stock Exchange approval, the funding of such share repurchases, existing and future market conditions, including with respect to the price of our common shares, and compliance with respect to applicable limitations under securities laws and regulations and stock exchange policies and assumptions related to our ability to fund our dividends at the current level; our expectations regarding the impacts, direct and indirect, of certain geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East on, among other things, global supply and demand, including for crop nutrients, energy and commodity prices, global interest rates, supply chains and the global macroeconomic environment, including inflation; assumptions regarding future markets for clean ammonia; 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 and other 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 achieve expected results of our business strategy, capital allocation initiatives or results of operations; failure to complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; seasonality; climate change and weather conditions, including the current El Niño weather pattern (and transition to El Niña weather pattern), 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, antitrust and other laws or regulations and the interpretation thereof; political or military risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism and industrial espionage; our ability to access sufficient, cost-effective and timely transportation, distribution and storage of products (including potential rail transportation and port disruptions due to labor strikes and/or work stoppages or other similar actions); the occurrence of a major environmental or safety incident or becoming subject to legal or regulatory proceedings; 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 or challenges related to our major facilities that are out of our control; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; the risk that rising interest rates and/or deteriorated business operating results may result in the further impairment of assets or goodwill attributed to certain of our cash generating units; 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; geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East, and their potential impact on, among other things, global market conditions and supply and demand, including for crop nutrients, energy and commodity prices, interest rates, supply chains and the global economy generally; our ability to execute on our strategies related to environmental, social and governance matters, and achieve related expectations, targets and commitments; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. The purpose of our Retail adjusted EBITDA, depreciation and amortization, finance costs, effective tax rate and 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 & Definitions” section of our 2023 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 a leading provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our integrated business and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals. More information about Nutrien can be found at www.nutrien.com. Selected financial data for download can be found in our data tool at www.nutrien.com/investors/interactive-datatool Such data is not incorporated by reference herein. Nutrien will host a Conference Call on Thursday, May 9, 2024 at 10:00 a.m. Eastern Time. Telephone conference dial-in numbers: From Canada and the US 1-800-717-1738 International 1-646-307-1865 No access code required. Please dial in 15 minutes prior to ensure you are placed on the call in a timely manner. Live Audio Webcast: Visit https://www.nutrien.com/investors/events/2024-q1-earnings-conference-call Non-GAAP Financial Measures We use both International Financial Reporting Standards (“IFRS”) measures and certain non-GAAP financial measures to assess performance. Non-GAAP financial measures are financial measures disclosed by the Company that (a) depict historical or expected future financial performance, financial position or cash flow of the Company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the Company, (c) are not disclosed in the financial statements of the Company and (d) are not a ratio, fraction, percentage or similar representation. Non-GAAP ratios are financial measures disclosed by the Company that are in the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its components, and that are not disclosed in the financial statements of the Company. These non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-GAAP financial measures and non-GAAP ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-GAAP financial measures and non-GAAP ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. The following section outlines our non-GAAP financial measures and non-GAAP ratios, their compositions, and why management uses each measure. It also includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-GAAP financial measures and non-GAAP ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations. Adjusted EBITDA (Consolidated) Most directly comparable IFRS financial measure: Net earnings (loss). Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, asset retirement obligations (“ARO”) and accrued environmental costs (“ERL”) related to our non-operating sites, and loss on remitting cash from certain foreign jurisdictions (e.g., Blue Chip Swaps). Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations and as a component of employee remuneration calculations. Three Months Ended March 31 (millions of US dollars) 2024 2023 Net earnings 165 576 Finance costs 179 170 Income tax expense 75 193 Depreciation and amortization 565 496 EBITDA 1 984 1,435 Adjustments: Share-based compensation expense 6 15 Foreign exchange loss (gain), net of related derivatives 43 (34) ARO/ERL expense for non-operating sites 3 ‐ Loss on Blue Chip Swaps 19 ‐ Integration and restructuring related costs ‐ 5 Adjusted EBITDA 1,055 1,421 1 EBITDA is calculated as net earnings before finance costs, income taxes, and depreciation and amortization. Adjusted Net Earnings and Adjusted Net Earnings Per Share Most directly comparable IFRS financial measure: Net earnings (loss) and diluted net earnings (loss) per share. Definition: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, gain or loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting, asset retirement obligations and accrued environmental costs related to our non-operating sites, loss on remitting cash from certain foreign jurisdictions (e.g., Blue Chip Swaps), change in recognition of tax losses and deductible temporary differences related to impairments and certain changes to tax declarations (e.g., “Swiss Tax Reform adjustment”). We generally apply the annual forecasted effective tax rate to specific adjustments during the year, and at year-end, we apply the actual effective tax rate. Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is used as a component of employee remuneration calculations. Three Months Ended March 31, 2024 Per Increases Diluted (millions of US dollars, except as otherwise noted) (Decreases) Post-Tax Share Net earnings attributable to equity holders of Nutrien 158 0.32 Adjustments: Share-based compensation expense 6 5 0.01 Foreign exchange loss, net of related derivatives 43 46 0.09 ARO/ERL expense for non-operating sites 3 2 ‐ Loss on Blue Chip Swaps 19 19 0.04 Adjusted net earnings 230 0.46 Three Months Ended March 31, 2023 Per Increases Diluted (millions of US dollars, except as otherwise noted) (Decreases) Post-Tax Share Net earnings attributable to equity holders of Nutrien 571 1.14 Adjustments: Share-based compensation expense 15 11 0.01 Foreign exchange gain, net of related derivatives (34) (25) (0.05) Integration and restructuring related costs 5 4 0.01 Adjusted net earnings 561 1.11 Gross Margin Excluding Depreciation and Amortization Per Tonne – Manufactured Product Most directly comparable IFRS financial measure: Gross margin. Definition: Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations are provided in the “Segment Results” section. Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions. Potash Controllable Cash Cost of Product Manufactured (“COPM”) Per Tonne Most directly comparable IFRS financial measure: Cost of goods sold (“COGS”) for the Potash segment. Definition: Total Potash COGS excluding depreciation and amortization expense included in COPM, royalties, natural gas costs and carbon taxes, change in inventory, and other adjustments, divided by potash production tonnes. Why we use the measure and why it is useful to investors: To assess operational performance. Potash controllable cash COPM excludes the effects of production from other periods and the impacts of our long-term investment decisions, supporting a focus on the performance of our day-to-day operations. Potash controllable cash COPM also excludes royalties and natural gas costs and carbon taxes, which management does not consider controllable, as they are primarily driven by regulatory and market conditions. Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 Total COGS – Potash 358 305 Change in inventory 28 40 Other adjustments 1 (3) (8) COPM 383 337 Depreciation and amortization in COPM (153) (100) Royalties in COPM (19) (31) Natural gas costs and carbon taxes in COPM (12) (16) Controllable cash COPM 199 190 Production tonnes (tonnes – thousands) 3,565 3,088 Potash controllable cash COPM per tonne 56 62 1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances. Nutrien Financial Adjusted Net Interest Margin Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial net 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 others to evaluate the financial performance of Nutrien Financial. Rolling four quarters ended March 31, 2024 (millions of US dollars, except as otherwise noted) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total/Average Nutrien Financial revenue 122 73 70 66 Deemed interest expense 1 (39) (41) (36) (27) Net interest 83 32 34 39 188 Average Nutrien Financial net receivables 4,716 4,353 2,893 2,489 3,613 Nutrien Financial adjusted net interest margin (%) 5.2 Rolling four quarters ended December 31, 2023 (millions of US dollars, except as otherwise noted) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total/Average Nutrien Financial revenue 57 122 73 70 Deemed interest expense 1 (20) (39) (41) (36) Net interest 37 83 32 34 186 Average Nutrien Financial net receivables 2,283 4,716 4,353 2,893 3,561 Nutrien Financial adjusted net interest margin (%) 5.2 1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial. Retail Cash Operating Coverage Ratio Definition: Retail selling, general and administrative, and other expenses (income), excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters. Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow. Rolling four quarters ended March 31, 2024 (millions of US dollars, except as otherwise noted) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total Selling expenses 971 798 841 790 3,400 General and administrative expenses 55 57 55 52 219 Other expenses 29 37 77 22 165 Operating expenses 1,055 892 973 864 3,784 Depreciation and amortization in operating expenses (185) (186) (199) (190) (760) Operating expenses excluding depreciation and amortization 870 706 774 674 3,024 Gross margin 1,931 895 989 747 4,562 Depreciation and amortization in cost of goods sold 3 3 2 4 12 Gross margin excluding depreciation and amortization 1,934 898 991 751 4,574 Cash operating coverage ratio (%) 66 Rolling four quarters ended December 31, 2023 (millions of US dollars, except as otherwise noted) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total Selling expenses 765 971 798 841 3,375 General and administrative expenses 50 55 57 55 217 Other expenses 15 29 37 77 158 Operating expenses 830 1,055 892 973 3,750 Depreciation and amortization in operating expenses (179) (185) (186) (199) (749) Operating expenses excluding depreciation and amortization 651 870 706 774 3,001 Gross margin 615 1,931 895 989 4,430 Depreciation and amortization in cost of goods sold 2 3 3 2 10 Gross margin excluding depreciation and amortization 617 1,934 898 991 4,440 Cash operating coverage ratio (%) 68 Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the sales and working capital of certain acquisitions during the first year following the acquisition. We also look at this metric excluding Nutrien Financial revenue and working capital. Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio. Rolling four quarters ended March 31, 2024 (millions of US dollars, except as otherwise noted) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Average/Total Current assets 11,983 10,398 10,498 11,821 Current liabilities (8,246) (5,228) (8,210) (8,401) Working capital 3,737 5,170 2,288 3,420 3,654 Working capital from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted working capital 3,737 5,170 2,288 3,420 3,654 Nutrien Financial working capital (4,716) (4,353) (2,893) (2,489) Adjusted working capital excluding Nutrien Financial (979) 817 (605) 931 41 Sales 9,128 3,490 3,502 3,308 Sales from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted sales 9,128 3,490 3,502 3,308 19,428 Nutrien Financial revenue (122) (73) (70) (66) Adjusted sales excluding Nutrien Financial 9,006 3,417 3,432 3,242 19,097 Adjusted average working capital to sales (%) 19 Adjusted average working capital to sales excluding Nutrien Financial (%) nil Rolling four quarters ended December 31, 2023 (millions of US dollars, except as otherwise noted) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Average/Total Current assets 13,000 11,983 10,398 10,498 Current liabilities (8,980) (8,246) (5,228) (8,210) Working capital 4,020 3,737 5,170 2,288 3,804 Working capital from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted working capital 4,020 3,737 5,170 2,288 3,804 Nutrien Financial working capital (2,283) (4,716) (4,353) (2,893) Adjusted working capital excluding Nutrien Financial 1,737 (979) 817 (605) 243 Sales 3,422 9,128 3,490 3,502 Sales from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted sales 3,422 9,128 3,490 3,502 19,542 Nutrien Financial revenue (57) (122) (73) (70) Adjusted sales excluding Nutrien Financial 3,365 9,006 3,417 3,432 19,220 Adjusted average working capital to sales (%) 19 Adjusted average working capital to sales excluding Nutrien Financial (%) 1 Other Financial Measures Selected Additional Financial Data Nutrien Financial As at March 31, 2024 As at December 31, 2023 (millions of US dollars) Current <31 Days Past Due 31–90 Days Past Due >90 Days Past Due Gross Receivables Allowance 1 Net Receivables Net Receivables North America 1,275 91 254 146 1,766 (48) 1,718 2,206 International 598 47 78 58 781 (10) 771 687 Nutrien Financial receivables 1,873 138 332 204 2,547 (58) 2,489 2,893 1 Bad debt expense on the above receivables for the three months ended March 31, 2024 and 2023 were $9 million and $1 million, respectively, in the Retail segment. Supplementary Financial Measures Supplementary financial measures are financial measures disclosed by the Company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company, (b) are not disclosed in the financial statements of the Company, (c) are not non-GAAP financial measures, and (d) are not non-GAAP ratios. The following section provides an explanation of the composition of those supplementary financial measures if not previously provided. Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds. Investing capital expenditures: Represents capital expenditures related to significant expansions of current operations or to create cost savings (synergies). Investing capital expenditures excludes capital outlays for business acquisitions and equity-accounted investees. Mine development and pre-stripping capital expenditures: Represents capital expenditures that are required for activities to open new areas underground and/or develop a mine or ore body to allow for future production mining and activities required to prepare and/or access the ore, i.e., removal of an overburden that allows access to the ore. Cash used for dividends and share repurchases (shareholder returns): Calculated as dividends paid to Nutrien’s shareholders plus repurchase of common shares as reflected in the unaudited condensed consolidated statements of cash flows. This measure is useful as it represents return of capital to shareholders. Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Statements of Earnings Three Months Ended March 31 (millions of US dollars, except as otherwise noted) Note 2024 2023 SALES 2, 9 5,389 6,107 Freight, transportation and distribution 238 199 Cost of goods sold 3,614 3,995 GROSS MARGIN 1,537 1,913 Selling expenses 794 770 General and administrative expenses 154 145 Provincial mining taxes 68 119 Share-based compensation expense 6 15 Other expenses (income) 3 96 (75) EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES 419 939 Finance costs 179 170 EARNINGS BEFORE INCOME TAXES 240 769 Income tax expense 4 75 193 NET EARNINGS 165 576 Attributable to Equity holders of Nutrien 158 571 Non-controlling interest 7 5 NET EARNINGS 165 576 NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS") Basic 0.32 1.14 Diluted 0.32 1.14 Weighted average shares outstanding for basic EPS 494,570,000 501,175,000 Weighted average shares outstanding for diluted EPS 494,792,000 502,220,000 Condensed Consolidated Statements of Comprehensive Income Three Months Ended March 31 (millions of US dollars) 2024 2023 NET EARNINGS 165 576 Other comprehensive (loss) income Items that will not be reclassified to net earnings: Net actuarial loss on defined benefit plans ‐ (3) Net fair value (loss) gain on investments (18) 5 Items that have been or may be subsequently reclassified to net earnings: (Loss) gain on currency translation of foreign operations (66) 1 Other (18) (1) OTHER COMPREHENSIVE (LOSS) INCOME (102) 2 COMPREHENSIVE INCOME 63 578 Attributable to Equity holders of Nutrien 57 573 Non-controlling interest 6 5 COMPREHENSIVE INCOME 63 578 (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Statements of Cash Flows Three Months Ended March 31 (millions of US dollars) Note 2024 2023 Note 1 OPERATING ACTIVITIES Net earnings 165 576 Adjustments for: Depreciation and amortization 565 496 Share-based compensation expense 6 15 Provision for deferred income tax 28 21 Net (undistributed) distributed earnings of equity-accounted investees (50) 163 Gain on amendments to other post-retirement pension plans 3 ‐ (80) Loss on Blue Chip Swaps 3 19 ‐ Long-term income tax receivables and payables 43 (72) Other long-term assets, liabilities and miscellaneous 64 7 Cash from operations before working capital changes 840 1,126 Changes in non-cash operating working capital: Receivables (257) 535 Inventories and prepaid expenses and other current assets (1,330) (1,493) Payables and accrued charges 260 (1,026) CASH USED IN OPERATING ACTIVITIES (487) (858) INVESTING ACTIVITIES Capital expenditures 1 (373) (465) Business acquisitions, net of cash acquired ‐ (111) Proceeds from sales of Blue Chip Swaps, net of purchases 3 (19) ‐ Net changes in non-cash working capital (90) (100) Other (12) (18) CASH USED IN INVESTING ACTIVITIES (494) (694) FINANCING ACTIVITIES Proceeds from debt with maturity periods within three months, net 926 1,873 Proceeds from debt ‐ 1,500 Repayment of debt (14) (17) Repayment of principal portion of lease liabilities (96) (87) Dividends paid to Nutrien's shareholders (261) (246) Repurchase of common shares ‐ (897) Issuance of common shares 1 28 Other (8) (25) CASH PROVIDED BY FINANCING ACTIVITIES 548 2,129 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (12) (5) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (445) 572 CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD 941 901 CASH AND CASH EQUIVALENTS – END OF PERIOD 496 1,473 Cash and cash equivalents is composed of: Cash 422 361 Short-term investments 74 1,112 496 1,473 SUPPLEMENTAL CASH FLOWS INFORMATION Interest paid 132 98 Income taxes paid 50 1,319 Total cash outflow for leases 131 119 1 Includes additions to property, plant and equipment, and intangible assets for the three months ended March 31, 2024 of $338 million and $35 million (2023 – $422 million and $43 million). (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Statements of Changes in Shareholders’ Equity Accumulated Other Comprehensive (Loss) Income ("AOCI") (Loss) Gain on Currency Equity Number of Translation Holders Non- Common Share Contributed of Foreign Total Retained of Controlling Total (millions of US dollars, except as otherwise noted) Shares Capital Surplus Operations Other AOCI Earnings Nutrien Interest Equity BALANCE – DECEMBER 31, 2022 507,246,105 14,172 109 (374) (17) (391) 11,928 25,818 45 25,863 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 571 571 5 576 Other comprehensive income ‐ ‐ ‐ 1 1 2 ‐ 2 ‐ 2 Shares repurchased (11,751,290) (328) ‐ ‐ ‐ ‐ (571) (899) ‐ (899) Dividends declared - $0.53/share ‐ ‐ ‐ ‐ ‐ ‐ (265) (265) ‐ (265) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (6) (6) Effect of share-based compensation including issuance of common shares 579,208 34 (3) ‐ ‐ ‐ ‐ 31 ‐ 31 Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 5 5 ‐ 5 ‐ 5 Transfer of net actuarial loss on defined benefit plans ‐ ‐ ‐ ‐ 3 3 (3) ‐ ‐ ‐ Other ‐ ‐ ‐ (2) ‐ (2) ‐ (2) ‐ (2) BALANCE – MARCH 31, 2023 496,074,023 13,878 106 (375) (8) (383) 11,660 25,261 44 25,305 BALANCE – DECEMBER 31, 2023 494,551,730 13,838 83 (286) (10) (296) 11,531 25,156 45 25,201 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 158 158 7 165 Other comprehensive loss ‐ ‐ ‐ (65) (36) (101) ‐ (101) (1) (102) Dividends declared - $0.54/share ‐ ‐ ‐ ‐ ‐ ‐ (266) (266) ‐ (266) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (8) (8) Effect of share-based compensation including issuance of common shares 37,199 2 2 ‐ ‐ ‐ ‐ 4 ‐ 4 Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 2 2 ‐ 2 ‐ 2 BALANCE – MARCH 31, 2024 494,588,929 13,840 85 (351) (44) (395) 11,423 24,953 43 24,996 (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Balance Sheets March 31 December 31 As at (millions of US dollars) Note 2024 2023 2023 ASSETS Current assets Cash and cash equivalents 496 1,473 941 Receivables 6, 9 5,561 6,009 5,398 Inventories 8,188 9,852 6,336 Prepaid expenses and other current assets 905 937 1,495 15,150 18,271 14,170 Non-current assets Property, plant and equipment 22,410 21,832 22,461 Goodwill 12,083 12,433 12,114 Intangible assets 2,165 2,292 2,217 Investments 768 686 736 Other assets 999 1,078 1,051 TOTAL ASSETS 53,575 56,592 52,749 LIABILITIES Current liabilities Short-term debt 6 2,835 4,013 1,815 Current portion of long-term debt 513 545 512 Current portion of lease liabilities 346 306 327 Payables and accrued charges 9,431 10,611 9,467 13,125 15,475 12,121 Non-current liabilities Long-term debt 8,910 9,510 8,913 Lease liabilities 1,034 880 999 Deferred income tax liabilities 3,601 3,603 3,574 Pension and other post-retirement benefit liabilities 246 242 252 Asset retirement obligations and accrued environmental costs 1,485 1,389 1,489 Other non-current liabilities 178 188 200 TOTAL LIABILITIES 28,579 31,287 27,548 SHAREHOLDERS’ EQUITY Share capital 13,840 13,878 13,838 Contributed surplus 85 106 83 Accumulated other comprehensive loss (395) (383) (296) Retained earnings 11,423 11,660 11,531 Equity holders of Nutrien 24,953 25,261 25,156 Non-controlling interest 43 44 45 TOTAL SHAREHOLDERS’ EQUITY 24,996 25,305 25,201 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 53,575 56,592 52,749 (See Notes to the Condensed Consolidated Financial Statements) Notes to the Condensed Consolidated Financial Statements As at and for the Three Months Ended March 31, 2024 Note 1 Basis of presentation Nutrien Ltd. (collectively with its subsidiaries, “Nutrien”, “we”, “us”, “our” or “the Company”) is a leading 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 IAS 34, “Interim Financial Reporting”. The accounting policies and methods of computation used in preparing these interim financial statements are materially consistent with those used in the preparation of our 2023 annual audited consolidated financial statements, as well as any amended standards adopted in 2024 that we previously disclosed. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with our 2023 annual audited consolidated financial statements. Certain immaterial 2023 figures have been reclassified in the condensed consolidated statements of cash flows. 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. These interim financial statements were authorized by the Audit Committee of the Board of Directors for issue on May 8, 2024. Note 2 Segment information We have four reportable operating segments: Nutrien Ag Solutions (“Retail”), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise. Retail provides services directly to growers through a network of farm centers in North America, South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each produces. Three Months Ended March 31, 2024 Corporate (millions of US dollars) Retail Potash Nitrogen Phosphate and Others Eliminations Consolidated Sales – third party 3,308 821 846 414 ‐ ‐ 5,389 – intersegment ‐ 106 182 85 ‐ (373) ‐ Sales – total 3,308 927 1,028 499 ‐ (373) 5,389 Freight, transportation and distribution 1 ‐ 114 117 62 ‐ (55) 238 Net sales 3,308 813 911 437 ‐ (318) 5,151 Cost of goods sold 2,561 358 604 372 ‐ (281) 3,614 Gross margin 747 455 307 65 ‐ (37) 1,537 Selling expenses 790 3 7 2 (2) (6) 794 General and administrative expenses 52 4 5 4 89 ‐ 154 Provincial mining taxes ‐ 68 ‐ ‐ ‐ ‐ 68 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 Other expenses (income) 22 (3) (33) 8 97 5 96 (Loss) earnings before finance costs and income taxes (117) 383 328 51 (190) (36) 419 Depreciation and amortization 194 147 136 70 18 ‐ 565 EBITDA 2 77 530 464 121 (172) (36) 984 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 ARO/ERL expense for non-operating sites 3 ‐ ‐ ‐ ‐ 3 ‐ 3 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 43 ‐ 43 Loss on Blue Chip Swaps ‐ ‐ ‐ ‐ 19 ‐ 19 Adjusted EBITDA 77 530 464 121 (101) (36) 1,055 Assets – as at March 31, 2024 24,273 13,562 11,606 2,420 2,326 (612) 53,575 1 Potash freight, transportation and distribution only applies to our North American potash sales volumes. 2 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization. 3 ARO/ERL refers to asset retirement obligations and accrued environmental costs. Three Months Ended March 31, 2023 Corporate (millions of US dollars) Retail Potash Nitrogen Phosphate and Others Eliminations Consolidated Sales – third party 3,422 1,023 1,154 508 ‐ ‐ 6,107 – intersegment ‐ 54 264 64 ‐ (382) ‐ Sales – total 3,422 1,077 1,418 572 ‐ (382) 6,107 Freight, transportation and distribution ‐ 75 106 58 ‐ (40) 199 Net sales 3,422 1,002 1,312 514 ‐ (342) 5,908 Cost of goods sold 2,807 305 771 427 ‐ (315) 3,995 Gross margin 615 697 541 87 ‐ (27) 1,913 Selling expenses 765 3 8 2 (2) (6) 770 General and administrative expenses 50 3 5 3 84 ‐ 145 Provincial mining taxes ‐ 119 ‐ ‐ ‐ ‐ 119 Share-based compensation expense ‐ ‐ ‐ ‐ 15 ‐ 15 Other expenses (income) 15 (7) (14) 12 (81) ‐ (75) (Loss) earnings before finance costs and income taxes (215) 579 542 70 (16) (21) 939 Depreciation and amortization 181 97 134 67 17 ‐ 496 EBITDA (34) 676 676 137 1 (21) 1,435 Integration and restructuring related costs ‐ ‐ ‐ ‐ 5 ‐ 5 Share-based compensation expense ‐ ‐ ‐ ‐ 15 ‐ 15 Foreign exchange gain, net of related derivatives ‐ ‐ ‐ ‐ (34) ‐ (34) Adjusted EBITDA (34) 676 676 137 (13) (21) 1,421 Assets – as at December 31, 2023 23,056 13,571 11,466 2,438 2,818 (600) 52,749 Three Months Ended March 31 (millions of US dollars) 2024 2023 Retail sales by product line Crop nutrients 1,309 1,335 Crop protection products 1,114 1,154 Seed 485 507 Services and other 156 148 Merchandise 200 246 Nutrien Financial 66 57 Nutrien Financial elimination 1 (22) (25) 3,308 3,422 Potash sales by geography Manufactured product North America 520 417 Offshore 2 407 660 927 1,077 Nitrogen sales by product line Manufactured product Ammonia 244 416 Urea and ESN® 366 491 Solutions, nitrates and sulfates 319 371 Other nitrogen and purchased products 99 140 1,028 1,418 Phosphate sales by product line Manufactured product Fertilizer 321 302 Industrial and feed 167 195 Other phosphate and purchased products 11 75 499 572 1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches. 2 Relates to Canpotex Limited (“Canpotex”) (see Note 9) and includes provisional pricing adjustments for the three months ended March 31, 2024 of $12 million (2023 – $(147) million). Note 3 Other expenses (income) Three Months Ended March 31 (millions of US dollars) 2024 2023 Integration and restructuring related costs ‐ 5 Foreign exchange loss (gain), net of related derivatives 43 (34) Earnings of equity-accounted investees (51) (37) Bad debt expense 13 9 Project feasibility costs 15 13 Customer prepayment costs 16 14 Loss on natural gas derivatives not designated as hedge ¹ 3 ‐ Loss on Blue Chip Swaps 19 ‐ ARO/ERL expense for non-operating sites 3 ‐ Gain on amendments to other post-retirement pension plans ‐ (80) Other expenses 35 35 96 (75) 1 Relates to unrealized loss for the three months ended March 31, 2024 (2023 – $nil). Argentina has certain currency controls in place that limit our ability to settle our foreign currency-denominated obligations or remit cash out of Argentina. A Blue Chip Swap is a financial mechanism in Argentina that effectively allows companies to transact in US dollars. In the first quarter of 2024, we incurred a loss on these transactions due to the significant divergence between the Blue Chip Swap market exchange rate and the official Argentinian Central Bank rate. Note 4 Income taxes A separate estimated average annual effective income tax rate was determined and applied individually to the interim period pre-tax earnings for each taxing jurisdiction. Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 Actual effective tax rate on earnings (%) 30 23 Actual effective tax rate including discrete items (%) 31 25 Discrete tax adjustments that impacted the tax rate 3 18 Note 5 Financial instruments Natural Gas Derivatives In 2024, we increased our use of natural gas derivatives to lock-in commodity prices. Our risk management strategies and accounting policies for derivatives that are designated and qualify as cash flow hedges are consistent with those disclosed in Note 10 and Note 30 of our annual consolidated financial statements, respectively. For derivatives that do not quality as cash flow hedges, any gains or losses are recorded in net earnings in the current period. We assess whether our derivative hedging transactions are expected to be or were highly effective, both at the hedge’s inception and on an ongoing basis, in offsetting changes in fair values of hedged items. Hedging Transaction Measurement of Ineffectiveness Potential Sources of Ineffectiveness New York Mercantile Exchange (“NYMEX”) natural gas hedges Assessed on a prospective and retrospective basis using regression analyses Changes in: • timing of forecast transactions • volume delivered • our credit risk or the credit risk of a counterparty As at March 31, 2024 Maturities Average Fair Value of (millions of US dollars, except as otherwise noted) Notional 1 (year) Contract Price 2 Assets (Liabilities) Derivatives not designated as hedges NYMEX call options 43 2024 2.77 7 Derivatives designated as hedges NYMEX swaps 36 2024 2.64 (9) 1 In millions of Metric Million British Thermal Units (“MMBtu”). 2 US dollars per MMBtu. Note 6 Short-term debt On March 7, 2024, we entered into an uncommitted $500 million accounts receivable repurchase facility (the “repurchase facility”), where we may sell certain receivables from customers to a financial institution and agree to repurchase those receivables at a future date. When we draw under this repurchase facility, the receivables from customers remain on our condensed consolidated balance sheet as we control and retain substantially all of the risks and rewards associated with the receivables. As at March 31, 2024, $111 million in receivables from customers were pledged to the repurchase facility and $100 million of borrowings were included in short-term debt with variable interest accruing based on a margin and the Secured Overnight Financing Rate. Note 7 Capital management In March 2024, we filed a base shelf prospectus in Canada and the US qualifying the issuance, subject to the approval of the Board of Directors, of common shares, debt securities and other securities during a period of 25 months from March 22, 2024. Note 8 Seasonality Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in the 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 requirements. 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 9 Related party transactions We sell potash outside Canada and the US exclusively through Canpotex. Canpotex sells potash to buyers, including Nutrien, in export markets pursuant to term and spot contracts at agreed upon prices. Our total revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. As at (millions of US dollars) March 31, 2024 December 31, 2023 Receivables from Canpotex 148 162 Note 10 Accounting policies, estimates and judgments IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”), which was issued on April 9, 2024, would supersede IAS 1, “Presentation of Financial Statements” and increase the comparability of financial statements by enhancing principles on aggregation and disaggregation. IFRS 18 will be effective January 1, 2027, and will also apply to comparative information. We are reviewing the standard to determine the potential impact. View source version on businesswire.com: https://www.businesswire.com/news/home/20240503690845/en/Contacts Investor Relations: Jeff Holzman Vice President, Investor Relations (306) 933-8545 Investors@nutrien.com Media Relations: Megan Fielding Vice President, Brand & Culture Communications (403) 797-3015
First quarter results supported by strong grower demand for crop inputs, increased potash shipments to key global markets, higher fertilizer operating rates and lower costs. Maintaining full-year 2024 Retail adjusted EBITDA and fertilizer sales volume guidance ranges. All amounts are in US dollars except as otherwise noted
Nutrien Ltd. (TSX and NYSE: NTR) announced today its first quarter 2024 results, with net earnings of $165 million ($0.32 diluted net earnings per share). First quarter 2024 adjusted EBITDA1 was $1.1 billion and adjusted net earnings per share1 was $0.46. “We continued to see strong crop input demand, a normalization of product margins for our North American Retail business and increased global potash shipments in the first quarter. Our results highlighted the capabilities of our flexible, low-cost production assets and downstream distribution network to efficiently supply our customers’ needs,” commented Ken Seitz, Nutrien’s President and CEO. “We expect growth in Retail earnings and fertilizer sales volumes compared to the prior year and have maintained our 2024 guidance ranges. Our focus remains on strengthening our capability to serve growers and enhancing our core businesses to improve the quality of our earnings and free cash flow,” added Mr. Seitz. Highlights2: Generated net earnings of $165 million and adjusted EBITDA of $1.1 billion in the first quarter of 2024, down from the same period in 2023 primarily due to lower net fertilizer selling prices. This was partially offset by increased Retail earnings, higher fertilizer sales volumes and lower natural gas costs. Nutrien Ag Solutions (“Retail”) adjusted EBITDA increased to $77 million in the first quarter of 2024 primarily due to higher gross margin for crop nutrients and crop protection products supported by strong grower demand and a normalization of product margins in North America. Potash adjusted EBITDA declined to $530 million in the first quarter of 2024 due to lower net selling prices, which more than offset higher sales volumes. We increased potash production, supported by continued advancement of mine automation initiatives, and reduced our controllable cash cost of product manufactured per tonne. Nitrogen adjusted EBITDA declined to $464 million in the first quarter of 2024 due to lower net selling prices for all major nitrogen products, which more than offset higher sales volumes and lower natural gas costs. Ammonia production increased in the first quarter, driven by higher utilization rates in Trinidad. Initiated a process to divest our Retail assets in Argentina, Chile, and Uruguay to provide greater focus on our core Retail businesses and enhance the quality of earnings and free cash flow. This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Our discussion of highlights set out on this page is a comparison of the results for the three months ended March 31, 2024 to the results for the three months ended March 31, 2023, unless otherwise noted. Management’s Discussion and Analysis The following management’s discussion and analysis (“MD&A”) is the responsibility of management and is dated as of May 8, 2024. The Board of Directors (“Board”) of Nutrien carries out its responsibility for review of this disclosure principally through its Audit Committee, composed entirely 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 annual report dated February 22, 2024 (“2023 Annual Report”), which includes our annual audited consolidated financial statements and MD&A, and our annual information form dated February 22, 2024, each for the year ended December 31, 2023, can be found on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. No update is provided to the disclosure in our 2023 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 (the “SEC”). This MD&A is based on and should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements as at and for the three months ended March 31, 2024 (“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 (“IAS”) 34 “Interim Financial Reporting”, unless otherwise noted. This MD&A contains certain non-GAAP financial measures and ratios and forward-looking statements, which are described in the “Non-GAAP Financial Measures” and the “Forward-Looking Statements” sections, respectively. Market Outlook and Guidance Agriculture and Retail Markets We expect US corn plantings of approximately 90 million acres in 2024 and soybean plantings of approximately 87 million acres. US planting progress is in line with historical average levels and fertilizer application rates have been strong. Wet weather has recently delayed planting progress and fertilizer application in the Corn Belt. Brazilian growers are finalizing their soybean harvest, and favorable weather conditions resulted in safrinha corn planted area exceeding initial expectations. Soybean margins are expected to improve from the compressed levels in 2023 and support growth in planted acreage and crop input demand in the second half of 2024. Australian soil moisture conditions vary regionally but remain supportive for this upcoming growing season and the Indian monsoon is projected to produce average to above-average precipitation, supporting yield potential and grower demand for crop inputs. Crop Nutrient Markets Global potash supply and demand has been relatively balanced as increased shipments have been required to meet historically strong demand in the first quarter. We have maintained our 2024 full-year potash shipment forecast of 68 to 71 million tonnes. We are seeing strong potash demand in North America for the spring application season as channel inventories were tight to start 2024. Potash demand in Southeast Asia has been supported by lower inventory levels compared to the prior year and favorable economics for key crops such as oil palm and rice. China’s potash imports remained strong in the first quarter of 2024 supported by a step-change in domestic consumption but are expected to decline on a full-year basis compared to the record levels in 2023. Global nitrogen markets have fluctuated in 2024 driven by seasonal buying patterns, production outages and uncertainty over Chinese urea export restrictions and India’s urea import requirements. The US nitrogen supply and demand balance remains relatively tight, in particular for ammonia and UAN, with net nitrogen imports down 21 percent on a fertilizer year basis compared to the historical average. Phosphate fertilizer prices remained firm through the first quarter of 2024 due to strong demand in the Northern Hemisphere, supportive Indian DAP purchases, Chinese export restrictions and production outages. Prices have softened in the second quarter driven primarily by lower seasonal demand. Financial and Operational Guidance We are maintaining our Retail adjusted EBITDA and fertilizer sales volume guidance ranges as market fundamentals and operational performance have been in line with our previous expectations. Retail adjusted EBITDA guidance of $1.65 to $1.85 billion reflects expectations for increased crop nutrient sales volumes and margins for our North American business in the first half of 2024 and improved crop input margins in Brazil during the second half of the year. Guidance assumes a full year of earnings from our Retail assets in Argentina, Chile and Uruguay. Potash sales volumes guidance of 13.0 to 13.8 million tonnes assumes a more even split between first and second half volumes compared to the prior year. Nitrogen sales volumes guidance of 10.6 to 11.2 million tonnes assumes higher operating rates at our North American and Trinidad plants and growth in sales of upgraded products such as urea and nitrogen solutions. Effective tax rate on adjusted earnings guidance was lowered primarily due to a change to our expected geographic mix of earnings. All guidance numbers, including those noted above are outlined in the table below. Refer to page 65 of Nutrien’s 2023 Annual Report for related assumptions and sensitivities. 2024 Guidance Ranges 1 as of May 8, 2024 February 21, 2024 (billions of US dollars, except as otherwise noted) Low High Low High Retail adjusted EBITDA 1.65 1.85 1.65 1.85 Potash sales volumes (million tonnes) 2 13.0 13.8 13.0 13.8 Nitrogen sales volumes (million tonnes) 2 10.6 11.2 10.6 11.2 Phosphate sales volumes (million tonnes) 2 2.6 2.8 2.6 2.8 Depreciation and amortization 2.2 2.3 2.2 2.3 Finance costs 0.75 0.85 0.75 0.85 Effective tax rate on adjusted earnings (%) 23.0 25.0 24.0 26.0 Capital expenditures 3 2.2 2.3 2.2 2.3 1 See the “Forward-Looking Statements” section. 2 Manufactured product only. 3 Comprised of sustaining capital expenditures, investing capital expenditures and mine development and pre-stripping capital expenditures which are supplementary financial measures. See the “Other Financial Measures” section. Consolidated Results Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Sales 5,389 6,107 (12) Gross margin 1,537 1,913 (20) Expenses 1,118 974 15 Net earnings 165 576 (71) Adjusted EBITDA 1 1,055 1,421 (26) Diluted net earnings per share 0.32 1.14 (72) Adjusted net earnings per share 1 0.46 1.11 (59) 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Net earnings and adjusted EBITDA decreased in the first quarter of 2024 compared to the same period in 2023, primarily due to lower net fertilizer selling prices. This was partially offset by increased Retail earnings, higher fertilizer sales volumes and lower natural gas costs. Expenses increased mainly due to higher foreign exchange losses primarily from our Retail – South America region in the first quarter of 2024 and an $80 million gain recognized in the first quarter of 2023 due to post-retirement benefit plan amendments. Segment Results Our discussion of segment results set out on the following pages is a comparison of the results for the three months ended March 31, 2024 to the results for the three months ended March 31, 2023, unless otherwise noted. Nutrien Ag Solutions (“Retail”) Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Sales 3,308 3,422 (3) Cost of goods sold 2,561 2,807 (9) Gross margin 747 615 21 Adjusted EBITDA 1 77 (34) n/m 1 See Note 2 to the interim financial statements. Retail adjusted EBITDA increased in the first quarter of 2024 primarily due to higher gross margin for crop nutrients and crop protection products supported by strong grower demand and a normalization of product margins in North America. Gross margin of our proprietary products increased in the first quarter driven primarily by our crop nutritional and biostimulant product lines, as we continued to expand our differentiated product offering and manufacturing capacity. Three Months Ended March 31 Sales Gross Margin (millions of US dollars) 2024 2023 2024 2023 Crop nutrients 1,309 1,335 254 141 Crop protection products 1,114 1,154 234 208 Seed 485 507 59 72 Services and other 156 148 125 118 Merchandise 200 246 31 44 Nutrien Financial 66 57 66 57 Nutrien Financial elimination (22) (25) (22) (25) Total 3,308 3,422 747 615 Crop nutrients sales decreased in the first quarter of 2024 due to lower selling prices, partially offset by higher sales volumes across all regions. Gross margin increased in the first quarter due to higher per-tonne margins and higher sales volumes resulting from a more typical start to spring applications in the US compared to 2023. Crop protection products sales were lower in the first quarter of 2024 primarily due to lower selling prices. Gross margin increased compared to the first quarter of 2023, which was impacted by the sell through of higher cost inventory. Seed sales and gross margin decreased in the first quarter of 2024 primarily due to lower sales volumes and competitive market prices in the US, as growers delayed crop selection decisions in some regions. Nutrien Financial sales and gross margin increased in the first quarter of 2024 due to higher financing offering rates and expanded program participation from growers in the US and Australia. Supplemental Data Three Months Ended March 31 Gross Margin % of Product Line 1 (millions of US dollars, except as otherwise noted) 2024 2023 2024 2023 Proprietary products Crop nutrients 70 54 28 38 Crop protection products 83 74 36 36 Seed 17 30 29 42 Merchandise 3 3 9 6 Total 173 161 23 26 1 Represents percentage of proprietary product margins over total product line gross margin. Sales Volumes (tonnes - thousands) Gross Margin / Tonne (US dollars) 2024 2023 2024 2023 Crop nutrients North America 1,464 1,195 139 94 International 918 845 55 35 Total 2,382 2,040 106 69 (percentages) March 31, 2024 December 31, 2023 Financial performance measures 1, 2 Cash operating coverage ratio 66 68 Adjusted average working capital to sales 19 19 Adjusted average working capital to sales excluding Nutrien Financial nil 1 Nutrien Financial adjusted net interest margin 5.2 5.2 1 Rolling four quarters. 2 These are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section. Potash Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Net sales 813 1,002 (19) Cost of goods sold 358 305 17 Gross margin 455 697 (35) Adjusted EBITDA 1 530 676 (22) 1 See Note 2 to the interim financial statements. Potash adjusted EBITDA declined in the first quarter of 2024 due to lower net selling prices, which more than offset higher sales volumes. We increased potash production in the first quarter, supported by continued advancement of mine automation initiatives, which helped to meet customer demand and reduced our controllable cash cost of product manufactured1 to $56 per tonne. Manufactured product Three Months Ended March 31 ($ / tonne, except as otherwise noted) 2024 2023 Sales volumes (tonnes - thousands) North America 1,307 854 Offshore 2,106 1,782 Total sales volumes 3,413 2,636 Net selling price North America 310 401 Offshore 193 370 Average selling price 238 380 Cost of goods sold 105 115 Gross margin 133 265 Depreciation and amortization 43 37 Gross margin excluding depreciation and amortization 1 176 302 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Sales volumes increased in North America in the first quarter of 2024 due to low channel inventory and more normal buying behaviors compared to the same period in 2023. Offshore sales volumes were higher compared to the same period in the prior year driven by increased demand in major offshore markets. Net selling price per tonne decreased in the first quarter of 2024 due to a decline in benchmark prices compared to the strong prices in the first quarter of 2023. Cost of goods sold per tonne decreased in the first quarter of 2024 mainly due to higher production volumes and lower royalties. Supplemental Data Three Months Ended March 31 2024 2023 Production volumes (tonnes – thousands) 3,565 3,088 Potash controllable cash cost of product manufactured per tonne 1 56 62 Canpotex sales by market (percentage of sales volumes) Latin America 32 35 Other Asian markets 2 33 38 China 20 12 India 3 2 Other markets 12 13 Total 100 100 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. 2 All Asian markets except China and India. Nitrogen Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Net sales 911 1,312 (31) Cost of goods sold 604 771 (22) Gross margin 307 541 (43) Adjusted EBITDA 1 464 676 (31) 1 See Note 2 to the interim financial statements. Nitrogen adjusted EBITDA declined in the first quarter of 2024 due to lower net selling prices for all major nitrogen products, which more than offset higher sales volumes and lower natural gas costs. Ammonia production increased in the first quarter supporting product mix optimization and increased downstream urea and UAN production. Manufactured product Three Months Ended March 31 ($ / tonne, except as otherwise noted) 2024 2023 Sales volumes (tonnes - thousands) Ammonia 517 534 Urea and ESN® 775 747 Solutions, nitrates and sulfates 1,215 1,076 Total sales volumes 2,507 2,357 Net selling price Ammonia 403 721 Urea and ESN® 432 617 Solutions, nitrates and sulfates 226 310 Average net selling price 326 500 Cost of goods sold 207 275 Gross margin 119 225 Depreciation and amortization 54 57 Gross margin excluding depreciation and amortization 1 173 282 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Sales volumes were higher in the first quarter of 2024 primarily due to higher urea and UAN production and strong fertilizer demand, partially offset by lower ammonia sales due to product mix optimization. Net selling price per tonne was lower in the first quarter of 2024 for all major nitrogen products primarily due to weaker benchmark prices resulting from lower energy prices in key nitrogen producing regions. Cost of goods sold per tonne decreased in the first quarter of 2024 mainly due to lower natural gas costs. Supplemental Data Three Months Ended March 31 2024 2023 Sales volumes (tonnes – thousands) Fertilizer 1,423 1,248 Industrial and feed 1,084 1,109 Production volumes (tonnes – thousands) Ammonia production – total 1 1,452 1,431 Ammonia production – adjusted 1, 2 1,018 1,037 Ammonia operating rate (%) 2 92 95 Natural gas costs (US dollars per MMBtu) Overall natural gas cost excluding realized derivative impact 3.16 4.85 Realized derivative impact 3 0.04 ‐ Overall natural gas cost 3.20 4.85 1 All figures are provided on a gross production basis in thousands of product tonnes. 2 Excludes Trinidad and Joffre. 3 Includes realized derivative impacts recorded as part of cost of goods sold or other income and expenses. Refer to Note 3 to the interim financial statements. Phosphate Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Net sales 437 514 (15) Cost of goods sold 372 427 (13) Gross margin 65 87 (25) Adjusted EBITDA 1 121 137 (12) 1 See Note 2 to the interim financial statements. Phosphate adjusted EBITDA decreased in the first quarter of 2024 primarily due to lower net selling prices, partially offset by higher sales volumes and lower ammonia and sulfur input costs. Production increased in the first quarter due to improved reliability at our Aurora plant. Manufactured product Three Months Ended March 31 ($ / tonne, except as otherwise noted) 2024 2023 Sales volumes (tonnes - thousands) Fertilizer 447 388 Industrial and feed 173 160 Total sales volumes 620 548 Net selling price Fertilizer 627 682 Industrial and feed 848 1,136 Average net selling price 689 814 Cost of goods sold 580 651 Gross margin 109 163 Depreciation and amortization 113 122 Gross margin excluding depreciation and amortization 1 222 285 1 This is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section. Sales volumes increased in the first quarter of 2024 due to higher production and strong demand across fertilizer, industrial and feed products. Net selling price per tonne decreased in the first quarter of 2024 due to lower fertilizer benchmark prices and lower industrial and feed net selling prices which reflect the typical lag in price realizations relative to benchmark prices. Cost of goods sold per tonne decreased in the first quarter of 2024 mainly due to lower ammonia and sulfur input costs. Supplemental Data Three Months Ended March 31 2024 2023 Production volumes (P2O5 tonnes – thousands) 352 341 P2O5 operating rate (%) 83 81 Corporate and Others and Eliminations Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Corporate and Others Selling expenses (recovery) (2) (2) ‐ General and administrative expenses 89 84 6 Share-based compensation expense 6 15 (60) Other expenses (income) 97 (81) n/m Adjusted EBITDA 1 (101) (13) 677 Eliminations Gross margin (37) (27) 37 Adjusted EBITDA 1 (36) (21) 71 1 See Note 2 to the interim financial statements. Other expenses (income) was an expense in the first quarter of 2024 compared to income in the same period in 2023 due to higher foreign exchange losses primarily from our Retail – South America region in the first quarter of 2024 and an $80 million gain recognized in the first quarter of 2023 due to post-retirement benefit plan amendments. Finance Costs, Income Taxes and Other Comprehensive (Loss) Income Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Finance costs 179 170 5 Income tax expense 75 193 (61) Actual effective tax rate including discrete items (%) 31 25 24 Other comprehensive (loss) income (102) 2 n/m Income tax expense was lower in the first quarter of 2024 primarily as a result of lower earnings compared to the same period in 2023. We did not record the tax benefit on South America losses in the first quarter of 2024 as the recognition criteria to record deferred tax assets was not met. This resulted in a higher effective tax rate for the first quarter of 2024. Other comprehensive (loss) income was a loss in the first quarter of 2024 primarily driven by changes in the currency translation of our Retail foreign operations primarily due to depreciation of Australian and Canadian currencies relative to the US dollar. 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 new or existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures, planned growth and development activities, 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 Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 % Change Cash used in operating activities (487) (858) (43) Cash used in investing activities (494) (694) (29) Cash provided by financing activities 548 2,129 (74) Cash used for dividends and share repurchases 1 (261) (1,143) (77) 1 This is a supplementary financial measure. See the “Other Financial Measures” section. Cash used in operating activities Reduced cash outflow in the first quarter of 2024 compared to the same period in 2023 due to a decrease in income taxes paid and other working capital movements. Typically, in the first quarter of the year, we have lower cash payments to our suppliers and have lower cash receipts from our grower customers as our receivables build during the planting and application season. In the first quarter of 2023, we experienced global supply chain challenges and higher benchmark prices compared to the first quarter of 2024, resulting in higher than usual payments to our suppliers offsetting the higher receivables we collected from our customers. Cash used in investing activities Lower in the first quarter of 2024 compared to the same period in 2023 due to lower capital expenditures and fewer business acquisitions. Cash provided by financing activities Lower in the first quarter of 2024 compared to the same period in 2023 due to the issuance of $1,500 million of senior notes in the first quarter of 2023. The proceeds from our short-term debt decreased by $947 million compared to the first quarter of 2023; however, we also did not repurchase any shares in the first quarter of 2024. Cash used for dividends and share repurchases Lower in the first quarter of 2024 compared to the same period in 2023 as we did not repurchase any shares in the first quarter of 2024, compared to $897 million of share repurchases in the first quarter of 2023. Financial Condition Review The following is a comparison of balance sheet categories that are considered material: As at (millions of US dollars, except as otherwise noted) March 31, 2024 December 31, 2023 $ Change % Change Assets Cash and cash equivalents 496 941 (445) (47) Receivables 5,561 5,398 163 3 Inventories 8,188 6,336 1,852 29 Prepaid expenses and other current assets 905 1,495 (590) (39) Property, plant and equipment 22,410 22,461 (51) ‐ Liabilities and Equity Short-term debt 2,835 1,815 1,020 56 Payables and accrued charges 9,431 9,467 (36) ‐ Retained earnings 11,423 11,531 (108) (1) Explanations for changes in Cash and cash equivalents are in the “Sources and Uses of Cash” section. Receivables remained consistent as the increase in receivables due to the seasonality of our Retail sales was offset by faster collection of our Potash receivables. Inventories increased due to the seasonality of our Retail segment and the larger portion of its operations in North America. Our inventory levels build up in the last quarter of the year and peaks in the first quarter of the year, while we draw inventories in the succeeding quarters. Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventories in preparation for the spring planting and application seasons in North America. Property, plant and equipment decreased due to depreciation more than offsetting capital expenditures in the first quarter of 2024. Short-term debt increased due to higher drawdowns on our credit facilities based on our working capital requirements driven by the seasonality of our business. Payables and accrued charges remained consistent, as we have higher customer prepayment balances which were partially offset by lower costs to purchase and produce our inventories and lower capital expenditures accruals. Retained earnings decreased as dividends declared exceeded net earnings. 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 continually evaluate various financing arrangements and may seek to engage in transactions from time to time when market and other conditions are favorable. We were in compliance with our debt covenants and did not have any changes to our credit ratings for the three months ended March 31, 2024. Capital Structure (Debt and Equity) (millions of US dollars) March 31, 2024 December 31, 2023 Short-term debt 2,835 1,815 Current portion of long-term debt 513 512 Current portion of lease liabilities 346 327 Long-term debt 8,910 8,913 Lease liabilities 1,034 999 Shareholders' equity 24,996 25,201 Commercial Paper, Credit Facilities and Other Debt We have several credit facilities available in the jurisdictions where we operate. We also have a commercial paper program, which is limited to the undrawn amount under our $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities. As at March 31, 2024, we had $1,963 million of commercial paper outstanding. As at March 31, 2024, $240 million in letters of credit were outstanding and committed, with $118 million of remaining credit available under our dedicated letter of credit facilities. On March 7, 2024, we entered into an uncommitted $500 million accounts receivable repurchase facility, under which we drew borrowings of $100 million as at March 31, 2024. See Note 6 to the interim financial statements for a further description of this facility. In March 2024, we filed a base shelf prospectus in Canada and the US qualifying the issuance, subject to approval of the Board of Directors, of common shares, debt securities and other securities during a period of 25 months from March 22, 2024. Outstanding Share Data As at May 7, 2024 Common shares 494,628,434 Options to purchase common shares 3,752,004 For more information on our capital structure and management, see Note 24 to the consolidated financial statements in our 2023 Annual Report. Quarterly Results (millions of US dollars, except as otherwise noted) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Sales 5,389 5,664 5,631 11,654 6,107 7,533 8,188 14,506 Net earnings 165 176 82 448 576 1,118 1,583 3,601 Net earnings attributable to equity holders of Nutrien 158 172 75 440 571 1,112 1,577 3,593 Net earnings per share attributable to equity holders of Nutrien Basic 0.32 0.35 0.15 0.89 1.14 2.15 2.95 6.53 Diluted 0.32 0.35 0.15 0.89 1.14 2.15 2.94 6.51 Our quarterly earnings are significantly affected by the seasonality of our business, fertilizer benchmark prices, which have been volatile over the last two years and are affected by demand-supply conditions, grower affordability and weather. See Note 8 to the interim financial statements. The following table describes certain items that impacted our quarterly earnings: Quarter Transaction or Event Q2 2023 $698 million non-cash impairment of assets comprised of a $233 million non-cash impairment of our Phosphate White Springs property, plant and equipment due to a decrease in our forecasted phosphate margins and a $465 million non-cash impairment of our Retail – South America assets primarily related to goodwill mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates which lowered our forecasted earnings. Q3 2022 $330 million reversal of non-cash impairment of our Phosphate White Springs property, plant and equipment related to higher forecasted global prices and a more favorable outlook for phosphate margins. Q2 2022 $450 million reversal of non-cash impairment of our Phosphate Aurora property, plant and equipment related to higher forecasted global prices and a more favorable outlook for phosphate margins. Critical Accounting Estimates Our significant accounting policies are disclosed in our 2023 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 pages 72 to 74 of our 2023 Annual Report. There were no material changes to our critical accounting estimates for the three months ended March 31, 2024. Controls and Procedures Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings. Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. There has been no change in our internal control over financial reporting during the three months ended March 31, 2024 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 “Market 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”, “project”, “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 2024 full-year guidance, including expectations regarding Retail adjusted EBITDA, Potash sales volumes, Nitrogen sales volumes, Phosphate sales volumes, depreciation and amortization, finance costs, effective tax rate and capital expenditures; our projections to generate strong cash from operations; expectations regarding our capital allocation intentions and strategies; our ability to advance strategic initiatives and high value growth investments, including expectations regarding our ability to serve growers, maintain a low-cost position of fertilizer production assets and increase free cash flow; capital spending expectations for 2024 and beyond; expectations regarding our ability to generate and enhance free cash flow; expectations regarding performance of our operating segments in 2024, including increased fertilizer sales volumes and growth in Retail earnings; our operating segment market outlooks and our expectations for market conditions and fundamentals in 2024 and beyond, and the anticipated supply and demand for our products and services, expected market, industry and growing conditions with respect to crop nutrient application rates, planted acres, grower crop investment, crop mix, including the need to replenish soil nutrient levels, production volumes and expenses, shipments, natural gas costs and availability, consumption, prices, operating rates and the impact of seasonality, import and export volumes, economic sanctions and restrictions, operating rates, inventories, crop development and natural gas curtailments; the negotiation of sales contracts; acquisitions and divestitures and the anticipated benefits thereof; and expectations in connection with our ability to deliver long-term returns to shareholders. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements. All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. The additional key assumptions that have been made in relation to the operation of our business as currently planned and our ability to achieve our business objectives include, among other things, assumptions with respect to: our ability to successfully implement our business strategies, growth and capital allocation investments and initiatives that we will conduct our operations and achieve results of operations as anticipated; 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 on the anticipated timeline or at all; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, expenses, margins, demand, supply, product availability, shipments, consumption, weather conditions, including the current El Niño weather pattern, supplier agreements, product distribution agreements, inventory levels, exports, crop development and cost of labor and interest, exchange and effective tax rates; potash demand growth in offshore markets and normalization of Canpotex port operations; global economic conditions and the accuracy of our market outlook expectations for 2024 and in the future; assumptions related to our assessment of recoverable amount estimates of our assets, including in relation to our Retail - South America group of CGUs goodwill and intangible asset impairments; assumptions related to the calculation of recoverable amount of our Aurora and White Springs CGUs, including internal sales and input price forecasts, discount rate, long-term growth rate and end of expected mine life; our intention to complete share repurchases under our normal course issuer bid programs, including Toronto Stock Exchange approval, the funding of such share repurchases, existing and future market conditions, including with respect to the price of our common shares, and compliance with respect to applicable limitations under securities laws and regulations and stock exchange policies and assumptions related to our ability to fund our dividends at the current level; our expectations regarding the impacts, direct and indirect, of certain geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East on, among other things, global supply and demand, including for crop nutrients, energy and commodity prices, global interest rates, supply chains and the global macroeconomic environment, including inflation; assumptions regarding future markets for clean ammonia; 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 and other 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 achieve expected results of our business strategy, capital allocation initiatives or results of operations; failure to complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; seasonality; climate change and weather conditions, including the current El Niño weather pattern (and transition to El Niña weather pattern), 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, antitrust and other laws or regulations and the interpretation thereof; political or military risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism and industrial espionage; our ability to access sufficient, cost-effective and timely transportation, distribution and storage of products (including potential rail transportation and port disruptions due to labor strikes and/or work stoppages or other similar actions); the occurrence of a major environmental or safety incident or becoming subject to legal or regulatory proceedings; 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 or challenges related to our major facilities that are out of our control; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; the risk that rising interest rates and/or deteriorated business operating results may result in the further impairment of assets or goodwill attributed to certain of our cash generating units; 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; geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East, and their potential impact on, among other things, global market conditions and supply and demand, including for crop nutrients, energy and commodity prices, interest rates, supply chains and the global economy generally; our ability to execute on our strategies related to environmental, social and governance matters, and achieve related expectations, targets and commitments; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. The purpose of our Retail adjusted EBITDA, depreciation and amortization, finance costs, effective tax rate and 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 & Definitions” section of our 2023 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 a leading provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our integrated business and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals. More information about Nutrien can be found at www.nutrien.com. Selected financial data for download can be found in our data tool at www.nutrien.com/investors/interactive-datatool Such data is not incorporated by reference herein. Nutrien will host a Conference Call on Thursday, May 9, 2024 at 10:00 a.m. Eastern Time. Telephone conference dial-in numbers: From Canada and the US 1-800-717-1738 International 1-646-307-1865 No access code required. Please dial in 15 minutes prior to ensure you are placed on the call in a timely manner. Live Audio Webcast: Visit https://www.nutrien.com/investors/events/2024-q1-earnings-conference-call Non-GAAP Financial Measures We use both International Financial Reporting Standards (“IFRS”) measures and certain non-GAAP financial measures to assess performance. Non-GAAP financial measures are financial measures disclosed by the Company that (a) depict historical or expected future financial performance, financial position or cash flow of the Company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the Company, (c) are not disclosed in the financial statements of the Company and (d) are not a ratio, fraction, percentage or similar representation. Non-GAAP ratios are financial measures disclosed by the Company that are in the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its components, and that are not disclosed in the financial statements of the Company. These non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-GAAP financial measures and non-GAAP ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-GAAP financial measures and non-GAAP ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. The following section outlines our non-GAAP financial measures and non-GAAP ratios, their compositions, and why management uses each measure. It also includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-GAAP financial measures and non-GAAP ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations. Adjusted EBITDA (Consolidated) Most directly comparable IFRS financial measure: Net earnings (loss). Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, asset retirement obligations (“ARO”) and accrued environmental costs (“ERL”) related to our non-operating sites, and loss on remitting cash from certain foreign jurisdictions (e.g., Blue Chip Swaps). Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations and as a component of employee remuneration calculations. Three Months Ended March 31 (millions of US dollars) 2024 2023 Net earnings 165 576 Finance costs 179 170 Income tax expense 75 193 Depreciation and amortization 565 496 EBITDA 1 984 1,435 Adjustments: Share-based compensation expense 6 15 Foreign exchange loss (gain), net of related derivatives 43 (34) ARO/ERL expense for non-operating sites 3 ‐ Loss on Blue Chip Swaps 19 ‐ Integration and restructuring related costs ‐ 5 Adjusted EBITDA 1,055 1,421 1 EBITDA is calculated as net earnings before finance costs, income taxes, and depreciation and amortization. Adjusted Net Earnings and Adjusted Net Earnings Per Share Most directly comparable IFRS financial measure: Net earnings (loss) and diluted net earnings (loss) per share. Definition: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, gain or loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting, asset retirement obligations and accrued environmental costs related to our non-operating sites, loss on remitting cash from certain foreign jurisdictions (e.g., Blue Chip Swaps), change in recognition of tax losses and deductible temporary differences related to impairments and certain changes to tax declarations (e.g., “Swiss Tax Reform adjustment”). We generally apply the annual forecasted effective tax rate to specific adjustments during the year, and at year-end, we apply the actual effective tax rate. Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is used as a component of employee remuneration calculations. Three Months Ended March 31, 2024 Per Increases Diluted (millions of US dollars, except as otherwise noted) (Decreases) Post-Tax Share Net earnings attributable to equity holders of Nutrien 158 0.32 Adjustments: Share-based compensation expense 6 5 0.01 Foreign exchange loss, net of related derivatives 43 46 0.09 ARO/ERL expense for non-operating sites 3 2 ‐ Loss on Blue Chip Swaps 19 19 0.04 Adjusted net earnings 230 0.46 Three Months Ended March 31, 2023 Per Increases Diluted (millions of US dollars, except as otherwise noted) (Decreases) Post-Tax Share Net earnings attributable to equity holders of Nutrien 571 1.14 Adjustments: Share-based compensation expense 15 11 0.01 Foreign exchange gain, net of related derivatives (34) (25) (0.05) Integration and restructuring related costs 5 4 0.01 Adjusted net earnings 561 1.11 Gross Margin Excluding Depreciation and Amortization Per Tonne – Manufactured Product Most directly comparable IFRS financial measure: Gross margin. Definition: Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations are provided in the “Segment Results” section. Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions. Potash Controllable Cash Cost of Product Manufactured (“COPM”) Per Tonne Most directly comparable IFRS financial measure: Cost of goods sold (“COGS”) for the Potash segment. Definition: Total Potash COGS excluding depreciation and amortization expense included in COPM, royalties, natural gas costs and carbon taxes, change in inventory, and other adjustments, divided by potash production tonnes. Why we use the measure and why it is useful to investors: To assess operational performance. Potash controllable cash COPM excludes the effects of production from other periods and the impacts of our long-term investment decisions, supporting a focus on the performance of our day-to-day operations. Potash controllable cash COPM also excludes royalties and natural gas costs and carbon taxes, which management does not consider controllable, as they are primarily driven by regulatory and market conditions. Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 Total COGS – Potash 358 305 Change in inventory 28 40 Other adjustments 1 (3) (8) COPM 383 337 Depreciation and amortization in COPM (153) (100) Royalties in COPM (19) (31) Natural gas costs and carbon taxes in COPM (12) (16) Controllable cash COPM 199 190 Production tonnes (tonnes – thousands) 3,565 3,088 Potash controllable cash COPM per tonne 56 62 1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances. Nutrien Financial Adjusted Net Interest Margin Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial net 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 others to evaluate the financial performance of Nutrien Financial. Rolling four quarters ended March 31, 2024 (millions of US dollars, except as otherwise noted) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total/Average Nutrien Financial revenue 122 73 70 66 Deemed interest expense 1 (39) (41) (36) (27) Net interest 83 32 34 39 188 Average Nutrien Financial net receivables 4,716 4,353 2,893 2,489 3,613 Nutrien Financial adjusted net interest margin (%) 5.2 Rolling four quarters ended December 31, 2023 (millions of US dollars, except as otherwise noted) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total/Average Nutrien Financial revenue 57 122 73 70 Deemed interest expense 1 (20) (39) (41) (36) Net interest 37 83 32 34 186 Average Nutrien Financial net receivables 2,283 4,716 4,353 2,893 3,561 Nutrien Financial adjusted net interest margin (%) 5.2 1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial. Retail Cash Operating Coverage Ratio Definition: Retail selling, general and administrative, and other expenses (income), excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters. Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow. Rolling four quarters ended March 31, 2024 (millions of US dollars, except as otherwise noted) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total Selling expenses 971 798 841 790 3,400 General and administrative expenses 55 57 55 52 219 Other expenses 29 37 77 22 165 Operating expenses 1,055 892 973 864 3,784 Depreciation and amortization in operating expenses (185) (186) (199) (190) (760) Operating expenses excluding depreciation and amortization 870 706 774 674 3,024 Gross margin 1,931 895 989 747 4,562 Depreciation and amortization in cost of goods sold 3 3 2 4 12 Gross margin excluding depreciation and amortization 1,934 898 991 751 4,574 Cash operating coverage ratio (%) 66 Rolling four quarters ended December 31, 2023 (millions of US dollars, except as otherwise noted) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total Selling expenses 765 971 798 841 3,375 General and administrative expenses 50 55 57 55 217 Other expenses 15 29 37 77 158 Operating expenses 830 1,055 892 973 3,750 Depreciation and amortization in operating expenses (179) (185) (186) (199) (749) Operating expenses excluding depreciation and amortization 651 870 706 774 3,001 Gross margin 615 1,931 895 989 4,430 Depreciation and amortization in cost of goods sold 2 3 3 2 10 Gross margin excluding depreciation and amortization 617 1,934 898 991 4,440 Cash operating coverage ratio (%) 68 Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the sales and working capital of certain acquisitions during the first year following the acquisition. We also look at this metric excluding Nutrien Financial revenue and working capital. Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio. Rolling four quarters ended March 31, 2024 (millions of US dollars, except as otherwise noted) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Average/Total Current assets 11,983 10,398 10,498 11,821 Current liabilities (8,246) (5,228) (8,210) (8,401) Working capital 3,737 5,170 2,288 3,420 3,654 Working capital from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted working capital 3,737 5,170 2,288 3,420 3,654 Nutrien Financial working capital (4,716) (4,353) (2,893) (2,489) Adjusted working capital excluding Nutrien Financial (979) 817 (605) 931 41 Sales 9,128 3,490 3,502 3,308 Sales from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted sales 9,128 3,490 3,502 3,308 19,428 Nutrien Financial revenue (122) (73) (70) (66) Adjusted sales excluding Nutrien Financial 9,006 3,417 3,432 3,242 19,097 Adjusted average working capital to sales (%) 19 Adjusted average working capital to sales excluding Nutrien Financial (%) nil Rolling four quarters ended December 31, 2023 (millions of US dollars, except as otherwise noted) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Average/Total Current assets 13,000 11,983 10,398 10,498 Current liabilities (8,980) (8,246) (5,228) (8,210) Working capital 4,020 3,737 5,170 2,288 3,804 Working capital from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted working capital 4,020 3,737 5,170 2,288 3,804 Nutrien Financial working capital (2,283) (4,716) (4,353) (2,893) Adjusted working capital excluding Nutrien Financial 1,737 (979) 817 (605) 243 Sales 3,422 9,128 3,490 3,502 Sales from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted sales 3,422 9,128 3,490 3,502 19,542 Nutrien Financial revenue (57) (122) (73) (70) Adjusted sales excluding Nutrien Financial 3,365 9,006 3,417 3,432 19,220 Adjusted average working capital to sales (%) 19 Adjusted average working capital to sales excluding Nutrien Financial (%) 1 Other Financial Measures Selected Additional Financial Data Nutrien Financial As at March 31, 2024 As at December 31, 2023 (millions of US dollars) Current <31 Days Past Due 31–90 Days Past Due >90 Days Past Due Gross Receivables Allowance 1 Net Receivables Net Receivables North America 1,275 91 254 146 1,766 (48) 1,718 2,206 International 598 47 78 58 781 (10) 771 687 Nutrien Financial receivables 1,873 138 332 204 2,547 (58) 2,489 2,893 1 Bad debt expense on the above receivables for the three months ended March 31, 2024 and 2023 were $9 million and $1 million, respectively, in the Retail segment. Supplementary Financial Measures Supplementary financial measures are financial measures disclosed by the Company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company, (b) are not disclosed in the financial statements of the Company, (c) are not non-GAAP financial measures, and (d) are not non-GAAP ratios. The following section provides an explanation of the composition of those supplementary financial measures if not previously provided. Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds. Investing capital expenditures: Represents capital expenditures related to significant expansions of current operations or to create cost savings (synergies). Investing capital expenditures excludes capital outlays for business acquisitions and equity-accounted investees. Mine development and pre-stripping capital expenditures: Represents capital expenditures that are required for activities to open new areas underground and/or develop a mine or ore body to allow for future production mining and activities required to prepare and/or access the ore, i.e., removal of an overburden that allows access to the ore. Cash used for dividends and share repurchases (shareholder returns): Calculated as dividends paid to Nutrien’s shareholders plus repurchase of common shares as reflected in the unaudited condensed consolidated statements of cash flows. This measure is useful as it represents return of capital to shareholders. Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Statements of Earnings Three Months Ended March 31 (millions of US dollars, except as otherwise noted) Note 2024 2023 SALES 2, 9 5,389 6,107 Freight, transportation and distribution 238 199 Cost of goods sold 3,614 3,995 GROSS MARGIN 1,537 1,913 Selling expenses 794 770 General and administrative expenses 154 145 Provincial mining taxes 68 119 Share-based compensation expense 6 15 Other expenses (income) 3 96 (75) EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES 419 939 Finance costs 179 170 EARNINGS BEFORE INCOME TAXES 240 769 Income tax expense 4 75 193 NET EARNINGS 165 576 Attributable to Equity holders of Nutrien 158 571 Non-controlling interest 7 5 NET EARNINGS 165 576 NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS") Basic 0.32 1.14 Diluted 0.32 1.14 Weighted average shares outstanding for basic EPS 494,570,000 501,175,000 Weighted average shares outstanding for diluted EPS 494,792,000 502,220,000 Condensed Consolidated Statements of Comprehensive Income Three Months Ended March 31 (millions of US dollars) 2024 2023 NET EARNINGS 165 576 Other comprehensive (loss) income Items that will not be reclassified to net earnings: Net actuarial loss on defined benefit plans ‐ (3) Net fair value (loss) gain on investments (18) 5 Items that have been or may be subsequently reclassified to net earnings: (Loss) gain on currency translation of foreign operations (66) 1 Other (18) (1) OTHER COMPREHENSIVE (LOSS) INCOME (102) 2 COMPREHENSIVE INCOME 63 578 Attributable to Equity holders of Nutrien 57 573 Non-controlling interest 6 5 COMPREHENSIVE INCOME 63 578 (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Statements of Cash Flows Three Months Ended March 31 (millions of US dollars) Note 2024 2023 Note 1 OPERATING ACTIVITIES Net earnings 165 576 Adjustments for: Depreciation and amortization 565 496 Share-based compensation expense 6 15 Provision for deferred income tax 28 21 Net (undistributed) distributed earnings of equity-accounted investees (50) 163 Gain on amendments to other post-retirement pension plans 3 ‐ (80) Loss on Blue Chip Swaps 3 19 ‐ Long-term income tax receivables and payables 43 (72) Other long-term assets, liabilities and miscellaneous 64 7 Cash from operations before working capital changes 840 1,126 Changes in non-cash operating working capital: Receivables (257) 535 Inventories and prepaid expenses and other current assets (1,330) (1,493) Payables and accrued charges 260 (1,026) CASH USED IN OPERATING ACTIVITIES (487) (858) INVESTING ACTIVITIES Capital expenditures 1 (373) (465) Business acquisitions, net of cash acquired ‐ (111) Proceeds from sales of Blue Chip Swaps, net of purchases 3 (19) ‐ Net changes in non-cash working capital (90) (100) Other (12) (18) CASH USED IN INVESTING ACTIVITIES (494) (694) FINANCING ACTIVITIES Proceeds from debt with maturity periods within three months, net 926 1,873 Proceeds from debt ‐ 1,500 Repayment of debt (14) (17) Repayment of principal portion of lease liabilities (96) (87) Dividends paid to Nutrien's shareholders (261) (246) Repurchase of common shares ‐ (897) Issuance of common shares 1 28 Other (8) (25) CASH PROVIDED BY FINANCING ACTIVITIES 548 2,129 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (12) (5) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (445) 572 CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD 941 901 CASH AND CASH EQUIVALENTS – END OF PERIOD 496 1,473 Cash and cash equivalents is composed of: Cash 422 361 Short-term investments 74 1,112 496 1,473 SUPPLEMENTAL CASH FLOWS INFORMATION Interest paid 132 98 Income taxes paid 50 1,319 Total cash outflow for leases 131 119 1 Includes additions to property, plant and equipment, and intangible assets for the three months ended March 31, 2024 of $338 million and $35 million (2023 – $422 million and $43 million). (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Statements of Changes in Shareholders’ Equity Accumulated Other Comprehensive (Loss) Income ("AOCI") (Loss) Gain on Currency Equity Number of Translation Holders Non- Common Share Contributed of Foreign Total Retained of Controlling Total (millions of US dollars, except as otherwise noted) Shares Capital Surplus Operations Other AOCI Earnings Nutrien Interest Equity BALANCE – DECEMBER 31, 2022 507,246,105 14,172 109 (374) (17) (391) 11,928 25,818 45 25,863 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 571 571 5 576 Other comprehensive income ‐ ‐ ‐ 1 1 2 ‐ 2 ‐ 2 Shares repurchased (11,751,290) (328) ‐ ‐ ‐ ‐ (571) (899) ‐ (899) Dividends declared - $0.53/share ‐ ‐ ‐ ‐ ‐ ‐ (265) (265) ‐ (265) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (6) (6) Effect of share-based compensation including issuance of common shares 579,208 34 (3) ‐ ‐ ‐ ‐ 31 ‐ 31 Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 5 5 ‐ 5 ‐ 5 Transfer of net actuarial loss on defined benefit plans ‐ ‐ ‐ ‐ 3 3 (3) ‐ ‐ ‐ Other ‐ ‐ ‐ (2) ‐ (2) ‐ (2) ‐ (2) BALANCE – MARCH 31, 2023 496,074,023 13,878 106 (375) (8) (383) 11,660 25,261 44 25,305 BALANCE – DECEMBER 31, 2023 494,551,730 13,838 83 (286) (10) (296) 11,531 25,156 45 25,201 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 158 158 7 165 Other comprehensive loss ‐ ‐ ‐ (65) (36) (101) ‐ (101) (1) (102) Dividends declared - $0.54/share ‐ ‐ ‐ ‐ ‐ ‐ (266) (266) ‐ (266) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (8) (8) Effect of share-based compensation including issuance of common shares 37,199 2 2 ‐ ‐ ‐ ‐ 4 ‐ 4 Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 2 2 ‐ 2 ‐ 2 BALANCE – MARCH 31, 2024 494,588,929 13,840 85 (351) (44) (395) 11,423 24,953 43 24,996 (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Balance Sheets March 31 December 31 As at (millions of US dollars) Note 2024 2023 2023 ASSETS Current assets Cash and cash equivalents 496 1,473 941 Receivables 6, 9 5,561 6,009 5,398 Inventories 8,188 9,852 6,336 Prepaid expenses and other current assets 905 937 1,495 15,150 18,271 14,170 Non-current assets Property, plant and equipment 22,410 21,832 22,461 Goodwill 12,083 12,433 12,114 Intangible assets 2,165 2,292 2,217 Investments 768 686 736 Other assets 999 1,078 1,051 TOTAL ASSETS 53,575 56,592 52,749 LIABILITIES Current liabilities Short-term debt 6 2,835 4,013 1,815 Current portion of long-term debt 513 545 512 Current portion of lease liabilities 346 306 327 Payables and accrued charges 9,431 10,611 9,467 13,125 15,475 12,121 Non-current liabilities Long-term debt 8,910 9,510 8,913 Lease liabilities 1,034 880 999 Deferred income tax liabilities 3,601 3,603 3,574 Pension and other post-retirement benefit liabilities 246 242 252 Asset retirement obligations and accrued environmental costs 1,485 1,389 1,489 Other non-current liabilities 178 188 200 TOTAL LIABILITIES 28,579 31,287 27,548 SHAREHOLDERS’ EQUITY Share capital 13,840 13,878 13,838 Contributed surplus 85 106 83 Accumulated other comprehensive loss (395) (383) (296) Retained earnings 11,423 11,660 11,531 Equity holders of Nutrien 24,953 25,261 25,156 Non-controlling interest 43 44 45 TOTAL SHAREHOLDERS’ EQUITY 24,996 25,305 25,201 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 53,575 56,592 52,749 (See Notes to the Condensed Consolidated Financial Statements) Notes to the Condensed Consolidated Financial Statements As at and for the Three Months Ended March 31, 2024 Note 1 Basis of presentation Nutrien Ltd. (collectively with its subsidiaries, “Nutrien”, “we”, “us”, “our” or “the Company”) is a leading 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 IAS 34, “Interim Financial Reporting”. The accounting policies and methods of computation used in preparing these interim financial statements are materially consistent with those used in the preparation of our 2023 annual audited consolidated financial statements, as well as any amended standards adopted in 2024 that we previously disclosed. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with our 2023 annual audited consolidated financial statements. Certain immaterial 2023 figures have been reclassified in the condensed consolidated statements of cash flows. 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. These interim financial statements were authorized by the Audit Committee of the Board of Directors for issue on May 8, 2024. Note 2 Segment information We have four reportable operating segments: Nutrien Ag Solutions (“Retail”), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise. Retail provides services directly to growers through a network of farm centers in North America, South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each produces. Three Months Ended March 31, 2024 Corporate (millions of US dollars) Retail Potash Nitrogen Phosphate and Others Eliminations Consolidated Sales – third party 3,308 821 846 414 ‐ ‐ 5,389 – intersegment ‐ 106 182 85 ‐ (373) ‐ Sales – total 3,308 927 1,028 499 ‐ (373) 5,389 Freight, transportation and distribution 1 ‐ 114 117 62 ‐ (55) 238 Net sales 3,308 813 911 437 ‐ (318) 5,151 Cost of goods sold 2,561 358 604 372 ‐ (281) 3,614 Gross margin 747 455 307 65 ‐ (37) 1,537 Selling expenses 790 3 7 2 (2) (6) 794 General and administrative expenses 52 4 5 4 89 ‐ 154 Provincial mining taxes ‐ 68 ‐ ‐ ‐ ‐ 68 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 Other expenses (income) 22 (3) (33) 8 97 5 96 (Loss) earnings before finance costs and income taxes (117) 383 328 51 (190) (36) 419 Depreciation and amortization 194 147 136 70 18 ‐ 565 EBITDA 2 77 530 464 121 (172) (36) 984 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 ARO/ERL expense for non-operating sites 3 ‐ ‐ ‐ ‐ 3 ‐ 3 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 43 ‐ 43 Loss on Blue Chip Swaps ‐ ‐ ‐ ‐ 19 ‐ 19 Adjusted EBITDA 77 530 464 121 (101) (36) 1,055 Assets – as at March 31, 2024 24,273 13,562 11,606 2,420 2,326 (612) 53,575 1 Potash freight, transportation and distribution only applies to our North American potash sales volumes. 2 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization. 3 ARO/ERL refers to asset retirement obligations and accrued environmental costs. Three Months Ended March 31, 2023 Corporate (millions of US dollars) Retail Potash Nitrogen Phosphate and Others Eliminations Consolidated Sales – third party 3,422 1,023 1,154 508 ‐ ‐ 6,107 – intersegment ‐ 54 264 64 ‐ (382) ‐ Sales – total 3,422 1,077 1,418 572 ‐ (382) 6,107 Freight, transportation and distribution ‐ 75 106 58 ‐ (40) 199 Net sales 3,422 1,002 1,312 514 ‐ (342) 5,908 Cost of goods sold 2,807 305 771 427 ‐ (315) 3,995 Gross margin 615 697 541 87 ‐ (27) 1,913 Selling expenses 765 3 8 2 (2) (6) 770 General and administrative expenses 50 3 5 3 84 ‐ 145 Provincial mining taxes ‐ 119 ‐ ‐ ‐ ‐ 119 Share-based compensation expense ‐ ‐ ‐ ‐ 15 ‐ 15 Other expenses (income) 15 (7) (14) 12 (81) ‐ (75) (Loss) earnings before finance costs and income taxes (215) 579 542 70 (16) (21) 939 Depreciation and amortization 181 97 134 67 17 ‐ 496 EBITDA (34) 676 676 137 1 (21) 1,435 Integration and restructuring related costs ‐ ‐ ‐ ‐ 5 ‐ 5 Share-based compensation expense ‐ ‐ ‐ ‐ 15 ‐ 15 Foreign exchange gain, net of related derivatives ‐ ‐ ‐ ‐ (34) ‐ (34) Adjusted EBITDA (34) 676 676 137 (13) (21) 1,421 Assets – as at December 31, 2023 23,056 13,571 11,466 2,438 2,818 (600) 52,749 Three Months Ended March 31 (millions of US dollars) 2024 2023 Retail sales by product line Crop nutrients 1,309 1,335 Crop protection products 1,114 1,154 Seed 485 507 Services and other 156 148 Merchandise 200 246 Nutrien Financial 66 57 Nutrien Financial elimination 1 (22) (25) 3,308 3,422 Potash sales by geography Manufactured product North America 520 417 Offshore 2 407 660 927 1,077 Nitrogen sales by product line Manufactured product Ammonia 244 416 Urea and ESN® 366 491 Solutions, nitrates and sulfates 319 371 Other nitrogen and purchased products 99 140 1,028 1,418 Phosphate sales by product line Manufactured product Fertilizer 321 302 Industrial and feed 167 195 Other phosphate and purchased products 11 75 499 572 1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches. 2 Relates to Canpotex Limited (“Canpotex”) (see Note 9) and includes provisional pricing adjustments for the three months ended March 31, 2024 of $12 million (2023 – $(147) million). Note 3 Other expenses (income) Three Months Ended March 31 (millions of US dollars) 2024 2023 Integration and restructuring related costs ‐ 5 Foreign exchange loss (gain), net of related derivatives 43 (34) Earnings of equity-accounted investees (51) (37) Bad debt expense 13 9 Project feasibility costs 15 13 Customer prepayment costs 16 14 Loss on natural gas derivatives not designated as hedge ¹ 3 ‐ Loss on Blue Chip Swaps 19 ‐ ARO/ERL expense for non-operating sites 3 ‐ Gain on amendments to other post-retirement pension plans ‐ (80) Other expenses 35 35 96 (75) 1 Relates to unrealized loss for the three months ended March 31, 2024 (2023 – $nil). Argentina has certain currency controls in place that limit our ability to settle our foreign currency-denominated obligations or remit cash out of Argentina. A Blue Chip Swap is a financial mechanism in Argentina that effectively allows companies to transact in US dollars. In the first quarter of 2024, we incurred a loss on these transactions due to the significant divergence between the Blue Chip Swap market exchange rate and the official Argentinian Central Bank rate. Note 4 Income taxes A separate estimated average annual effective income tax rate was determined and applied individually to the interim period pre-tax earnings for each taxing jurisdiction. Three Months Ended March 31 (millions of US dollars, except as otherwise noted) 2024 2023 Actual effective tax rate on earnings (%) 30 23 Actual effective tax rate including discrete items (%) 31 25 Discrete tax adjustments that impacted the tax rate 3 18 Note 5 Financial instruments Natural Gas Derivatives In 2024, we increased our use of natural gas derivatives to lock-in commodity prices. Our risk management strategies and accounting policies for derivatives that are designated and qualify as cash flow hedges are consistent with those disclosed in Note 10 and Note 30 of our annual consolidated financial statements, respectively. For derivatives that do not quality as cash flow hedges, any gains or losses are recorded in net earnings in the current period. We assess whether our derivative hedging transactions are expected to be or were highly effective, both at the hedge’s inception and on an ongoing basis, in offsetting changes in fair values of hedged items. Hedging Transaction Measurement of Ineffectiveness Potential Sources of Ineffectiveness New York Mercantile Exchange (“NYMEX”) natural gas hedges Assessed on a prospective and retrospective basis using regression analyses Changes in: • timing of forecast transactions • volume delivered • our credit risk or the credit risk of a counterparty As at March 31, 2024 Maturities Average Fair Value of (millions of US dollars, except as otherwise noted) Notional 1 (year) Contract Price 2 Assets (Liabilities) Derivatives not designated as hedges NYMEX call options 43 2024 2.77 7 Derivatives designated as hedges NYMEX swaps 36 2024 2.64 (9) 1 In millions of Metric Million British Thermal Units (“MMBtu”). 2 US dollars per MMBtu. Note 6 Short-term debt On March 7, 2024, we entered into an uncommitted $500 million accounts receivable repurchase facility (the “repurchase facility”), where we may sell certain receivables from customers to a financial institution and agree to repurchase those receivables at a future date. When we draw under this repurchase facility, the receivables from customers remain on our condensed consolidated balance sheet as we control and retain substantially all of the risks and rewards associated with the receivables. As at March 31, 2024, $111 million in receivables from customers were pledged to the repurchase facility and $100 million of borrowings were included in short-term debt with variable interest accruing based on a margin and the Secured Overnight Financing Rate. Note 7 Capital management In March 2024, we filed a base shelf prospectus in Canada and the US qualifying the issuance, subject to the approval of the Board of Directors, of common shares, debt securities and other securities during a period of 25 months from March 22, 2024. Note 8 Seasonality Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in the 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 requirements. 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 9 Related party transactions We sell potash outside Canada and the US exclusively through Canpotex. Canpotex sells potash to buyers, including Nutrien, in export markets pursuant to term and spot contracts at agreed upon prices. Our total revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. As at (millions of US dollars) March 31, 2024 December 31, 2023 Receivables from Canpotex 148 162 Note 10 Accounting policies, estimates and judgments IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”), which was issued on April 9, 2024, would supersede IAS 1, “Presentation of Financial Statements” and increase the comparability of financial statements by enhancing principles on aggregation and disaggregation. IFRS 18 will be effective January 1, 2027, and will also apply to comparative information. We are reviewing the standard to determine the potential impact. View source version on businesswire.com: https://www.businesswire.com/news/home/20240503690845/en/
Investor Relations: Jeff Holzman Vice President, Investor Relations (306) 933-8545 Investors@nutrien.com Media Relations: Megan Fielding Vice President, Brand & Culture Communications (403) 797-3015