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Nutrien Ltd NYSE: NTR-N

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

BusinessWire - Mon May 3, 4:36PM CDT

Nutrien Ltd. (TSXandNYSE:NTR) announced today its first-quarter 2021 results, with net earnings of $133 million($0.22 diluted earnings per share). First-quarter adjusted net earnings(1) were $0.29 per share and adjusted EBITDA(1) was $806 million.

"Our earnings and free cash flow(1) results highlight the strength of our integrated business model, execution of strategic initiatives and the recovery in global agricultural markets. Nutrien delivered a record first quarter for Retail and strong fertilizer volumes and margins," commented Mayo Schmidt, Nutrien's President and CEO.

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

Highlights:

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

______________________________

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

Management's Discussion and Analysis

The following management's discussion and analysis ("MD&A") is the responsibility of management and is dated as of May 3, 2021. The Board of Directors ("Board") of Nutrien carries out its responsibility for review of this disclosure principally through its audit committee, comprised exclusively of independent directors. The audit committee reviews and, prior to its publication approves this disclosure pursuant to the authority delegated to it by the Board. The term "Nutrien" refers to Nutrien Ltd. and the terms "we", "us", "our", "Nutrien" and "the Company" refer to Nutrien and, as applicable, Nutrien and its direct and indirect subsidiaries on a consolidated basis. Additional information relating to Nutrien (which, except as otherwise noted, is not incorporated by reference herein), including our 2020 Annual Report dated February 18, 2021, which includes our annual audited consolidated financial statements and MD&A and our Annual Information Form, each for the year ended December 31, 2020, can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. No update is provided to the disclosure in our annual MD&A except for material information since the date of our annual MD&A. The Company is a foreign private issuer under the rules and regulations of the US Securities and Exchange Commission ("SEC").

This MD&A is based on the Company's unaudited interim condensed consolidated financial statements as at and for the three months ended March 31, 2021 ("interim financial statements") based on International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" unless otherwise noted. This MD&A contains certain non-IFRS financial measures and forward-looking statements which are described in the "Non-IFRS Financial Measures" and the "Forward-Looking Statements" sections, respectively.

Market Outlook

Agriculture and Retail

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

Crop Nutrient Markets

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

Financial Outlook and Guidance

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

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

2021 Guidance Ranges (1)                    Low       High  
---------------------------------------- -------------------- ---- -------------------- -------------------- -------------------- ---- --------------------
Adjusted net earnings per share (2)                         $ 2.55                        $ 3.25  
Adjusted EBITDA (billions) (2)                              $  4.4                        $  4.9  
Retail Adjusted EBITDA (billions)                           $ 1.55                        $ 1.65  
Potash Adjusted EBITDA (billions)                           $  1.5                        $  1.7  
Nitrogen Adjusted EBITDA (billions)                         $  1.3                        $  1.5  
Phosphate Adjusted EBITDA (millions)                        $  275                        $  375  
Potash sales tonnes (millions)(3)          12.5       13.0  
Nitrogen sales tonnes (millions) (3)       10.9       11.4  
Depreciation and amortization (billions)                    $  1.9                        $  2.0  
Effective tax rate on adjusted earnings      23 %                          25 %
1 See the "Forward-Looking Statements" section.
2 See the "Non-IFRS Financial Measures" section.

Consolidated Results

Three Months Ended March 31
                                                                -------------------------------------------------------------------------------------
(millions of US dollars)                                                   2021              2020          % Change
--------------------------------------------------------------- --------------- -------------------- --------------- -------------------- ---------------
Sales (1)                                                                 4,658             4,198                11
Freight, transportation and distribution                                    211               212                 -
Cost of goods sold                                                        3,291             3,101                 6
Gross margin (1)                                                          1,156               885                31
Expenses (1)                                                                878               803                 9
Net earnings (loss)                                                         133              (35)               n/m
Adjusted EBITDA (2)                                                         806               508                59
Cash used in operating activities                                         (152)             (526)                71
Free cash flow ("FCF") (2)                                                  476               181               163
FCF including changes in non-cash operating working capital (2)           (316)             (689)                54
--------------------------------------------------------------- --------------- -------------------- --------------- -------------------- ---------------
1 Certain immaterial figures have been reclassified for the three months ended March 31, 2020.

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

Segment Results

Our discussion of segment results set out on the following pages is a comparison of the results for the three months ended March 31, 2021 to the results for the three months ended March 31, 2020, unless otherwise noted.

Nutrien Ag Solutions ("Retail")

Three Months Ended March 31
                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions of US dollars, except                                                       Dollars                                                                                                 Gross Margin                                                                        Gross Margin (%)
                                     ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------                          ------------------------------------------------------------
as otherwise noted)                                  2021                   2020               % Change                   2021                   2020               % Change                   2021                   2020
------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Sales                                                             
                                                    1,016                    785                     29                    220                    156                     41                     22                     20
   Crop nutrients
                                                    1,085                  1,010                      7                    176                    157                     12                     16                     16
   Crop protection products
                                                      463                    394                     18                     69                     59                     17                     15                     15
   Seed
                                                      230                    216                      6                     38                     34                     12                     17                     16
   Merchandise
                                                       25                     16                     56                     25                     16                     56                    100                    100
   Nutrien Financial
                                                      173                    255                   (32)                    144                    134                      7                     83                     53
   Services and other (1)
                                                     (20)                   (15)                     33                   (20)                   (15)                     33                    100                    100
   Nutrien Financial elimination (2)
------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                 2,972                  2,661                     12                    652                    541                     21                     22                     20
Cost of goods sold                                  2,320                  2,120                      9                    
------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------
Gross margin                                          652                    541                     21                    
Expenses (1,3)                                        721                    689                      5                    
------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------
Earnings (loss) before finance                                    
                                                     (69)                  (148)                   (53)                    
   costs and taxes ("EBIT")
Depreciation and amortization                         177                    155                     14                    
------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------
EBITDA                                                108                      7                    n/m                    
Integration and restructuring                                     
                                                        1                      -                    n/m                    
   related costs
------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted EBITDA                                       109                      7                    n/m                    
------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------
1 Certain immaterial figures have been reclassified for the three months ended March 31, 2020.
2 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

Adjusted EBITDA increased in the first quarter of 2021 due to higher sales and margins across virtually all product categories and all key regions where we operate. This was supported by strong agricultural market fundamentals, expanded acreage expectations, as well as, supply chain improvements and strategic procurement. Gross margin increased due to strong sales and ongoing efficiency initiatives which also lowered our Retail cash operating coverage ratio(1) to 60 percent from 62 percent.Crop nutrients sales increased significantly in the first quarter of 2021 as sales volumes and gross margin per tonne both increased 19 percent. North American sales volumes were up 12 percent, supported by strong spring applications ahead of planting. Gross margin percentage increased in the first quarter of 2021 due to strategic procurement in a rising price environment.Crop protection products sales increased in the first quarter of 2021 due to our market growth and favorable application conditions. Gross margin percentage increased by 0.6 percent supported by strong proprietary product results, higher prices, supply chain improvements and the benefit of recent accretive acquisitions in Brazil.Seed sales in the first quarter of 2021 increased due to higher grower planting intentions in key regions where we operate, resulting from strong global crop prices and agriculture fundamentals. Gross margin percentage was stable with improved proprietary results offsetting an elevated competitive environment in the US.Merchandise sales and gross margin percentage increased in the first quarter of 2021 primarily driven by growth in the US market and strong results in Australia.Nutrien Financial sales increased due to higher utilization and adoption of our programs.Services and other sales decreased as the divestiture of an Australian livestock export business more than offset much higher North American custom application sales. Despite the change in revenue mix, gross margin increased in Australia and other key markets resulting in a much higher gross margin percentage in the first quarter of 2021.

_________________________________

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

Potash

Three Months Ended March 31
                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions of US dollars, except                                                  Dollars                                                                                              Tonnes (thousands)                                                                                          Average per Tonne
                                ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------
as otherwise noted)                             2021                   2020                                  % Change                   2021                   2020                                  % Change                   2021                   2020                                  % Change
------------------------------- -------------------- -------------------- -------------------- ----------------------------------------                       -------------------- -------------------- -------------------- ----------------------------------------                       -------------------- -------------------- -------------------- ----------------------------------------
Manufactured product                                             
                                                                 
  Net sales
                                                 332                    225                     48                  1,470                  1,147                     28                    226                    196                     15
    North America
                                                 279                    292                    (4)                  1,687                  1,730                    (2)                    166                    169                    (2)
    Offshore
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
                                                 611                    517                     18                  3,157                  2,877                     10                    194                    180                      8
   
                                                 291                    265                     10                                 92                     92                      -
  Cost of goods sold
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                                                    -------------------- -------------------- -------------------- -------------------- --------------------
Gross margin - total                             320                    252                     27                                102                     88                     16
Expenses (1)                                      64                     63                      2   Depreciation and amortization                                                                                                39                     33                     18
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      ----------------------------------------------------------------------------------------------------     -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
EBIT                                             256                    189                     35   Gross margin excluding depreciation                                                                                                    
Depreciation and amortization                    124                     96                     29   and amortization - manufactured (2)                                                                                                            141                    121                     17
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      ------------------------------------------------------------------------------------------------------------------------      -------------------- -------------------- -------------------- -------------------- --------------------
                         Potash cash cost of product                                                                                         
EBITDA / Adjusted EBITDA                         380                    285                     33   manufactured (2)                                                                                                             57                     60                    (5)
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      ----------------------------------------------------------------------------------------------------     -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
1 Includes provincial mining taxes of $58 million (2020 - $57 million).

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

Canpotex Sales by Market

Three Months Ended March 31
                                                         --------------------------------------
(percentage of sales volumes, except as otherwise noted)      2021      2020               Change
-------------------------------------------------------- --------- --------- --------------------
Other Asian markets (1)                                         37        29                    8
Latin America                                                   30        25                    5
China                                                           15        27                 (12)
Other markets                                                   12         7                    5
India                                                            6        12                  (6)
-------------------------------------------------------- --------- --------- --------------------
                                            100       100  
-------------------------------------------------------- --------- --------- --------------------

Nitrogen

Three Months Ended March 31
                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions of US dollars, except                                                  Dollars                                                                                              Tonnes (thousands)                                                                                          Average per Tonne
                                ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------
as otherwise noted)                             2021                   2020                                  % Change                   2021                   2020                                  % Change                   2021                   2020                                  % Change
------------------------------- -------------------- -------------------- -------------------- ----------------------------------------                       -------------------- -------------------- -------------------- ----------------------------------------                       -------------------- -------------------- -------------------- ----------------------------------------
Manufactured product                                             
                                                                 
    Net sales
                                                 160                    130                     23                    572                    567                      1                    278                    229                     21
       Ammonia
                                                 249                    237                      5                    757                    856                   (12)                    329                    277                     19
       Urea
                                                 164                    163                      1                  1,074                  1,105                    (3)                    153                    148                      3
       Solutions, nitrates and
       sulfates
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
                                                 573                    530                      8                  2,403                  2,528                    (5)                    238                    210                     13
     
                                                 440                    444                    (1)                                183                    176                      4
    Cost of goods sold
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                                                    -------------------- -------------------- -------------------- -------------------- --------------------
                                                 133                     86                     55                                 55                     34                     62
    Gross margin - manufactured
Gross margin - other (1)                          17                     11                     55   Depreciation and amortization                                                                                                54                     59                    (8)
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      ----------------------------------------------------------------------------------------------------     -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Gross margin - total                             150                     97                     55   Gross margin excluding depreciation                                                                                                    
(Income) expenses                               (17)                     11                    n/m   and amortization - manufactured                                                                                                                109                     93                     17
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      ------------------------------------------------------------------------------------------------------------------------      -------------------- -------------------- -------------------- -------------------- --------------------
EBIT                                             167                     86                     94   Ammonia controllable cash cost of                                                                                   
Depreciation and amortization                    129                    150                   (14)   product manufactured (2)                                                                                                     52                     47                     11
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      ----------------------------------------------------------------------------------------------------     -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
EBITDA                                           296                    236                     25                        
Impairment of assets                               4                      -                    n/m                        
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted EBITDA                                  300                    236                     27                        
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------
1 Includes other nitrogen (including ESN(R) and Rainbow) and purchased products and is comprised of net sales of $187 million (2020 - $148 million) less cost of goods sold of $170 million (2020 - $137 million).

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

Natural Gas Prices in Cost of Production

Three Months Ended March 31
                                                      ----------------------------------------------------------------------------------------------------
(US dollars per MMBtu, except as otherwise noted)                     2021                   2020               % Change
----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Overall gas cost excluding realized derivative impact                 3.17                   2.24                     42
Realized derivative impact                                            0.02                   0.05                   (60)
----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Overall gas cost                                                      3.19                   2.29                     39
----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                            
Average NYMEX                                                         2.69                   1.95                     38

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

Phosphate

Three Months Ended March 31
                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions of US dollars, except                                                  Dollars                                                                                              Tonnes (thousands)                                                                                          Average per Tonne
                                ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------------------
as otherwise noted)                             2021                   2020                                  % Change                   2021                   2020                                  % Change                   2021                   2020                                  % Change
------------------------------- -------------------- -------------------- -------------------- ----------------------------------------                       -------------------- -------------------- -------------------- ----------------------------------------                       -------------------- -------------------- -------------------- ----------------------------------------
Manufactured product                                             
                                                                 
   Net sales
                                                 230                    173                     33                    509                    568                   (10)                    453                    305                     49
      Fertilizer
                                                 114                    106                      8                    193                    191                      1                    589                    556                      6
      Industrial and feed
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- -------------------- -------------------- -------------------- --------------------
                                                 344                    279                     23                    702                    759                    (8)                    490                    368                     33
    
                                                 282                    287                    (2)                                401                    379                      6
   Cost of goods sold
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                                                    -------------------- -------------------- -------------------- -------------------- --------------------
                                                  62                    (8)                    n/m                                 89                   (11)                    n/m
   Gross margin - manufactured
Gross margin - other (1)                           4                      1                    300   Depreciation and amortization                                                                                                54                     83                   (35)
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      ----------------------------------------------------------------------------------------------------     -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Gross margin - total                              66                    (7)                    n/m   Gross margin excluding depreciation                                                                                                    
Expenses                                           7                     10                   (30)   and amortization - manufactured                                                                                                                143                     72                     99
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------                      ------------------------------------------------------------------------------------------------------------------------      -------------------- -------------------- -------------------- -------------------- --------------------
EBIT                                              59                   (17)                    n/m                        
Depreciation and amortization                     38                     63                   (40)                        
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------
EBITDA / Adjusted EBITDA                          97                     46                    111                        
------------------------------- -------------------- -------------------- -------------------- -------------------- --------------------

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

Corporate and Others

Three Months Ended March 31
                                                    ----------------------------------------------------------------------------
(millions of US dollars, except as otherwise noted)         2021           2020       % Change
--------------------------------------------------- ------------ -------------------- ------------ -------------------- ------------
Sales (1)                                                      -             27          (100)
Cost of goods sold                                             -             25          (100)
--------------------------------------------------- ------------ -------------------- ------------ -------------------- ------------
Gross margin                                                   -              2          (100)
Selling expenses                                             (6)            (5)             20
General and administrative expenses                           58             60            (3)
Share-based compensation expense (recovery)                   23           (32)            n/m
Other expenses                                                28              7            300
--------------------------------------------------- ------------ -------------------- ------------ -------------------- ------------
EBIT                                                       (103)           (28)            268
Depreciation and amortization                                 12              9             33
--------------------------------------------------- ------------ -------------------- ------------ -------------------- ------------
EBITDA                                                      (91)           (19)            379
Adjustments (2)                                               43           (47)            n/m
--------------------------------------------------- ------------ -------------------- ------------ -------------------- ------------
Adjusted EBITDA                                             (48)           (66)           (27)
--------------------------------------------------- ------------ -------------------- ------------ -------------------- ------------
1 Primarily relates to our non-core Canadian business that was sold in 2020.

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

Finance Costs, Income Tax Expense (Recovery) and

Other Comprehensive Income (Loss)

Three Months Ended March 31
                                                    ----------------------------------------------------------
(millions of US dollars, except as otherwise noted)  2021    2020   % Change
--------------------------------------------------- ----- -------------------- ----- -------------------- --------
Finance costs                                         120     133       (10)
Income tax expense (recovery)                          25    (16)        n/m

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

Financial Condition Review

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

As at                                    
                                                    ------------------------------------------------------------
(millions of US dollars, except as otherwise noted)       March 31, 2021      December 31, 2020               $ Change               % Change
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Assets                                                           
Cash and cash equivalents                                            712                  1,454                  (742)                   (51)
Receivables                                                        4,230                  3,581                    649                     18
Inventories                                                        6,714                  4,930                  1,784                     36
Prepaid expenses and other current assets                            819                  1,505                  (686)                   (46)
Property, plant and equipment                                     19,451                 19,660                  (209)                    (1)
Other assets                                                         678                    914                  (236)                   (26)
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Liabilities and Equity                                           
Payables and accrued charges                                       8,742                  8,058                    684                      8

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

Liquidity and Capital Resources

Sources and Uses of Liquidity

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

Key uses and sources of cash and cash equivalents in the first quarter of 2021 included:

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

Sources and Uses of Cash

Three Months Ended March 31
                                                    ----------------------------------------------------------
(millions of US dollars, except as otherwise noted)  2021    2020   % Change
--------------------------------------------------- ----- -------------------- ----- -------------------- --------
Cash used in operating activities                   (152)   (526)       (71)
Cash used in investing activities                   (388)   (445)       (13)
Cash (used in) provided by financing activities     (191)   3,519        n/m
Effect of exchange rate changes on cash and cash     (11)    (37)       (70)
equivalents
--------------------------------------------------- ----- -------------------- ----- -------------------- --------

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

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

The above factor was partially offset by:

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

Capital Structure and Management

Principal Debt Instruments

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

As at March 31, 2021
                                           --------------------------------------------------------------------------------
                                     Outstanding and Committed
                                                                                     ----------------------------------------
(millions of US dollars)                   Rate of Interest (%) Total Facility Limit      Short-term debt       Long-term debt
------------------------------------------ -------------------- -------------------- -------------------- --------------------
Credit facilities                                 
                                                            n/a                4,500                    -                    -
  Unsecured revolving term credit facility
                                                            n/a                  500                    -                    -
  Uncommitted revolving demand facility
                                                      0.8 - 8.3                  810                  252                   63
  Other credit facilities (1)
Commercial paper                                            n/a                      -                    -
------------------------------------------ -------------------- -------------------- -------------------- --------------------
Total                                                           252                   63
------------------------------------------ -------------------- -------------------- -------------------- --------------------

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

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

Outstanding Share Data

As at April 30, 2021
-------------------- --------------------
Common shares                 570,208,107

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

Quarterly Results

(millions of US dollars, except as otherwise noted)              Q1 2021                                   Q4 2020                                   Q3 2020                                   Q2 2020                                   Q1 2020                                   Q4 2019                                   Q3 2019                                   Q2 2019
--------------------------------------------------- -------------------- ----------------------------------------  ----------------------------------------  ----------------------------------------  ----------------------------------------  ----------------------------------------  ----------------------------------------  ----------------------------------------
Sales (1)                                                          4,658                  4,052                  4,227                  8,431                  4,198                  3,462                  4,185                  8,704
Net earnings (loss) attributable to equity holders                   127                    316                  (587)                    765                   (35)                   (48)                    141                    858
of Nutrien
Adjusted EBITDA                                                      806                    768                    670                  1,721                    508                    664                    787                  1,870
Net earnings (loss) per share attributable to                                    
equity holders of Nutrien
                                                                    0.22                   0.55                 (1.03)                   1.34                 (0.06)                 (0.08)                   0.25                   1.48
    Basic
                                                                    0.22                   0.55                 (1.03)                   1.34                 (0.06)                 (0.08)                   0.24                   1.47
    Diluted
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

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

Since the fourth quarter of 2019, and up to the fourth quarter of 2020, Potash earnings were impacted by lower net realized selling prices caused by a temporary slowdown in global demand. In the third quarter of 2020, earnings were impacted by non-cash impairments of property, plant and equipment primarily in the Phosphate segment as a result of lower forecasted global phosphate prices. In the fourth quarter of 2020, earnings were impacted by a net gain on disposal of our investment in Misr Fertilizers Production Company S.A.E. ("MOPCO").

Critical Accounting Estimates

Our critical accounting policies are disclosed in our 2020 Annual Report. We have discussed the development, selection and application of our key accounting policies, and the critical accounting estimates and assumptions they involve, with the audit committee of the Board. Our critical accounting estimates are discussed on page 53 of our 2020 Annual Report. There were no significant changes in the first three months of 2021.

Controls and Procedures

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

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

Forward-Looking Statements

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

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

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

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

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

Terms and Definitions

For the definitions of certain financial and non-financial terms used in this document, as well as a list of abbreviated company names and sources, see the "Terms and Definitions" section of our 2020 Annual Report. All references to per share amounts pertain to diluted net earnings (loss) per share, "n/m" indicates information that is not meaningful and all financial amounts are stated in millions of US dollars, unless otherwise noted.

About Nutrien

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

Contact us at: www.nutrien.com

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

Such data is not incorporated by reference herein.

Nutrien will host a Conference Call on Tuesday, May 4, 2021 at 10:00 am Eastern Time.

In order to expedite access to our conference call, each participant will be required to pre-register for the event:Online: http://www.directeventreg.com/registration/event/1167143.Via Phone: 1-888-869-1189 Conference ID 1167143.Once the registration is complete, a confirmation will be sent providing the dial in number and both the Direct Event Passcode and your unique Registrant ID to join this call. For security reasons, please do not share your information with anyone else.Live Audio Webcast: Visit http://www.nutrien.com/investors/events/2021-q1-earnings-conference-call

Appendix A - Selected Additional Financial Data

Selected Retail measures                                                                                     Three Months Ended March 31
                                                                                           ------------------------------------------------------------
                                                                                        2021                   2020
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
Proprietary products margin as a percentage of product line margin (%)                          
                                                                                                             21                     31
   Crop nutrients
                                                                                                             43                     40
   Crop protection products
                                                                                                             40                     36
   Seed
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
                                                                                                             23                     25
   All products
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
Crop nutrients sales volumes (tonnes - thousands)                                               
                                                                                                          1,597                  1,426
   North America
                                                                                                            803                    599
   International
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
                                                                                                          2,400                  2,025
   Total
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
Crop nutrients selling price per tonne                                                          
                                                                                                            458                    416
   North America
                                                                                                            355                    318
   International
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
                                                                                                            423                    387
   Total
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
Crop nutrients gross margin per tonne                                                           
                                                                                                            113                     93
   North America
                                                                                                             49                     38
   International
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
                                                                                                             92                     77
   Total
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
                                                                                                
    
Financial performance measures                                                                                 2021
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
                                                                                                                 10
   Retail adjusted EBITDA to sales (%) (1)
                                                                                                                 14
   Retail adjusted average working capital to sales (%) (1, 2)
                                                                                                                  3
   Retail adjusted average working capital to sales excluding Nutrien Financial (%) (1, 2)
                                                                                                                 60
   Retail cash operating coverage ratio (%) (1, 2)
                                                                                                              1,159
   Retail adjusted EBITDA per US selling location (thousands of US dollars) (1, 2)
                                                                                                                5.5
   Nutrien Financial net interest margin (%) (1, 2)
------------------------------------------------------------------------------------------ -------------------- -------------------- --------------------
1 Rolling four quarters ended March 31, 2021.
Nutrien Financial                                        As at March 31, 2021
----------------------------- --------------------------------------------------------------------
(millions of US dollars)      Current <31 days 31-90 days >90 days Gross Receivables Allowance (1) Total
                                      past due   past due past due
----------------------------- ------- -------- ---------- -------- ----------------- ------------- -----
North America                     860       54         62       52             1,028          (25) 1,003
International                     163        3         12       42               220           (2)   218
----------------------------- ------- -------- ---------- -------- ----------------- ------------- -----
Nutrien Financial receivables   1,023       57         74       94             1,248          (27) 1,221
----------------------------- ------- -------- ---------- -------- ----------------- ------------- -----
Selected Nitrogen measures                           Three Months Ended March 31
                                   ------------------------------------------------------------
                                2021                   2020
---------------------------------- -------------------- -------------------- --------------------
Sales volumes (tonnes - thousands)      
                                                  1,305                  1,411
   Fertilizer
                                                  1,098                  1,117
   Industrial and feed
Net sales (millions of US dollars)      
                                                    332                    318
   Fertilizer
                                                    241                    212
   Industrial and feed
Net selling price per tonne             
                                                    254                    226
   Fertilizer
Production measures                                                                                          Three Months Ended March 31
                                                 ------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          2021                                                                           2020
------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------
Potash production (Product tonnes - thousands)                                              3,536                                                                          3,035
Potash shutdown weeks (1)                                                                       -                                                                             12
Ammonia production - total (2)                                                              1,449                                                                          1,447
Ammonia production - adjusted (2, 3)                                                        1,053                                                                            991
Ammonia operating rate (%) (3)                                                                 97                                                                             91
P2O5 production (P2O5 tonnes - thousands)                                                     378                                                                            372
P2O5 operating rate (%)                                                                        90                                                                             88
------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------
1 Represents weeks of full production shutdown, excluding the impact of any periods of reduced operating rates and planned routine annual maintenance shutdowns and announced workforce reductions.
2 All figures are provided on a gross production basis in thousands of product tonnes.

Appendix B - Non-IFRS Financial Measures

We use both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are numerical measures of a company's historical or future financial performance, financial position or cash flow that are not specified, defined or determined under IFRS, and are not presented in our interim financial statements. Non-IFRS measures either exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure specified, defined or determined under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.

Management believes the non-IFRS financial measures provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

The following section outlines our non-IFRS financial measures, their definitions, and why management uses each measure. It includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-IFRS financial measures are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As non-recurring or unusual items arise, we generally exclude these items in our calculation of the applicable non-IFRS financial measure.

Adjusted EBITDA (Consolidated)

Most directly comparable IFRS financial measure: Net earnings (loss).

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

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

Three Months Ended March 31
                                                         --------------------------------------
(millions of US dollars)                                      2021        2020
-------------------------------------------------------- --------- -------------------- ---------
Net earnings (loss)                                            133        (35)
Finance costs                                                  120         133
Income tax expense (recovery)                                   25        (16)
Depreciation and amortization                                  480         473
-------------------------------------------------------- --------- -------------------- ---------
EBITDA                                                         758         555
Integration and restructuring related costs                     10          10
Share-based compensation expense (recovery)                     23        (32)
Impairment of assets                                             4           -
COVID-19 related expenses                                        9           2
Foreign exchange loss (gain), net of related derivatives         2        (27)
-------------------------------------------------------- --------- -------------------- ---------

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

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

Adjusted Net Earnings and Adjusted Net Earnings Per Share

Most directly comparable IFRS financial measure: Net earnings (loss) and net earnings (loss) per share.

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

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

Three Months Ended
                                                                                                    March 31, 2021
                                                       ----------------------------------------------------------------------------------------------------
                                                             Per
                                               Increases                    Diluted
(millions of US dollars, except as otherwise noted)             (Decreases)               Post-Tax                  Share
------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------
Net earnings attributable to equity holders of Nutrien                      127                   0.22
Adjustments:                                                    
                                                                         10                      8                   0.01
   Integration and restructuring related costs
                                                                         23                     18                   0.04
   Share-based compensation expense
                                                                          4                      3                   0.01
   Impairment of assets
                                                                          9                      7                   0.01
   COVID-19 related expenses
                                                                          2                      2                      -
   Foreign exchange loss, net of related derivatives
------------------------------------------------------ -------------------- -------------------- -------------------- -------------------- --------------------

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

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

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

Why we use the measure and why it is useful to investors: For evaluation of liquidity and financial strength. These are also useful as indicators of our ability to service debt, meet other payment obligations and make strategic investments. These do not represent residual cash flow available for discretionary expenditures.

Three Months Ended March 31
                                                    --------------------------------------
(millions of US dollars)                                 2021        2020
--------------------------------------------------- --------- -------------------- ---------
Cash from operations before working capital changes       640         344
Sustaining capital expenditures                         (164)       (163)
--------------------------------------------------- --------- -------------------- ---------
Free cash flow                                            476         181
Changes in non-cash operating working capital           (792)       (870)
--------------------------------------------------- --------- -------------------- ---------

Potash Cash Cost of Product Manufactured ("COPM")

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

Definition: Potash COGS for the period excluding depreciation and amortization expense and inventory and other adjustments divided by the production tonnes for the period.

Why we use the measure and why it is useful to investors: To assess operational performance. Potash cash COPM excludes the effects of production from other periods and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

Three Months Ended March 31
                                                    --------------------------------------
(millions of US dollars, except as otherwise noted)      2021        2020
--------------------------------------------------- --------- -------------------- ---------
Total COGS - Potash                                       291         265
Change in inventory                                        27           8
Other adjustments                                         (4)         (2)
--------------------------------------------------- --------- -------------------- ---------
COPM                                                      314         271
Depreciation and amortization included in COPM          (111)        (89)
--------------------------------------------------- --------- -------------------- ---------
Cash COPM                                                 203         182
Production tonnes (tonnes - thousands)                  3,536       3,035
--------------------------------------------------- --------- -------------------- ---------

Ammonia Controllable Cash COPM

Most directly comparable IFRS financial measure: COGS for the Nitrogen segment.

Definition: The total of COGS for the Nitrogen segment excluding depreciation and amortization expense included in COGS, cash COGS for products other than ammonia, other adjustments, and natural gas and steam costs, divided by net ammonia production tonnes.

Why we use the measure and why it is useful to investors: To assess operational performance. Ammonia controllable cash COPM excludes the effects of production from other periods, the costs of natural gas and steam, and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

Three Months Ended March 31
                                                    ------------------------------------------------------------
(millions of US dollars, except as otherwise noted)                 2021                   2020
--------------------------------------------------- -------------------- -------------------- --------------------
Total COGS - Nitrogen                                                610                    581
Depreciation and amortization in COGS                              (108)                  (130)
Cash COGS for products other than ammonia                          (393)                  (361)
--------------------------------------------------- -------------------- -------------------- --------------------
Ammonia                                                  
                                                                     109                     90
   Total cash COGS before other adjustments
                                                                     (3)                     11
   Other adjustments (1)
--------------------------------------------------- -------------------- -------------------- --------------------
                                                                     106                    101
   Total cash COPM
                                                                    (74)                   (66)
   Natural gas and steam costs
--------------------------------------------------- -------------------- -------------------- --------------------
                                                                      32                     35
   Controllable cash COPM
Production tonnes (net tonnes (2) - thousands)                       602                    744
--------------------------------------------------- -------------------- -------------------- --------------------
Ammonia controllable cash COPM per tonne                              52                     47
--------------------------------------------------- -------------------- -------------------- --------------------
1 Includes changes in inventory balances and other adjustments.

Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured

Most directly comparable IFRS financial measure: Gross margin.

Definition: Gross margin from manufactured products per tonne less depreciation and amortization per tonne. Reconciliations are provided in the "Segment Results" section.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions.

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

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

Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the working capital and sales of certain acquisitions (such as Ruralco) during the first year following the acquisition. We amended our calculation to adjust for the sales of certain recently acquired businesses. We also look at this metric excluding the sales and working capital of Nutrien Financial.

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

Rolling four quarters ended March 31, 2021
                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions of US dollars, except as otherwise noted)               Q2 2020                Q3 2020                Q4 2020                Q1 2021          Average/Total
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Working capital                                                     2,030                  3,216                  1,157                  1,630    
Working capital from certain recent acquisitions                       63                      -                      -                      -    
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted working capital                                            2,093                  3,216                  1,157                  1,630                  2,024
Nutrien Financial working capital                                 (2,108)                (1,711)                (1,392)                (1,221)    
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted working capital excluding Nutrien Financial                 (15)                  1,505                  (235)                    409                    416
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                   
Sales (1)                                                           6,764                  2,742                  2,618                  2,972    
Sales from certain recent acquisitions                              (338)                      -                      -                      -    
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted sales                                                      6,426                  2,742                  2,618                  2,972                 14,758
Nutrien Financial revenue (1)                                        (40)                   (36)                   (37)                   (25)    
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted sales excluding Nutrien Financial                          6,386                  2,706                  2,581                  2,947                 14,620
---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
1 Certain immaterial figures have been reclassified for the second and third quarters of 2020.
                                                   
Adjusted average working capital to sales (%)                                          14

Nutrien Financial Net Interest Margin

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

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

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

Rolling four quarters ended March 31, 2021
                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions of US dollars, except as otherwise noted)              Q2 2020                Q3 2020                Q4 2020                Q1 2021          Total/Average
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Nutrien Financial revenue                                             40                     36                     37                     25    
Deemed interest expense (1)                                         (15)                   (15)                   (14)                    (6)    
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net interest                                                          25                     21                     23                     19                     88
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                  
Average Nutrien Financial receivables                              2,108                  1,711                  1,392                  1,221                  1,608
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Nutrien Financial net interest margin (%)                                            5.5
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Retail Cash Operating Coverage Ratio

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

Definition: Retail operating expenses, excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters.

Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow.

Rolling four quarters ended March 31, 2021
                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions of US dollars, except as otherwise noted)                     Q2 2020                Q3 2020                Q4 2020                Q1 2021                  Total
---------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating expenses (1, 2)                                                   826                    691                    768                    721                  3,006
Depreciation and amortization in operating expenses                       (161)                  (167)                  (177)                  (175)                  (680)
---------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating expenses excluding depreciation and amortization                  665                    524                    591                    546                  2,326
---------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                         
Gross margin (2)                                                          1,627                    683                    885                    652                  3,847
Depreciation and amortization in cost of goods sold                           2                      3                      3                      2                     10
---------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Gross margin excluding depreciation and amortization                      1,629                    686                    888                    654                  3,857
---------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Cash operating coverage ratio (%)                                                            60
---------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
1 Includes Retail expenses below gross margin including selling expenses, general and administrative expenses and other (income) expenses.

Retail Adjusted EBITDA per US Selling Location

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

Definition: Total Retail US adjusted EBITDA for the last four rolling quarters, adjusted for acquisitions in those quarters, divided by the number of US locations that have generated sales in the last four rolling quarters, adjusted for acquired locations.

Why we use the measure and why it is useful to investors: To assess our US Retail operating performance. This measure includes locations we have owned for more than 12 months.

Rolling four quarters ended March 31, 2021
                                                         ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
(millions of US dollars, except as otherwise noted)                   Q2 2020                Q3 2020                Q4 2020                Q1 2021   Total
-------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -----
Adjusted US EBITDA                                                        766                     86                    177                     29   1,058
Adjustments for acquisitions                                               (6)
-------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -----
Adjusted US EBITDA adjusted for acquisitions                             1,052
Number of US selling locations adjusted for acquisitions                   908
-------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -----

Condensed Consolidated Financial Statements

Unaudited - in millions of US dollars except as otherwise noted

Condensed Consolidated Statements of Earnings (Loss)

Three Months Ended
                                                               March 31
                                                                          ------------------------------------------------------------
                               Note                                    2021                   2020
------------------------------------------------- ----------------------- -------------------- -------------------- --------------------
                                                      Note 1
SALES                                             2                                      4,658                  4,198
Freight, transportation and distribution                                211                    212
Cost of goods sold                                                    3,291                  3,101
------------------------------------------------- ----------------------- -------------------- -------------------- --------------------
GROSS MARGIN                                                          1,156                    885
Selling expenses                                                        673                    642
General and administrative expenses                                     103                    104
Provincial mining taxes                                                  58                     57
Share-based compensation expense (recovery)       3                                         23                   (32)
Other expenses                                    4                                         21                     32
------------------------------------------------- ----------------------- -------------------- -------------------- --------------------
EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES                                             278                     82
Finance costs                                                           120                    133
------------------------------------------------- ----------------------- -------------------- -------------------- --------------------
EARNINGS (LOSS) BEFORE INCOME TAXES                                     158                   (51)
Income tax expense (recovery)                     5                                         25                   (16)
------------------------------------------------- ----------------------- -------------------- -------------------- --------------------
NET EARNINGS (LOSS)                                                     133                   (35)
------------------------------------------------- ----------------------- -------------------- -------------------- --------------------
Attributable to                                             
                                                                        127                   (35)
   Equity holders of Nutrien
                                                                          6                      -
   Non-controlling interest
------------------------------------------------- ----------------------- -------------------- -------------------- --------------------
NET EARNINGS (LOSS)                                                     133                   (35)
------------------------------------------------- ----------------------- -------------------- -------------------- --------------------
                                                            
    
NET EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS")
------------------------------------------------------------------------------------------------------------------------------------
                                                                       0.22                 (0.06)
   Basic
                                                                       0.22                 (0.06)
   Diluted
------------------------------------------------- ----------------------- -------------------- -------------------- --------------------
Weighted average shares outstanding for basic EPS               569,658,000            571,168,000

Condensed Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended
                                                                         March 31
                                                                 ------------------------------------------------------------
(Net of related income taxes)                                                    2021                   2020
---------------------------------------------------------------- -------------------- -------------------- --------------------
NET EARNINGS (LOSS)                                                               133                   (35)
Other comprehensive income (loss)                                     
                                                                      
     Items that will not be reclassified to net earnings (loss):
                                                                                    -                      3
       Net actuarial gain on defined benefit plans
                                                                                   48                   (19)
       Net fair value gain (loss) on investments
                                                                      
     Items that have been or may be subsequently reclassified to
       net earnings (loss):
                                                                                 (30)                  (315)
       Loss on currency translation of foreign operations
                                                                                    6                   (27)
       Other
---------------------------------------------------------------- -------------------- -------------------- --------------------
OTHER COMPREHENSIVE INCOME (LOSS)                                                  24                  (358)
---------------------------------------------------------------- -------------------- -------------------- --------------------
COMPREHENSIVE INCOME (LOSS)                                                       157                  (393)
---------------------------------------------------------------- -------------------- -------------------- --------------------
Attributable to                                                       
                                                                                  151                  (393)
   Equity holders of Nutrien
                                                                                    6                      -
   Non-controlling interest
---------------------------------------------------------------- -------------------- -------------------- --------------------
COMPREHENSIVE INCOME (LOSS)                                                       157                  (393)
---------------------------------------------------------------- -------------------- -------------------- --------------------

Condensed Consolidated Statements of Cash Flows

Three Months Ended
                                                                       March 31
                                                                                  ------------------------------------------------------------
                                          Note                                 2021                   2020
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
                                                 
OPERATING ACTIVITIES                                                
Net earnings (loss)                                                             133                   (35)
Adjustments for:                                                    
                                                                                480                    473
   Depreciation and amortization
                                                                                 23                   (32)
   Share-based compensation expense (recovery)
                                                                                  4                      -
   Impairment of assets
                                                                                 10                   (22)
   Provision for (recovery of) deferred income tax
                                                                               (10)                   (40)
   Other long-term assets, liabilities and miscellaneous
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
Cash from operations before working capital changes                             640                    344
Changes in non-cash operating working capital:                      
                                                                              (392)                  (323)
   Receivables
                                                                            (1,785)                (1,428)
   Inventories
                                                                                688                    766
   Prepaid expenses and other current assets
                                                                                697                    115
   Payables and accrued charges
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
CASH USED IN OPERATING ACTIVITIES                                             (152)                  (526)
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
INVESTING ACTIVITIES                                                
Additions to property, plant and equipment                                    (325)                  (363)
Additions to intangible assets                                                 (33)                   (32)
Business acquisitions, net of cash acquired                                    (21)                   (57)
Other                                                                           (9)                      7
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
CASH USED IN INVESTING ACTIVITIES                                             (388)                  (445)
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
FINANCING ACTIVITIES                                                
Proceeds from short-term debt, net                                              101                  4,494
Proceeds from long-term debt                                                      -                      6
Repayment of long-term debt                                                       -                  (501)
Repayment of principal portion of lease liabilities                            (78)                   (64)
Dividends paid to Nutrien's shareholders                                        7                (255)                  (256)
Repurchase of common shares                                                     7                  (1)                  (160)
Issuance of common shares                                                        42                      -
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES                               (191)                  3,519
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND                                    (11)                   (37)
CASH EQUIVALENTS
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                              (742)                  2,511
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                  1,454                    671
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
CASH AND CASH EQUIVALENTS - END OF PERIOD                          712                  3,182
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
Cash and cash equivalents comprised of:                             
Cash                                                                            601                    389
Short-term investments                                                          111                  2,793
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
                                                             712                  3,182
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------
SUPPLEMENTAL CASH FLOWS INFORMATION                                 
Interest paid                                                                    76                     96
Income taxes paid                                                                39                     35
Total cash outflow for leases                                                    97                     92
------------------------------------------------------------ -------------------- -------------------- -------------------- --------------------

Condensed Consolidated Statements of Changes in Shareholders' Equity

Accumulated Other Comprehensive (Loss) Income ("AOCI")                                                                                   
                                                                                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Net                            
                                                 Actuarial                Loss on                             Equity        
                                                           Net Fair Value                Gain on               Currency                            Holders                   Non-    
                                 Number of                    (Loss) Gain                Defined            Translation                                 of            Controlling    
                                    Common                  Share                               Contributed                     on                Benefit             of Foreign                      Total               Retained                Nutrien               Interest                  Total
                                    Shares                Capital                Surplus            Investments              Plans (1)             Operations                  Other                   AOCI               Earnings               (Note 1)               (Note 1)                 Equity
---------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
BALANCE - DECEMBER 31, 2019          572,942,809                 15,771                    248                   (29)                      -                  (204)                   (18)                  (251)                  7,101                 22,869                     38                 22,907
Net loss                                                    -                      -                      -                      -                      -                      -                      -                      -                   (35)                   (35)                      -                   (35)
Other comprehensive (loss) income                           -                      -                      -                   (19)                      3                  (315)                   (27)                  (358)                      -                  (358)                      -                  (358)
Shares repurchased (Note 7)                       (3,832,580)                  (105)                   (55)                      -                      -                      -                      -                      -                      -                  (160)                      -                  (160)
Dividends declared                                          -                      -                      -                      -                      -                      -                      -                      -                  (254)                  (254)                      -                  (254)
Effect of share-based                                                                 
                                                                                      
  compensation including
                                                       35,706                      1                      4                      -                      -                      -                      -                      -                      -                      5                      -                      5
  issuance of common shares
Transfer of net loss on                                                               
                                                            -                      -                      -                      -                      -                      -                      5                      5                      -                      5                      -                      5
  cash flow hedges
Transfer of net actuarial gain                                                        
                                                            -                      -                      -                      -                    (3)                      -                      -                    (3)                      3                      -                      -                      -
  on defined benefit plans
---------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
BALANCE - MARCH 31, 2020             569,145,935                 15,667                    197                   (48)                      -                  (519)                   (40)                  (607)                  6,815                 22,072                     38                 22,110
---------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
BALANCE - DECEMBER 31, 2020          569,260,406                 15,673                    205                   (36)                      -                   (62)                   (21)                  (119)                  6,606                 22,365                     38                 22,403
Net earnings                                                -                      -                      -                      -                      -                      -                      -                      -                    127                    127                      6                    133
Other comprehensive income (loss)                           -                      -                      -                     48                      -                   (30)                      6                     24                      -                     24                      -                     24
Shares repurchased (Note 7)                          (14,978)                    (1)                      -                      -                      -                      -                      -                      -                      -                    (1)                      -                    (1)
Dividends declared                                          -                      -                      -                      -                      -                      -                      -                      -                  (262)                  (262)                      -                  (262)
Dividends of non-controlling interest                       -                      -                      -                      -                      -                      -                      -                      -                      -                      -                    (1)                    (1)
Non-controlling interest transactions                       -                      -                      -                      -                      -                      -                      -                      -                      -                      -                    (1)                    (1)
Effect of share-based                                                                 
                                                                                      
  compensation including
                                                      965,744                     50                    (3)                      -                      -                      -                      -                      -                      -                     47                      -                     47
  issuance of common shares
Transfer of net gain on                                                               
                                                            -                      -                      -                      -                      -                      -                    (3)                    (3)                      -                    (3)                      -                    (3)
  cash flow hedges
---------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
BALANCE - MARCH 31, 2021             570,211,172                 15,722                    202                     12                      -                   (92)                   (18)                   (98)                  6,471                 22,297                     42                 22,339
---------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
1 Any amounts incurred during a period were transferred to retained earnings at each period-end. Therefore, no balance exists at the beginning or end of period.

Condensed Consolidated Balance Sheets

March 31                                       December 31
                                                                                           ------------------------------------------------------------                        --------------------
As at                                                                 Note                                 2021                   2020                   2020
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
                                                                       Note 1                 Note 1
ASSETS                                                                           
Current assets                                                                   
                                                                                         712                  3,182                  1,454
   Cash and cash equivalents
                                                                                       4,230                  3,837                  3,581
   Receivables
                                                                                       6,714                  6,290                  4,930
   Inventories
                                                                                         819                    716                  1,505
   Prepaid expenses and other current assets
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
                                                                                      12,475                 14,025                 11,470
    
Non-current assets                                                               
                                                                                      19,451                 20,209                 19,660
   Property, plant and equipment
                                                                                      12,199                 11,893                 12,198
   Goodwill
                                                                                       2,460                  2,379                  2,388
   Other intangible assets
                                                                                         630                    810                    562
   Investments
                                                                                         678                    552                    914
   Other assets
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
TOTAL ASSETS                                                                          47,893                 49,868                 47,192
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
LIABILITIES                                                                      
                                                                                 
   Current liabilities
                                                                                         252                  5,498                    159
   Short-term debt
                                                                                          14                      -                     14
   Current portion of long-term debt
                                                                                         260                    221                    249
   Current portion of lease liabilities
                                                                                       8,742                  7,362                  8,058
   Payables and accrued charges
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
                                                                                       9,268                 13,081                  8,480
    
Non-current liabilities                                                          
                                                                                      10,040                  8,544                 10,047
   Long-term debt
                                                                                         876                    848                    891
   Lease liabilities
                                                                                         5                3,168                  3,130                  3,149
   Deferred income tax liabilities
                                                                                         456                    426                    454
   Pension and other post-retirement benefit liabilities
                                                                                       1,610                  1,620                  1,597
   Asset retirement obligations and accrued environmental costs
                                                                                         136                    109                    171
   Other non-current liabilities
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
TOTAL LIABILITIES                                                                     25,554                 27,758                 24,789
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
SHAREHOLDERS' EQUITY                                  
                                                                                         7               15,722                 15,667                 15,673
   Share capital
                                                                                         202                    197                    205
   Contributed surplus
                                                                                        (98)                  (607)                  (119)
   Accumulated other comprehensive loss
                                                                                       6,471                  6,815                  6,606
   Retained earnings
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
                                                                                      22,297                 22,072                 22,365
   Equity holders of Nutrien
                                                                                          42                     38                     38
   Non-controlling interest
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
TOTAL SHAREHOLDERS' EQUITY                                 22,339                 22,110                 22,403
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                 47,893                 49,868                 47,192
--------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      --------------------

Notes to the Condensed Consolidated Financial Statements

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

NOTE 1 BASIS OF PRESENTATION

Nutrien Ltd. (collectively with its subsidiaries, known as "Nutrien", "we", "us", "our" or "the Company") is the world's largest provider of crop inputs and services. Nutrien plays a critical role in helping growers around the globe increase food production in a sustainable manner.

These unaudited interim condensed consolidated financial statements ("interim financial statements") are based on International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting". The accounting policies and methods of computation used in preparing these interim financial statements are consistent with those used in the preparation of our 2020 annual consolidated financial statements. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with our 2020 annual consolidated financial statements. In April 2021, the IFRS Interpretations Committee published a final agenda decision clarifying how to recognize certain configuration and customization expenditures related to cloud computing. We are currently evaluating the impact of this agenda decision; however, we do not anticipate it will have a material impact on our financial statements. We expect to implement the change in 2021.

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

In management's opinion, the interim financial statements include all adjustments necessary to fairly present such information in all material respects. Interim results are not necessarily indicative of the results expected for any other interim period or the fiscal year.

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

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

NOTE 2 SEGMENT INFORMATION

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

Three Months Ended March 31, 2021
                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                            Corporate        
                               Retail                 Potash               Nitrogen              Phosphate             and Others           Eliminations           Consolidated
-------------------------- --------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Sales                      - third party                 2,960                    631                    695                    372                      -                      -                  4,658
        - intersegment                   12                     90                    160                     72                      -                  (334)                      -
-------------------------- --------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Sales                      - total                       2,972                    721                    855                    444                      -                  (334)                  4,658
Freight, transportation and distribution                                  -                    110                     95                     59                      -                   (53)                    211
-----------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net sales                                                             2,972                    611                    760                    385                      -                  (281)                  4,447
Cost of goods sold                                                    2,320                    291                    610                    319                      -                  (249)                  3,291
-----------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Gross margin                                                            652                    320                    150                     66                      -                   (32)                  1,156
Selling expenses                                                        667                      3                      7                      2                    (6)                      -                    673
General and administrative expenses                                      39                      2                      2                      2                     58                      -                    103
Provincial mining taxes                                                   -                     58                      -                      -                      -                      -                     58
Share-based compensation expense                                          -                      -                      -                      -                     23                      -                     23
Other expenses (income)                                                  15                      1                   (26)                      3                     28                      -                     21
-----------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(Loss) earnings before finance costs and income taxes                  (69)                    256                    167                     59                  (103)                   (32)                    278
Depreciation and amortization                                           177                    124                    129                     38                     12                      -                    480
-----------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
EBITDA                                                                  108                    380                    296                     97                   (91)                   (32)                    758
Integration and restructuring related costs                               1                      -                      -                      -                      9                      -                     10
Share-based compensation expense                                          -                      -                      -                      -                     23                      -                     23
Impairment of assets                                                      -                      -                      4                      -                      -                      -                      4
COVID-19 related expenses                                                 -                      -                      -                      -                      9                      -                      9
Foreign exchange loss, net of                                                   
                                                                          -                      -                      -                      -                      2                      -                      2
  related derivatives
-----------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted EBITDA                                                         109                    380                    300                     97                   (48)                   (32)                    806
-----------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Three Months Ended March 31, 2020
                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Corporate        
                                          Retail                 Potash               Nitrogen              Phosphate             and Others           Eliminations           Consolidated
-------------------------------- -------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Sales                            - third party                      2,652                    547                    646                    326                     27                      -                  4,198
              - intersegment                         9                     64                    132                     57                      -                  (262)                      -
-------------------------------- -------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Sales                            - total                            2,661                    611                    778                    383                     27                  (262)                  4,198
Freight, transportation and distribution                                             -                     94                    100                     70                      -                   (52)                    212
----------------------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net sales                                                                        2,661                    517                    678                    313                     27                  (210)                  3,986
Cost of goods sold                                                               2,120                    265                    581                    320                     25                  (210)                  3,101
----------------------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Gross margin                                                                       541                    252                     97                    (7)                      2                      -                    885
Selling expenses                                                                   635                      3                      7                      2                    (5)                      -                    642
General and administrative expenses                                                 38                      2                      2                      2                     60                      -                    104
Provincial mining taxes                                                              -                     57                      -                      -                      -                      -                     57
Share-based compensation recovery                                                    -                      -                      -                      -                   (32)                      -                   (32)
Other expenses                                                                      16                      1                      2                      6                      7                      -                     32
----------------------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(Loss) earnings before finance costs and income taxes                            (148)                    189                     86                   (17)                   (28)                      -                     82
Depreciation and amortization                                                      155                     96                    150                     63                      9                      -                    473
----------------------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
EBITDA                                                                               7                    285                    236                     46                   (19)                      -                    555
Integration and restructuring related costs                                          -                      -                      -                      -                     10                      -                     10
Share-based compensation recovery                                                    -                      -                      -                      -                   (32)                      -                   (32)
COVID-19 related expenses                                                            -                      -                      -                      -                      2                      -                      2
Foreign exchange gain, net of                                                              
                                                                                     -                      -                      -                      -                   (27)                      -                   (27)
  related derivatives
----------------------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjusted EBITDA                                                                      7                    285                    236                     46                   (66)                      -                    508
----------------------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Assets - at December 31, 2020 (1)               20,526                 11,707                 10,077                  1,388                  3,917                  (423)                 47,192
----------------------------------------------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

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

Three Months Ended
                                                           March 31
                                          ------------------------------------------------------------------------------
                                             2021                               2020
----------------------------------------- -------------------------- -------------------------- --------------------------
Retail sales by product line                               
                                                               1,016                                785
   Crop nutrients
                                                               1,085                              1,010
   Crop protection products
                                                                 463                                394
   Seed
                                                                 230                                216
   Merchandise
                                                                  25                                 16
   Nutrien Financial
                                                                 173                                255
   Services and other
                                                                (20)                               (15)
   Nutrien Financial elimination (1)
----------------------------------------- -------------------------- -------------------------- --------------------------
                                                               2,972                              2,661
    
----------------------------------------- -------------------------- -------------------------- --------------------------
Potash sales by geography                                  
                                                           
   Manufactured product
                                                                 442                                319
       North America
                                                                 279                                292
       Offshore (2)
----------------------------------------- -------------------------- -------------------------- --------------------------
                                                                 721                                611
    
----------------------------------------- -------------------------- -------------------------- --------------------------
Nitrogen sales by product line                             
                                                           
   Manufactured product
                                                                 188                                156
       Ammonia
                                                                 274                                262
       Urea
                                                                 197                                196
       Solutions, nitrates and sulfates
                                                                 196                                164
   Other nitrogen and purchased products
----------------------------------------- -------------------------- -------------------------- --------------------------
                                                                 855                                778
    
----------------------------------------- -------------------------- -------------------------- --------------------------
Phosphate sales by product line                            
                                                           
   Manufactured product
                                                                 272                                221
       Fertilizer
                                                                 126                                120
       Industrial and feed
                                                                  46                                 42
   Other phosphate and purchased products
----------------------------------------- -------------------------- -------------------------- --------------------------
                                              444                                383
----------------------------------------- -------------------------- -------------------------- --------------------------
1 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

NOTE 3 SHARE-BASED COMPENSATION

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

Three Months Ended
                                                                March 31
                                                        ------------------------------------------------------------
                                                     2021                   2020
------------------------------------------------------- -------------------- -------------------- --------------------
Stock options:                                               
                                                                   1,518,490              2,293,802
    Granted (number of units)
                                                                       11.77                   7.18
    Weighted average grant date fair value (US dollars)

NOTE 4 OTHER (INCOME) EXPENSES

Three Months Ended
                                                   March 31
                                                         --------------------------------
                                        2021     2020
-------------------------------------------------------- ------ -------------------- ------
Integration and restructuring related costs                  10       10
Foreign exchange loss (gain), net of related derivatives      2     (31)
Earnings of equity-accounted investees                     (20)     (10)
Bad debt expense                                              2        6
COVID-19 related expenses                                     9        2
Impairment of assets                                          4        -
Other expenses                                               14       55
-------------------------------------------------------- ------ -------------------- ------

NOTE 5 INCOME TAXES

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

Three Months Ended
                                                 March 31
                                                       --------------------------------
                                      2021     2020
------------------------------------------------------ ------ -------------------- ------
Income tax expense (recovery)                              25     (16)
Actual effective tax rate on earnings/loss (%)             16       37
Actual effective tax rate including discrete items (%)     16       32

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

Income Tax Assets and Liabilities Balance Sheet Location          As at March 31, 2021   As at December 31, 2020
--------------------------------- ------------------------------- -------------------- -------------------- -----------------------
Income tax assets                                   
                                  Receivables                                      373                        83
    Current
                                  Other assets                                      89                       305
    Non-current
Deferred income tax assets        Other assets                                     249                       242
--------------------------------- ------------------------------- -------------------- -------------------- -----------------------
Total income tax assets                                         711                       630
--------------------------------- ------------------------------- -------------------- -------------------- -----------------------
Income tax liabilities                              
                                  Payables and accrued charges                      79                        48
    Current
                                  Other non-current liabilities                     42                        40
    Non-current
Deferred income tax liabilities   Deferred income tax liabilities                3,168                     3,149
--------------------------------- ------------------------------- -------------------- -------------------- -----------------------

NOTE 6 FINANCIAL INSTRUMENTS

Fair Value

Estimated fair values for financial instruments are designed to approximate amounts for which the instruments could be exchanged in a current arm's-length transaction between knowledgeable, willing parties. The valuation policies and procedures for financial reporting purposes are determined by our finance department. There have been no changes to our valuation methods presented in Note 10 of the 2020 annual consolidated financial statements and those valuation methods have been applied in these interim financial statements.

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

March 31, 2021                                                                                                                 December 31, 2020
                                           --------------------------------------------------------------------------------------------------------------------------------------------       -------------------- ----------------------------------------------------------------------------------------------------
                                    Carrying                           Carrying        
Financial assets (liabilities) measured at               Amount            Level 1 (1)            Level 2 (1)                Level 3                 Amount            Level 1 (1)            Level 2 (1)
------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Fair value on a recurring basis                                     
                                                            712                      -                    712                      -                  1,454                      -                  1,454
    Cash and cash equivalents
                                                             41                      -                     41                      -                     45                      -                     45
    Derivative instrument assets
                                                            166                     24                    142                      -                    161                     24                    137
    Other current financial assets
    - marketable securities (2)
                                                            211                    201                      -                     10                    153                    153                      -
    Investments at FVTOCI (3)
                                                           (43)                      -                   (43)                      -                   (48)                      -                   (48)
    Derivative instrument liabilities
Amortized cost                                                      
                                                                    
    Current portion of long-term debt
                                                           (14)                      -                   (14)                      -                   (14)                      -                   (14)
       Fixed and floating rate debt
                                                                    
    Long-term debt
                                                        (9,991)                (7,994)                (3,177)                      -                (9,994)                (3,801)                (7,955)
       Notes and debentures
                                                           (49)                      -                   (49)                      -                   (53)                      -                   (53)
       Fixed and floating rate debt
------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
1 During the periods ended March 31, 2021 and December 31, 2020, there were no transfers between Level 1 and Level 2 for financial instruments measured at fair value on a recurring basis.
2 Marketable securities consist of equity and fixed income securities. We determine the fair value of equity securities based on the bid price of identical instruments in active markets. We value fixed income securities using quoted prices of instruments with similar terms and credit risk.

NOTE 7 SHARE CAPITAL

Share repurchase programs

Maximum          Maximum     Number of
                       Commencement       Shares for       Shares for        Shares
                               Date                 Expiry   Repurchase   Repurchase (%)   Repurchased
--------------------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------- -------------------- -----------
2019 Normal Course Issuer Bid        February 27, 2019      February 26, 2020   42,164,420                7    33,256,668
2020 Normal Course Issuer Bid        February 27, 2020      February 26, 2021   28,572,458                5       710,100
2021 Normal Course Issuer Bid (1)        March 1, 2021      February 28, 2022   28,468,448                5        14,978
--------------------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------- -------------------- -----------

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

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

Three Months Ended
                                                 March 31
                                                     -----------------------------------
                                    2021        2020
---------------------------------------------------- ------ -------------------- ---------
Number of common shares repurchased for cancellation 14,978   3,832,580
Average price per share (US dollars)                  52.93       41.96

Dividends declared

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

Anti-dilutive shares

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

NOTE 8 SEASONALITY

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

NOTE 9 RELATED PARTY TRANSACTIONS

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

As at March 31, 2021   December 31, 2020
----- -------------- -------------------- -----------------

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

SOURCE: Nutrien Ltd.

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

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

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