Nutrien Delivers Record Results and Expects Continued Growth in 2022

 

Nutrien Ltd. (TSX and NYSE: NTR) announced today its fourth quarter 2021 results, with net earnings of $1.2 billion ($2.11 diluted net earnings per share). Fourth-quarter adjusted net earnings¹ were $2.47 per share and adjusted EBITDA¹ was $2.5 billion.

“The advantages of Nutrien’s integrated business were demonstrated in 2021 as we delivered record financial results³ and made significant progress on our long-term strategic targets, including our key sustainability priorities. We utilized the scale and reliability of our world-class supply chain and the strong execution of our teams to ensure customers had the products and services they needed, when they needed them,” commented Ken Seitz, Nutrien’s Interim President and CEO.

“The outlook for global agriculture and crop input markets is very strong and we are well positioned to deliver significant growth in earnings and free cash flow in 2022. We will continue to advance our strategic priorities and maintain a disciplined approach to deploying capital, using our strong financial position to grow the business and return significant cash to shareholders,” added Mr. Seitz.

Highlights:

• Nutrien generated net earnings of $1.2 billion and record adjusted EBITDA of $2.5 billion in the fourth quarter while generating $3.2 billion of net earnings ($5.52 diluted net earnings per share) and record adjusted EBITDA of $7.1 billion ($6.23 adjusted net earnings per share) for the full year of 2021. Cash flow provided by operating activities in the full year was $3.9 billion.

• We prioritized the use of cash in 2021 to strengthen and reposition the balance sheet, reducing our long-term debt by $2.1 billion. We deployed $2.1 billion to dividends and share repurchases in 2021 repurchasing 15 million shares during the year under our normal course issuer bid (NCIB). To date, we have repurchased over 22 million shares under our NCIB program. Nutrien’s Board of Directors approved an increase in the quarterly dividend to $0.48 per share and approved the purchase of up to 10 percent of Nutrien’s outstanding common shares over a one-year period through a NCIB. The NCIB is subject to acceptance by the Toronto Stock Exchange.

• Nutrien issued full-year 2022 adjusted EBITDA and adjusted net earnings per share guidance¹ of $10.0 to $11.2 billion and $10.20 to $11.80 per share. Adjusted net earnings per share guidance includes our plans to allocate a minimum of $2 billion to share repurchases in 2022 on a balanced cadence throughout the year.

• Nutrien Ag Solutions (“Retail”) delivered record adjusted EBITDA in the fourth quarter and surpassed $1.9 billion for the full year of 2021. We exceeded nearly all of our 2023 strategic targets including a record 10.9 percent Retail adjusted EBITDA margin² and increased our proprietary product related gross margin to more than $1 billion in 2021, an increase of 22 percent.

• The reliability and efficiency of our global supply chain and strategic procurement helped drive our Retail normalized comparable store sales¹ to 7 percent and Retail adjusted EBITDA per US selling location² to $1.5 million during 2021. We closed 14 acquisitions during the year and increased our Retail digital platform sales² to $2.1 billion.

• Potash adjusted EBITDA surpassed $1 billion in the fourth quarter and increased 130 percent in the full year of 2021 to $2.7 billion. We achieved record sales volumes of 13.6 million tonnes in 2021 due to our capability to quickly ramp up production from our flexible, low-cost network of six mines. We progressed our Potash Next Generation initiatives and produced 1 million tonnes in 2021 using tele-remote and autonomous mining techniques.

• Nitrogen adjusted EBITDA was $921 million in the fourth quarter of 2021 and increased 114 percent to $2.3 billion in the full year of 2021. We completed our phase 1 brownfield expansion projects on time and on budget, launched a second phase of projects and progressed decarbonization initiatives.

• Phosphate adjusted EBITDA was $196 million in the fourth quarter of 2021 and increased 133 percent to $540 million in the full year 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.

2 This is a supplementary financial measure. See the “Other Financial Measures” section for further information.

3 Net earnings from continuing operations.

Market Outlook

Agriculture and Retail

• Global inventory for key grains and oilseeds remains historically low due to a combination of weather-related events and strong demand fueled by a greater focus on global food security and recovering feed and bio-energy related markets.
• Corn and soybean prices in the US and Brazil remain very strong and prospective crop margins are well above the 10-year average. We expect this will incentivize growers to invest in their crops.
• US growers experienced favorable fall weather conditions that combined with strong crop economics, supported a second consecutive year of strong fall fertilizer application. We expect overall planted area of major crops to be similar to 2021 levels, with corn and soybean acreage in the range of 91 to 93 million and 87 to 89 million, respectively.
• Growers in Brazil planted an additional 4 million acres of soybeans which was a second consecutive year of record planting. However, yields have been impacted by drought conditions in major growing regions. We expect strong crop economics will support total Brazilian planted acreage and crop input demand in 2022. Australian growers continue to experience favorable weather conditions and harvested record wheat production.
• Nutrien is well-positioned on fertilizer and crop protection product inventory to begin the North American planting season. Our Retail adjusted EBITDA guidance assumes there was some pull forward of fertilizer sales volumes due to the strong fall season in North America and that Retail fertilizer margins return to historical average levels after increasing in 2021 due to strategic procurement in a rising price environment.

Crop Nutrient Markets

• Global potash prices increased in response to record global demand of 70 million in 2021 and tightness of supply due to competitor mine flooding, new project delays and uncertainty around sanctions imposed on Belarus by the US and Europe. We believe that many of these supply issues will continue into 2022, including additional restrictions imposed on Belarus potash transported through Lithuania. We estimate 2022 global shipments in a range of 68 to 71 million tonnes.
• Nutrien expects record potash sales volumes between 13.7 to 14.3 million tonnes in 2022. This forecast assumes sanctions on Belarus have a temporary impact on global supply. If there was a more significant long-term impact on global supply, Nutrien has the capability to further ramp up production by hiring additional employees and incurring some small incremental capital expenditures.
• Nitrogen prices have been supported by strong demand, soaring energy prices in Europe, and government restrictions and geopolitical risks in key export markets. Global urea prices softened in early 2022 during a seasonally slow period, however, ammonia and nitrates prices continue to strengthen due to supply side constraints. North American natural gas prices increased in early 2022 but we expect Henry Hub prices to average between $3.75 and $4.25 per MMBtu in 2022, well below import pricing levels in Europe and Asia.
• We expect to increase Nitrogen sales volumes to 10.8 to 11.3 million tonnes in 2022 with the completion of Phase 1 brownfield expansion projects in 2021 and higher anticipated operating rates.
• Phosphate prices have been supported by the expected reduction in supply from China due to export restrictions and elevated raw material input cost. This is compounded by tight inventories in key import markets such as India.

Financial Outlook and Guidance

Based on market factors detailed above, we are issuing full-year 2022 adjusted EBITDA guidance of $10.0 to $11.2 billion and full-year 2022 adjusted net earnings guidance of $10.20 to $11.80 per share. Adjusted net earnings per share guidance includes our plans to allocate a minimum of $2 billion to share repurchases in 2022 on a balanced cadence throughout the year.

All guidance numbers, including those noted above and related sensitives are outlined in the tales below.

2022 Guidance Ranges 1		Low				High
Adjusted net earnings per share 2	$	10.20			$	11.80
Adjusted EBITDA (billions) 2	$	10.0			$	11.2
Retail Adjusted EBITDA (billions)	$	1.7			$	1.8
Potash Adjusted EBITDA (billions)	$	5.0			$	5.5
Nitrogen Adjusted EBITDA (billions)	$	3.2			$	3.6
Phosphate Adjusted EBITDA (millions)	$	500			$	600
Potash sales tonnes (millions) 3		13.7				14.3
Nitrogen sales tonnes (millions) 3		10.8				11.3
Depreciation and amortization (billions)	$	2.0			$	2.1
Effective tax rate on adjusted earnings		25	%			26	%
Sustaining capital expenditures (billions) 4	$	1.2			$	1.3

	Impact to
		Adjusted			Adjusted
2022 Annual Assumptions & Sensitivities 1		EBITDA			EPS 5
$1/MMBtu change in NYMEX 6	$	180		$	0.25
$25/tonne change in realized potash selling prices	$	290		$	0.40
$25/tonne change in realized ammonia selling prices	$	50		$	0.07
$25/tonne change in realized urea selling prices	$	80		$	0.11
2022 FX Rate CAD to USD		1.26
2022 NYMEX natural gas ($US/MMBtu)		~$ 4.00
1 See the “Forward-Looking Statements” section. 2 This is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section. 3 Manufactured products only. Nitrogen excludes ESN® products. 4 This is a supplementary financial measure. See the Refer to “Other Financial Measures” section for further information. 5 Assumes 546 million shares outstanding. 6 Nitrogen related impact.

Consolidated Results

	Three Months Ended December 31						Twelve Months Ended December 31
(millions of US dollars)	2021		2020		% Change		2021		2020		% Change
Sales	7,267		4,052		79		27,712		20,908		33
Freight, transportation and distribution	198		202		(2)		851		855		‐
Cost of goods sold	3,863		2,685		44		17,452		14,814		18
Gross margin	3,206		1,165		175		9,409		5,239		80
Expenses	1,379		762		81		4,628		4,337		7
Net earnings	1,207		316		282		3,179		459		593
Adjusted EBITDA 1	2,463		768		221		7,126		3,667		94
Diluted net earnings per share	2.11		0.55		284		5.52		0.81		581
Adjusted net earnings per share 1	2.47		0.24		929		6.23		1.80		246
Cash provided by operating activities	3,637		2,778		31		3,886		3,323		17
Free cash flow 1	1,549		196		690		4,300		1,830		135
Free cash flow including changes in non-cash operating working capital 1	3,183		2,370		34		2,639		2,404		10
1 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

Net earnings and adjusted EBITDA increased significantly in the fourth quarter and full year of 2021 compared to the same periods in 2020. This was due to higher net realized selling prices across our nutrient businesses, higher potash sales volumes, strong organic and proprietary product sales growth in Retail. In 2020, we recorded a non-cash impairment of $824 million primarily related to our Phosphate business and a gain of $250 million realized in the fourth quarter of 2020 related to the Misr Fertilizers Production Company S.A.E. (“MOPCO”) divestment with no similar transactions in 2021. Cash flow provided by operating activities increased in the fourth quarter and full year of 2021 compared to the same periods in 2020 due primarily to higher net earnings. The COVID-19 pandemic had a limited impact on our results during the fourth quarter and full year of 2021.

Segment Results

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

Nutrien Ag Solutions (“Retail”)

	Three Months Ended December 31
(millions of US dollars, except	Dollars						Gross Margin						Gross Margin (%)
as otherwise noted)	2021		2020		% Change		2021		2020		% Change		2021		2020
Sales
Crop nutrients	2,035		1,108		84		428		236		81		21		21
Crop protection products	1,113		828		34		414		343		21		37		41
Seed	189		152		24		57		58		(2)		30		38
Merchandise	270		240		13		45		41		10		17		17
Nutrien Financial	51		37		38		51		37		38		100		100
Services and other	267		290		(8)		225		207		9		84		71
Nutrien Financial elimination 1	(47)		(37)		27		(47)		(37)		27		100		100
	3,878		2,618		48		1,173		885		33		30		34
Cost of goods sold	2,705		1,733		56
Gross margin	1,173		885		33
Expenses 2	911		768		19
Earnings before finance costs and taxes ("EBIT")	262		117		124
Depreciation and amortization	178		180		(1)
EBITDA	440		297		48
Adjustments 3	2		‐		n/m
Adjusted EBITDA	442		297		49
1 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.
2 Includes selling expenses of $848 million (2020 – $727 million).
3 See Note 2 to the unaudited condensed consolidated financial statements.

	Twelve Months Ended December 31
(millions of US dollars, except	Dollars						Gross Margin						Gross Margin (%)
as otherwise noted)	2021		2020		% Change		2021		2020		% Change		2021		2020
Sales
Crop nutrients	7,290		5,200		40		1,597		1,130		41		22		22
Crop protection products	6,333		5,602		13		1,551		1,303		19		24		23
Seed	2,008		1,790		12		419		363		15		21		20
Merchandise	1,033		943		10		172		157		10		17		17
Nutrien Financial	189		129		47		189		129		47		100		100
Services and other	1,051		1,241		(15)		842		774		9		80		62
Nutrien Financial elimination	(170)		(120)		42		(170)		(120)		42		100		100
	17,734		14,785		20		4,600		3,736		23		26		25
Cost of goods sold	13,134		11,049		19
Gross margin	4,600		3,736		23
Expenses 1	3,378		2,974		14
EBIT	1,222		762		60
Depreciation and amortization	706		668		6
EBITDA	1,928		1,430		35
Adjustments 2	11		‐		n/m
Adjusted EBITDA	1,939		1,430		36
1 Includes selling expenses of $3,124 million (2020 – $2,795 million).
2 See Note 2 to the unaudited condensed consolidated financial statements.

• Adjusted EBITDA increased in the fourth quarter and full year of 2021 due to increased sales and gross margin achieved through market share growth, strong agriculture fundamentals and expansion in South America. Gross margin increases were supported by strategic procurement of crop nutrients and crop protection products in a rising price environment and a 22 percent increase in proprietary product related gross margin. Retail cash operating coverage ratio¹ declined to 58 percent in 2021 due to significantly higher gross margin.
• Crop nutrients sales increased in the fourth quarter and full year of 2021 due to record sales volumes and higher selling prices. Gross margin per tonne increased by $31 per tonne in 2021 due to strategic purchasing in a rising price environment and higher proprietary product sales.
• Crop protection products sales increased in the fourth quarter and full year of 2021 due to market share growth, higher prices and increased proprietary product sales across all geographies, especially in Australia where uptake by customers was exceptional. The reliability of our supply chain, growth in proprietary product contribution and strategic procurement supports our ability to deliver on strong grower demand throughout the year.
• Seed sales increased in the fourth quarter primarily due to significant organic growth achieved in South America and Australia following recent expansion initiatives and acquisitions. Gross margin percentage decreased in the fourth quarter due to the timing and mix of seed sales in the US. Seed sales for the full year of 2021 increased in all key regions where we operate due to higher planted acreage, higher prices and significant organic growth in South America. Gross margin percentage for 2021 increased due to price increases, including from our proprietary product.
• Merchandise sales increased in the fourth quarter and full year of 2021 primarily driven by strong grower and rancher purchasing in Australia.
• Nutrien Financial sales increased in the fourth quarter and full year of 2021 due to higher utilization and adoption of our programs. At the end of the fourth quarter of 2021 net receivables in the programs were $2.2 billion, an increase of $0.8 billion compared to the same period in 2020, while credit loss was minimal in 2021 and 2020 due to strong credit evaluation and collection as well as favorable market conditions this past year.
• Services and other sales decreased in the fourth quarter and full year of 2021 compared to the same periods in 2020 due to the divestiture of an Australian livestock export business in the fourth quarter of 2020, which more than offset increases in other Australian services and higher US custom application sales. Despite the change in revenue mix, gross margin increased and the impact to gross margin percentage was favorable for both the fourth quarter and full year of 2021.

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

Potash

	Three Months Ended December 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
North America	497		199		150		1,002		1,041		(4)		494		192		157
Offshore	923		251		268		2,054		1,613		27		450		156		188
	1,420		450		216		3,056		2,654		15		465		170		174
Cost of goods sold	305		305		‐								100		116		(14)
Gross margin – total	1,115		145		669								365		54		576
Expenses 1	179		49		265		Depreciation and amortization						38		46		(17)
EBIT	936		96		875		Gross margin excluding depreciation
Depreciation and amortization	117		123		(5)		and amortization – manufactured 3						403		100		302
EBITDA	1,053		219		381		Potash cash cost of product
Adjustments 2	‐		1		(100)		manufactured 3						70		71		(1)
Adjusted EBITDA	1,053		220		379
1 Includes provincial mining taxes of $173 million (2020 – $40 million).
2 See Note 2 to the unaudited condensed consolidated financial statements.
3 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

	Twelve Months Ended December 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
North America	1,638		908		80		5,159		4,815		7		317		189		68
Offshore	2,398		1,238		94		8,466		8,009		6		283		155		83
	4,036		2,146		88		13,625		12,824		6		296		167		77
Cost of goods sold	1,285		1,183		9								94		92		2
Gross margin – total	2,751		963		186								202		75		169
Expenses 1	512		248		106		Depreciation and amortization						36		35		2
EBIT	2,239		715		213		Gross margin excluding depreciation
Depreciation and amortization	488		452		8		and amortization – manufactured						238		110		116
EBITDA	2,727		1,167		134		Potash cash cost of product
Adjustments 2	9		23		(61)		manufactured						63		59		7
Adjusted EBITDA	2,736		1,190		130
1 Includes provincial mining taxes of $466 million (2020 – $201 million).
2 See Note 2 to the unaudited condensed consolidated financial statements.

• Adjusted EBITDA increased in the fourth quarter and full year of 2021 due to higher net realized selling prices and record sales volumes attributed to our ability to increase production by nearly 1 million tonnes.
• Sales volumes were a record for the fourth quarter as we surged production to meet strong global demand and very tight global supply. We achieved this despite weather-related issues that temporarily impacted rail deliveries. North America and Offshore sales volumes in the full year of 2021 were the highest on record underpinned by the reliable supply from our flexible, low-cost network of six mines and integrated transportation and logistics system.
• Net realized selling price increased in the fourth quarter and full year of 2021 due to strong global demand supported by higher crop prices, impacts to global supply caused by competitor outages and project delays as well as uncertainty regarding future sanctions on Belarus.
• Cost of goods sold per tonne decreased in the fourth quarter due to lower depreciation and amortization compared to the same period of 2020 that was caused by production mix and timing of maintenance projects. Cost of goods sold per tonne increased for the full year of 2021 primarily due to higher royalties resulting from increased selling prices, a stronger Canadian dollar and cost inflation for energy and other inputs.

Canpotex Sales by Market

(percentage of sales volumes, except as	Three Months Ended December 31				Twelve Months Ended December 31
otherwise noted)	2021	2020	Change		2021	2020	Change
Latin America	37	31	6		38	32	6
Other Asian markets 1	34	24	10		35	25	10
China	12	21	(9)		11	22	(11)
Other markets	11	7	4		10	7	3
India	6	17	(11)		6	14	(8)
	100	100			100	100
1 All Asian markets except China and India.

Nitrogen

	Three Months Ended December 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
Ammonia	519		157		231		790		730		8		656		216		204
Urea	552		230		140		824		853		(3)		670		270		148
Solutions, nitrates and sulfates	385		168		129		1,221		1,262		(3)		316		133		138
	1,456		555		162		2,835		2,845		‐		514		195		164
Cost of goods sold	725		460		58								256		162		58
Gross margin – manufactured	731		95		669								258		33		682
Gross margin – other 1	23		17		35		Depreciation and amortization						52		51		2
Gross margin – total	754		112		573		Gross margin excluding depreciation
Income	(2)		(254)		(99)		and amortization – manufactured 3						310		84		268
EBIT	756		366		107		Ammonia controllable cash cost of
Depreciation and amortization	148		146		1		product manufactured 3						45		40		13
EBITDA	904		512		77
Adjustments 2	17		(246)		n/m
Adjusted EBITDA	921		266		246
1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and comprises net sales of $193 million (2020 – $114 million) less cost of goods sold of $170 million (2020 – $97 million).
2 See Note 2 to unaudited condensed consolidated financial statements.
3 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

	Twelve Months Ended December 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
Ammonia	1,393		621		124		2,919		2,778		5		477		224		113
Urea	1,463		933		57		3,059		3,475		(12)		478		268		78
Solutions, nitrates and sulfates	1,128		668		69		4,747		4,713		1		238		142		68
	3,984		2,222		79		10,725		10,966		(2)		371		203		83
Cost of goods sold	2,353		1,804		30								219		165		33
Gross margin - manufactured	1,631		418		290								152		38		300
Gross margin – other 1	95		57		67		Depreciation and amortization						52		55		(5)
Gross margin – total	1,726		475		263		Gross margin excluding depreciation
Income	(3)		(225)		(99)		and amortization – manufactured						204		93		120
EBIT	1,729		700		147		Ammonia controllable cash cost of
Depreciation and amortization	557		599		(7)		product manufactured						50		43		16
EBITDA	2,286		1,299		76
Adjustments 2	22		(219)		n/m
Adjusted EBITDA	2,308		1,080		114
1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and comprises net sales of $705 million (2020 – $518 million) less cost of goods sold of $610 million (2020 – $461 million).
2 See Note 2 to unaudited condensed consolidated financial statements.

• Adjusted EBITDA increased in the fourth quarter and full year of 2021 primarily due to higher net realized selling prices, which more than offset higher natural gas costs.
• Sales volumes decreased slightly in the fourth quarter and full year of 2021 due to more planned plant turnaround activity, temporary production outages and lower inventory volumes at the beginning of 2021 compared to the same period in 2020. Ammonia operating rates reached 97 percent in the fourth quarter and 90 percent for the full year of 2021.
• Net realized selling price in the fourth quarter and full year of 2021 was higher due to higher benchmark prices resulting from the strength in global demand and tight global supply caused by production outages and higher energy prices in key nitrogen exporting regions.
• Cost of goods sold per tonne increased during the fourth quarter and full year of 2021 primarily due to higher natural gas costs.

Natural Gas Prices in Cost of Production

	Three Months Ended December 31						Twelve Months Ended December 31
(US dollars per MMBtu, except as otherwise noted)	2021		2020		% Change		2021		2020		% Change
Overall gas cost excluding realized derivative impact	6.43		2.71		137		4.60		2.31		99
Realized derivative impact	(0.03)		0.03		n/m		0.01		0.05		(80)
Overall gas cost	6.40		2.74		134		4.61		2.36		95
Average NYMEX	5.83		2.66		119		3.84		2.08		85
Average AECO	3.93		2.10		87		2.84		1.68		69

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

Phosphate

	Three Months Ended December 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
Fertilizer	377		180		109		509		466		9		741		387		91
Industrial and feed	155		100		55		202		182		11		766		551		39
	532		280		90		711		648		10		749		433		73
Cost of goods sold	374		265		41								526		410		28
Gross margin - manufactured	158		15		953								223		23		870
Gross margin – other 1	5		1		400		Depreciation and amortization						55		60		(9)
Gross margin – total	163		16		919		Gross margin excluding depreciation
Expenses	10		(8)		n/m		and amortization – manufactured 3						278		83		234
EBIT	153		24		538
Depreciation and amortization	39		39		‐
EBITDA	192		63		205
Adjustments 2	4		‐		n/m
Adjusted EBITDA	196		63		211
1 Includes other phosphate and purchased products and comprises net sales of $61 million (2020 – $40 million) less cost of goods sold of $56 million (2020 – $39 million).
2 See Note 2 to the unaudited condensed consolidated financial statements.
3 This is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section.

	Twelve Months Ended December 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
Fertilizer	1,108		671		65		1,840		2,048		(10)		602		328		84
Industrial and feed	520		404		29		779		733		6		667		552		21
	1,628		1,075		51		2,619		2,781		(6)		622		387		61
Cost of goods sold	1,227		1,044		18								469		376		25
Gross margin – manufactured	401		31		n/m								153		11		n/m
Gross margin – other 1	20		5		300		Depreciation and amortization						58		78		(26)
Gross margin – total	421		36		n/m		Gross margin excluding depreciation
Expenses	36		791		(95)		and amortization – manufactured						211		89		136
EBIT	385		(755)		n/m
Depreciation and amortization	151		218		(31)
EBITDA	536		(537)		n/m
Adjustments 2	4		769		(99)
Adjusted EBITDA	540		232		133
1 Includes other phosphate and purchased products and comprises net sales of $201 million (2020 – $127 million) less cost of goods sold of $181 million (2020 – $122 million).
2 See Note 2 to the unaudited condensed consolidated financial statements.

• Adjusted EBITDA increased in the fourth quarter and full year of 2021 due to higher net realized selling prices, which more than offset higher raw material costs and lower sales volumes for the full year.
• Sales volumes increased in the fourth quarter of 2021 due to the timing and sales mix of certain fertilizer products and higher operating rates. Lower inventory levels at the beginning of 2021 and a greater mix of higher P₂O₅ content sales resulted in slightly lower sales volumes during the full year of 2021. P₂O₅ production increased in the fourth quarter and full year of 2021 due to improved reliability at our Aurora and White Springs plants.
• Net realized selling price increased in the fourth quarter and full year of 2021 as a result of robust global phosphate demand, tight inventories and higher global raw material costs. Industrial and feed prices increased to a lesser extent than fertilizer in both comparative periods due to a lag in price realizations relative to spot prices.
• Cost of goods sold per tonne increased in the fourth quarter and full year of 2021 primarily due to significantly higher raw material input costs which more than offset lower depreciation and amortization. Comparative results for the full year of 2020 were also impacted by a $46 million favorable change in estimate related to an asset retirement obligation recorded in the second quarter of 2020.

Corporate and Others

(millions of US dollars, except as otherwise	Three Months Ended December 31						Twelve Months Ended December 31
noted)	2021		2020		% Change		2021		2020		% Change
Sales 1	‐		12		(100)		‐		82		(100)
Cost of goods sold	‐		11		(100)		‐		74		(100)
Gross margin	‐		1		(100)		‐		8		(100)
Selling expenses	3		(7)		n/m		(21)		(24)		(13)
General and administrative expenses	93		78		19		275		269		2
Share-based compensation expense	73		60		22		198		69		187
Impairment of assets	‐		‐		‐		‐		5		(100)
Other expenses	112		76		47		253		230		10
EBIT	(281)		(206)		36		(705)		(541)		30
Depreciation and amortization	15		11		36		49		52		(6)
EBITDA	(266)		(195)		36		(656)		(489)		34
Adjustments 2	116		111		5		348		203		71
Adjusted EBITDA	(150)		(84)		79		(308)		(286)		8
1 Primarily relates to our non-core Canadian business that was sold in 2020.
2 See Note 2 to the unaudited condensed consolidated financial statements.

• Share-based compensation expense was higher in the fourth quarter and full year of 2021 compared to the same periods in 2020 due to an increase in our share price resulting in a higher value of share-based awards outstanding.
• Other expenses were higher in the fourth quarter and full year of 2021 compared to the same periods in 2020 due to higher foreign exchange losses, higher expense related to asset retirement obligations and accrued environment costs for our non-operating sites from changes in our cost and discount rate estimates, and additional cloud computing related expenses recognized in the first half of 2021 due to our change in accounting policy. This was partially offset by lower integration and restructuring related costs.

Eliminations

Eliminations of gross margin between operating segments for the full year of 2021 were $(89) million compared to a $21 million gross margin recovery for the same period in 2020. We had significant eliminations in 2021 due to higher-margin inventories held by our Retail segment as global commodity benchmark prices increased. Eliminations are not part of the Corporate and Others segment.

Finance Costs, Income Tax Expense (Recovery) and Other Comprehensive Income

(millions of US dollars, except as otherwise	Three Months Ended December 31						Twelve Months Ended December 31
noted)	2021		2020		% Change		2021		2020		% Change
Finance costs	246		119		107		613		520		18
Income tax expense (recovery)	374		(32)		n/m		989		(77)		n/m
Other comprehensive income	72		280		(74)		78		194		(60)

• Finance costs in the fourth quarter and full year of 2021 were higher compared to the same periods in 2020 mainly due to a loss of $142 million on early extinguishment of long-term debt, which primarily represents interest that we would have paid in future years if the long-term debt was not extinguished.
• Income tax expense in the fourth quarter and full year of 2021 was higher as a result of significantly higher earnings in 2021 compared to the same periods in 2020. In addition, in 2020, discrete tax recoveries of $80 million primarily related to recoveries of prior year taxes due to US legislative changes.
• Other comprehensive income is primarily driven by changes in the currency translation of our foreign operations and share price movement of our investment in Sinofert Holdings Ltd. In 2020, we had a higher gain on translation of our Retail operations in Australia as the Australian dollar strengthened relative to the US dollar. In 2021, the Australian dollar weakened relative to the US dollar resulting in lower other comprehensive income.

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 2022 full-year guidance, including expectations regarding our adjusted net earnings per share and adjusted EBITDA (consolidated and by segment); expectations regarding our growth and capital allocation intentions and strategies; capital spending expectations for 2022; expectations regarding performance of our operating segments in 2022, including our operating segment market outlooks and market conditions for 2022, 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, grower crop investment, crop mix, prices and the impact of import and export volumes and economic sanctions; Nutrien's ability to develop innovative and sustainable solutions; the negotiation of sales contracts; expected benefits from our brownfield expansion projects; 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 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 2022 and in the future; our expectations regarding the impacts, direct and indirect, of the COVID-19 pandemic on our business, customers, business partners, employees, supply chain, other stakeholders and the overall economy; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and divestitures and negotiate acceptable terms; our ability to maintain investment grade ratings and achieve our performance targets; our ability to successfully negotiate sales contracts; and our ability to successfully implement new initiatives and programs.

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

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

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

Terms & Definitions

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

About Nutrien

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

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

Such data is not incorporated by reference herein.

Nutrien will host a Conference Call on Thursday, February 17, 2022 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/3664097.
  • Via Phone: 1-888-869-1189 Conference ID 3664097.
• 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-q4-earnings-conference-call

Appendix A - Selected Additional Financial Data

Selected Retail measures	Three Months Ended December 31				Twelve Months Ended December 31
	2021		2020		2021		2020
Proprietary products margin as a percentage of product line margin (%)
Crop nutrients	12		14		21		25
Crop protection products	14		11		34		32
Seed	39		37		44		46
All products	11		11		23		23
Crop nutrients sales volumes (tonnes – thousands)
North America	2,119		2,063		9,848		9,746
International	702		622		3,535		2,986
Total	2,821		2,685		13,383		12,732
Crop nutrients selling price per tonne
North America	725		413		556		421
International	708		413		512		367
Total	721		413		545		408
Crop nutrients gross margin per tonne
North America	154		89		133		99
International	144		85		82		55
Total	152		88		119		89
Financial performance measures					2021		2020
Retail adjusted EBITDA margin (%) 1, 2					11		10
Retail adjusted EBITDA per US selling location (thousands of US dollars) 1, 2, 3					1,481		1,075
Retail adjusted average working capital to sales (%) 1, 3					13		15
Retail adjusted average working capital to sales excluding Nutrien Financial (%) 1, 4					‐		5
Nutrien Financial adjusted net interest margin (%) 1, 4					6.6		5.3
Retail cash operating coverage ratio (%) 1, 4					58		62
Retail normalized comparable store sales (%) 4					7		6
1 Rolling four quarters ended December 31, 2021 and 2020.
2 These are supplementary financial measures. See the “Other Financial Measures" section.
3 Excluding acquisitions.
4 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

Nutrien Financial	As at December 31, 2021
(millions of US dollars)	Current	<31 days past due	31–90 days past due	>90 days past due	Gross Receivables	Allowance 1	Net Receivables
North America	1,410	45	12	47	1,514	(26)	1,488
International	537	47	26	54	664	(2)	662
Nutrien Financial receivables	1,947	92	38	101	2,178	(28)	2,150
1 Bad debt expense on the above receivables for the twelve months ended December 31, 2021 was $10 million (2020 – $26 million) in the Retail segment.
2 Gross receivables include $1,792 million (2020 – $1,147 million) very low risk of default and $386 million (2020 – $270 million) of low risk of default.

Selected Nitrogen measures	Three Months Ended December 31				Twelve Months Ended December 31
	2021		2020		2021		2020
Sales volumes (tonnes – thousands)
Fertilizer	1,578		1,740		6,028		6,750
Industrial and feed	1,257		1,105		4,697		4,216
Net sales (millions of US dollars)
Fertilizer	861		359		2,364		1,467
Industrial and feed	595		196		1,620		755
Net selling price per tonne
Fertilizer	545		206		392		217
Industrial and feed	473		178		345		179

Production measures	Three Months Ended December 31				Twelve Months Ended December 31
	2021		2020		2021		2020
Potash production (Product tonnes – thousands)	3,641		2,784		13,790		12,595
Potash shutdown weeks 1	‐		‐		14		38
Ammonia production – total 2	1,641		1,584		5,996		6,063
Ammonia production – adjusted 2, 3	1,069		1,035		3,932		4,102
Ammonia operating rate (%) 3	97		94		90		93
P2O5 production (P2O5 tonnes – thousands)	409		361		1,518		1,444
P2O5 operating rate (%)	95		84		89		85
1 Represents weeks of full production shutdown, excluding the impact of any periods of reduced operating rates and planned routine annual maintenance shutdowns and announced workforce reductions.
2 All figures are provided on a gross production basis in thousands of product tonnes.
3 Excludes Trinidad and Joffre.

Appendix B - Non-IFRS Financial Measures

We use both International Financial Reporting Standards (“IFRS”) and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

The following section outlines our non-IFRS financial measures and non-IFRS ratios, their compositions, 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 and non-IFRS ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations.

Adjusted EBITDA (Consolidated)

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

Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses, gain or loss on disposal of certain businesses and investments, and IFRS adoption transition adjustments. In 2021, we amended our calculation of adjusted EBITDA to adjust for the impact of integration and restructuring related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

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

	Three Months Ended December 31				Twelve Months Ended December 31
(millions of US dollars)	2021		2020		2021		2020
Net earnings	1,207		316		3,179		459
Finance costs	246		119		613		520
Income tax expense (recovery)	374		(32)		989		(77)
Depreciation and amortization	497		499		1,951		1,989
EBITDA 1	2,324		902		6,732		2,891
Share-based compensation expense	73		60		198		69
Foreign exchange loss, net of related derivatives	38		15		39		19
Integration and restructuring related (recovery) costs	(4)		22		43		60
Impairment of assets	21		1		33		824
COVID-19 related expenses 2	11		18		45		48
Loss on disposal of business	‐		‐		‐		6
Net gain on disposal of investment in MOPCO	‐		(250)		‐		(250)
Cloud computing transition adjustment 3	‐		‐		36		‐
Adjusted EBITDA	2,463		768		7,126		3,667
1 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.
2 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.
3 Cloud computing transition adjustment relates to cloud computing costs in prior years that no longer qualify for capitalization based on an agenda decision issued by the IFRS Interpretations Committee in April 2021.

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: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, IFRS adoption transition adjustments and gain/loss on early extinguishment of debt. 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 integration and restructuring related costs, cloud computing transition adjustment, and gain/loss on early extinguishment of debt. 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 and is used as a component of employee remuneration calculations.

	Three Months Ended December 31, 2021						Twelve Months Ended December 31, 2021
					Per						Per
(millions of US dollars, except as otherwise	Increases				Diluted		Increases				Diluted
noted)	(Decreases)		Post-Tax		Share		(Decreases)		Post-Tax		Share
Net earnings attributable to equity holders of Nutrien			1,201		2.11				3,153		5.52
Adjustments:
Share-based compensation expense	73		56		0.10		198		151		0.27
Foreign exchange loss, net of related derivatives	38		29		0.05		39		30		0.05
Integration and restructuring related (recovery) costs	(4)		(3)		(0.01)		43		33		0.06
Impairment of assets	21		16		0.03		33		25		0.04
COVID-19 related expenses	11		8		0.01		45		34		0.06
Cloud computing transition adjustment	‐		‐		‐		36		27		0.05
Loss on early extinguishment of debt	142		104		0.18		142		104		0.18
Adjusted net earnings			1,411		2.47				3,557		6.23
	Three Months Ended December 31, 2020						Twelve Months Ended December 31, 2020
					Per						Per
(millions of US dollars, except as otherwise	Increases				Diluted		Increases				Diluted
noted)	(Decreases)		Post-Tax		Share		(Decreases)		Post-Tax		Share
Net earnings attributable to equity holders of Nutrien			316		0.55				459		0.81
Adjustments:
Share-based compensation expense	60		36		0.06		69		50		0.09
Foreign exchange loss, net of related derivatives	15		9		0.02		19		14		0.02
Integration and restructuring related costs	22		13		0.03		60		44		0.08
Impairment of assets	1		1		‐		824		657		1.15
COVID-19 related expenses	22		13		0.02		67		49		0.09
Loss on disposal of business	‐		‐		‐		6		4		‐
Net gain on disposal of investment in MOPCO	(250)		(250)		(0.44)		(250)		(250)		(0.44)
Adjusted net earnings			138		0.24				1,027		1.80

Adjusted EBITDA (Consolidated) and Adjusted Net Earnings Per Share Guidance

Adjusted EBITDA and adjusted net earnings per share guidance are forward-looking non-IFRS financial measures. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with IFRS due to unknown variables and the uncertainty related to future results. These unknown variables may include unpredictable transactions of significant value that may be inherently difficult to determine without unreasonable efforts. Guidance for adjusted EBITDA and adjusted net earnings per share excludes the impacts of share-based compensation, certain foreign exchange gain/loss (net of related derivatives), integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, IFRS adoption transition adjustments, and gain/loss on early extinguishment of debt.

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

Most directly comparable IFRS financial measure: Cash provided by (used in) operating activities.

Definition: Free cash flow is calculated as cash provided by (used in) operating activities less sustaining capital expenditures and before changes in non-cash operating working capital. Free cash flow including non-cash operating working capital is calculated as cash provided by operating activities less sustaining capital expenditures.

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 December 31				Twelve Months Ended December 31
(millions of US dollars)	2021		2020		2021		2020
Cash provided by operating activities	3,637		2,778		3,886		3,323
Sustaining capital expenditures	(454)		(408)		(1,247)		(919)
Free cash flow including changes in non-cash operating working capital	3,183		2,370		2,639		2,404
Changes in non-cash operating working capital	1,634		2,174		(1,661)		574
Free cash flow	1,549		196		4,300		1,830

Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured

Most directly comparable IFRS financial measure: Gross margin.

Definition: Gross margin per tonne 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.

Potash Cash Cost of Product Manufactured (“COPM”) Per Tonne

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

Definition: Total Potash COGS 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 December 31				Twelve Months Ended December 31
(millions of US dollars, except as otherwise noted)	2021		2020		2021		2020
Total COGS – Potash	305		305		1,285		1,183
Change in inventory	64		18		22		(10)
Other adjustments 1	1		(7)		(6)		(12)
COPM	370		316		1,301		1,161
Depreciation and amortization included in COPM	(115)		(119)		(430)		(424)
Cash COPM	255		197		871		737
Production tonnes (tonnes – thousands)	3,641		2,784		13,790		12,595
Potash cash COPM per tonne	70		71		63		59
1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.

Ammonia Controllable Cash COPM Per Tonne

Most directly comparable IFRS financial measure: Total manufactured 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 December 31				Twelve Months Ended December 31
(millions of US dollars, except as otherwise noted)	2021		2020		2021		2020
Total Manufactured COGS – Nitrogen	725		460		2,353		1,804
Total Other COGS – Nitrogen	170		97		610		461
Total COGS – Nitrogen	895		557		2,963		2,265
Depreciation and amortization in COGS	(126)		(127)		(473)		(522)
Cash COGS for products other than ammonia	(519)		(325)		(1,740)		(1,342)
Ammonia
Total cash COGS before other adjustments	250		105		750		401
Other adjustments 1	(30)		(6)		(96)		(52)
Total cash COPM	220		99		654		349
Natural gas and steam costs	(186)		(71)		(515)		(235)
Controllable cash COPM	34		28		139		114
Production tonnes (net tonnes 2 – thousands)	758		704		2,769		2,649
Ammonia controllable cash COPM per tonne	45		40		50		43
1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.
2 Ammonia tonnes available for sale, as not upgraded to other Nitrogen products.

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

Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the working capital and sales of certain acquisitions (such as Ruralco Holdings Limited) during the first year following the acquisition. 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 December 31, 2021
(millions of US dollars, except as otherwise noted)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Average/Total
Current assets	9,160		9,300		8,945		9,924
Current liabilities	(7,530)		(7,952)		(5,062)		(7,828)
Working capital	1,630		1,348		3,883		2,096
Working capital from certain recent acquisitions	‐		‐		‐		‐
Adjusted working capital	1,630		1,348		3,883		2,096		2,239
Nutrien Financial working capital	(1,221)		(3,072)		(2,820)		(2,150)
Adjusted working capital excluding Nutrien Financial	409		(1,724)		1,063		(54)		(77)
Sales	2,972		7,537		3,347		3,878
Sales from certain recent acquisitions	‐		‐		‐		‐
Adjusted sales	2,972		7,537		3,347		3,878		17,734
Nutrien Financial revenue	(25)		(59)		(54)		(51)
Adjusted sales excluding Nutrien Financial	2,947		7,478		3,293		3,827		17,545
Adjusted average working capital to sales (%)									13
Adjusted average working capital to sales excluding Nutrien Financial (%)									‐
	Rolling four quarters ended December 31, 2020
(millions of US dollars, except as otherwise noted)	Q1 2020		Q2 2020		Q3 2020		Q4 2020		Average/Total
Current assets	8,423		8,230		7,324		8,013
Current liabilities	(6,135)		(6,200)		(4,108)		(6,856)
Working capital	2,288		2,030		3,216		1,157
Working capital from certain recent acquisitions	(108)		63		‐		‐
Adjusted working capital	2,180		2,093		3,216		1,157		2,162
Nutrien Financial working capital	(795)		(2,108)		(1,711)		(1,392)
Adjusted working capital excluding Nutrien Financial	1,385		(15)		1,505		(235)		660
Sales	2,661		6,764		2,742		2,618
Sales from certain recent acquisitions	(348)		(338)		‐		‐
Adjusted sales	2,313		6,426		2,742		2,618		14,099
Nutrien Financial revenue	(16)		(40)		(36)		(37)
Adjusted sales excluding Nutrien Financial	2,297		6,386		2,706		2,581		13,970
Adjusted average working capital to sales (%)									15
Adjusted average working capital to sales excluding Nutrien Financial (%)									5

Nutrien Financial Adjusted Net Interest Margin

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 December 31, 2021
(millions of US dollars, except as otherwise noted)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Total/Average
Nutrien Financial revenue	25		59		54		51
Deemed interest expense 1	(6)		(8)		(10)		(12)
Net interest	19		51		44		39		153
Average Nutrien Financial receivables	1,221		3,072		2,820		2,150		2,316
Nutrien Financial adjusted net interest margin (%)									6.6
1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.
	Rolling four quarters ended December 31, 2020
(millions of US dollars, except as otherwise noted)	Q1 2020		Q2 2020		Q3 2020		Q4 2020		Total/Average
Nutrien Financial revenue	16		40		36		37
Deemed interest expense 1	(5)		(15)		(15)		(14)
Net interest	11		25		21		23		80
Average Nutrien Financial receivables	795		2,108		1,711		1,392		1,502
Nutrien Financial adjusted net interest margin (%)									5.3
1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.

Retail Cash Operating Coverage Ratio

Definition: Retail selling, general and administrative, and other expenses, 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 December 31, 2021
(millions of US dollars, except as otherwise noted)	Q1 2021		Q2 2021		Q3 2021		Q4 2021		Total
Selling expenses	667		863		746		848		3,124
General and administrative expenses	39		41		45		43		168
Other expenses	15		34		17		20		86
Operating expenses	721		938		808		911		3,378
Depreciation and amortization in operating expenses	(175)		(166)		(180)		(173)		(694)
Operating expenses excluding depreciation and amortization	546		772		628		738		2,684
Gross margin	652		1,858		917		1,173		4,600
Depreciation and amortization in cost of goods sold	2		3		2		5		12
Gross margin excluding depreciation and amortization	654		1,861		919		1,178		4,612
Cash operating coverage ratio (%)									58
	Rolling four quarters ended December 31, 2020
(millions of US dollars, except as otherwise noted)	Q1 2020		Q2 2020		Q3 2020		Q4 2020		Total
Selling expenses	635		764		669		727		2,795
General and administrative expenses	38		30		34		33		135
Other expenses (income)	16		32		(12)		8		44
Operating expenses	689		826		691		768		2,974
Depreciation and amortization in operating expenses	(153)		(161)		(167)		(177)		(658)
Operating expenses excluding depreciation and amortization	536		665		524		591		2,316
Gross margin	541		1,627		683		885		3,736
Depreciation and amortization in cost of goods sold	2		2		3		3		10
Gross margin excluding depreciation and amortization	543		1,629		686		888		3,746
Cash operating coverage ratio (%)									62

Retail Normalized Comparable Store Sales

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

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

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

	Twelve Months Ended December 31
(millions of US dollars, except as otherwise noted)	2021		2020
Sales from comparable base
Prior period	14,785		13,282
Adjustments 1	(476)		‐
Revised prior period	14,309		13,282
Current period	17,511		13,546
Comparable store sales (%)	22		2
Prior period normalized for benchmark prices and foreign exchange rates	16,350		12,784
Normalized comparable store sales (%)	7		6
1 Adjustments relate to prior period sales related to closed locations or businesses that no longer exist in the current period in order to provide a comparable base in our calculation.

Appendix C – Other Financial Measures

Supplementary Financial Measures

Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.

The following section provides an explanation of the composition of those supplementary financial measures if not previously provided.

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

Retail digital platform sales: Grower and employee sales in North America entered directly into the digital platform.

Retail digital platform sales to total sales: Grower and employee sales in North America entered directly into the digital platform as a percentage of total sales in North America.

Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds.

Retail adjusted EBITDA per US selling location: Calculated as total Retail US adjusted EBITDA for the last four rolling quarters, representing the organic EBITDA component, which excludes 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 in those quarters.

Condensed Consolidated Financial Statements

Unaudited in millions of US dollars except as otherwise noted

Condensed Consolidated Statements of Earnings

		Three Months Ended				Twelve Months Ended
		December 31				December 31
	Note	2021		2020		2021		2020
SALES	2	7,267		4,052		27,712		20,908
Freight, transportation and distribution		198		202		851		855
Cost of goods sold		3,863		2,685		17,452		14,814
GROSS MARGIN		3,206		1,165		9,409		5,239
Selling expenses		855		732		3,142		2,813
General and administrative expenses		148		117		477		429
Provincial mining taxes		173		41		466		204
Share-based compensation expense		73		60		198		69
Impairment of assets		21		1		33		824
Other expenses (income)	3	109		(189)		312		(2)
EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES		1,827		403		4,781		902
Finance costs		246		119		613		520
EARNINGS BEFORE INCOME TAXES		1,581		284		4,168		382
Income tax expense (recovery)		374		(32)		989		(77)
NET EARNINGS		1,207		316		3,179		459
Attributable to
Equity holders of Nutrien		1,201		316		3,153		459
Non-controlling interest		6		‐		26		‐
NET EARNINGS		1,207		316		3,179		459
NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS")
Basic		2.11		0.55		5.53		0.81
Diluted		2.11		0.55		5.52		0.81
Weighted average shares outstanding for basic EPS		568,027,000		569,180,000		569,664,000		569,657,000
Weighted average shares outstanding for diluted EPS		569,653,000		569,393,000		571,289,000		569,686,000

Condensed Consolidated Statements of Comprehensive Income

	Three Months Ended				Twelve Months Ended
	December 31				December 31
(Net of related income taxes)	2021		2020		2021		2020
NET EARNINGS	1,207		316		3,179		459
Other comprehensive income
Items that will not be reclassified to net earnings:
Net actuarial gain on defined benefit plans	95		72		95		75
Net fair value (loss) gain on investments	(35)		18		81		(7)
Items that have been or may be subsequently reclassified to net earnings:
Gain (loss) on currency translation of foreign operations	14		194		(115)		142
Other	(2)		(4)		17		(16)
OTHER COMPREHENSIVE INCOME	72		280		78		194
COMPREHENSIVE INCOME	1,279		596		3,257		653
Attributable to
Equity holders of Nutrien	1,273		596		3,232		653
Non-controlling interest	6		‐		25		‐
COMPREHENSIVE INCOME	1,279		596		3,257		653
(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Cash Flows

	Three Months Ended				Twelve Months Ended
	December 31				December 31
	2021		2020		2021		2020
OPERATING ACTIVITIES
Net earnings	1,207		316		3,179		459
Adjustments for:
Depreciation and amortization	497		499		1,951		1,989
Share-based compensation expense	73		60		198		69
Impairment of assets	21		1		33		824
Loss on early extinguishment of debt	142		‐		142		‐
Net gain on disposal of investment in Misr Fertilizers Production Company S.A.E. ("MOPCO")	‐		(250)		‐		(250)
Provision for (recovery of) deferred income tax	66		90		(31)		(9)
Cloud computing transition adjustment	‐		‐		36		‐
Other long-term assets, liabilities and miscellaneous	(3)		(112)		39		(333)
Cash from operations before working capital changes	2,003		604		5,547		2,749
Changes in non-cash operating working capital:
Receivables	1,432		1,600		(1,669)		145
Inventories	(1,652)		(1,068)		(1,459)		85
Prepaid expenses and other current assets	(1,092)		(946)		(227)		(10)
Payables and accrued charges	2,946		2,588		1,694		354
CASH PROVIDED BY OPERATING ACTIVITIES	3,637		2,778		3,886		3,323
INVESTING ACTIVITIES
Capital expenditures 1	(568)		(535)		(1,783)		(1,549)
Business acquisitions, net of cash acquired	(18)		(17)		(88)		(233)
Proceeds from disposal of investment in MOPCO	‐		540		‐		540
Other	121		17		64		38
CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(465)		5		(1,807)		(1,204)
FINANCING ACTIVITIES
Transaction costs related to debt	‐		‐		(7)		(15)
Proceeds from (repayment of) short-term debt, net	307		(1,493)		1,344		(892)
Proceeds from long-term debt	(3)		21		86		1,541
Repayment of long-term debt	(2,207)		(2)		(2,212)		(509)
Repayment of principal portion of lease liabilities	(78)		(71)		(320)		(274)
Dividends paid to Nutrien's shareholders	(266)		(259)		(1,045)		(1,030)
Repurchase of common shares	(885)		‐		(1,035)		(160)
Issuance of common shares	12		‐		200		‐
Other	‐		‐		(14)		‐
CASH USED IN FINANCING ACTIVITIES	(3,120)		(1,804)		(3,003)		(1,339)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	4		10		(31)		3
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	56		989		(955)		783
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD	443		465		1,454		671
CASH AND CASH EQUIVALENTS – END OF PERIOD	499		1,454		499		1,454
Cash and cash equivalents comprised of:
Cash	428		1,375		428		1,375
Short-term investments	71		79		71		79
	499		1,454		499		1,454
SUPPLEMENTAL CASH FLOWS INFORMATION
Interest paid	172		164		491		498
Income taxes paid	79		64		435		156
Total cash outflow for leases	94		79		393		345
1 Includes additions to property, plant and equipment and intangible assets for the three months ended December 31, 2021 of $528 and $40 (2020 – $496 and $39), respectively, and for the twelve months ended December 31, 2021 of $1,676 and $107 (2020 – $1,423 and $126), respectively.
(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Changes in Shareholders’ Equity

							Accumulated Other Comprehensive
							(Loss) Income ("AOCI")
							Loss on								Equity
							Currency								Holders		Non-
	Number of						Translation								of		Controlling
	Common		Share		Contributed		of Foreign				Total		Retained		Nutrien		Interest		Total
	Shares		Capital		Surplus		Operations		Other		AOCI		Earnings		(Note 1)		(Note 1)		Equity
BALANCE – DECEMBER 31, 2019	572,942,809		15,771		248		(204)		(47)		(251)		7,101		22,869		38		22,907
Net earnings	‐		‐		‐		‐		‐		‐		459		459		‐		459
Other comprehensive income	‐		‐		‐		142		52		194		‐		194		‐		194
Shares repurchased	(3,832,580)		(105)		(55)		‐		‐		‐		‐		(160)		‐		(160)
Dividends declared	‐		‐		‐		‐		‐		‐		(1,029)		(1,029)		‐		(1,029)
Effect of share-based compensation including issuance of common shares	150,177		7		12		‐		‐		‐		‐		19		‐		19
Transfer of net loss on cash flow hedges	‐		‐		‐		‐		13		13		‐		13		‐		13
Transfer of net actuarial gain on defined benefit plans	‐		‐		‐		‐		(75)		(75)		75		‐		‐		‐
BALANCE – DECEMBER 31, 2020	569,260,406		15,673		205		(62)		(57)		(119)		6,606		22,365		38		22,403
BALANCE – DECEMBER 31, 2020	569,260,406		15,673		205		(62)		(57)		(119)		6,606		22,365		38		22,403
Net earnings	‐		‐		‐		‐		‐		‐		3,153		3,153		26		3,179
Other comprehensive (loss) income	‐		‐		‐		(114)		193		79		‐		79		(1)		78
Shares repurchased	(15,982,154)		(442)		(47)		‐		‐		‐		(616)		(1,105)		‐		(1,105)
Dividends declared	‐		‐		‐		‐		‐		‐		(1,046)		(1,046)		‐		(1,046)
Non-controlling interest transactions	‐		‐		‐		‐		‐		‐		‐		‐		(16)		(16)
Effect of share-based compensation including issuance of common shares	4,424,437		226		(9)		‐		‐		‐		‐		217		‐		217
Transfer of net gain on cash flow hedges	‐		‐		‐		‐		(11)		(11)		‐		(11)		‐		(11)
Transfer of net actuarial gain on defined benefit plans	‐		‐		‐		‐		(95)		(95)		95		‐		‐		‐
Share cancellation	(210,173)		‐		‐		‐		‐		‐		‐		‐		‐		‐
BALANCE – DECEMBER 31, 2021	557,492,516		15,457		149		(176)		30		(146)		8,192		23,652		47		23,699
(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Balance Sheets

	December 31		December 31
As at	2021		2020
			Note 1
ASSETS
Current assets
Cash and cash equivalents	499		1,454
Receivables	5,366		3,626
Inventories	6,328		4,930
Prepaid expenses and other current assets	1,653		1,460
	13,846		11,470
Non-current assets
Property, plant and equipment	20,016		19,660
Goodwill	12,220		12,198
Other intangible assets	2,340		2,388
Investments	703		562
Other assets	829		914
TOTAL ASSETS	49,954		47,192
LIABILITIES
Current liabilities
Short-term debt	1,560		159
Current portion of long-term debt	545		14
Current portion of lease liabilities	286		249
Payables and accrued charges	10,052		8,058
	12,443		8,480
Non-current liabilities
Long-term debt	7,521		10,047
Lease liabilities	934		891
Deferred income tax liabilities	3,165		3,149
Pension and other post-retirement benefit liabilities	419		454
Asset retirement obligations and accrued environmental costs	1,566		1,597
Other non-current liabilities	207		171
TOTAL LIABILITIES	26,255		24,789
SHAREHOLDERS’ EQUITY
Share capital	15,457		15,673
Contributed surplus	149		205
Accumulated other comprehensive loss	(146)		(119)
Retained earnings	8,192		6,606
Equity holders of Nutrien	23,652		22,365
Non-controlling interest	47		38
TOTAL SHAREHOLDERS’ EQUITY	23,699		22,403
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	49,954		47,192
(See Notes to the Condensed Consolidated Financial Statements)

Notes to the Condensed Consolidated Financial Statements

As at and for the Three and Twelve Months Ended December 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.

Our accounting policies are in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The accounting policies and methods of computation used in preparing these unaudited condensed consolidated financial statements are materially consistent with those used in the preparation of our 2020 annual consolidated financial statements. These unaudited condensed consolidated 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. Our 2021 annual consolidated financial statements, which are expected to be issued in February 2022, will include additional information under IFRS.

Certain immaterial 2020 figures have been reclassified in the condensed consolidated statements of changes in shareholders’ equity and condensed consolidated balance sheets.

In management’s opinion, the unaudited condensed consolidated financial statements include all adjustments necessary to fairly present such information in all material respects.

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 December 31, 2021
										Corporate
		Retail		Potash		Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	– third party	3,847		1,358		1,476		586		‐		‐		7,267
	– intersegment	31		128		292		65		‐		(516)		‐
Sales	– total	3,878		1,486		1,768		651		‐		(516)		7,267
Freight, transportation and distribution		‐		66		119		58		‐		(45)		198
Net sales		3,878		1,420		1,649		593		‐		(471)		7,069
Cost of goods sold		2,705		305		895		430		‐		(472)		3,863
Gross margin		1,173		1,115		754		163		‐		1		3,206
Selling expenses		848		1		2		1		3		‐		855
General and administrative expenses		43		2		7		3		93		‐		148
Provincial mining taxes		‐		173		‐		‐		‐		‐		173
Share-based compensation expense		‐		‐		‐		‐		73		‐		73
Impairment of assets		‐		‐		17		4		‐		‐		21
Other expenses (income)		20		3		(28)		2		112		‐		109
Earnings (loss) before finance costs and income taxes		262		936		756		153		(281)		1		1,827
Depreciation and amortization		178		117		148		39		15		‐		497
EBITDA 1		440		1,053		904		192		(266)		1		2,324
Integration and restructuring related costs		2		‐		‐		‐		(6)		‐		(4)
Share-based compensation expense		‐		‐		‐		‐		73		‐		73
Impairment of assets		‐		‐		17		4		‐		‐		21
COVID-19 related expenses		‐		‐		‐		‐		11		‐		11
Foreign exchange loss, net of related derivatives		‐		‐		‐		‐		38		‐		38
Adjusted EBITDA		442		1,053		921		196		(150)		1		2,463
Assets – at December 31, 2021		22,387		13,148		11,093		1,699		2,266		(639)		49,954
1 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.

		Three Months Ended December 31, 2020
										Corporate
		Retail		Potash		Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	– third party	2,608		467		647		318		12		‐		4,052
	– intersegment	10		57		147		56		‐		(270)		‐
Sales	– total	2,618		524		794		374		12		(270)		4,052
Freight, transportation and distribution		‐		74		125		54		‐		(51)		202
Net sales		2,618		450		669		320		12		(219)		3,850
Cost of goods sold		1,733		305		557		304		11		(225)		2,685
Gross margin		885		145		112		16		1		6		1,165
Selling expenses		727		2		8		2		(7)		‐		732
General and administrative expenses		33		2		1		3		78		‐		117
Provincial mining taxes		‐		40		‐		‐		1		‐		41
Share-based compensation expense		‐		‐		‐		‐		60		‐		60
Impairment of assets		‐		1		‐		‐		‐		‐		1
Other expenses (income)		8		4		(263)		(13)		75		‐		(189)
Earnings (loss) before finance costs and income taxes		117		96		366		24		(206)		6		403
Depreciation and amortization		180		123		146		39		11		‐		499
EBITDA		297		219		512		63		(195)		6		902
Integration and restructuring related costs		‐		‐		4		‐		18		‐		22
Share-based compensation expense		‐		‐		‐		‐		60		‐		60
Impairment of assets		‐		1		‐		‐		‐		‐		1
COVID-19 related expenses		‐		‐		‐		‐		18		‐		18
Foreign exchange loss, net of related derivatives		‐		‐		‐		‐		15		‐		15
Net gain on disposal of investment in MOPCO		‐		‐		(250)		‐		‐		‐		(250)
Adjusted EBITDA		297		220		266		63		(84)		6		768
Assets – at December 31, 2020 ¹		20,526		12,032		10,612		1,462		2,983		(423)		47,192
1 In 2021, we reassessed the appropriate segment wherein certain assets related to transportation, distribution and logistics should be categorized. After our evaluation was complete, we determined the assets should be categorized in the Potash, Nitrogen and Phosphate segments.

		Twelve Months Ended December 31, 2021
										Corporate
		Retail		Potash		Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	– third party	17,665		4,021		4,216		1,810		‐		‐		27,712
	– intersegment	69		386		921		236		‐		(1,612)		‐
Sales	– total	17,734		4,407		5,137		2,046		‐		(1,612)		27,712
Freight, transportation and distribution		‐		371		448		217		‐		(185)		851
Net sales		17,734		4,036		4,689		1,829		‐		(1,427)		26,861
Cost of goods sold		13,134		1,285		2,963		1,408		‐		(1,338)		17,452
Gross margin		4,600		2,751		1,726		421		‐		(89)		9,409
Selling expenses		3,124		9		24		6		(21)		‐		3,142
General and administrative expenses		168		8		15		11		275		‐		477
Provincial mining taxes		‐		466		‐		‐		‐		‐		466
Share-based compensation expense		‐		‐		‐		‐		198		‐		198
Impairment of assets		‐		7		22		4		‐		‐		33
Other expenses (income)		86		22		(64)		15		253		‐		312
Earnings (loss) before finance costs and income taxes		1,222		2,239		1,729		385		(705)		(89)		4,781
Depreciation and amortization		706		488		557		151		49		‐		1,951
EBITDA		1,928		2,727		2,286		536		(656)		(89)		6,732
Integration and restructuring related costs		10		‐		‐		‐		33		‐		43
Share-based compensation expense		‐		‐		‐		‐		198		‐		198
Impairment of assets		‐		7		22		4		‐		‐		33
COVID-19 related expenses		‐		‐		‐		‐		45		‐		45
Foreign exchange loss, net of related derivatives		‐		‐		‐		‐		39		‐		39
Cloud computing transition adjustment		1		2		‐		‐		33		‐		36
Adjusted EBITDA		1,939		2,736		2,308		540		(308)		(89)		7,126
Assets – at December 31, 2021		22,387		13,148		11,093		1,699		2,266		(639)		49,954

		Twelve Months Ended December 31, 2020
										Corporate
		Retail		Potash		Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	– third party	14,748		2,265		2,572		1,241		82		‐		20,908
	– intersegment	37		248		628		202		‐		(1,115)		‐
Sales	– total	14,785		2,513		3,200		1,443		82		(1,115)		20,908
Freight, transportation and distribution		‐		367		460		241		‐		(213)		855
Net sales		14,785		2,146		2,740		1,202		82		(902)		20,053
Cost of goods sold		11,049		1,183		2,265		1,166		74		(923)		14,814
Gross margin		3,736		963		475		36		8		21		5,239
Selling expenses		2,795		9		27		6		(24)		‐		2,813
General and administrative expenses		135		7		8		10		269		‐		429
Provincial mining taxes		‐		201		1		‐		2		‐		204
Share-based compensation expense		‐		‐		‐		‐		69		‐		69
Impairment of assets		‐		23		27		769		5		‐		824
Other expenses (income)		44		8		(288)		6		228		‐		(2)
Earnings (loss) before finance costs and income taxes		762		715		700		(755)		(541)		21		902
Depreciation and amortization		668		452		599		218		52		‐		1,989
EBITDA		1,430		1,167		1,299		(537)		(489)		21		2,891
Integration and restructuring related costs		‐		‐		4		‐		56		‐		60
Share-based compensation expense		‐		‐		‐		‐		69		‐		69
Impairment of assets		‐		23		27		769		5		‐		824
COVID-19 related expenses		‐		‐		‐		‐		48		‐		48
Foreign exchange loss, net of related derivatives		‐		‐		‐		‐		19		‐		19
Loss on disposal of business		‐		‐		‐		‐		6		‐		6
Net gain on disposal of investment in MOPCO		‐		‐		(250)		‐		‐		‐		(250)
Adjusted EBITDA		1,430		1,190		1,080		232		(286)		21		3,667
Assets – at December 31, 2020		20,526		12,032		10,612		1,462		2,983		(423)		47,192

NOTE 3 OTHER EXPENSES (INCOME)

	Three Months Ended				Twelve Months Ended
	December 31				December 31
	2021		2020		2021		2020
Integration and restructuring related (recovery) costs	(4)		22		43		60
Foreign exchange loss, net of related derivatives	38		17		42		18
Earnings of equity-accounted investees	(46)		(27)		(89)		(73)
Bad debt expense (recovery)	4		(3)		26		6
COVID-19 related expenses	11		18		45		48
Loss on disposal of business	‐		‐		‐		6
Net gain on disposal of investment in MOPCO	‐		(250)		‐		(250)
Cloud computing transition adjustment	‐		‐		36		‐
Other expenses	106		34		209		183
	109		(189)		312		(2)

In the fourth quarter of 2020, as a result of our strategic decision to dispose of our investment in MOPCO, we received cash consideration of $540 for the disposal of the investment and settlement of legal claims. This resulted in a pre-tax gain of $250 recorded in other (income) expenses.

NOTE 4 SHARE CAPITAL

Share Repurchase Programs

	Three Months Ended				Twelve Months Ended
	December 31				December 31
	2021		2020		2021		2020
Number of common shares repurchased for cancellation	13,522,057		‐		15,982,154		3,832,580
Average price per share (US dollars)	70.64		‐		69.17		41.96
Total cost	955		‐		1,105		160

As of February 15, 2022, an additional 6,204,241 common shares were repurchased for cancellation at a cost of $445 and an average price per share of $71.70.

On February 16, 2022, our Board of Directors approved a share repurchase program of up to a maximum of 10 percent of our outstanding common shares for cancellation. Subject to the acceptance by the Toronto Stock Exchange, the 2022 normal course issuer bid (“NCIB”) will commence following the expiration of our current NCIB on February 28, 2022 and will expire after a one-year period.

Dividends Declared

On February 16, 2022, our Board of Directors declared an increase to our quarterly dividend to $0.48 per share payable on April 14, 2022, to shareholders of record on March 31, 2022. The total estimated dividend to be paid is $265.

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