Agrium Reports Fourth Quarter; Retail Delivers Record Results

CALGARY, ALBERTA--(Marketwired - Feb. 20, 2014) -

ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (TSX:AGU)(NYSE:AGU) announced today consolidated net earnings ("net earnings") from continuing operations of $110-million ($0.74 diluted earnings per share) for the fourth quarter of 2013, compared with net earnings from continuing operations of $358-million in the fourth quarter of 2012 ($2.37 diluted earnings per share). Net earnings were $99-million ($0.66 diluted earnings per share) for the fourth quarter of 2013, compared to net earnings of $354-million ($2.34 diluted earnings per share) in the fourth quarter of 2012.

Our net earnings from continuing operations, excluding the fourth quarter guidance exclusions mentioned below, were $126-million ($0.87 diluted earnings per share).¹ This excludes a purchase gain of $257-million related to the acquisition of the Viterra Inc. Agri-product assets ("Viterra acquisition") ($1.35 diluted earnings per share) and a fourth quarter pre-tax loss for the acquired Viterra operations of $27-million ($0.14 diluted earnings per share, includes $8-million of integration costs). The Viterra acquisition results were excluded from the original fourth quarter guidance provided in November 2013. Also excluded were $6-million of Corporate legal and other costs ($0.03 diluted earnings per share) incurred in the period related to the Viterra acquisition and a goodwill impairment of $220-million ($1.16 in diluted earnings per share) for the Landmark acquisition due to synergy delays and reduced expectations for sales, gross margins and long-term growth. Share-based payment expenses in the fourth quarter were $28-million ($0.15 diluted earnings per share).

Discontinued operations reported a net loss of $11-million ($0.08 diluted loss per share) for the fourth quarter and included a $75-million ($0.52 diluted earnings per share) insurance recovery for the resolution of a long-standing litigation case pertaining to soybean shipments and a $60-million post-tax write-down ($0.42 diluted earnings per share), primarily of goodwill, as a result of the previously announced strategic review of the Agrium Advanced Technologies business unit ("AAT").¹

On an annual basis, 2013 net earnings from continuing operations were $1.08-billion ($7.31 diluted earnings per share), down from net earnings from continuing operations of $1.52-billion ($9.67 diluted earnings per share) in 2012. 2013 net earnings were $1.06-billion ($7.20 diluted earnings per share), compared to $1.50-billion ($9.55 diluted earnings per share) in 2012.

"Agrium's Retail results were excellent this quarter, particularly considering the decline in nutrient prices that occurred and the compressed fall application season in the U.S.," commented Chuck Magro, Agrium's President & CEO. "Retail achieved record fourth quarter results due to increased margins across almost all shelves. Our Wholesale business unit, which has more direct exposure to volatility in nutrient markets, saw their results impacted by lower global prices across all nutrients. Global nitrogen and phosphate markets have firmed significantly in early 2014 in response to what we expect will be a strong spring season," continued Mr. Magro.

"In a quarter where price instability and a compressed application window were a challenge, we delivered record results for Retail, which helped generate $1.2-billion in cash flow from operations for the quarter. This is one illustration of the benefits of our integrated strategy and why we remain confident in our ability to generate strong results over the coming years and deliver on our long-term targets," added Mr. Magro.

¹ The $0.87 EPS = $0.74 EPS (net earnings from continuing operations) + $1.16 EPS (Landmark goodwill impairment) + $0.15 EPS (share based payments) + 0.17 EPS (Viterra operations) - $1.35 EPS (Viterra purchase gain). Fourth quarter effective tax rate of 24 percent from continuing operations was used for adjusted diluted earnings per share calculations.

All dollar amounts refer to United States ("U.S.") dollars except where otherwise stated. Certain financial measures in this press release are not prescribed by International Financial Reporting Standards ("IFRS"), and are defined in the Additional IFRS and Non-IFRS Financial Measures section of this press release.

The segmented financial reporting included in this press release differs from our 2012 annual financial statements due to changes in segmented reporting adopted in our 2013 annual financial statements. Comparative figures for AAT in this press release have not been restated to reflect changes in segmented financial reporting.

2013 Fourth Quarter Operating Results

CONSOLIDATED NET EARNINGS

We have restated 2012 comparative figures as a result of adopting IFRS 11 Joint Arrangements whereby the classification and accounting of our investment in Profertil S.A. and other joint arrangements previously accounted for using the proportionate consolidation method are accounted for using the equity method.

Management has commenced with a divestment process for components of the AAT business unit that were not transitioned to Wholesale. We have classified these net assets as held for sale and have classified the related results of operations (including comparative 2012 results) as discontinued. See pages 6 and 8 of this press release for further details.

Agrium's 2013 fourth quarter net earnings from continuing operations were $110-million, or $0.74 diluted earnings per share from continuing operations, compared to net earnings from continuing operations of $358-million, or $2.36 diluted earnings per share from continuing operations, for the same quarter of 2012.

Financial Overview
		Three months ended December 31,
(millions of U.S. dollars, except per share amounts and where noted)		2013		2012		Change		% Change
Sales		2,867		3,093		(226	)	(7	)
Gross profit		740		974		(234	)	(24	)
Expenses		557		445		112		25
Earnings from continuing operations before finance costs and income taxes ("EBIT")		183		529		(346	)	(65	)
Net earnings from continuing operations		110		358		(248	)	(69	)
Net loss from discontinued operations		(11	)	(4	)	(7	)	175
Net earnings		99		354		(255	)	(72	)
Diluted earnings per share from continuing operations		0.74		2.36		(1.62	)	(69	)
Diluted loss per share from discontinued operations		(0.08	)	(0.02	)	(0.06	)	300
Diluted earnings per share		0.66		2.34		(1.68	)	(72	)
Effective tax rate (%)		24		27		N/A		(3	)

Sales

Sales decreased by $226-million to $2.9-billion for the fourth quarter of 2013. Factors that affected our performance during the fourth quarter of 2013 compared to the fourth quarter of 2012 include the following:

• Wholesale sales decreased by 24 percent to $963-million due to lower realized sales prices across all product lines and lower nitrogen volumes; and
  
• Retail sales increased by 6 percent to $2.1-billion largely due to Viterra which accounted for $276-million in sales during the current quarter. Crop nutrient sales decreased as colder weather impacted North American sales.
  

Gross Profit

Our gross profit for the fourth quarter of 2013 was $740-million, a decrease of $234-million compared to the fourth quarter of 2012. The main drivers of this variance consisted of:

• Wholesale's gross profit decreased by $283-million to $170-million for the fourth quarter of 2013, compared to the fourth quarter of 2012 primarily as a result of weaker realized sales prices across all product lines and lower urea sales volumes due to outages at our Redwater and Carseland nitrogen facilities; and
  
• Retail's gross profit increased by $77-million to $586-million for the fourth quarter of 2013, compared to the fourth quarter of 2012 due to the inclusion of results from Viterra coupled with favorable nutrient cost positions and higher seed rebates from suppliers.
  

Expenses

Expenses increased by $112-million for the fourth quarter of 2013 compared to the fourth quarter of 2012. This difference is primarily a result of the following items:

• A $220-million goodwill impairment was recorded in Retail - Australia as a result of reduced expectations for sales, gross margins and long-term growth in Retail - Australia;
  
• An increase in Retail selling expenses of $73-million driven by increased costs associated with Viterra and other recent acquisitions (see section "Retail" for further discussion); and
  
• A $46-million unfavorable change in share-based payments, with a $28-million share-based payments expense in the current quarter compared to a $18-million share-based payments recovery in the same period last year (see section "Other" for further discussion).
  
  The above increases were partially offset by a $257-million purchase gain reported in the fourth quarter of 2013. This represents the difference between the fair value of acquired net assets and the purchase price.
   

The following table is a summary of our other expenses (income) for the fourth quarters of 2013 and 2012, respectively.

	Three months ended December 31,
(millions of U.S. dollars)	2013		2012
Realized loss (gain) on derivative financial instruments	1		(2	)
Unrealized gain on derivative financial instruments	(1	)	-
Interest income	(25	)	(26	)
Foreign exchange loss	16		9
Environmental remediation and asset retirement obligations	2		2
Bad debt recovery	(11	)	(8	)
Potash profit and capital tax	6		3
Other	8		2
	(4	)	(20	)

Effective Tax Rate

The effective tax rate on continuing operations was 24 percent for the fourth quarter compared to 27 percent for the same period last year due to permanent differences between tax and accounting on the Viterra purchase gain and the Retail - Australia goodwill impairment.

BUSINESS SEGMENT PERFORMANCE

Retail

Retail reported record fourth quarter sales of $2.1-billion up from $2.0-billion reported in the same quarter last year. Gross profit was $586-million in the fourth quarter of 2013, a 15 percent increase from last year's fourth quarter of $509-million. Retail reported EBITDA of $195-million, up $71-million from the fourth quarter of last year. Included in this quarter's results is a $257-million purchase gain for the Viterra acquisition, a $220-million goodwill impairment for the Landmark business in Australia, and results from the recently acquired Viterra business (fourth quarter EBITDA loss of $12-million), which included $8-million of integration costs. Excluding all Viterra-related items and the Landmark impairment, EBITDA would have been $170-million, the highest fourth quarter Retail EBITDA in our history. These excellent results were achieved due to increased margins for nutrients, seed and services and other product lines, which more than offset the headwinds of lower crop nutrient sales volumes (excluding Viterra volumes), lower nutrient prices and the compressed fall application season. On a full year basis, and excluding the items listed above for the fourth quarter, EBITDA reached $961-million in 2013, surpassing last year's record $951-million.

Total crop nutrient sales were $1.1-billion this quarter, on par with the fourth quarter of 2012. Incremental sales from the Viterra business were offset by lower nutrient sales volumes in the U.S. in the fourth quarter, due to the shortened fall application season. Gross profit for crop nutrients was $178-million this quarter, an increase of $23-million compared to the $155-million reported in the fourth quarter of 2012. Excluding the results from Viterra in the current quarter, gross profit increased by $4-million in 2013. Total crop nutrient margins as a percentage of sales were 17 percent in the fourth quarter of 2013, higher than the 14 percent reported in the same quarter last year. Although nutrient prices declined during the second half of 2013, increased prescription blend and proprietary nutrient sales resulted in higher dollar per tonne margins than 2012.

Crop protection sales were $511-million in the fourth quarter of 2013, compared to $491-million in sales in the same period last year. The increase was driven primarily by incremental sales from Viterra and higher sales of glyphosates in the quarter. Gross profit was $205-million this quarter, compared to $203-million reported in the fourth quarter of 2012. Crop protection margins as a percentage of sales were 40 percent this quarter. The 1 percent decline in margins in the fourth quarter of 2013 relative to the same period last year was due to a higher product mix of wholesale volumes, which traditionally represent lower margins than retail sales.

Seed sales were $95-million in the fourth quarter of 2013, down from the $105-million reported in the fourth quarter of last year. The reduction in North American seed sales was due to the late fall season, which particularly impacted wheat seed sales. Gross profit was $60-million this quarter, up from the $43-million reported last year. Seed margins as a percentage of sales were 63 percent in the fourth quarter of 2013, significantly higher than the 41 percent reported in the fourth quarter of 2012. The increase in gross profit and margins in the fourth quarter of 2013 is related to higher annual seed volume, which resulted in higher rebates for seed from suppliers this quarter. The continued sales growth in our proprietary Dyna-Gro branded seed versus national brand sales mix also supported higher average seed margins both in the quarter and on an annual basis. Our proprietary product line of seeds once again demonstrated solid growth in sales and gross profit for both the fourth quarter and the 2013 year, relative to the same periods last year. Proprietary seed accounted for approximately 18 percent of our total seed sales and approximately 26 percent of our seed gross profit for calendar year 2013.

Sales of merchandise in the fourth quarter of 2013 were $228-million, compared to $132-million in the same period last year. Gross profit for this product line was $30-million this quarter, compared to $21-million reported in the fourth quarter of 2012. The increase is related to incremental earnings from Viterra and additional sales volumes of animal health and other livestock-related products in Australia.

Services and other sales were $216-million this quarter, compared to the $151-million reported in the fourth quarter of 2012. Gross profit was $113-million in the fourth quarter of 2013, compared to $87-million for the same period last year. The increases in the current quarter relate to incremental gross profit from the purchased Viterra locations and increased Australian livestock sales commissions.

Selling expenses as a percentage of sales was 24 percent in the fourth quarter of 2013 which is up marginally from the 22 percent reported in the same period last year. Retail selling expenses were $504-million for the fourth quarter, compared to $431-million in the same period last year. The majority of the variance was due to increased costs associated with Viterra operating in a traditionally slower sales period than other Retail geographies. On a full-year basis, selling expenses as a percentage of sales remained similar to 2012 at approximately 15 percent.

In the fourth quarter of 2013, we recorded the Viterra acquisition within Retail. This resulted in a $257-million purchase gain, representing the difference between the fair value of acquired net assets and the purchase price. During the quarter, we also recorded goodwill impairment in Retail - Australia of $220-million due to synergy delays and reduced expectations for sales, gross margins and long-term growth.

Wholesale

Wholesale's 2013 fourth quarter sales were $963-million, down $310-million from the same quarter last year. Gross profit was $170-million this quarter, compared to $453-million in the fourth quarter of 2012. Wholesale reported EBITDA of $210-million in the fourth quarter of 2013, down from the $495-million reported in the same period last year. Wholesale's Adjusted EBITDA² was $234-million this quarter, compared to $516-million reported in the same period last year. Wholesale's results this quarter were principally impacted by significantly lower global crop nutrient prices.

² Adjusted EBITDA is defined as earnings (loss) before finance costs, income taxes, depreciation and amortization and before finance costs, income taxes, depreciation and amortization of joint ventures.

Nitrogen gross profit in the fourth quarter of 2013 was $129-million, compared to $293-million in the same quarter last year. Nitrogen sales volumes were 907,000 tonnes in the fourth quarter of 2013, down 59,000 tonnes from the same period last year. The lower sales volumes were primarily due to reduced product availability resulting from plant outages in the fourth quarter, accompanied by a shorter fall application season in the U.S. Realized sales prices for all nitrogen products were lower than the fourth quarter of 2012, with urea realized sales prices down 27 percent, or $148 per tonne year-over-year. Nitrogen cost of product sold was $314 per tonne this quarter, compared to $257 per tonne reported in the fourth quarter of 2012. The increase was due to higher North American gas prices and costs associated with outages at our Carseland and Redwater nitrogen facilities in the quarter. These outages lowered production by approximately 130,000 tonnes of nitrogen products and impacted per tonne costs, as fixed costs were spread across lower sales volumes. Our average nitrogen gross margins were $144 per tonne this quarter, compared to $304 per tonne in the same period last year.

Agrium's average natural gas cost included in cost of product sold was $3.51/MMBtu this quarter ($3.39/MMBtu including the impact of realized gains on natural gas derivatives), compared to $3.26/MMBtu for the same period in 2012 ($3.35/MMBtu including the impact of realized losses on natural gas derivatives). Hedging gains or losses are included in other expenses and not cost of product sold, thus are not part of the calculation of gross profit. The U.S. benchmark (NYMEX) natural gas price for the fourth quarter of 2013 was $3.63/MMBtu, compared to $3.36/MMBtu in the same quarter last year. The AECO (Alberta) basis differential was a $0.62/MMBtu discount to NYMEX in the fourth quarter of 2013, an increase from the $0.28/MMBtu discount in the fourth quarter of 2012.

Potash gross profit for the fourth quarter of 2013 was $39-million, compared to $79-million reported in the same quarter last year. The year-over-year decline was principally due to lower realized international and North American sales prices. Prices came under pressure due to weaker demand from India, delayed negotiations for second half Chinese supply contracts and uncertainty created by the breakup of the Belarusian Potash Company. International sales volumes were 89,000 tonnes this quarter, in line with 86,000 tonnes reported in the fourth quarter of last year. North American sales volumes this quarter were 255,000 tonnes, also consistent with the volumes achieved for the same period last year. Potash cost of product sold was $201 per tonne this quarter, compared to $216 per tonne reported in the fourth quarter of 2012. The decrease was due to a higher proportion of sales shipped directly to end customers compared to last year, which lowered the average freight cost. Gross margin was $112 per tonne in the fourth quarter of 2013, compared to the $233 per tonne in the same quarter of 2012. In the second half of 2014, Agrium will take an extended 14 week turnaround at our Vanscoy potash mine to tie in the one million tonne expansion project.

Phosphate gross profit was a loss of $4-million in the fourth quarter of 2013, compared to a $47-million profit in the same quarter last year. The decrease was primarily a result of lower realized sales prices derived from weak international market conditions in the fourth quarter. Phosphate sales volumes this quarter were 285,000 tonnes, slightly higher than the 279,000 tonnes sold in the fourth quarter of 2012. Realized phosphate sales prices were $560 per tonne this quarter, a $162 per tonne decrease from the same quarter last year. Phosphate cost of product sold was $576 per tonne in the fourth quarter of 2013, a $20 per tonne increase from the same period last year. The increase was due to higher costs at both of our phosphate facilities, partially due to higher ammonia costs resulting from higher natural gas costs. The increase in costs at the Redwater facility was largely due to higher rock input costs associated with the transition to imported rock, after economic reserves of this input from our Kapuskasing, Ontario mine were depleted in the second quarter of 2013. Gross margin was a loss of $16 per tonne in the fourth quarter of 2013, compared to a positive margin of $166 per tonne in the same period in 2012.

Gross profit from ammonium sulfate and other products was $12-million this quarter, a reduction of $14-million from the same period last year. This was due to lower realized sales prices and lower customer sales resulting from limited customer storage available this quarter. Product purchased for resale gross profit was a loss of $6-million this quarter, compared to a profit of $8-million in the fourth quarter of 2012 as a result of lower North American demand and lower global sales prices for nutrients.

Advanced Technologies

After conducting a strategic review of AAT in 2013, a decision was made in December 2013 to transition the Agriculture business of AAT back into our Wholesale business unit. The Agriculture business includes Environmentally Smart Nitrogen ("ESN") and Micronutrient products. Management has commenced with a divestment process for the Turf and Ornamental and Direct Solutions businesses. These businesses have been reported within discontinued operations. As a result, in 2013 we moved to two core strategic business units, Retail and Wholesale. The results reported for AAT in this press release represent only the Agriculture business that will be reported within Wholesale in the 2014 results; consequently these results are not directly comparable to years prior to 2012 as restated in this press release.

AAT reported a quarterly gross profit of $2-million in the fourth quarter of 2013, a decrease of $21-million from the $23-million reported in the same period last year. EBITDA was $3-million in the fourth quarter, a $15-million decrease from the same period last year. The lower year-over-year results were primarily due to lower than forecasted sales resulting from the later than expected fall application window and weak urea markets that impacted ESN margins.

Other

EBITDA for our Other non-operating business unit for the fourth quarter of 2013 was a loss of $94-million, compared to a loss of $2-million for the fourth quarter of 2012. The unfavorable change was primarily driven by:

• A $46-million unfavorable change in share-based payments, where there was a $28-million expense in the fourth quarter of 2013 compared to an $18-million recovery in the fourth quarter of 2012. This was largely caused by an appreciation of our share price during the fourth quarter of 2013 compared to a depreciation of our share price during the fourth quarter of 2012;
• A $7-million increase in gross profit elimination for the three months ended December 31, 2013 compared to the three months ended December 31, 2012 which reflected more inter-segment inventory held in our Retail business unit not yet sold to external customers;
• A $6-million unfavorable change on foreign exchange losses; and
• $6-million in Viterra acquisition costs.

OUTSTANDING SHARE DATA

The number of Agrium's outstanding shares at January 31, 2014 was approximately 144 million. At January 31, 2014, the number of shares issuable pursuant to stock options outstanding (issuable assuming full exercise, where each option granted can be exercised for one common share) was approximately nil.

SELECTED QUARTERLY INFORMATION
(millions of U.S. dollars, except per share amounts)			2013 Q4		2013 Q3		2013 Q2	2013 Q1		2012 Q4		2012 Q3		2012 Q2		2012 Q1
Sales			2,867		2,796		6,908	3,156		3,093		2,768		6,669		3,494
Gross profit			740		629		1,699	705		974		730		1,831		773
Net earnings from continuing operations			110		80		744	146		358		140		859		159
Net (loss) earnings from discontinued operations			(11	)	(4	)	3	(5	)	(4	)	(11	)	1		(4	)
Net earnings			99		76		747	141		354		129		860		155
Earnings per share from continuing operations attributable to equity holders of Agrium:
	Basic		0.74		0.54		5.00	0.98		2.37		0.87		5.44		0.99
	Diluted		0.74		0.54		5.00	0.98		2.36		0.87		5.43		0.99
(Loss) earnings per share from discontinued operations attributable to equity holders of Agrium:
	Basic		(0.08	)	(0.02	)	0.02	(0.04	)	(0.03	)	(0.07	)	-		(0.02	)
	Diluted		(0.08	)	(0.02	)	0.02	(0.04	)	(0.02	)	(0.07	)	0.01		(0.02	)
Earnings per share attributable to equity holders of Agrium:
	Basic		0.66		0.52		5.02	0.94		2.34		0.80		5.44		0.97
	Diluted		0.66		0.52		5.02	0.94		2.34		0.80		5.44		0.97

The agricultural products business is seasonal in nature. Consequently, comparisons made on a year-over-year basis are more appropriate than quarter-over-quarter comparisons. Crop input sales are primarily concentrated in the spring and fall crop input application seasons, which are in the second quarter and fourth quarter. Crop nutrient inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete.

BUSINESS ACQUISITION

We completed the acquisition of 100 percent of certain Retail Canadian and Australian agri-products assets of Viterra from Glencore International plc ("Glencore") on October 1, 2013. The acquired assets form part of our Retail business unit and include over 200 farm centers in Canada as well as distribution assets in Australia. Benefits of the acquisition include expansion of geographical coverage for the sale of crop inputs in Canada and Australia, acquisition of a significant customer base and talented workforce and synergies between Agrium and Viterra, including cost savings opportunities. We have recorded a purchase gain of $257-million representing the difference between the fair value of acquired net assets and the purchase price.

DISCONTINUED OPERATIONS

Following the settlement of litigation in December 2013, we received $75-million in the fourth quarter of 2013 for an insurance claim relating to a division of AWB Limited ("AWB"), that we acquired in 2010 and sold in 2011. We had not previously accrued a receivable for this claim because of the uncertainty of the outcome of the litigation. We incurred an additional $22-million of legal fees and additional settlements related to the sold division of AWB.

In December 2013, Agrium's Board of Directors approved the transition of parts of the AAT business unit, consisting of our ESN and Micronutrients operations to our Wholesale business unit. Management has commenced with a divestment process for components of the AAT business unit that we did not transition to Wholesale. We consider that a sale by December 2014 is highly probable. We have classified assets of the operations not transferred to Wholesale as held for sale, and have classified related results of operations as discontinued. Additionally, we recorded the assets held for sale at fair value less costs to sell which resulted in a $60-million post-tax write-down within discontinued operations primarily related to goodwill.

NORMAL COURSE ISSUER BID

On May 14, 2013, the Toronto Stock Exchange ("TSX") accepted Agrium's notice of intention to make a normal course issuer bid ("NCIB") whereby Agrium may purchase up to 7,472,587 common shares on the TSX and New York Stock Exchange during the period from May 21, 2013 to May 20, 2014 with a daily purchase limit of 133,301 common shares on the TSX. During the period from May 21, 2013 to December 31, 2013, we purchased approximately 5.8 million shares at an average share price of $86 for total consideration of approximately $498-million under our NCIB.

ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES

Certain financial measures in this press release are not prescribed by IFRS. We consider these financial measures discussed herein to provide useful information to both management and investors in measuring our financial performance and financial condition.

In general, an additional IFRS financial measure is a measure relevant to understanding a company's financial performance that is not a minimum measure mandated by IFRS. A non-IFRS financial measure generally either excludes or includes amounts that are not excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. Refer to the following tables for further discussion of how they are calculated and their usefulness to users including management. Non-IFRS financial measures are not recognized measures under IFRS and our method of calculation may not be directly comparable to that of other companies. These non-IFRS measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

The following table outlines our additional IFRS financial measures, their definitions and how management assesses each measure. As the measures set out below are presented in our consolidated financial statements included in this press release, they are classified as additional IFRS financial measures where they reflect consolidated Agrium, and are classified as non-IFRS financial measures where they do not reflect consolidated Agrium, including references to EBITDA when presented on an operating segment basis.

Additional IFRS financial measures		Definition		Management's assessment
EBIT		Earnings (loss) from continuing operations before finance costs and income taxes.		EBIT provides a supplemental measure used by management to: (1) evaluate the effectiveness of our businesses; (2) evaluate our ability to service debt; and (3) determine resource allocations. We believe EBIT is useful to investors, securities analysts and management, as the measure allows for an evaluation of segment performance exclusive of capital structure and income taxes, both of which are not a direct result of the efficiency of each business and are generally accounted for and evaluated on a consolidated basis.
Consolidated ROOCE (Consolidated return on operating capital employed)		Last 12 months' EBIT less income taxes at a tax rate of 27 percent (2012 - 28 percent) divided by rolling four quarter average operating capital employed. Operating capital employed includes non-cash working capital, property, plant and equipment, investments in associates and joint ventures, and other assets.		Consolidated ROOCE provides a measure of our operating performance and the efficiency of our capital allocation process over the long term. We believe this metric is useful in measuring and maximizing shareholder value in a growing company.
Consolidated ROCE (Consolidated return on capital employed)		Last 12 months' EBIT less income taxes at a tax rate of 27 percent (2012 - 28 percent) divided by rolling four quarter average capital employed. Capital employed includes operating capital employed, intangibles and goodwill.		Refer to ROOCE.

The following table outlines our non-IFRS financial measures, their definitions and usefulness, and how management assesses each measure.

Non-IFRS financial measures		Definition		Management's assessment
EBITDA		Earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization.		Refer to EBIT. This measure is also used by investors and securities analysts as a valuation metric and as an alternative to cash provided by operating activities.
Adjusted EBITDA		Earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization and before finance costs, income taxes, depreciation and amortization of joint ventures.		Refer to EBIT and EBITDA. Management believes that this metric provides useful comparative information on our profitability, as Adjusted EBITDA adds back finance costs, income taxes, depreciation and amortization of joint ventures.
EBITDA to sales		EBITDA divided by sales.		Metric is used to measure operating performance earnings and cash flow we generate from each dollar of sales. We believe this metric is useful in providing a basis to evaluate operating profitability that is comparable from period to period.
Retail - North America and Retail measures: return on operating capital employed; return on capital employed; average non-cash working capital to sales; and operating coverage ratio.		These measures when calculated using information from our Retail segment are considered non-IFRS financial measures as the specific Retail components are not separately presented in our consolidated financial statements or notes to the consolidated financial statements. See definitions for ROOCE and ROCE in the preceding Additional IFRS Financial Measures table.		Metrics are used by management to evaluate our Retail business. We believe these metrics are also useful to investors and securities analysts in evaluating operating performance of our Retail business.
Comparable store sales		Represents the increase or decrease in current period Retail store sales compared to the prior period. We include a location in the comparable store base once it is in operation or owned for over 12 months. If we close a store, we retain the sales of the closed location in the comparable store base if the closed location is in close geographical 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 make adjustments for temporary closures, expansions or renovations of stores.		Metric is commonly used in the retail and distribution industry. We believe this metric is useful in highlighting the performance of our existing stores by measuring the change in sales for such stores for a period over the comparable period of equivalent length.
Normalized comparable store sales		Comparable store sales normalized by using published nitrogen, phosphate and potash ("NPK") benchmark prices and adjusting current year prices to reflect pricing from the previous year based on our percent of NPK utilization by product.		Refer to comparable store sales. This metric removes fluctuations created by changes in commodity prices.

RECONCILIATIONS OF ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES

Return on operating capital employed and return on capital employed

				Rolling four quarters ended December 31, 2013							Rolling four quarters ended December 31, 2012
				Retail -							Retail -
(millions of U.S. dollars, except as noted)				North America		Retail		Consolidated Agrium			North America		Retail		Consolidated Agrium
EBIT less income taxes
	EBIT			940		748		1,630			719		757		2,216
	Income taxes at a tax rate of 27 percent (2012 - 28 percent)			254		202		440			201		212		620
				686		546		1,190			518		545		1,596
	Average operating capital employed
		Average non-cash working capital		1,715		2,337		2,698			1,642		2,276		2,539
		Average property, plant and equipment		726		852		4,244			593		708		3,029
		Average investments in associates and joint ventures		33		79		631			17		81		601
		Average other assets		5		15		104			5		19		44
				2,479		3,283		7,677			2,257		3,084		6,213
Return on operating capital employed (ROOCE) (%)				28	%	17	%	15	%		23	%	18	%	26	%
	Average capital employed
		Average operating capital employed		2,479		3,283		7,677			2,257		3,084		6,213
		Average intangibles		547		622		660			499		593		650
		Average goodwill		1,791		2,125		2,206			1,790		2,209		2,305
				4,817		6,030		10,543			4,546		5,886		9,168
Return on capital employed (ROCE) (%)				14	%	9	%	11	%		11	%	9	%	17	%

Adjusted EBITDA and EBITDA to EBIT

			Three months ended												Three months ended
			December 31, 2013												December 31, 2012
(millions of U.S. dollars)			Retail		Wholesale		AAT (1)			Other			Consolidated		Retail		Wholesale		AAT (1)		Other			Consolidated
Adjusted EBITDA			195		234		3			(94)			338		124		516		18		(2)			656
Equity accounted joint ventures:
	Finance costs and income taxes		-		19		-			-			19		-		17		-		-			17
	Depreciation and amortization		-		5		-			-			5		-		4		-		-			4
EBITDA			195		210		3			(94	)		314		124		495		18		(2	)		635
Depreciation and amortization			72		50		4			5			131		49		48		3		6			106
EBIT			123		160		(1	)		(99	)		183		75		447		15		(8	)		529

(1) Represents ESN and Micronutrients operations. See section "Discontinued Operations" above.

Retail comparable store sales and Retail normalized comparable store sales
		Twelve months ended December 31,
(millions of U.S. dollars, except as noted)		2013		2012
Retail sales from the current period comparable store base		11,234		11,182
Prior year Retail sales		11,479		10,315
Comparable store sales (%)		(2.1	%)	8.4	%
Current year sales normalized for NPK benchmark prices		12,000		11,147
Normalized comparable store sales (%)		4.5	%	8.1	%

OUTLOOK, KEY RISKS AND UNCERTAINTIES

Global grain and oilseed producers experienced an outstanding year of productivity in 2013. According to the United States Department of Agriculture ("USDA"), global grain and oilseed acreage and yields set new records, combining for record production. In the U.S., corn production set a new record and in Western Canada, wheat and canola production set new records and overall crop production was 27 percent above the previous record set in 2008. Record crop production was the result of favorable weather combined with strong market incentives to increase production.

Record crop production has resulted in significantly lower prices for most crops; however, prices remain high relative to other periods with record production. The combination of current crop prices and record U.S. net farm income in 2013 provide a strong incentive to plant historically high acreage again in 2014. Lower and more stable crop prices have resulted in robust grain demand growth, with the USDA projecting that global grain demand growth will be over 4 percent in 2013/14, which would be the highest annual growth since 1978/79 and over 1.5 percentage points above any year in the past decade, which was a period of very strong demand growth.

At current crop prices, North American spring crop area in 2014 is expected to be near 2013 levels, which is expected to support crop input demand and growers continuing to seek the top seed genetics available. Analysts expect that corn acreage will decline, but that the decline will mostly be offset by increased area of soybeans in the U.S. and canola in Western Canada. Crop nutrient shipments are expected to be strong in the first half of 2014, in part due to a shorter fall application season in 2013 due to weather.

The global urea market started to strengthen in early 2014, driven by strong demand in markets such as North America and Europe and supply constraints from some major export regions. Analysts project that a large volume of urea will need to be imported between now and the beginning of the application season due to the delayed demand at the beginning of the 2013/14 fertilizer year. U.S. offshore urea import levels in the first half of 2014 will likely need to meet or exceed record levels achieved in 2013. The relatively poor fall ammonia season is expected to result in increased demand for urea and UAN applications through the spring season. Stronger global urea prices may result in additional Chinese urea exports in the first half of 2014 due to the change in their export tariff this year but there has been limited response in terms of additional exports so far this year. North American nitrogen demand is projected to decline about 2 percent to 4 percent in 2013/14 due primarily to reduced corn acreage, while global nitrogen demand is projected to increase by 1.5 percent to 2 percent in 2014 from 2013 levels.

The global potash market was characterized by significant supply and demand uncertainty in 2013, but enters 2014 with more clarity and stability. The Chinese supply agreements with major suppliers reached in January 2014 has provided additional certainty to the market and pent up demand by other importing regions is expected to result in improved global import demand in the first half of 2014. Brazil imported record potash volumes of over 8 million tonnes in 2013 and import demand from Brazil is expected to remain strong in 2014. North American potash demand is projected to be relatively flat, to down 2 percent, from 2012/13 levels in 2013/14. We expect global potash shipments to increase from 54 million tonnes in 2013 to between 56 million and 58 million tonnes in 2014.

Phosphate prices have increased significantly since the end of November 2013, driven by strong demand, particularly in North and South America. The impact of stronger global demand has been amplified by turnarounds and unplanned shut-downs by some major producers. Global phosphate production costs have increased as global sulfur prices have more than doubled, driven by strong Chinese demand. Indian DAP imports are expected to improve in 2014 from depressed 2013 levels, but the timing and scale of imports continues to be a source of uncertainty to the phosphate market. North American phosphate demand in 2013/14 is projected to be flat to down 2 percent from 2012/13 levels, while global demand in 2014 is projected to increase by 2 to 4 percent from 2013 levels.

Forward-Looking Statements

Certain statements and other information included in this press release constitute "forward-looking information" within the meaning of applicable Canadian securities legislation or constitute "forward-looking statements" within the meaning of applicable U.S. securities legislation (collectively, the "forward-looking statements"). All statements in this press release other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to, statements as to management's expectations with respect to: future crop and crop input volumes, demand, margins, prices and sales; business and financial prospects; dividends and other plans, strategies, objectives and expectations, including with respect to future operations of Agrium and proposed acquisitions and divestitures and the growth and stability of our earnings. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such 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 in this press release. Although Agrium believes that these assumptions are reasonable, 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. The key assumptions that have been made in connection with the forward-looking statements include Agrium's ability to successfully integrate and realize the anticipated benefits of its already completed and future acquisitions, including the recently completed acquisition of certain Retail Agri-products assets of Viterra.

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 economic, market and business conditions, weather conditions including impacts from regional flooding and/or drought conditions; crop prices; the supply and demand and price levels for our major products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof, and political risks, including civil unrest, actions by armed groups or conflict, as well as counterparty and sovereign risk; and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. There is a risk that the Egyptian Misr Fertilizer Production Company nitrogen facility in Egypt may not be allowed to proceed with the completion of the two new facilities. Additionally, there are risks associated with Agrium's acquisition of AWB, including litigation risk resulting from AWB having been named in litigation commenced by the Iraqi Government relating to the United Nations Oil-For-Food Programme. There are risks associated with our acquisition of certain Retail Agri-products assets of Viterra, including: timing and costs of the associated integration of the retained Viterra Retail Agri-products assets, the size and timing of expected synergies could be less favorable than anticipated; disruption from the acquisition making it more difficult to maintain relationships with customers, employees and suppliers; our efforts to integrate Viterra's Retail Agri-products assets into our existing business could result in the disruption of our ongoing business and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. Furthermore, the potential divestiture of the Turf and Ornamental and Direct Solutions businesses and any potential financial gains or losses resulting from the completion of the strategic review process may differ materially from those in the forward-looking statements.

Agrium disclaims any intention or obligation to update or revise any forward-looking statements in this press release as a result of new information or future events, except as may be required under applicable U.S. federal securities laws or applicable Canadian securities legislation.

OTHER

Agrium Inc. is a major Retail supplier of agricultural products and services in North America, South America and Australia and a leading global Wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America. Agrium's strategy is to provide the crop inputs and services needed to feed a growing world. We focus on maximizing shareholder returns by driving continuous improvements to our base businesses, pursuing value-added growth opportunities across the crop input value chain and returning capital to shareholders.

A WEBSITE SIMULCAST of the 2013 4^th Quarter Conference Call will be available in a listen-only mode beginning Friday, February 21^st, 2014 at 7:30 a.m. MST (9:30 a.m. EST). Please visit the following website: www.agrium.com.

AGRIUM INC.
Consolidated Statements of Operations
(Millions of U.S. dollars, except per share amounts)
(Unaudited)
		Three months ended				Twelve months ended
		December 31,				December 31,
		2013		2012 (1)		2013		2012 (1)
Sales		2,867		3,093		15,727		16,024
Cost of product sold		2,127		2,119		11,954		11,716
Gross profit		740		974		3,773		4,308
Expenses
	Selling	511		438		1,876		1,697
	General and administrative	116		49		329		428
	Earnings from associates and joint ventures	(29	)	(22	)	(68	)	(91	)
	Purchase gain	(257	)	-		(257	)	-
	Goodwill impairment	220		-		220		-
	Other (income) expenses	(4	)	(20	)	43		58
Earnings before finance costs and income taxes		183		529		1,630		2,216
	Finance costs related to long-term debt	21		22		90		89
	Other finance costs	18		15		66		41
Earnings before income taxes		144		492		1,474		2,086
	Income taxes	34		134		394		570
Net earnings from continuing operations		110		358		1,080		1,516
Net loss from discontinued operations		(11	)	(4	)	(17	)	(18	)
Net earnings		99		354		1,063		1,498
Attributable to:
	Equity holders of Agrium	96		354		1,062		1,494
	Non-controlling interest	3		-		1		4
Net earnings		99		354		1,063		1,498
Earnings per share attributable to equity holders of Agrium
	Basic earnings per share from continuing operations	0.74		2.37		7.31		9.67
	Basic loss per share from discontinued operations	(0.08	)	(0.03	)	(0.11	)	(0.11	)
	Basic earnings per share	0.66		2.34		7.20		9.56
	Diluted earnings per share from continuing operations	0.74		2.36		7.31		9.67
	Diluted loss per share from discontinued operations	(0.08	)	(0.02	)	(0.11	)	(0.12	)
	Diluted earnings per share	0.66		2.34		7.20		9.55

(1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations.

AGRIUM INC.
Consolidated Statements of Comprehensive Income
(Millions of U.S. dollars)
(Unaudited)
						Three months ended						Twelve months ended
						December 31,						December 31,
						2013			2012			2013			2012
Net earnings						99			354			1,063			1,498
	Other comprehensive (loss) income
		Items that are or may be reclassified to earnings
			Available for sale financial instruments
				(Losses) gains		(4	)		1			(8	)		1
			Foreign currency translation differences
				(Losses) gains		(171	)		(33	)		(340	)		64
				Reclassifications to earnings		-			(1	)		-			(1	)
			Associates and joint ventures loss			(5	)		(2	)		(4	)		(3	)
						(180	)		(35	)		(352	)		61
		Items that will never be reclassified to earnings
			Post-employment benefits
				Actuarial (losses) gains		(3	)		15			45			(7	)
				Deferred income taxes		1			(4	)		(14	)		2
						(2	)		11			31			(5	)
	Other comprehensive (loss) income					(182	)		(24	)		(321	)		56
Comprehensive (loss) income						(83	)		330			742			1,554
Attributable to:
	Equity holders of Agrium					(84	)		331			743			1,550
	Non-controlling interest					1			(1	)		(1	)		4
Comprehensive (loss) income						(83	)		330			742			1,554

AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)
				Three months ended						Twelve months ended
				December 31,						December 31,
				2013			2012 (1)			2013			2012 (1)
Operating
	Net earnings from continuing operations			110			358			1,080			1,516
	Adjustments for
		Depreciation and amortization		131			106			472			413
		Earnings from associates and joint ventures		(29	)		(22	)		(68	)		(91	)
		Purchase gain		(257	)		-			(257	)		-
		Goodwill impairment		220			-			220			-
		Share-based payments		28			(18	)		(7	)		108
		Unrealized gain on derivative financial instruments		(1	)		-			(15	)		(17	)
		Unrealized foreign exchange (gain) loss		(2	)		10			-			2
		Interest income		(25	)		(26	)		(76	)		(91	)
		Finance costs		39			37			156			130
		Income taxes		34			134			394			570
		Other		5			(1	)		30			77
	Interest received			26			26			77			91
	Interest paid			(24	)		(10	)		(140	)		(108	)
	Income taxes paid			(71	)		(54	)		(663	)		(405	)
	Dividends from associates and joint ventures			1			10			28			13
	Net changes in non-cash working capital			1,036			409			536			(138	)
Cash provided by operating activities				1,221			959			1,767			2,070
Investing
	Acquisitions, net of cash acquired			(8	)		(136	)		(64	)		(213	)
	Acquisition of Viterra Inc.			328			(1,801	)		1,260			(1,801	)
	Capital expenditures			(548	)		(402	)		(1,755	)		(1,225	)
	Capitalized borrowing costs			(21	)		(9	)		(61	)		(26	)
	Investments in associates and joint ventures			-			-			-			(10	)
	Purchase of investments			(23	)		(7	)		(171	)		(14	)
	Proceeds from disposal of investments			17			-			82			-
	Other			53			(8	)		-			(56	)
	Net changes in non-cash working capital			(25	)		(17	)		28			43
Cash used in investing activities				(227	)		(2,380	)		(681	)		(3,302	)
Financing
		Short-term debt		(20	)		703			(511	)		1,098
		Long-term debt issued		-			500			1,010			521
		Transaction costs on long-term debt		-			(4	)		(14	)		(5	)
		Repayment of long-term debt		(2	)		(5	)		(522	)		(12	)
		Dividends paid		(110	)		-			(334	)		(115	)
		Shares issued		-			-			2			7
		Shares repurchased		(265	)		(913	)		(498	)		(913	)
Cash (used in) provided by financing activities				(397	)		281			(867	)		581
Effect of exchange rate changes on cash and cash equivalents				(2	)		(13	)		(24	)		37
Increase (decrease) in cash and cash equivalents from continuing operations				595			(1,153	)		195			(614	)
Cash and cash equivalents used in discontinued
operations				(49	)		(1	)		(52	)		(15	)
Cash and cash equivalents - beginning of period				255			1,812			658			1,287
Cash and cash equivalents - end of period				801			658			801			658

(1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations.

AGRIUM INC.
Consolidated Balance Sheets
(Millions of U.S. dollars)
(Unaudited)
			December 31,
			2013		2012 (1)
Assets
	Current assets
		Cash and cash equivalents	801		658
		Accounts receivable	2,105		2,224
		Income taxes receivable	78		32
		Inventories	3,413		3,094
		Advance on acquisition of Viterra Inc.	-		1,792
		Prepaid expenses and deposits	805		740
		Other current assets	104		-
		Assets held for sale	202		-
			7,508		8,540
	Property, plant and equipment		4,960		3,484
	Intangibles		738		636
	Goodwill		1,958		2,349
	Investments in associates and joint ventures		639		627
	Other assets		99		99
	Deferred income tax assets		75		70
			15,977		15,805
Liabilities and shareholders' equity
	Current liabilities
		Short-term debt	764		1,314
		Accounts payable	3,985		3,479
		Income taxes payable	2		137
		Current portion of long-term debt	58		518
		Current portion of other provisions	112		108
		Liabilities held for sale	44		-
			4,965		5,556
	Long-term debt		3,066		2,069
	Post-employment benefits		135		184
	Other provisions		426		413
	Other liabilities		59		79
	Deferred income tax liabilities		530		584
			9,181		8,885
	Shareholders' equity
		Share capital	1,820		1,890
		Retained earnings	5,253		4,955
		Accumulated other comprehensive (loss) income	(279	)	71
		Equity holders of Agrium	6,794		6,916
		Non-controlling interest	2		4
		Total equity	6,796		6,920
			15,977		15,805

(1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures.

AGRIUM INC.
Consolidated Statements of Shareholders' Equity
(Millions of U.S. dollars, except share data)
(Unaudited)
								Other comprehensive income
			Millions of common shares		Share capital		Retained earnings		Available for sale financial instruments		Foreign currency translation		Comprehensive loss of associates and joint ventures		Total		Equity holders of Agrium		Non-controlling interest		Total equity
December 31, 2011			158		1,994		4,420		(1	)	11		-		10		6,424		4		6,428
	Net earnings		-		-		1,494		-		-		-		-		1,494		4		1,498
	Other comprehensive income (loss), net of tax
		Post-employment benefits	-		-		(5	)	-		-		-		-		(5	)	-		(5	)
		Other	-		-		-		1		63		(3	)	61		61		-		61
	Comprehensive income (loss), net of tax		-		-		1,489		1		63		(3	)	61		1,550		4		1,554
	Dividends		-		-		(154	)	-		-		-		-		(154	)	-		(154	)
	Non-controlling interest transactions		-		-		-		-		-		-		-		-		(4	)	(4	)
	Shares repurchased		(9	)	(113	)	(800	)	-		-		-		-		(913	)	-		(913	)
	Share-based payment transactions		-		9		-		-		-		-		-		9		-		9
December 31, 2012			149		1,890		4,955		-		74		(3	)	71		6,916		4		6,920
	Net earnings		-		-		1,062		-		-		-		-		1,062		1		1,063
	Other comprehensive income (loss), net of tax
		Post-employment benefits	-		-		31		-		-		-		-		31		-		31
		Other	-		-		-		(8	)	(338	)	(4	)	(350	)	(350	)	(2	)	(352	)
	Comprehensive income (loss), net of tax		-		-		1,093		(8	)	(338	)	(4	)	(350	)	743		(1	)	742
	Dividends		-		-		(367	)	-		-		-		-		(367	)	-		(367	)
	Non-controlling interest transactions		-		-		(2	)	-		-		-		-		(2	)	(1	)	(3	)
	Shares repurchased		(5	)	(72	)	(426	)	-		-		-		-		(498	)	-		(498	)
	Share-based payment transactions		-		2		-		-		-		-		-		2		-		2
December 31, 2013			144		1,820		5,253		(8	)	(264	)	(7	)	(279	)	6,794		2		6,796

AGRIUM INC.
Supplemental Information 1a
Results by Segment
(Millions of U.S. dollars)
(Unaudited)
			Three months ended December 31,
			2013
									Advanced
			Retail			Wholesale			Technologies(1)			Other			Total
Sales	- external		2,099			711			57			-			2,867
	- inter-segment		3			252			10			(265	)		-
Total sales			2,102			963			67			(265	)		2,867
Cost of product sold			1,516			793			65			(247	)		2,127
Gross profit			586			170			2			(18	)		740
Gross profit (%)			28			18			3						26
Selling			504			11			1			(5	)		511
General and administrative			31			15			3			67			116
Earnings from associates and joint ventures			(2	)		(27	)		-			-			(29	)
Purchase gain			(257	)		-			-			-			(257	)
Goodwill impairment			220			-			-			-			220
Other (income) expenses			(33	)		11			(1	)		19			(4	)
EBIT (2)			123			160			(1	)		(99	)		183
EBITDA (3)			195			210			3			(94	)		314
Adjusted EBITDA (3)			195			234			3			(94	)		338
			Three months ended December 31,
						2012 (4)
									Advanced
			Retail			Wholesale			Technologies(1)			Other			Total
Sales	- external		1,971			1,058			64			-			3,093
	- inter-segment		4			215			13			(232	)		-
Total sales			1,975			1,273			77			(232	)		3,093
Cost of product sold			1,466			820			54			(221	)		2,119
Gross profit			509			453			23			(11	)		974
Gross profit (%)			26			36			30						31
Selling			431			11			1			(5	)		438
General and administrative			33			10			6			-			49
Earnings from associates and joint ventures			(2	)		(20	)		-			-			(22	)
Other (income) expenses			(28	)		5			1			2			(20	)
EBIT (2)			75			447			15			(8	)		529
EBITDA (3)			124			495			18			(2	)		635
Adjusted EBITDA (3)			124			516			18			(2	)		656

(1) Reflects the results of Environmentally Smart Nitrogen ("ESN") and Micronutrients businesses only. These results will be reflected in the Wholesale segment in subsequent disclosures.

(2) Earnings (loss) from continuing operations before finance costs and income taxes.

(3) Certain measures presented in this table are not recognized measures under IFRS. Refer to Supplemental Information 6.

(4) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations.

AGRIUM INC.
Supplemental Information 1b
Results by Segment
(Millions of U.S. dollars)
(Unaudited)
			Twelve months ended December 31,
			2013
							Advanced
			Retail		Wholesale		Technologies (1)			Other			Total
Sales	- external		11,896		3,612		219			-			15,727
	- inter-segment		17		727		44			(788	)		-
Total sales			11,913		4,339		263			(788	)		15,727
Cost of product sold			9,298		3,232		228			(804	)		11,954
Gross profit			2,615		1,107		35			16			3,773
Gross profit (%)			22		26		13						24
Selling			1,847		39		4			(14	)		1,876
General and administrative			116		65		16			132			329
(Earnings) loss from associates and joint ventures			(9	)	(61	)	1			1			(68	)
Purchase gain			(257	)	-		-			-			(257	)
Goodwill impairment			220		-		-			-			220
Other (income) expenses			(50	)	33		-			60			43
EBIT (2)			748		1,031		14			(163	)		1,630
EBITDA (3)			986		1,232		30			(146	)		2,102
Adjusted EBITDA (3)			986		1,286		30			(146	)		2,156
			Twelve months ended December 31,
							2012 (4)
							Advanced
			Retail		Wholesale		Technologies (1)			Other			Total
Sales	- external		11,457		4,368		199			-			16,024
	- inter-segment		22		690		65			(777	)		-
Total sales			11,479		5,058		264			(777	)		16,024
Cost of product sold			9,001		3,308		197			(790	)		11,716
Gross profit			2,478		1,750		67			13			4,308
Gross profit (%)			22		35		25						27
Selling			1,669		38		3			(13	)		1,697
General and administrative			122		42		19			245			428
Earnings from associates and joint ventures			(9	)	(80	)	(2	)		-			(91	)
Other (income) expenses			(61	)	57		2			60			58
EBIT (2)			757		1,693		45			(279	)		2,216
EBITDA (3)			951		1,883		58			(263	)		2,629
Adjusted EBITDA (3)			951		1,940		58			(263	)		2,686

(1) Reflects the results of ESN and Micronutrients businesses only. These results will be reflected in the Wholesale segment in subsequent disclosures.

(2) Earnings (loss) from continuing operations before finance costs and income taxes.

(3) Certain measures presented in this table are not recognized measures under IFRS. Refer to Supplemental Information 6.

(4) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations.

AGRIUM INC.
Supplemental Information 2
Product Lines
(Millions of U.S. dollars)
(Unaudited)
		Three months ended December 31,												Twelve months ended December 31,
		2013						2012 (4)						2013						2012 (4)
				Cost of						Cost of						Cost of						Cost of
				product		Gross				product		Gross				product		Gross				product		Gross
		Sales		sold (1)		profit		Sales		sold (1)		profit		Sales		sold (1)		profit		Sales		sold (1)		profit
Retail (2)
	Crop nutrients	1,052		874		178		1,096		941		155		4,993		4,154		839		5,124		4,303		821
	Crop protection products	511		306		205		491		288		203		4,204		3,217		987		3,924		2,996		928
	Seed	95		35		60		105		62		43		1,258		984		274		1,189		949		240
	Merchandise	228		198		30		132		111		21		612		518		94		524		431		93
	Services and other	216		103		113		151		64		87		846		425		421		718		322		396
		2,102		1,516		586		1,975		1,466		509		11,913		9,298		2,615		11,479		9,001		2,478
Wholesale
	Nitrogen	415		286		129		544		251		293		1,724		1,052		672		2,012		937		1,075
	Potash	107		68		39		153		74		79		564		294		270		618		276		342
	Phosphate	159		163		(4	)	201		154		47		654		587		67		797		598		199
	Product purchased for resale	240		246		(6	)	310		302		8		1,131		1,122		9		1,347		1,316		31
	Ammonium sulfate and other	42		30		12		65		39		26		266		177		89		284		181		103
		963		793		170		1,273		820		453		4,339		3,232		1,107		5,058		3,308		1,750
Advanced Technologies (3)		67		65		2		77		54		23		263		228		35		264		197		67
Other inter-segment eliminations		(265	)	(247	)	(18	)	(232	)	(221	)	(11	)	(788	)	(804	)	16		(777	)	(790	)	13
Total		2,867		2,127		740		3,093		2,119		974		15,727		11,954		3,773		16,024		11,716		4,308
Wholesale equity accounted joint ventures:
	Nitrogen	72		49		23		79		46		33		234		173		61		286		166		120
	Product purchased for resale	35		32		3		34		30		4		119		111		8		108		98		10
		107		81		26		113		76		37		353		284		69		394		264		130
Total Wholesale including equity accounted joint ventures		1,070		874		196		1,386		896		490		4,692		3,516		1,176		5,452		3,572		1,880

(1) Includes depreciation and amortization.

(2) International Retail sales were $559-million (2012 - $519-million) and gross profit was $125-million (2012 - $109-million) for the three months ended December 31. International Retail sales were $2,584-million (2012 - $2,482-million) and gross profit was $461-million (2012 - $456-million) for the twelve months ended December 31.

(3) Reflects the results of ESN and Micronutrients businesses only. These results will be reflected in the Wholesale segment in subsequent disclosures.

(4) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations.

AGRIUM INC.
Supplemental Information 3a
Selected Volumes and Sales Prices
(Unaudited)
				Three months ended December 31,
				2013					2012 (1)
						Cost of					Cost of
				Sales	Selling	product			Sales	Selling	product
				tonnes	price	sold	Margin		tonnes	price	sold	Margin
				(000's)	($/tonne)	($/tonne)	($/tonne)		(000's)	($/tonne)	($/tonne)	($/tonne)
Retail
	Crop nutrients
		North America		1,590	548				1,355	669
	International			364	500				327	578
	Total crop nutrients			1,954	539	447	92		1,682	651	560	91
Wholesale
	Nitrogen
		North America
			Ammonia	383	561				328	677
			Urea	337	410				431	558
			Other	187	331				207	383
	Total nitrogen			907	458	314	144		966	561	257	304
	Potash
		North America		255	353				255	491
		International		89	199				86	326
	Total potash			344	313	201	112		341	449	216	233
	Phosphate			285	560	576	(16	)	279	722	556	166
	Product purchased for resale			648	370	379	(9	)	646	481	468	13
	Ammonium sulfate			81	303	182	121		83	432	172	260
	Other			43					62
Total Wholesale				2,308	417	343	74		2,377	536	345	191
Wholesale equity accounted joint ventures:
	Nitrogen
		International		180	400	272	128		157	502	279	223
	Product purchased for resale			86	407	372	35		79	429	379	50
				266	402	304	98		236	480	324	156
Total Wholesale including equity accounted joint ventures				2,574	416	340	76		2,613	530	342	188

(1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures.

AGRIUM INC.
Supplemental Information 3b
Selected Volumes and Sales Prices
(Unaudited)
					Twelve months ended December 31,
					2013						2012 (1)
							Cost of				Cost of
					Sales	Selling	product		Sales	Selling	product
					tonnes	price	sold	Margin	tonnes	price	sold	Margin
					(000's)	($/tonne)	($/tonne)	($/tonne)	(000's)	($/tonne)	($/tonne)	($/tonne)
Retail
	Crop nutrients
		North America			6,812	591			6,622	634
		International			1,806	535			1,535	605
	Total crop nutrients				8,618	579	482	97	8,157	628	527	101
Wholesale
	Nitrogen
		North America
			Ammonia		1,219	627			1,188	627
			Urea		1,270	490			1,511	581
			Other		903	374			1,030	377
	Total nitrogen				3,392	508	310	198	3,729	539	251	288
	Potash
		North America			877	421			819	534
		International			654	298			473	383
	Total potash				1,531	369	193	176	1,292	479	214	265
	Phosphate				1,026	638	573	65	1,095	728	547	181
	Product purchased for resale				2,687	421	418	3	2,930	460	449	11
	Ammonium sulfate				328	383	191	192	327	423	203	220
	Other				285				292
Total Wholesale					9,249	469	349	120	9,665	523	342	181
Wholesale equity accounted joint ventures:
	Nitrogen
			International		540	433	320	113	556	514	298	216
	Product purchased for resale				304	392	365	27	264	411	373	38
					844	418	336	82	820	481	322	159
Total Wholesale including equity accounted joint ventures					10,093	465	348	117	10,485	520	341	179

(1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures.

AGRIUM INC.
Supplemental Information 4
Depreciation and Amortization
(Millions of U.S. dollars)
(Unaudited)
			Three months ended December 31,
			2013												2012 (2)
			Cost of product sold		Selling		General and administrative		Total		Cost of product sold		Selling		General and administrative		Total
Retail			1		68		3		72		3		44		2		49
Wholesale
	Nitrogen		25								15
	Potash		11								11
	Phosphate		12								21
	Ammonium sulfate and other		2								1
			50		-		-		50		48		-		-		48
Advanced Technologies (1)			3		-		1		4		3		-		-		3
Other			-		-		5		5		-		-		6		6
Total			54		68		9		131		54		44		8		106

			Twelve months ended December 31,
			2013												2012 (2	)
			Cost of				General				Cost of				General
			product				and				product				and
			sold		Selling		administrative		Total		sold		Selling		administrative		Total
Retail			5		222		11		238		7		169		18		194
Wholesale
	Nitrogen		77								61
	Potash		50								41
	Phosphate		53								77
	Product purchased for resale		1								1
	Ammonium sulfate and other		6								5
			187		-		14		201		185		-		5		190
Advanced Technologies (1)			13		-		3		16		10		-		3		13
Other			-		-		17		17		-		-		16		16
Total			205		222		45		472		202		169		42		413

(1) Reflects the results of ESN and Micronutrients businesses only. These results will be reflected in the Wholesale segment in subsequent disclosures.

(2) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations.

AGRIUM INC.
Supplemental Information 5 (1)
Selected Financial Measures
(Millions of U.S. dollars, unless stated otherwise)
(Unaudited)
	Rolling four quarters ended December 31,
	2013					2012
	Retail			Consolidated Agrium		Retail		Consolidated Agrium (2)
Return on operating capital employed (%) (3a)	17			15		18		26
Return on capital employed (%) (3b)	9			11		9		17
Average non-cash working capital to sales (%)	20			17		20		16
Operating coverage ratio (%) (3c)	71			57		69		49
EBITDA to sales (%) (3d)	8			13		8		16
	December 31,
	2013					2012
	Retail			Consolidated Agrium		Retail		Consolidated Agrium (2	)
Non-cash working capital	2,083			2,302		2,067		2,366
	Twelve months ended December 31,
	2013					2012
	Retail					Retail
Comparable store sales (%)	(2	)				8
Normalized comparable store sales (%)	5					8
North America measures	Rolling four quarters ended December 31,
	2013					2012
	Retail					Retail
Return on operating capital employed (%) (3a)	28					23
Return on capital employed (%) (3b)	14					11
EBITDA to sales (%) (3d)	12					10

(1) Certain measures presented in this table are not recognized measures under IFRS. Refer to Supplemental Information 6.
(2) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations.
(3) Adjusted 2013 amounts removing the impact of the purchase gain and goodwill impairment.
	(a) Retail 16%, Retail - North America 20%, Consolidated Agrium 15%.
	(b) Retail 9%, Retail - North America 10%, Consolidated Agrium 11%.
	(c) Retail 73%, Consolidated Agrium 58%.
	(d) Retail 8%, Retail - North America 9%, Consolidated Agrium 13%.

AGRIUM INC.
Supplemental Information 6 (1)
Accompanying Notes to Supplemental Information
IFRS Financial Measure		Definition
Average non-cash working capital to sales (2)		Rolling four quarter average non-cash working capital divided by sales.
Operating coverage ratio (2)		Gross profit less earnings (loss) from continuing operations before finance costs and income taxes, divided by gross profit.
Non-cash working capital (2)		Current assets less current liabilities, excluding cash and cash equivalents, advance on acquisition of Viterra Inc., other current assets, short-term debt, current portion of long-term debt and current assets and liabilities held for sale.
		Definition		Usefulness of Additional or Non-IFRS Financial Measure
Additional IFRS Financial Measure (As defined in Canadian Securities Administrators' Staff Notice 52-306 (Revised))
EBIT		Earnings (loss) from continuing operations before finance costs and income taxes		Used to measure operating performance exclusive of capital structure and income taxes
Return on operating capital employed (2)		Last 12 months' EBIT less income taxes at a tax rate of 27 percent (2012 - 28 percent) divided by rolling four quarter average operating capital employed. Operating capital employed includes non-cash working capital, property, plant and equipment, investments in associates and joint ventures and other assets.		Used to measure operating performance and efficiency of our capital allocation process.
Return on capital employed (2)		Last 12 months' EBIT less income taxes at a tax rate of 27 percent (2012 - 28 percent) divided by rolling four quarter average capital employed. Capital employed includes operating capital employed, intangibles and goodwill.		Used to measure operating performance and efficiency of our capital allocation process.
Non-IFRS Financial Measure
EBITDA		Earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization.		Refer to EBIT. Also used as a valuation metric and as an alternative to cash provided by operating activities.
Adjusted EBITDA		Earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization and before finance costs, income taxes, depreciation and amortization of joint ventures.		Refer to EBIT and EBITDA. Provides useful information on our profitability by adding back finance costs, income taxes, depreciation and amortization of joint ventures.
EBITDA to sales		Earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization divided by sales.		Used to measure operating performance earnings and cash flow we generate from each dollar of sales.
Comparable store sales		We include a location in the comparable store base once it is in operation or owned for over 12 months. If we close a store, we retain the sales of the closed location in the comparable store base if the closed location is in close geographical 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 make adjustments for temporary closures, expansions or renovations of stores.		Used to measure the performance of our existing stores by measuring the change in sales for such stores over the comparable period
Normalized comparable store sales		Comparable store sales normalized by using published nitrogen, phosphate and potash ("NPK") benchmark prices and adjusting current year prices to reflect pricing from the previous year based on our percent of NPK utilization by product.		Used to measure the performance of our existing stores by measuring the change in sales for such stores over the comparable period

(1) Our definitions and our method of calculation for these measures may not be directly comparable to similar measures presented by other companies.

(2) These measures are IFRS measures or additional IFRS measures when calculated using information included in our consolidated financial statements. They are classified as non-IFRS measures when calculated using information from our Retail segment because the specific components are not included in our financial statements or notes.